Agenda Item:

            52       

                            COUNCIL COMMUNICATION

                                      City Manager’s Office

GENERAL INFORMATION

Agenda Date:               10/24/2005                                                                  Communication No.: 05-596

Agenda Item Type:       Resolution                                                                    Roll Call No.:  

Submitted by:               Richard A. Clark, Acting City Manager

SUBJECT—

Approving Vision Iowa Program Grant Award Agreement for the construction of the Rediscovering the Rivers Project (Principal Riverwalk and Meredith Trail).

SYNOPSIS—

The State Vision Iowa Board and City have negotiated the terms of the Vision Iowa Program Grant Award Agreement that provides $4,000,000 for the Principal Riverwalk. 

FISCAL IMPACT—

$4,000,000 Vision Iowa Program Grant – Fund CP040, Organization PKS990000, Project PKS162

RECOMMENDATION—

Approval

BACKGROUND—

On August 25, 2003, by Roll Call 03-2011, the City Council authorized the submittal of a Vision Iowa Grant application for $5 million.  On December 17, 2003, the Vision Iowa Board approved a grant of $4 million.  The terms of the agreement have been negotiated between the City and the Vision Iowa Board.  The Vision Iowa Board approved the agreement at its meeting on October 12, 2005. 

The Vision Iowa grant agreement is in effect for 21 years and requires the City to abide by several terms, including: 

• The City shall cause the Project to be operated and maintained, at a professional level consistent with the highest standards for 21 years. 
• The project must be built on property that is owned by the City or that the City has a permanent easement over. 
• The project value is currently $38,900,000. 
• The project includes:  Meredith Trail (fka Riverpoint Trail), Des Moines Union Railway Bridge, Center Street Bridge, Multipurpose Trail, Pedestrian Promenade, Civic Gardens, Brenton and Ice Skating Plaza, Court Avenue Plaza East and West. 
• Principal Life Insurance Company provided a financial commitment and guarantee totaling $21.9 million, which includes the Principal financial commitment, and guarantees of private third party contributions, non-appropriated Federal and private third party contributions, as well as all funding needed to complete the project in the event the total cost exceeds $38.9 million.
• With the exception of the Center Street pedestrian bridge, the project must be fully constructed and operational by December 31,2009.  The Center Street pedestrian bridge shall be completed by June 30, 2010. 

To receive disbursements, the City must certify the percentage of total cost that has been paid for with Vision Iowa Grant. Vision Iowa funds are disbursed based on the Vision Iowa Grant Percentage of 10.28%.