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5.5 BASE 2.0 Grant ApplicationsCITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 01/23/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: 5 BY: (fl— ITEM CITY MANAGER'S OFFICE ) FINAL APPROVAL: NO: 5 !,/ : Jacob Wood, � BY: Page 1 BY Deputy City Manaaer ITEM: Authorize staff to collaborate with Saline County for the submission of BASE 2.0 grant applications for Magnolia Road and Holmes Road upgrade projects and commit $1.5 million as cash match for each application. BACKGROUND: In February of 2022, the City Commission authorized staff to submit applications to the Building a Stronger Economy (BASE) grant program. The City was limited to three applications and submitted applications for the Drever Housing Project, Holmes Road improvements and the Aero Planes Housing Development. The City did not receive any funding from the BASE program in 2022, but the application for the Drever project served as the basis for $25 million in housing funds that was allocated by the Legislature in May of 2022. On January 3, 2023, the Department of Commerce released information about the next round of BASE grants. The original round of BASE funding made $100 million available to applicants. The state has allocated $50 million for BASE 2.0. The City of Salina is not eligible for BASE 2.0 because of the direct allocation for housing that was approved by the legislature in 2022. Saline County is eligible to submit three applications and staff have been in communication about the submission of applications for projects with the understanding that matching funds would be provided by the City. The parameters of BASE 2.0 were outlined in a webinar that was held on January 6, 2023 giving staff a short timeframe to identify applicable projects and coordinate with Salina County Staff. Grant applications are due on January 31, 2023. This round of funding, like the first, requires a 25% match. In response to guidance from the Department of Commerce, staff is recommending that applications include a larger cash match and a smaller overall funding request. Most of the funding requests that were approved in the first round of the program where in the $3 to $5 million range. The details of the identified projects are outlined below: Magnolia Road: Critical Perimeter Road Upgrade/Reconstruction: The City is seeking $3.5 million in BASE grant funding to improve Magnolia Road with a $1.5 million cash match for a total project cost of $5 million. This project would upgrade Magnolia Road from 1- 135 for approximately 2,300 feet to the west. This would include a roundabout at Virginia Drive, upgrading to a three -lane roadway with medians and turn lanes and replacing the bridge/expanding the box culvert. Holmes Road: Critical Perimeter Road Upgrades Required for Housing: The City is seeking $3.5 million in BASE grant funding to improve portions of Holmes Road with a $1.5 million cash match for a total project cost of $5 million. This project would upgrade the currently gravel road to a City street standard in a few sections of Holmes Road that are adjacent to the property that is most likely to develop into housing in the near future. This would include a half mile section starting at Magnolia Road and running north, and a section running a half mile north and south of Crawford Street. AGENDA SECTION NO: ITEM NO: Page 2 CITY OF SAL.INA REQUEST FOR CITY COMMISSION ACTION DATE TIME 01/23/2023 4:00 P.M. ORIGINATING DEPARTMENT: CITY MANAGER'S OFFICE BY: Jacob Wood, DeDuty Citv FISCAL APPROVAL: WA FINAL APPROVAL: M FISCAL NOTE: If the grants are awarded, the funding for the project(s) could come from various sources that could include fund balances in the General fund or Sales Tax Capital fund, APRA funds, gas tax proceeds, KDOT federal Exchange funds, or a combination of these funds. The project(s) could also be debt financed. Staff will provide more detailed funding options if the grant is awarded to the City. RECOMMENDED ACTION: 1. Authorize staff to collaborate with Saline County for the submission of BASE 2.0 grant applications for Magnolia Road and Holmes Road upgrades projects and commit $1.5 million as cash match for each application. 2. Authorize staff to collaborate with Saline County for the submission of BASE 2.0 grant applications for Magnolia Road and Holmes Road upgrades with amendments as the City Commission deems appropriate. 3. Deny authorization of the submission of BASE 2.0 grant applications. Staff recommends Option # 1. Attachments: Project Area Maps Magnolia Road: Critical Perimeter Road Upgrade/Reconstruction: ...................... Holmes Road: Critical Perimeter Road Upgrades Required for Housing: