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1c. Fire Station Construction Grant CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us 11$ .......~ '. .-t- _~ '."...t~.",,, =:;rt:.~:f'4';"~ TO: Todd Gerhardt, City Manager FROM: Laurie Hokkanen, Assistant City Manager DATE: ~' ' t~, - '"-,,~, . Fire Station Construction Grant June 22, 2009 SUBJ: PROPOSED MOTION The City Council moves to submit an application to the A.R.R.A. Assistance to Firefighters Fire Station Construction Grant in the amount of $1 million, representing 50% of the construction costs. BACKGROUND Through the American Recovery and Reinvestment Act (A.R.R.A.), funding for the construction of fire stations has become available. The Assistance to Firefighters Fire Station Construction Grant, administered by Homeland Security, will award $210 million for the renovation and construction of fire stations. The City of Chanhassen has been planning for a third fire station since 2003. Land for the station was acquired in 2007, when the City Council approved the purchase of 2.4 acres of excess right-of-way from MnDOT for a total of $114,700.24. Sewer and water was also extended to the site. The site is located on Lyman Boulevard, between Powers Boulevard and Highway 101. This location is needed to serve new developments in the southern portion of Chanhassen, including Chanhassen High School, the Preserve and Liberty on Bluff Creek neighborhoods, Crossroads of Chanhassen, etc. The estimated cost of the fire station is $2 million dollars for the building and $1 million dollars in equipment. Equipment is not an eligible cost under this grant program. The grant program does not require a specific matching dollar amount. However, applications that provide local funding will be scored higher than those that do not. Staff proposes to apply for $1 million dollars in grant money, resulting in a 50/50 split. If awarded, the City would need to either bond for or internally borrow the required match. We anticipate using the proceeds of the Public Works Building to repay such debts. At present, we do not have a buyer for the building, so the date of that reimbursement is unknown. Staff believes that the 50/50 split is an important element to strengthening our application, as DHS anticipates receiving $30 billion in requests for $210 million of available funding. Chanhassen is a Community for life - Providing for Today and Planning for Tomorrow Mr. Todd Gerhardt June 22, 2009 Page 2 If awarded the funds, the City would be committed to provide the pledged cost share, follow all A.R.R.A. guidelines (Buy America, Davis-Bacon, etc), and complete the project within 36 months of award. RECCOMENDA TION Staff recommends that the City proceed with applying for the A.R.R.A. Assistance to Firefighters Fire Station Construction Grants program, for an amount of 50% ($1 million) of the project costs for the construction of Chanhassen Fire Station #3.