The first reading of a supplemental agreement ordinance between the City of Rolla and the Move Rolla Transportation Development District was approved by the Rolla City Council and will be up for discussion again at the Oct. 7 meeting.
The Move Rolla Transportation Development District entered into an intergovernmental cooperation agreement with the City of Rolla in March 2017.
Through the agreement, the city was authorized to act as the project manager and fiscal agent on behalf of the Move Rolla Transportation Development District in the series of Transportation Developmental District projects, Rolla City Administrator John Butz said.
The series of projects included the Highway 72 extension, the Rolla West Master Plan access roads, Highway E pedestrian bridge, Kingshighway, 10th Street, Bishop Avenue calming and the relocation of University Drive.
One of the conditions of the Highway 72 extension and Kingshighway interchange was to set aside up to $1.5 million of project matching funds for future Kingshighway interchange improvements, Butz said.
“The commitment is funded by the $32 million Transportation Development District Bond program that required all such funds to be spent within five years of issuance to qualify as tax-exempt bonds,” Butz said.
The Move Rolla Transportation Development District Board recently approved the supplemental agreement to expend $1.5 million in Transportation Development District bond funds with the city for eligible transportation projects.
Meanwhile, the City of Rolla is obligated to spend up to $1.5 million in cooperation with Missouri’s Department of Transportation and the Federal Highway Administration on the Kingshighway interchange if such improvements are needed in the future, Butz said.
“The city wouldn’t be obligated to go beyond that ($1.5 million). We will be holding those dollars as a trust on behalf of the Move Rolla Transportation Development District,” Butz said.
Then the city isn’t subject to the time limit of two and one-half years to spend the $1.5 million. The city will be able to hold the money for up to 15 years if there is a future issue that arises, Butz said.
“If we wanted to hold that for some future use, the city would invest the money in an interest-bearing account,” Butz said.
Ultimately the City Council will decide how to hold the $1.5 million, Butz said.