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HomeMy WebLinkAboutItem 06.oJanuary 15, 2016 r Item No. 2016 Community Development Block Grant (CDBG) Application and Substantial Amendment to CDBG Program Years 2010, 2013, 2014 and 2015 January 19, 2016 City Council Meeting Proposed Action Staff recommends adoption of the following motions: Move to adopt a resolution authorizing the submittal of the 2016 CDBG application in the amount of $124,370. Move to adopt a substantial budget amendment to the Dakota County Community Development Block Grant Program for Fiscal Years 2010, 2013, 2014 and 2015 as described in Attachment C. Passage of these motions will result in the submittal of a 2016 CDBG Grant Application in the amount of $124,370 for funding the Housing Rehabilitation Loan Program and Spot Acquisition and Clearance. It will also result in the reallocation of $68,914.80 to the Spot Acquisition and Clearance Program to fund the acquisition of 9210 202nd Street West. Furthermore, it will result in a balance of $15,000 in the Economic Development Planning Program, which will be used to match a $15,000 Dakota County CDA Redevelopment Planning Grant for the Holyoke Avenue Streetscape Project. Overview The City has been informed that it will be receiving approximately $124,370 in CDBG funding in 2016, the same amount as 2015. Use of these funds is contingent upon the City submitting and receiving approval of an application that identifies activities that meet at least one of the federal objectives of either benefiting low/moderate income persons or eliminating slum and blight. At least 50% of the proposed activities for 2015 must be activities or projects that provide benefit to low/moderate income (LMI) individuals. A breakout of the recommended allocation for 2016 is included in Attachment B. The City Council discussed the potential acquisition of 9210 202nd Street West during a closed session on January 4th, in which staff recommended utilizing $152,532 in CDBG funds for acquisition. The substantial amendment will allow for reimbursements to be made to the City of Lakeville from CDBG funding. The Dakota County Community Development Agency Board will be considering this amendment at their February 16th meeting. Primary Issues to Consider • What are the eligible activities for which Lakeville can allocate its 2016 CDBG program funds? (See Attachment A) David L. Olson Community and Economic Development Director Financial Impact: $ 124,370 Budgeted: Y/N Y Source: CDBG Related Documents (CIP, ERP, etc.): Attachments A, B and C Envision Lakeville Community Values: Diversified Economic Development, CITY OF LAKEVILLE RESOLUTION NO. RESOLUTION APPROVING THE APPLICATION OF THE CITY OF LAKEVILLE FOR FISCAL YEAR 2016 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING WHEREAS, the City of Lakeville is a participating jurisdiction with the Dakota County Community Development Block Grant (CDBG) Entitlement Program for Fiscal Year 2016 (ending June 30, 2017); 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 2016 CDBG applications be submitted by January 29, 2016, based on an allocation of funds approved in the Annual Action Plan. NOW, THEREFORE, BE IT RESOLVED that the City of Lakeville hereby approves the following: 1. The Fiscal Year 2016 CDBG application is approved for submission to the Dakota County CDA. 2. The Mayor and City Cleark for the City of Lakeville is authorized to execute the application and all 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 of the City, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. ADOPTED this 19th day of January, 2016. CITY OF LAKEVILLE Matt Little, Mayor ATTEST: Charlene Friedges, City Clerk Attachment A 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 for CDBG 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 sub -recipient 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 on welfare to enable them to qualify forjobs 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 funds may 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 Sub -recipients may not exceed 15% of the total grant awarded to 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 project plans; 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. Attachment B 2016 CDBG Application The Dakota County CDA requires that all cities submit applications with at least 50% of the proposed allocation for 2016 being activities or projects that provide benefit to low/moderate income (LMI) individuals. 2016 funding will be available July 2016 through June 2017. One of the more commonly identified LMI activities in other cities in Dakota County is the Home Rehabilitation Loan program (residential rehab) administered by the Dakota County CDA. Preservation of the existing residential neighborhoods adjacent to the Downtown has been identified as a goal of the City Council approved Downtown Development Guide. Another area identified by staff is the Valley Park area, one of Lakeville's older neighborhoods. Attached is a copy of a CDA brochure that describes this program in greater detail and also includes the current income guidelines for the program. Staff would recommend a funding level for this program of $62,185 for 2016. The 2016 CDBG application is recommended to be submitted as follows. The 2015 allocation approved last year is also provided below as a reference: 2016 Program Activities 2015 Program Activities Housing Rehab $62,185 Housing Rehab $66,370 Spot Acquisition & Clearance $62,185 ADA Compliance $20,000 Downtown Code Improv $28,000 Planning Econ Dev $10,000 TOTAL Allocation $124,370 TOTAL Allocation $124,370 Attachment C [r0x.014 C -m( Ap p - CDA Dakota County CDBG Activity Amendment Request Form City/Township Name: Lakeville Please identify the change(s) to be made: Administrative Amendment ® Change an existing activity budget < $100,000 Substantial Amendment A substantial amendment will take approximately 45 days to complete. ® Create a new activity (previously not an application) *Please complete pages 3-6 ® Cancel an existing activity ❑ Change an existing activity budget > $100,000+ ❑ Change the National Objective of an existing activity the location for an activity previously unknown at the date of application Identify the activity budgets you are requesting to be amended. The amendment options, include: • A transfer of funds from one activity to a different activity within the same program year; • A transfer to a newly created activity from an existing activity within the same program year; • A cancelation of an activity (with no prior expenditure) and transfer of funds to one or more existing/new activities within the same program year. Activity Status* Program Year Activity Name Original Budget Proposed Budget Budget Change Identify 2013 Sot Acquisition & Clearance $21,433.00 $21,433.00 $0.00 Identify 2014 Sot Acquisition & Clearance $62,184.00 $62,184.00 $0.00 Cancel 2010 Downtown Code Improv/Commercial Rehab $40,914.80 $0.00 -$40,914.80 Create 2010 Sot Acquisition & Clearance $0.00 $40,914.80 $40,914.80 Transfer 2015 Downtown Code Improv/Commercial Rehab $28,000.00 $5,000.00 -$23,000.00 Create 2015 Sot Acquisition & Clearance $0.00 $23,000.00 $23,000.00 Transfer 2013 Senior Transportation $21,434.00 $16,434.00 -$5,000.00 Transfer 2013 Sot Acquisition & Clearance $21,433.00 $26,433.00 $5,000.00 Cancel 2015 Downtown Code Improv/Commercial Rehab $28,000.00 $0.00 -$5,00 .00 Transfer 2015 Economic Development Plan $0.00 $5,000.00 $5,000.00 *(i.e. New, Cancel, or Continue) Prepared by: Local Program Administrator (Print) (Signature) DuRptu Caunly C�rt�rtay lk+ve�U-r K -M C D.A Approved by: Dakota County CDBG Activity Amendment Request Form City or Township Financial Officer (Print) (Signature) CDA Office Use Only Reviewer Amendment Received Other Comments: CDBG Account Numbers CDBG Account Numbers 2 cl—ly CDA Ag�wwrt,Y Dakota County CDBG Activity Amendment Request Form If creating a new activity, complete the following sections. Describe the proposed activity. The property at 9210 202nd St. W. located at the southeast corner of Dodd Blvd. and 202nd Street was recently listed for sale. This property was formerly a gas service station and for the last 30 plus years was used as a single family and was vacated earlier this year. The existing buildings are very close to the current road right-of-ways for both Dodd and 202nd Street. All of the buildings on the property are considered to be in disrepair and contain numerous building and fire code deficiencies. It has been determined that the structures are near the end of their economic and useful lives given their current condition. Because of the size of the developable portion of the property, its proximity to a major intersection, and the cost associated with the removal of the existing buildings, it would be difficult for this property to be redeveloped privately. Will the proposed activity alter the completion timeline for any previously funded activity? Check the eligible activity category of the proposed activity: Affordable Rental Housing Public Service ❑ Rehabilitation of Multi -Unit Residential ❑ Senior Services ❑ Rental Assistance Subsidies ❑ Youth Services ❑ Fair Housing Activities ❑ Transportation Services ❑ Energy Efficiency Improvements ❑ Operational Support Affordable Homeowner Housing Community Development ❑ Homeownership Assistance ❑ Recreational Parks ❑ New (Re)Construction Homeowner Housing ❑ Water/Sewer Improvements ❑ Rehabilitation/ Energy Efficiency Improvement of ❑ Street Improvements Single Unit Residential ❑ Sidewalks ❑ Housing Counseling and Short Term Assistance ❑ Beautification ❑ Fair Housing Activities ❑ Assessment Abatement Homelessness Neighborhood Revitalization ❑ Coordinated Access to service & Shelter ® Acquisition of Real Property ❑ Housing Stabilization ® Clearance and Demolition ❑ Emergency Shelter Operation ❑ Clean-up of Contaminated Site ❑ Addition of Permanent Supportive Housing Units ❑ Shelter Renovation/Creation Economic Development Planning and Administration ❑ Employment Training ❑ Planning ❑ Economic Development Assistance ❑ Administration ❑ Rehabilitation of Commercial/Industrial Buildings ' ❑ Micro -Enterprise Assistance ❑ Relocation Describe the activity schedule: Proposed Activity Start Date: 1" Quarter 2016 Proposed Activity Completion Date: 3rd Quarter 2016 3 Dakota County CDBG Activity Amendment Request Form CDBG funded 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 Activity live? (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 (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? (Income eligibility must be verified by written documentation) Households Where will this activity occur? (Address of property, neighborhood, 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? (Please choose either people or households for each project.) How will income be verified? People/Households ❑ Income Verification Request Forms ❑ Eligibility Status for other Governmental Assistance program ❑ Self Certification (Must request source documentation of 2096 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 AIDS, migrant farm workers) 4 ��� A�M�Y Gwnty U�d1xn.Mrty �Mvck)i`^Mn1 CDA Dakota County CDBG Activity Amendment Request Form If you checked the Low/ Mod Jobs Benefit box, please answer the following: To meet the 'Jobs "National Objective requirements, the assisted business must enter into an agreement showing commitment that at lease 5196 ofjobs created/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/retained, the selection and hiring process, and demographic information about the employees. WIII this 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 Spot Benefit box, please answer the following: What are the boundaries of the slum/blight area or the address of the slum/blight spot? 9210 202nd Street W Lakeville, MN 55044 (Please provide letter from building inspector or other documentation noting deficiencies and include photos) If Slum/Blight Area, what percent of buildings are deteriorated? 100 % What deficiency will be corrected or the public improvement be? Indicate the proposed objective and outcome of the activity/ project. '61 Outcome #1 Outcome #2 Outcome #3 Availability/AccessibilityAvailability/Accessibility Affordability Sustainability Objective #1 Accessibility for the El Affordability for the Z 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 El Sustainability for the Decent Housing purpose of providing purpose of providing purpose of providing decent housing decent housing decent housing 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 opportunities opportunities '61 CJ k Coui.ty Aq--y CDA Dakota County CDBG Activity Amendment Request Form Indicate how the activity outcome will be measured and projected number of beneficiaries. ❑ People ❑ Public Facilities ❑ Households ❑ Jobs ❑ Housing Units ❑ Businesses _ Provide the total project cost and CDBG request. Total Project Cost: $385,000 Describe all other funding sources. ❑ Organizations Total CDBG Request: $152,531.80 Source of Funds Amount -T Committed Pending CDBG $152,531.80 ❑ $232,468.20 City TIF Dollars $232,468.20 ❑ ❑ ❑ Total: Itemized Use of Funds/Expenses Costs CDBG Funds Requested Other Funding Sources Acquisition of property — 9210 202ns Street West $385,000 $152,531.80 $232,468.20 Total: $385,000 $152,531.80 $232,468.20 9 bL/l WNW SUMAOad ueo'I luauNnox dull aluOH £Z L99 NW 'ug6sil enup aJjUQO UMOJ 939 L VGD laua6 ;uewdolenea 4.unu-,Uwnay Ae unoo e#oxsd f V� wo Q j 41 E taA bA —� a cu tb 4q Cd w bp *�' C❑u � C cd ou o u a SC$ ° Q x'" ' �, +� b > 0 w n o Q ° b . ti PJ H Ill 5- Q .a R 4 ' U oLIEU ° u = w x �°o. r~ L �O iS{ `n u .7 V y per" !L [ . a 3", bL/l WNW SUMAOad ueo'I luauNnox dull aluOH £Z L99 NW 'ug6sil enup aJjUQO UMOJ 939 L VGD laua6 ;uewdolenea 4.unu-,Uwnay Ae unoo e#oxsd 0 0 E o o CF ='cul E c 0 E 00 >. u o J o 0 0 0 t 0 0 0 0 � � y w a� 4 [ ¢; C •y o c. 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