Title
Apply for U.S. Department of Transportation Better Utilizing Investments to Leverage Development Grant Opportunity for Federal Fiscal Year 2024-25 - Federal Bipartisan Infrastructure Law Funding (Ordinance S-51621) - District 2
Description
Request to retroactively authorize the City Manager, or his designee, to apply for, accept, and if awarded, enter into an agreement for disbursement of Federal funding from the U.S. Department of Transportation (USDOT) through the Federal Fiscal Year (FFY) 2024-25 Better Utilizing Investments to Leverage Development (BUILD) grant opportunity. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. Funding for this grant opportunity is available through the Federal Bipartisan Infrastructure Law. The total grant funds applied for will not exceed $25 million. The City’s local match would not exceed $11 million. Additionally request, if awarded, to enter into separate agreements with Arizona State University and Mayo Clinic regarding their financial commitments.
Report
Summary
The Street Transportation Department is submitting a capital construction application grant to advance the detailed design of a new 1.2-mile multi-lane roadway on 64th Street from Bell Road to Mayo Boulevard. It would also provide the funding to construct the new roadway, including a new roadway bridge across the Central Arizona Project (CAP) Canal that would connect Phoenix residents south of the canal to a growing educational, medical, and commercial area north of the canal to Mayo Boulevard. In addition to the new roadway connection, the project would include multi-modal amenities, including bike lanes and pedestrian facilities, streetlights, traffic signals, and drainage improvements. The project will include a public-private partnership with both Arizona State University and Mayo Clinic with a combined financial commitment of approximately $4 million.
USDOT issued a Notice of Funding Opportunity (NOFO) for the FFY 2024-25 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program on November 1, 2024 and an amended NOFO on January 24, 2025, re-naming the program from RAISE to BUILD. The deadline for application submittal is January 30, 2025. BUILD grants are awarded on a competitive basis considering these evaluative criteria:
- Safety.
- Environmental sustainability.
- Quality of life.
- Mobility and community connectivity.
- Economic competitiveness and opportunity.
- State of good repair.
- Partnership and collaboration.
- Innovation.
The FFY 2024-25 BUILD planning grant specifies no minimum award amount for urban projects and no greater than $25 million.
Financial Impact
The estimated total cost for the project is approximately $40 million. The maximum federal participation rate is 80 percent, with a minimum local match of 20 percent of the total eligible project cost. If awarded, the Federal match would not exceed $25 million (62.5 percent), and the City’s cost would be approximately $11 million (27.5 percent) for the local match. A separate public-private partnership agreement with Arizona State University and Mayo Clinic would be required for their participation of approximately $4 million combined (10 percent) toward the capital construction grant.
Funding for the local match is available in the Street Transportation Department's budget. Potential grant funding received is available through the Federal Bipartisan Infrastructure Law, from USDOT through the FFY 2024-25 BUILD grant opportunity.
Location
Council District: 2
Department
Responsible Department
This item is submitted by Deputy City Managers Inger Erickson and Mario Paniagua, and the Street Transportation Department.