HomeMy WebLinkAbout20101220 - VIII-B-3City CouncilMemorandum
To: Mayor Hicks and City Council
From:
John Hinzman, Community Development Director
Date:
December 20, 2010
Item:
Authorize Submittal of 2011 CDBG Block Grant Application
Council Action Requested:
The City Council is asked to adopt the attached resolution
authorizing submittal of the 2011 Community Development Block Grant (CDBG) application
to Dakota County. The entire $76,300 would be allocated towards assessment abatement for
low, low\moderate income households from various street improvement projects to be
assessed in 2011.
Background Information:
Please see the attached application and resolution for further
information. The City has allocated the majority of CDBG funds towards assessment
abatement during the last ten years.
Financial Impact:
No financial impact for the City. Qualifying home owners may have
their entire shareof assessed projects paid for.
Advisory Commission Discussion:
N\A
Council Committee Discussion:
N\A
Attachments:
Resolution
Application
City of Hastings
101 Fourth Street EastHastings, MN 55033-1955p:651-480-2350f:651-437-7082www.ci.hastings.mn.us
HASTINGS CITY COUNCIL
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO. ___________
A RESOLUTION APPROVING THE APPLICATION OF THE CITY OF
HASTINGSFOR FISCAL YEAR 2011DAKOTA COUNTY COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDING
WHEREAS, the City of Hastingsis a participating jurisdiction with the Dakota County
CDBG Entitlement Program for Fiscal Year 2011(ending June 30, 2012); 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 2011CDBG applications
to be submitted by December 15, 2010, based on an allocation of funds approved in the
Community Development Implementation Plan.
NOW, THEREFORE, BE IT RESOLVED that the City of Hastings hereby approves the
following:
1.The Fiscal Year 2011CDBG application is approved for submission to the
Dakota County CDA.
2.The Mayor and City Administrator for the City of Hastingsare authorized to
execute the application andall 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 ofthe City, subject to future Subrecipient
Agreements that may berequired for specific CDBG-funded activities.
Adopted by the City Council of Hastings this 20th day of December, 2010.
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
th
and adopted by the City of Hastings, County of Dakota, Minnesota, on the 20day of
December, 2010, as disclosed by the records of the City of Hastings on file and of record
in the office.
Melanie Mesko Lee
( SEAL)
City Clerk
This instrument drafted by:
City of Hastings (JWH)
101 4th StreetEast
Hastings, MN 55033
APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
Application must be received by the Dakota County Community Development Agency
NO LATER THAN DECEMBER 15, 2010(for Program Year 2010, 7/01/11-6/30/12)
General Information
Applicant Name:City ofHastingsDUNS #:172843278
Contact Name:John Hinzman
th
Applicant Address:101 East 4Street
City, State, Zip:Hastings, Minnesota 55033
Phone:(651) 480-2378Fax:(651) 437-7082Email:jhinzman@ci.hastings.mn.us
Proposed Projects/Activities
#1Title:Assessment AbatementCDBG Request:$76,300
#2 Title:CDBG Request:
#3Title:CDBG Request:
#4Title:CDBG Request:
#5Title:CDBG Request:
Total Request:$76,300
PLEASE NOTE:
AT LEAST 50%of the proposed funding must qualify as a LOW/MODbenefit 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
tobe decreased once all applications are submitted and reviewed by CDA staff.
Certification
I certify that 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
certifythat 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’sissuance of a Release of Funds Notice.
Signature of Authorized OfficialDate
Title of Authorized Official
PLEASE ATTACH THE RESOLUTION OF THE GOVERNING BODY SHOWING APPROVAL
OF THE REQUEST FOR CDBG FUNDS
I.Project/Activity Title
Please complete the following Sections I-VIfor EACH proposedproject/activity.
(
For example, if 3 projects/activities are being proposed, there will be 3 sets of the following pages.)
Project/Activity #
1
Assessment Abatement
Project/Activity Title:
I.Project/Activity Information
Describe the proposed project/activity.
The City of Hastings 2010-11Improvement Program included street reconstruction projects involving bituminous paving,
storm sewer, concrete curb and gutter, and sidewalk\trail construction.
Per City policy,all abutting property owners will be assessed for these improvements. The City is proposing to allocate
CDBG funding to provide assessment abatement 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/Activityreceived CDBG funding before
?YesNo
Check the eligible activity category of the proposed project/activity:
(See attached definitions)
Acquisition/Disposition:Public Facilities/Improvements:
Vacant or undeveloped property Buildings
Commercial property Infrastructure
Residential property XAssessment abatement
Demolition/ClearancePublic Services
(i.e. child care, recreation programs)
Economic DevelopmentPlanning
RehabilitationHomeownership Assistance:
Owner occupiedhousing Support services
(i.e.counseling)
Rentalhousing Downpayment assistance
Commercial Other types of purchase financing
General AdministrationOther (please describe):
Relocation
Describe the project/activity schedule:
Proposed Project/Activity Start Date: 7/1/11
Proposed Project/Activity Completion Date: 6/30/12
1
III.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 BenefitLow/Mod Limited Clientele Benefit
Low/Mod Housing BenefitLow/Mod Jobs Benefit
Slum/Blight Area BenefitSlum/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/Activitylive?
(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 DataSurvey
(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?25-40_Households
(Income eligibility must be verified by written documentation)
Where will this project/activity be available?
(Address of property, neighborhood, city-wide)
thth
Area 1: 12Street to 15Street; west of Pleasant Drive to Pine Street. Area 2: Whispering
ththth
Lane & Court between 4Street and North Frontage Road. Area 3: 15Street to 18Street
th
between Vermillion Street and Sumner Street. Area 4: 11Street from Vermillion Street to Tyler
th
Street. Area 5: Pleasant & Westview Drives to 15Street.
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
Self Certification
(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
2
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 51% 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?
x
(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
Indicatethe proposed objective and outcome of the activity/project.
Outcome #1 Outcome #2Outcome #3
Availability/AccessibilityAffordabilitySustainability
Objective #1
Accessibility for the Affordability for the Sustainability for the
purpose of creating a purpose of creating a purpose of creating a
Suitable Living
suitable living suitable living suitable living
Environment
environmentenvironmentenvironment
Objective #2
Accessibility for the Affordability for the Sustainability for the
purpose of providing purpose of providing purpose of providing
Decent Housing
decent housingdecent housingdecent housing
Objective #3
Accessibility for the Affordability for the Sustainability for the
purpose of creating purpose of creating purpose of creating
Economic
economic opportunitieseconomic economic
Opportunity
opportunitiesopportunities
Indicate how the project/activityoutcome will be measured and projected number of
beneficiaries.
3
People Public Facilities Businesses
Households 25-40Jobs Organizations
Housing Units
V. Priority Needs
Check the priority need from the Consolidated Planfor which the CDBG funds will be used:
High Priority Needs –HousingMedium Priority Needs –Housing
Renter, elderly, 0-50% of median incomeRenter, elderly, 51-80% of median income
Renter, small related, 0-80% of median incomeRenter, large related, 0-80% of median income
Renter, all other, 0-50% of median income
Owner, 0-80% of median income
High Priority Needs –Community DevelopmentMedium Priority Needs –Community Development
Acquisition of Real PropertySenior Centers
Disposition of Real PropertyHomeless Facilities
Parks, Recreational FacilitiesYouth Centers
Water/Sewer ImprovementsSolid Waste Disposal Improvements
Street ImprovementsFlood Plain Improvements
SidewalksHandicapped Services
Clearance and DemolitionTransportation Services
Clean-up of Contaminated SiteBattered and Abused Spouses Services
Senior ServicesCrime Awareness
Youth ServicesFair Housing Activities
Rental Housing SubsidiesPublic Housing Modernization
RelocationRehabilitation of Other Publicly Owned Residential
Construction of HousingResidential Historic Preservation
Direct Homeownership AssistanceNon-Residential Historic Preservation
Rehabilitation of Single Unit ResidentialOther Commercial/Industrial Improvements
Rehabilitation of Multi-Unit ResidentialEconomic Development Non-Profit Assistance
Rehabilitation of Commercial/IndustrialEconomic Development Technical Assistance
Code EnforcementMicro-Enterprise Assistance
Commercial/Industrial Land Acq./Disposition
Commercial/Industrial Infrastructure Development
Commercial/Industrial Building Acq., Rehab
Planning
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/LandlordCounseling
4
VI. Project Budget
Provide the total project cost and CDBG request –Hastings 2010 & 2011 Improvement Program
Total Project Cost: $8,234,000
Total CDBG Request:$76,300CDBG Percent of Total Cost: 0.93%
Describe all other funding sources.
Source of FundsAmountCommittedPending
Assessments$1,150,000
Water\Sewer Fund$1,644,000
Bonded Debt$5,150,000
MnDOT Municipal State Aid$290,000
Please itemize project expenses,using the following guidance as applicable:
Acquisition & Improvement Costs -Includepurchase price, closing costs, site improvements,
clearance of toxic contaminants, and other acquisition and improvement costs
Construction/Rehabilitation Costs -Includesite improvements, construction (labor, materials,
supplies), installation, permits and other construction/rehabilitation costs
Professional Fees and Personnel Costs -Includearchitectural, engineering and code inspection
fees, surveys, appraisals, legal fees, hazardous materials surveys, project management, and
other professional/personnel fees
Other Development Costs -Includerelocation, financing costs, environmental reviews,
environmental studies, and other development costs
Eligible Costs for Planning Projects -Includeprofessional services, project management costs,
and other planning costs
CDBG Funds
Itemized Use of Funds/Expenses Costs
Requested
Bonded Debt/Construction & Rehabilitation Costs (Street, Storm Sewer &
$5,150,000
Drainage, Landscaping Items, & Professional Fees and Personnel Costs 2010 &
2011)
MnDOT Municipal State Aid/Construction & Rehabilitation Costs (Street, Storm
$290,000
Sewer & Drainage, & Landscaping Items 2010 & 2011)
Assessments/Construction & Rehabilitation Costs (Street, Storm Sewer &
$1,150,000$76,300
Drainage, & Landscaping Items 2010 & 2011)
Sewer & Water Funds/Construction & Rehabilitation (Sewer & Water System
$1,644,000
Repairs & Replacements, and Professional & Personnel Costs)
Total:$8,234,000$76,300
5
CDBG ELIGIBLE ACTIVITIES DEFINITIONS
The following are summary definitions of Community Development Block Grant Eligible Activities:
Please Note: Although an activity may be deemed eligible forCDBG funding, it does not guarantee funding. The Community
Development Needs for the CDBG Program in the Comprehensive Plan sets forth the priority of needs and as such, dictates which
types of eligible activities may be funded in a given year.
CDBG funds may NOT be used for costs attributable to a building used for the general conduct of government or used for political
activities
.
Acquisition/Disposition: The use of CDBG funds to acquire real property, in whole or in part, by purchase, long-term lease, donation,
or otherwise, for any public purpose. Real property to be acquired may include: land, air rights, easements, water rights, right-of-ways,
buildings and other property improvements, or other interests in real property.
Demolition/Clearance: Clearance, demolition, and removal of buildings and improvements including movement of structures to other
sites.
Economic Development Activities: Economic development activities may include, but are not limited to: (1) Construction by the
grantee or subrecipient of a business incubator designed to provide inexpensive space and assistance to new firms to help them
become viable businesses, (2) Loans to pay for the expansion of a factory or commercial business, and (3) Providing training needed
by persons onwelfare to enable them to qualify for jobs created by CDBG-assisted special economic development activities. The level
of public benefit to be derived from the economic development activity must be appropriate given the amount of CDBG assistance.
Rehabilitation: Rehabilitation related activities may include single-family rehabilitation, multi-family rehabilitation, energy efficiency
improvements, public housing modernization, and rehabilitation of commercial properties.
General Administration: CDBG funds may be used for the general administration costs incurred by a Subrecipient to administer their
CDBG program. Administration costs directly associated with a CDBG activity should be part of the activity as project administration.
Relocation: CDBG fundsmay be used for relocation payments and assistance to displaced persons, including individuals, families,
businesses, non-profits, and farms, where required under section 570.606 of the regulations (pursuant to the Uniform Relocation Act).
Public Facilities/Improvements: CDBG funds may be used by the grantee or other public or private nonprofit entities for the
acquisition (including long term leases for periods of 15 years or more), construction, reconstruction, rehabilitation (including removal of
architectural barriers to accessibility), or installation, of public improvements or facilities. Buildings for the general conduct of
government cannot be acquired or improved with CDBG funds. This includes neighborhood facilities, firehouses, public schools,and
libraries, as well as water and/or sewer treatment plants. The regulations further specify that facilities that are designed for use in
providing shelter for persons having special needs are considered to be public facilities.
Public Services: CDBG funds may be used to provide public services (including labor, supplies, and materials), provided that each of
the following criteria is met: 1) The public service must be either a new service or a quantifiable increase in the level of service; and 2)
The amount of CDBG funds obligated within a program year to support public service activities under this category may not exceed
40% of the City’s allocation and the total public services of all Subrecipients may not exceed 15% of the total grant awardedto Dakota
County for that year.
Planning:
Includes studies, analysis, data gathering, preparation of plans, and identification of actions that will implement plans. The
types of plans which may be paid for with CDBG funds include, but are not limited to: Comprehensive plans; Individual projectplans;
Community development plans, Capital improvement programs; Small area and neighborhood plans; Environmental and historic
preservation studies; and Functional plans (such as plans for housing, land use, energy conservation, or economic development).
Homeownership Assistance:Homeownership assistance activities may include financial assistance for downpayments,
closing costs or other part of the purchase process and counseling for pre-purchase, post-purchase or foreclosure
prevention.
6