2003 AGN JUN 17 I10 - Laserfiche WebLink

Browse Search

City Council Meeting — June 17, 2003 Reallocation of CDBG Funds Page 2 of 2 Without this Project, it is quite possible that McNeilus Trucking and Telco Foods would move out of town. The City would thus lose sales tax revenue, existing jobs and future employment opportunities associated with expansion of those businesses and establishment of new businesses. Also, important public improvement projects would be unlikely to progress in a timely manner. The use of CDBG funding is an important component of the Project for several reasons. First, because the Project will require the City and its development partners to set aside some property as mitigation for the DSF, it is probable that the City will have to purchase some property. Under the Endangered Species Act ("ESA"), the City will also be required to fund an endowment to provide for the permanent management of the mitigation properties. These components of the project are expected to cost $450,000 or more. Without the CDBG funding, City general fund dollars would have to be used. In addition, use of CDBG funding creates a "federal nexus" which allows the Project to proceed through an ESA "Section 7" process. The Service is required to complete the Section 7 process within 135 days after the City submits a full packet of information to the federal agency. By contrast, the ESA "Section 10" process applicable to projects without a federal nexus has no deadlines and routinely takes 18 months or more to complete. Thus, use of HUD funding will allow these projects to proceed through the federal ESA permitting process at a much more rapid pace than is ordinarily possible. ALTERNATIVES: Reject staff s request and retain the CDBG funding allocation for the three eligible projects. FISCAL IMPACT: No impact to the City general fund. The reallocation is from the City's fiscal year 2003-2004 allocation of federal CDBG Entitlement Funds. ENVIRONMENTAL IMPACT: None. An Environmental Assessment/Initial Study will be prepared by staff for the proposed new project to identify and potential environmental impacts. RECOMMENDATION: Staff recommends that the City Council rescind the allocation of CDBG funds from fiscal year 2003-2004 for the projects, (1) Residential Historic Preservation Grant Program, $105,000; (2) Rehabilitation of Child Care Modular Unit -Cooley Ranch Elementary School, $130,000; and (3) North Colton Street Improvements, $217,600; and reallocate the amount of $452,600 to the new project, "West Valley Land Acquisition and Environmental Mitigation Implementation;" and approve the attached Resolution. Attachment: Resolution REVIEW TEAM ONLY City Attorney: v Finance Director: City Manager: OTHER: