Background:
RDIP, LLC, more commonly known as Russell, is the property owner of 8730 Northwest Boulevard. Russell has designed a 95-acre industrial park at the property with the construction of Zenith Avenue and West 83rd Street as well as improvements to 90th Street and Northwest Boulevard.
The State of Iowa RISE Program has grant and loan funding available through the Local Development Project Funding to support economic development for projects, such as the build-out of an industrial park, that do not require an immediate commitment of jobs. Projects typically require 50% matching funds. Only cities and counties can submit RISE applications. As such, developers are encouraged to work with county or city governments in seeking funding for projects.
Russell requested the City submit an application for roadways within and improvements near the Russell Industrial Park. If the project is awarded funding by the Iowa DOT in the amount of 50% of the approved street development project costs, Russell has agreed to make an upfront cash donation to the City in the amount of the 50% of the approved street development project costs as well as 100% of costs not covered by the Iowa DOT. The Resolution considering the economic development agreement with the City and Russell is on this agenda.
Working with the City, Russell has identified the following street infrastructure improvements to be made:
- Zenith Avenue: new road construction on the southern half of the industrial park
- Northwest Boulevard: roadway widening, left turn lane onto newly constructed Zenith Avenue and installation of traffic signal
- Northwest Boulevard & West 90th Street: right turn lane at intersection
- West 83rd Street: roadway reconstruction and extension on southern boundary of industrial park.
The estimated cost of these improvements is $3,214,469.00.
As required by the Iowa DOT, the applicant (the City) must pledge a City source of funding to pay for any expenses not awarded through the RISE program. As such the City is pledging local option sales tax.
Note, the City's pledge of local option sales tax is a formality. The economic development agreement with Russell commits the financial responsibility of this street development project to Russell.