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HomeMy WebLinkAboutItem 06.cJ • May 17, 2010 Item No. AUTHORIZE CONTINUED PARTICIPATION IN THE DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Proposed Action Staff recommends adoption of the following motion: Adopt a resolution to authorize continued participation in the Dakota County Community Development Block Grant and Home Investment Partnership Programs. Adoption of this resolution will result in the City continuing its participation in the HUD funded Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) Program administered by the Dakota County CDA for fiscal years 2011-2013. Overview The Dakota County CDA has recently notified the City of Lakeville that it now qualifies as a metropolitan city under the CDBG program because the City's population now exceeds 50,000. As a result, the City now has the option to receive its own CDBG entitlement allocation as described in the attached letter from the CDA dated April 15, 2010. Staff has reviewed the option now available for participation in the CDBG program. While the City would receive additional funding if it chose to be an entitlement City, it would assume all of the administrative responsibilities of the program which require 15-20% of the total CDBG funding to be received. The net total increase in available grant funds would be minimal. Three other cities in Dakota County are also eligible to be entitlement cities under the CDBG program. All three of these cities have indicated plans to continue participation in the County program administered by the CDA. Lakeville and other entitlement eligible cities have the opportunity to reconsider their options for participation in the CDBG program every three years. The City has had an excellent working relationship with the Dakota County CDA with the CDBG program and thus staff recommends continued participation in the County program. Primary Issues to Consider • Would the additional funding that would be received justify the additional administrative expenses? Staff would contend that the answer to this question is no. Supporting Information • Resolution authorizing participation in the County -wide CDBG and HOME programs for fiscal years 2011-13. • Attached letter from the Dakota County CDA dated April 15, 2010. avid L Olson Communitv and Economic Development Director Financial Impact: $ Budgeted: Y/N Source: CITY OF LAKEVILLE RESOLUTION NO. APPROVAL OF THE CONTINUATION OF COOPERATIVE AGREEMENT FOR THE DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP PROGRAMS FOR FISCAL YEARS 2011 THROUGH 2013 WHEREAS, the City of Lakeville has been a participating jurisdiction with the Dakota County Community Development Block Grant (CDBG) Entitlement Program for Fiscal Years since 1984; and WHEREAS, the Dakota County CDA is a Subgrantee of Dakota County for the administration of the CDBG and HOME Investment Partnership Programs; and WHEREAS, the Dakota County CDA has requested that the City of Lakeville affirm its continued participation in the Dakota Country CDBG and HOME entitlement programs for the next three fiscal years; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeville hereby chooses to defer its metropolitan city entitlement status for the U. S. Department of Housing and Urban Development's CDBG and HOME programs; and BE IT FURTHER RESOLVED that the Dakota County CDA is designated as the administrative entity to carry out the CDBG and HOME programs on behalf of the City of Lakeville, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. DATED this day of ATTEST: Charlene Friedges, City Clerk 2010. CITY OF LAKEVILLE Holly Dahl, Mayor CDADakota County Community Development Agency . • • • • • • • • • • • • • • • • • • • • • April 15, 2010 Steve Mielke, City Administrator City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 RE: PARTICIPATION IN THE DAKOTA COUNTY CDBG & HOME PROGRAMS Dear Mr. Mielke: Every three years, the U.S. Department of Housing and Urban Development (HUD) requires urban counties to requalify their entitlement status and participating communities for the purpose of awarding Community Development Block Grant (CDBG) and HOME Investment Partnership Program funds. Dakota County has qualified as an urban county and has received an annual allocation of CDBG funds since 1984. CDBG-funded activities have been a key element to keep our communities strong and vibrant. The successful use of these funds is due to the active involvement and support from local government. We hope to continue this partnership. As a city with a population above 50,000, HUD classifies Lakeville as a "metropolitan city". With such a classification, Lakeville is eligible to receive its own CDBG entitlement allocation but not a HOME allocation. To date, Lakeville has chosen to defer its status as a metropolitan city and remain a part of Dakota County's urban county classification. The city needs to make a choice again for the next three year period of 2011-2013. If you choose to remain a participant of Dakota County's CDBG and HOME programs, Lakeville would continue to be eligible for funding through the Dakota County CDA. Whether the City chooses to defer or accept their metropolitan city entitlement status it must notify in writing both the Dakota County CDA and HUD Field Office no later than May 21, 2010. Notice to the HUD Fieid Office should be addressed to 920 South 2"d Avenue, Suite 1300, Minneapolis, MN 55402. Attached is a sample letter you may use to defer your metropolitan city status if you choose that option. If you choose to accept a city entitlement status, you can use this same sample letter by changing it from deferral to acceptance. If you have any questions regarding this process or the CDBG and HOME programs, please feel free to contact me at (651) 675-4464 or at dro_ n� ess2dakotacda.state.mn.us. Sincerely, Dan Rogness Director of Comm vitalization 1228 Town Centre Drive • Eagan, MN 55123-1066 tel 651-675-4400 • fax 651-675-4444