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VI-10
emo
To: Mayor Hicks and City Council
From: John Hinzman, Planning Director
Date: December 3, 2007
Subject: 2008 CDBG Budget Application
REQUEST
The City Council is asked to adopt the attached resolution authorizing submittal of the 2008
Community Development Block Grant (CDBG) Application to Dakota County CDA.
The $75,000 estimated allocation is budgeted as follows:
• $60,000 -Assessment Abatement -Assistance for low and low\moderate income
homeowners with assessments from the 3`d Street Public improvements Project.
• $15,000 -Housing Rehabilitation -Funding for housing rehabilitation of owner
occupied and rental units in and around downtown.
ATTACHMENTS
Resolution
• Application
>'
HASTINGS CITY COUNCIL
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO.
A RESOLUTION APPROVING THE APPLICATION OF THE
OF THE CITY OF HASTINGS FOR FISCAL YEAR 2008 DAKOTA COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING
WHEREAS, the City of Hastings is a participating jurisdiction with the Dakota County
CDBG Entitlement Program for Fiscal Year 2008 (ending June 30, 2009); and
WHEREAS, the Dakota County Community Development Agency (CDA) is a
Subgrantee of Dakota County for the administration of the CDBG Program; and
WHEREAS, the Dakota County CDA has requested fiscal year 2008 CDBG
applications to be submitted by December 14, 2007, based on a district formula allocation
of funds approved in the 1984 Community Development Implementation Plan.
NOW, THEREFORE, BE IT RESOLVED that the City of Hastings hereby approves the
following:
1-. The Fiscal Year 2008 CDBG application is approved_for submission to the Dakota
County CDA. - - _ . .. -
2. The_ City Council and City Administrator are authorized to execute the application
and a-I agreements and documents related to receiving and using the awarded
-CDBG funds.
3. The Dakota County CDA is designated as the administrative entity to carry out the
CDBG program on behalf o the City/Township, subject to future Subrecipient
Agreements that may be required for specific CDBG-funded activities.
Adopted by the City Council of Hastings this 3rd day of December, 2007.
Ayes: _
Nays: _
Absent:
ATTEST:
Paul J. Hicks, Mayor
Melanie Mesko Lee
City Clerk
I HEREBY CERTIFY that the above is a true and correct copy of resolution presented
to and adopted by the City of Hastings, County of Dakota, Minnesota, on the 3`d day of
December, 2007, as disclosed by the records of the City of Hastings on file and of
record in the office.
Melanie Mesko Lee
City Clerk
This instrument drafted by:
City of Hastings (JWH)
101 4th St. East
Hastings, MN 55033
( SEAL)
APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
Application must be received by the Dakota County Community Development Agency
NO LATER THAN DECEMBER 14, 2007 (for Program Year 2008 beginning 7/01/08)
General Information
Applicant Name: City of Hastings CD District: 4
Contact Name: John Hinzman, Planning Director
Applicant Address: 101 East 4th Street
City, State, Zip: Hastings, Minnesota 55033
Phone: (651) 480-2378 Fax: (651) 437-7082 Email: jhinzman@ci.hastings.mn.us
Proposed Projects/Activities
#1 Title: Assessment Abatement CDBG Request: $60,000
#2 Title: Housing Rehabilitation CDBG Request: $15,000
#3 Title: CDBG Request:
#4 Title: CDBG Request:
#5 Title: CDBG Request:
Total Request: $75,000
PLEASE NOTE: AT LEAST 50% of the oroaosed fundina must aualifv as a t (~w/nnnn nPnPfit and
NO MORE THAN 40% of the proposed funding can be for PUBLIC SERVICES. As public services
may not account for more than 15% of the County's total funding, public service requests may need
to be decreased once all applications are submitted and reviewed by CDA staff.
Certification
I certify tfYat the information contained in this application is true and correct and that ~it contains no .
misrepresentations, falsifications, intentional omissions, or concealment of material facts. I further
certify that no contracts have been awarded, funds committed, or construction begun on the proposed
project(s), and that none will be made prior to notification from the Dakota County CDA based on
HUD's issuance of a Release of Funds Notice.
Signature of Authorized Official
Date
Title of Authorized Official
PLEASE ATTACH THE RESOLUTION OF THE GOVERNING BODY SHOWING APPROVAL
OF THE REQUEST FOR CDBG FUNDS
1. Project/Activity Title
Please complete the following Sections I-VI for EACH proposed project/activity.
(For example, if 3 projects/activities are being proposed, there will be 3 sets of the following pages.)
Project/Activity # 1
Project/Activity Title: Assessment Abatement
I. Project/Activity Information
Describe the proposed project/activity.
The City of Hastings 2007 Improvement Program included street reconstruction projects involving bituminous paving,
storm sewer, concrete curb and gu#ter, and sidewalk\trail construction.
Per City policy, all abutting property owners will be assessed for these improvements at rates averaging 4,000 - 6,000 per
single family household. The City is proposing to allocate $60,000 in CDBG funding to provide assessment aba#ement to
low and moderate income properties. Qualifying low income. households would have 100 percent of their assessments
abated, while qualifying moderate income households would have their assessments abated to the extent of remaining
funds available.
Has this Project/Activity received CDBG funding before? ®Yes ^ No
Check the eligible activity category of the proposed project/activity: (See attached definitions)
^ Acquisition/Disposition:
Vacant or undeveloped property
Commercial property.:
Residential property
^ Demolition/Clearance
^ Economic Development
^ Rehabilitation
Owner occupied housing
Rental housing
. ~ Commercial
^ General Administration
^ Relocation
® Public Facilities/Improvements:
Buildings
Infrastructure
X Assessment abatement
^ Public Services {i. e. child care, recreation programs)
^ Planning
^ Homeownership Assistance:
Support services (i. e. counseling)
Downpayment assistance
.O#her types of purchase financing
^ Other (please describe):
Describe the projecti'activity schedule:
Proposed Project/Activity Start Date: 7/1/08
Proposed Project/Activity Completion Date: 6/30/09
1
..111. CDBG National objective
CDBG funded projects/activities must meet one of the program objectives. Check the
objective for which the CDBG funds will be used.
^ Low/Mod Area Benefit ^ Low/Mod Limited Clientele Benefit
® Low/Mod Housing Benefit ^ Low/Mod Jobs Benefit
^ Slum/Blight Area Benefit ^ Slum/Blight Spot Benefit
^ Urgent Need (extremely rare; used only for emergencies):
If you checked the Low/Mod Area Benefit box, please answer the following:
In what Census Tract/Block Group(s) do beneficiaries of your Project/Activity live? (Pease include map)
How many residents live in this area?
What is the percentage of low and moderate-income beneficiaries?
How was this documented? ^ HUD Data ^ Survey
(See enclosed map) - (Please include a copy of survey)
if you checked the Low/Mod Housing Benefit box, please answer the following:
How many Low/Mod Households will benefit? 20 - 30 Households
(Income eligibility must be verified by written documentation)
Where well thlS project/activity be available? (address of property, neighborhood, city-wide)
The project is located along 5t" Street between State Street and Sprinq Street 6t" Street
between State Street and Pine Street; 7t" Street between State Street and Pine Street Forest Street
between 4t" Street and 6t" Street' Ashland Street between 5t" Street and 6t" Street' and Spring Street
between 4t" Street and 6t" Street.
you checked ~the~Low/Mod Limited Clientele Benefit box, please answer the following:
How many Low/Mod People or Households will benefit?
(Please choose either people or households for each project.)
How will income be verified?
^ Income Verification Request Forms
^ Eligibility Status for other Governmental Assistance program
PeoplelHouseholds
^ Self CertiflCation (Must request source documentation of 20% of certifications and must inform beneficiary that all
sources of income and assets must be included when calculating annual income)
2
^ PreSUmed benefit (HUD presumes the following to be low and moderate-income: abused children, battered
spouses, elderly persons, severely disabled persons, homeless persons, persons living with AIDS, migrant farm workers)
If you checked the Low/Mod Jobs Benefit box, please answer the following:
To meet the requirements of the "Jobs" National Objective, the business being assisted must enter into an agreement
showing commitment that at lease 59 % of jobs created or retained will be available to low/mod income persons. The
business must also be prepared to provide a list of all jobs, detailed information about the jobs being created or retained,
the selection and hiring process, and demographic information about the employees.
Will this project/activity create or retain full time equivalencies (FTEs)? ^ Create ^ Retain
For job(s) that are being retained, please provide evidence that the assisted business has issued a notice to affected
employees or that the business has made a public announcement to that effect, OR an analysis of relevant financial
records that shows the business is likely to cut back on employment in the near future without planned intervention-
Will the job(s) created or retained require a special skill? ^ Yes ^ No
What percent of permanent FTEs will be held by or available to low/mod income persons?
If you checked the Slum/Blight Area or Slum/Blight Spot Benefit box, please answer the
following:
What are the boundaries of the slum/blight area or the address of the slum/blight spot?
(Please provide letter from building inspector or other documentation noting deficiencies and include photos)
If Slum/Blight Area, what percent of buildings are deteriorated?
What deficiency will be corrected or the public improvement be?
JV. `Proposed Objectives and Outcomes
Indicate the proposed objective and outcome of the activity/project.
. Outcome #~ Outcome #2 Outcome #3
- ~ Availability/Accessibility. ~ ~ Affordability - .Sustainability .
Objective #7 - ~ ~^ Accessibility for the ~ - ~ Affordability for the ^Sustainability for the
Suitable Living purpose of creating a purpose of creating a purpose of creating a
Environment suitable living suitable living suitable living
environment environment environment
Objective #2 ^ Accessibility for the ®Affordability for the ^Sustainability for the
Decent Housing purpose of providing purpose of providing purpose of providing
decent housin decent housin decent housin
Objective #3 ^ Accessibility for the ^Affordability for the ^Sustainability for the
Economic purpose of creating purpose of creating purpose of creating
Opportunity economic opportunities economic economic
0 ortunities o ortunities
Indicate how the project/activity outcome will be measured and projected number of
beneficiaries.
3
^ People ^ Housing Units ^ Businesses
® Households 10-20 ^ Public Facilities ^ Organizations
households via income ^ Jobs
verification forms
V. Priority Needs
Check the priority need from the Consolidated Plan for which the CDBG funds will be used:
High Priority Needs -Housing
^ Renter, elderly, 0-50% of median income
^ Renter, small related, 0-80% of median income
^ Renter, all other, 0-50% of median income
® Owner, 0-80% of median income
High Priority Needs -Community Development
^ Acquisition of Real Property
^ Disposition of Real Property
^ Parks, Recreational Facilities
® Water/Sewer Improvements
® Street Improvements
® Sidewalks
^ Clearance and Demolition
^ Clean-up of Contaminated Site
^ Senior Services
^ Youth Services
^ Rental Housing Subsidies
^ Relocation
^ Construction of Housing
^ Direct Homeownership Assistance
^ Rehabilitation of Single Unit Residential
^ Rehabilitation of Multi-Unit Residential
^ Rehabilitation of Commercial/Industrial
^ Code Enforcement
^ Commercial/Industrial Land Acq./Disposition
^ Commercialllndustrial Infrastructure Development
^ Commercial/Industrial Build_ ing Acq., Rehab
^ Planning _ ~ _ _
Medium Priority Needs -Housing
^ Renter, elderly, 51-80% of median income
^ Renter, large related, 0-80% of median income
Medium Priority Needs -Community Development
^ Senior Centers
^ Homeless Facilities
^ Youth Centers
^ Solid Waste Disposal Improvements
^ Flood Plain Improvements
^ Handicapped Services
^ Transportation Services
^ Battered and Abused Spouses Services
^ Crime Awareness
^ Fair Housing Activities
^ Public Housing Modernization
^ Rehabilitation of Other Publicly Owned Residential
^ Residential Historic Preservation
^ Non-Residential Historic Preservation
^ Other Commercialllndustrial Improvements
^ Economic Development Non-Profit Assistance
^ Economic Development Technical Assistance
^ Micro-Enterprise Assistance
Low Priority Needs -Community Development
These activities should be funded with sources other than CDBG.
Privately Owned Utilities
Handicapped Centers
Neighborhood Facilities
Child Care Centers
Substance Abuse Services
Employment Training
Child Care Services
Abused and Neglected Child Services
Tenant/Landlord Counseling
4
f 1/l. Project Budget
Provide the total project cost and CDBG request.
Total Project Cost: $2,254,000
Total CDBG Request: $60,000
CDBG Percent of Total Cost: 2.7%
Describe all other funding sources.
Source of Funds Amount Committed Pending
Assessments $725,000 ^
WaterlSewer Fund $618,000 ^
Bonded Debt $1,521,000 ^
CDBG ^ ~
Please itemize project expenses, using the following guidance as applicable:
• Acquisition & Improvement Costs -Include purchase price, closing costs, site improvements,
clearance of toxic contaminants, and other acquisition and improvement costs
• Construction/Rehabilitation Costs -Include site improvements, construction (labor, materials,
supplies), installation, permits and other construction/rehabilitation costs
• Professional Fees and Personnel Costs -Include architectural, engineering and code inspection
fees, surveys, appraisals, legal fees, hazardous materials surveys, project management, and
other professional/personnel fees
• Other Development Costs -Include relocation, financing costs, environmental reviews,
environmental studies, and other development costs
• Eligible Costs for Planning Projects -Include professional services, project management costs,
-and other planning costs. ~ ~ ..
Itemized Use of Funds/Expenses Costs CDBG Funds
Requested
Construction\Rehabilitation Costs $1,803,200 $60,000
Professional Fees and Personnel Costs $450,800
Total: $2,254,000 $60,000
2
P/ease review each section for comp/eteness,
Each project/activity shoo/d have separate sections I through VI,
3
1. Project/Activity Title
Please complete the following Sections I-VI for EACH proposed project/activity.
(For example, if 3 projects/activities are being proposed, there will be 3 sets of the following pages.)
ProjectlActivity # 2
Project/Activity Title: Housing Rehabilitation
il. ProjectlActivity Information -
Describe the proposed project/activity.
Funds would be used city wide to assist in rehabilitation of rental and owner occupied housing. Activities would likely be
focused on areas in and adjacent to the downtown. Funds would be available for both residential and mixed use
downtown commercial buildings. A significant portion of this area consists of buildings in excess of 100 years in age, and
do not meet current building\safety requirements. Housing rehabilitation will help sustain property values of surrounding
residences and eliminate potential safety hazards ..
Has this Project/Activity received CDBG funding before? ®Yes
^ No
Check the eligible activity the proposed project/activity is categorized as:
^ Acquisition/Disposition:
Vacant or undeveloped property
Commercial property
Residential property
^ Demolition/Clearance
^ Economic Development
® Rehabilitation
X Owner occupied housing
X Rental housing
X ~ Commercial ~ ~ ~ -
^ General Administration
^ Relocation
^ Public Facilities/Improvements:
Buildings
Infrastructure
Assessment abatement
^ Public Services (i. e. child care, recreation programs)
^ Planning
^ Homeownership Assistance:
Support services (i.e. counseling)
Dowripayment assistance -
^ Other (please describe):
Describe the project/activity schedule:
Proposed Project/Activity Start Date: 7/1 /08
Proposed Project/Activity Completion Date: 6/30/09
4
f '111. CDBG :National Objective
CDBG funded projects/activities must meet one of the program objectives. Check the
objective for which the CDBG funds will be used.
^ Low/Mod Area Benefit ^ Low/Mod Limited Clientele Benefit
~ Low/Mod Housing Benefit ^ Low/Mod Jobs Benefit
^ Slum/Blight Area Benefit ^ Slum/Blight Spot Benefit
^ Urgent Need (extremely rare; used only for emergencies):
If you checked the Low/Mod Area Benefit box, please answer the following:
In what Census Tract/Block Group(s) do beneficiaries of your Project/ActivityIive? (Please include map)
How many residents live in this area?
What is the percentage of low and moderate-income beneficiaries?
How was this documented? ^ HUD Data ^ Survey
(See enclosed map) (Please include a copy of survey)
If you checked the Low/Mod Housing Benefit box, please answer the following:
How many Low/Mod Households will benefit? Up to 10 Households
(Income eligibility must be verified by written documentation)
Where will this project/activity be available? (address of property, neighborhood, city-wide)
Project will be available city-wide
If you checked the Low/Mod Limited Clientele Benefit box, please answer the following:
How many Low/Mod People or Households will benefit? People/Households
(Please choose either people or households for each project.) .~
How will income be verified?
^ Income Verification Request Forms
^ Eligibility Status for other Governmental Assistance program
^ S21f CertlflCatlOn (Must request source documentation of 20% of certifications and must inform beneficiary that all
sources of income and assets must be included when calculating annual income)
^ Presumed benefit (HUD presumes the following to be low and moderate-income: abused children, battered
spouses, elderly persons, severely disabled persons, homeless persons, persons living with ANDS, migrant farm workers)
5
If you checked the Low/Mod Jobs Benefit box, please answer the following:
To meet the requirements of the "Jobs" National Objective, the business being assisted must enter into an agreement
showing commitment that at lease 59 % of jobs created or retained will be available to low/mod income persons. The
business must also be prepared to provide a list of all jobs, detailed information about the jobs being created or retained,
the selection and hiring process, and demographic information about the employees.
Will this project/activity create or retain full time equivalencies (FTEs)? ^ Create ^ Retain
For job(s) that are being retained, please provide evidence that the assisted business has issued a notice to affected
employees or that the business has made a public announcement to that effect, OR an analysis of relevant financial
records that shows the business is likely to cut back on employment in the near future without planned intervention.
Will the job(s) created or retained require a special skill? ^ Yes ^ No
What percent of permanent FTEs will be held by or available to low/mod income persons?
If you checked the Slum/Blight Area or Slum/Blight Spot Benefit box, please answer the
following:
What are the boundaries of the slum/blight area or the address of the slum/blight spot?
(Please provide letter from building inspector or other documentation noting deficiencies and include photos)
If Slum/Blight Area, what percent of buildings are deteriorated?
What deficiency will be corrected or the public improvement be?
IV. Proposed Objectives and Outcomes
Indicate the proposed objective and outcome of the activity/project.
Outcome #1 Outcome #2 Ou#come #3
Availability/Accessibility Affordability Sustainability
Objective #1 ^ Accessibility for the ®Affordability for the ®Sustainability for the
Suitable Living purpose of creating a purpose of creating a purpose of creating a
-Environment -suitable living suitable living suitable living
- ~ ~ environment environment ~ environment
Objective #2 . ®- Accessibility for the ®Affordability for the ~ . ~ Sustainability:for the .
Decent Housing purpose of providing purpose of providing purpose of providing
decent housin decent housin decent housin
Objective #3 ^ Accessibility for the ^Affordability for the ^Sustainability for the
Economic purpose of creating purpose of creating purpose of creating
Opportunity economic opportunities economic economic
0 ortunities o ortunities
Indicate how the project/activity outcome will be measured and projected number of
beneficiaries.
^ People
® Households income
Verification
^ Housing Units -
^ Public Facilities
^ Jobs
^ Businesses
^ Organizations
6
V. Priority Needs
Check the priority need from the Consolidated Plan for which the CDBG funds will be used:
High Priority Needs -Housing
® Renter, elderly, 0-50% of median income
® Renter, small related, 0-80% of median income
® Renter, ali other, 0-50% of median income
® Owner, 0-80% of median income
High Priority Needs -Community Development
^ Acquisition of Real Property
^ Disposition of Real Property
^ Parks, Recreational Facilities
^ Water/Sewer Improvements
^ Street Improvements
^ Sidewalks
^ Clearance and Demolition
^ Clean-up of Contaminated Site
^ Senior Services
^ Youth Services
^ Rental Housing Subsidies
^ Relocation
^ Construction of Housing
^ Direct Homeownership Assistance
^ Rehabilitation of Single Unit Residential
^ Rehabilitation of Multi-Unit Residential
^ Rehabilitation of Commercial/Industrial
^ Code Enforcement
^ Commercial/Industrial Land Acq./Disposition
^ Commercial/Industrial Infrastructure Development
^ Commercial/Industrial Building Acq., Rehab
^ Planning
Medium Priority Needs -Housing
® Renter, elderly, 51-80% of median income
® Renter, large related, 0-80% of median income
Medium Priority Needs -Community Development
^ Senior Centers
^ Homeless Facilities
^ Youth Centers
^ Solid Waste Disposal Improvements
^ Flood Plain Improvements
^ Handicapped Services
^ Transportation Services
^ Battered and Abused Spouses Services
^ Crime Awareness
^ Fair Housing Activities
^ Public Housing Modernization
^ Rehabilitation of Other Publicly Owned Residential
^ Residential Historic Preservation
^ Non-Residential Historic Preservation
^ Other Commercial/Industrial Improvements
^ Economic Development Non-Profit Assistance
^ Economic Development Technical Assistance
^ Micro-Enterprise Assistance
Low Priority Needs -Community Development
These activities.should.be funded with sources other than CDBG,
Privately Owned Utilities ~ -_~
Handicapped Centers
Neighborhood Facilities
Child Care Centers
Substance Abuse Services
Employment Training
Child Care Services
Abused and Neglected Child Services
TenanbLandlord Counseling
7
Vl. Project Budget
Provide the total project cost and CDBG request.
Total Project Cost: $15,000
Total CDBG Request: $15,000
CDBG Percent of Total Cost: 100%
Describe all other funding sources.
Source of Funds Amount Committed Pending
CDBG Funds $15,000 ^
^ ^
^ ^
Please itemize project expenses, using the following guidance as applicable:
• Acquisition & Improvement Costs -Include purchase price, closing costs, site improvements,
clearance of toxic contaminants, and other acquisition and improvement costs
• Construction/Rehabilitation Costs -Include site improvements, construction (labor, materials,
supplies), installation, permits and other construction/rehabilitation costs
• Professional Fees and Personnel Costs -Include architectural, engineering and code inspection
fees, surveys, appraisals, legal fees, hazardous materials surveys, project management, and
other professional/personnel fees
• Other Development Costs -Include relocation, financing costs, environmental reviews,
environmental studies, and other development costs
• Eligible Costs for Planning Projects -Include professional services, project management costs,
and other planning costs
Itemized Use of Funds/Expenses Costs CDBG Funds
Requested
Construction\Rehabilitation $15,000 $15,000
Total: $15,000 $15,000
Please re vie w each section for comp/eteness,
Each project/activity show/d have separate Sections I through VI,
s