2003 AGN JUN 17 I10 - Laserfiche WebLink

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Item #10 CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF JUNE 17, 2003 TO: ORABLE OR AND MEMBERS OF THE CITY COUNCIL FROM: Davi . Zamo a, Co unity Development Director SUBJECT: Approval to Rescind the Allocation of CDBG Funds for Three Projects and Reallocate the CDBG Funds To One New Eligible Project for Fiscal Year 2003-2004. DATE: June 9, 2003 BACKGROUND: On March 4, 2003, the City Council prioritized and approved the funding of 15 Community Development Block Grant (CDBG) eligible projects for fiscal year 2003-2004. Three of the projects funded from the Construction/Community Improvement Projects category included the (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. Collectively the amount of CDBG funds allocated to the projects amount to $452,600. The CDBG funds are granted by the United States Department of Housing and Urban Development (HUD) and are administered locally by the San Bernardino County Department of Economic and Community Development (ECD). As the Council is aware, City management staff has been working with existing corporate businesses located in the West Valley Redevelopment Project Area, to assist the businesses with expansion proposals that may create additional jobs for city residents and generate new sales tax income to the city. Unfortunately, the vacant land that is required for the expansion of the businesses is in the Delhi Sand flower -loving fly (DSF) habitat and restrictions by the United States Fish and Wildlife Service (the "Service") preclude use of the land. Staff is requesting that the City Council rescind the funding of the three referenced CDBG projects, and reallocate the amount of $452,600 of CDBG funds to a new CDBG eligible project entitled, "West Valley Land Acquisition and Environmental Mitigation Implementation Project." ANALYSIS/DISCUSSION: The West Valley Land Acquisition and Environmental Mitigation Implementation Project, also known as the North of I-10 DSF Development Mitigation Plan, derives from recent discussions between the City and the Service. The parties are finalizing negotiations to allow several important City and private projects to move forward, provided certain local lands are permanently set aside to benefit the DSF and other conditions are met. These projects include a potential medical building or other development on and just to the north of the former Frontiertown site, expansion of McNeilus Trucking on Pepper Avenue near Valley Boulevard, expansion of Telco Foods on Wildrose Avenue south of San Bernardino Avenue, and the widening of San Bernardino Avenue from Pepper Avenue west to the City corporate limits. The project could also include the installation of a mausoleum at Hermosa Cemetery.