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Date: Item No.
2017 Community Development Block Grant Application
Proposed Action
Staff recommends adoption of the following motions:
Move to adopt a resolution authorizing the submittal of the 2017 Community Development Block Grant
(CDBG) application in the amount of $137,528.
Overview
The City has been informed that it will be receiving approximately $137,528 in CDBG funding in 2017,
which is an increase of approximately 10.5% from 2016. 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 2017 must be activities or projects that provide benefit to
low/moderate income (LMI) individuals. A breakout of the recommended allocation for 2017 is included
in Attachment B.
In 2016, CDBG funds were used to acquire and clear the former Scheffler Property located at the corner of
County Road 50 and Dodd Boulevard, construction of the ADA compliant transaction window and
counter for the Finance Department, fund a portion of the Holyoke Avenue Streetscape Concept Planning
and provide programming to seniors at the Heritage Center. Additionally, the Home Rehabilitation Loan
program currently has two active loans totally $45,311, two pending loans totaling $48,000 and one (1)
loan on a wait list totaling $25,000.
Dakota County is expected to receive approximately $1,772,394 of the $3.066 billion Federal allocation.
This amount is divided between 14 cities as well as a consortium of townships and small cities throughout
Dakota County.
Primary Issues to Consider
• What are the eligible activities for which Lakeville can allocate its 2017 CDBG program funds?
• See Attachment A
Supporting Information
• Resolution Authorizing Submittal of Community Development Block Grant Application
• Attachment A – CDBG Eligible Activities Definitions
• Attachment B – 2017 CDBG Application Description and Breakdown
• Home Improvement Loan Programs Brochure
Financial Impact: $ Budgeted: Y☒ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Diversified Economic Development
Report Completed by: David L. Olson, Community & Economic Development Director
January 17, 2017
137,528 CDBG
CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO. ______
RESOLUTION AUTHORIZING SUBMITTAL OF COMMUNITY DEVELOPMENT BLOCK
GRANT APPLICATION
WHEREAS, the City of Lakeville is a participating jurisdiction with the Dakota County
Community Development Block Grant (CDBG) Entitlement Program for Fiscal Year 2017
(ending June 30, 2018); 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 2017 CDBG applications be
submitted by January 20, 2017, 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 2017 CDBG application is approved for submission to the Dakota
County CDA.
2. The Mayor and City Clerk for the City of Lakeville are 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.
DATED this ____ day of January, 2017
CITY OF LAKEVILLE
___
Douglas P. Anderson, 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 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 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
2017 CDBG Application
The Dakota County CDA requires that all cities submit applications with at least 50% of the
proposed allocation for 2017 being activities or projects that provide benefit to low/moderate
income (LMI) individuals.
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 recommends funding this program at $68,764
for 2017.
The City of Lakeville plans to continue to fund the Acquisition and Clearance program to
purchase and clear substandard properties on a spot basis throughout the City. This activity has
been used in the past and has had success. Staff recommends funding this program at $38,764 for
2017.
In 2006, the City of Lakeville developed a Development Guide for Downtown Lakeville, which
has served as the redevelopment plan for the last ten years. With a number of new developments
occurring in Downtown Lakeville and potential for redevelopment increasing, the City feels it is
time to update this plan to guide the process. Staff recommends funding this program at $30,000
to update the Development Guide for Downtown Lakeville. Additionally, the City is applying for
$15,000 from the Dakota County Community Development Agency’s (CDA) Redevelopment
Incentive Planning Grant program to fund this update.
The 2017 CDBG application is recommended to be submitted as follows. The 2016 allocation
approved last year is also provided below as a reference:
2017 Program Activities 2016 Program Activities
Housing Rehab $68,764 Housing Rehab $62,185
Spot Acquisition & Clearance $38,764 Spot Acquisition & Clearance $62,185
Economic Development Plan $30,000
TOTAL Allocation $137,528 TOTAL Allocation $124,370