BACKGROUND/DISCUSSION:
On April 6, 2021, the City approved a Development Agreement with Fuel City Saginaw, LLC (Fuel City) to fund Subsurface Utility Engineering (SUE) for the FM 156 (Blue Mound Road) and Industrial Avenue intersection (Project). Fuel City led an effort to secure authorization of the Project through the Texas Department of Transportation (TxDOT) to improve the intersection of FM 156 and Industrial Avenue. The project was funded through the North Central Texas Council of Governments COVID-19 #00X Infrastructure Program.
The City of Saginaw is taking the lead as the Local Sponsor although Fuel City, City of Fort Worth, Tarrant County and potentially the City of Blue Mound will be participants requiring one or more Development Agreements with Fuel City, and Interlocal Agreements (ILA’s) for the phases of work. In addition, an Advance Funding Agreement (AFA) with TxDOT that is also on the Agenda for Council to consider. The AFA is cover the design and environmental and will be amended for the construction phase securing the local funding for the project.
Utility relocations and right-of-way costs are undetermined at this time, and as the design of the project progresses, those costs will be determined and budgets updated prior to amending the AFA with TxDOT
The proposed amendment to the Development Agreement will further define the obligations of Fuel City and the City as described below:
City’s obligations:
- Commit to funding their proportional share of the local match of the construction cost
- Commit to acquire the necessary right of way for the Project
- Commit to relocate utilities as necessary for the Project
Fuel City Saginaw obligations:
- Commit to funding the Project design, environmental, and project management
- Commit to donating the Fuel City Saginaw ROW (upon City fulfilling its obligations)
FINANCIAL IMPACT:
The Financial Impact is estimated at $354,828.50. Funds are available in the Combination Tax and Revenue Certificates of Obligation authorized on August 18, 2020. $354,828.50 will be allocated from the McLeroy/Bus. 287 Traffic Signal.
RECOMMENDATION:
Staff recommends approval of Amendment #1 to the Development Agreement With Fuel City Saginaw, LLC for Intersection Improvements on Blue Mound Road (FM 156) and Industrial Blvd.