DISCLAIMER

 

05-0865R


RESOLUTION AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE 2006 PROGRAM YEAR AS WELL AS APPROVING THE REALLOCATION OF CERTAIN PRIOR CDBG FUNDS AND AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.

BY COUNCILOR GILBERT:

     WHEREAS, City Council Resolution No. 05-0864, adopted December 19, 2005, approved the FY 2006 action plan portion of the Duluth consolidated plan for housing and community development FY 2005-2009; and

     WHEREAS, the secretary of HUD is authorized to make grants to cities and/or counties to finance local community development programs, approved in accordance with the provisions of Title I of said act, as well as grants under the Cranston-Gonzales National Affordable Housing Act of 1990, as amended, (the HOME program) and the Stewart B. McKinney Homeless Assistance Act of 1987, as amended (the emergency shelter grant - ESG - program).

     NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to make and submit appropriate documentation to HUD for those projects and corresponding funding levels as set forth below:

2006 CITY OF DULUTH COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM-FUND 262 PROJECT CD06CD

SUB

PROJECT

ACTIVITY

AMOUNT

PROJECTS

HOUSING PROJECTS

HOUS

2239

$ 97,150

Single-family purchase/rehabilitation program - NHS

HOUS

1291

$ 21,600

HOPE VI individual development account - Community Action Duluth

HOUS

1734

$ 741,010

Duluth property rehabilitation program - HRA/NCLT

HOUS

1091

$ 242,000

Duluth weatherization program - AEOA

HOUS

2270

$ 150,000

Deconstruction/reconstruction - NCLT

HOUS

4143

$ 25,000

Supportive housing development - ASI

 

ECONOMIC DEVELOPMENT PROJECT

ECDV

1244

$ 47,096

Lifecyclers - CHUMWorks

PUBLIC FACILITY IMPROVEMENT PROJECTS

PFAC

PF01

$ 286,725

West Duluth police station

PFAC

PF02

$ 177,900

Downtown accessibility - Phase III

PFAC

PF03

$ 64,000

CD target area street assistance program

PFAC

PF04

$ 91,016

Interior floor renovation - Sacred Heart Music Center

PFAC

PF06

$ 25,350

West Third Street lighting project

PFAC

PF08

$ 80,000

Morgan Park street improvements -Phase III

PUBLIC SERVICE PROJECTS

PSVC

1244

$ 57,000

Duluth hunger project - CHUM

PSVC

1929

$ 59,800

Primary health care for low-income people - LSCHC

PSVC

1348

$ 12,000

Clothes That Work - Damiano Center

PSVC

1735

$ 32,000

Tenant/landlord counseling - HAC

PSVC

1974

$ 15,000

Youth center - Life House

PSVC

2001

$ 11,000

Renaissance transitional living program - LSS

PSVC

2509

$ 24,700

Shelter program - Safe Haven Shelter for Battered Women

PSVC

251A

$ 23,500

Family transitional housing - Salvation Army

PSVC

2109

$ 12,000

Veterans Outreach North

PSVC

2804

$ 23,500

Transitional housing - WCDO

PSVC

1168

$ 25,900

Bridging the Digital Divide - Boys and Girls Club

PSVC

1645

$ 13,900

Youth enrichment program - Grant Collaborative

PSVC

2805

$ 24,000

Activity center - Neighborhood Youth Services

PSVC

2755

$ 17,900

Youth development - Valley Youth Center

PSVC

2810

$ 26,000

Mentor Duluth - YMCA

PSVC

2811

$ 15,900

Girls and youth program - YWCA

PSVC

1346

$ 23,500

Opportunities Cooking - Damiano Center

PSVC

2412

$ 23,500

Career development - Project SOAR

PLANNING/PROGRAM ADMINISTRATION

ADMC

AD01

$ 438,000

Program administration

ADMC

AD02

$ 50,000

Neighborhood planning

ADMC

ADO3

$ 62,653

Contingency

 

$3,040,600

Total

 

     BE IT FURTHER RESOLVED, that the following are hereby designated as the financial resources for the above program:

SOURCE OF FUNDING

Year 2006

CDBG grant - city

$2,940,600

Year 2004

CDBG grant - city

$ 100,000

Total

$3,040,600


     BE IT FURTHER RESOLVED, that the proper city officials are authorized to make the following transfers in prior year community development accounts:

2004 CD04CD

PFAC-PFO3

Downtown accessibility Phase II

$101,000

-$30,702

$ 70,298

ADMC-AD03

Contingency

$ 13,552

-$13,552

$ -0-

2220

Deferred revenue

$ 55,746

-$55,746

$ -0-

$100,000 - Total amount reprogrammed


     BE IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto. This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.

     BE IT FURTHER RESOLVED, that the appropriate city officials are authorized to execute the appropriate agreements with these agencies upon receipt of HUD funds.


STATEMENT OF PURPOSE:  this resolution reflects comments from organizations and citizens as related to funding for the community development block grant (CDBG) program. In addition to citizens, the neighborhood forums and the community development committee (CD committee) each played a role in the recommendations contained in the resolution. There was also a 30-day public comment period from November 4, 2005 to December 5, 2005, on 2006 annual action plan, which includes recommended funding for the 2006 CDBG, HOME and ESG programs. The CD committee held a public hearing on December 6 to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 6, 2005, with the concurrence of the community development manager.


Sources of funds: $2,940,600 in new 2006 HUD CDBG funds and $100,000 reprogrammed CDBG funds (2004 CDBG program).


     $2,940,600 Estimated CDBG funds

        100,000  Reprogrammed CDBG funds and program income

     $3,040,600 2006 program total


The resolution, in addition to authorizing application for grant funds and administration of same when received, also allocates funds to projects as listed for the 2006 CDBG program and authorizes appropriate city officials to execute contracts when funds are received.


Contracts for housing programs and construction activities will include addendums that require affordability restrictions and lien agreements, in accordance with HUD regulations. Also, public facility improvement contracts will proceed through the public bidding process after completion of environmental review.


The following are the CDBG project descriptions and goals:


AFFORDABLE HOUSING RECOMMENDATIONS


06-HS-01

Project Name: Neighborhood Housing Services Single Family Purchase-Rehab / Rehab Program

Project Summary: Neighborhood Housing Services (NHS) will provide purchase/rehab and single family rehab financing and project management services to low income households. The purchase/rehab service will be offered in all CDBG eligible neighborhoods and the single family rehab services in the NHS service area. NHS will provide loan processing services for 5 other units rehabbed by the HRA in a joint project.

Location: 224 East Fourth Street

Goal: 13 units

Amount Recommended: $93,900



06-HS-02

Project Name: HOPE VI Individual Development Account (IDA) Project

Project Summary: Community Action Duluth’s second year of funding for a program that provides matching funds for Harbor View tenants saving for the purchase of a home. Financial literacy, homeownership and home purchase training, and ongoing counseling are part of the program.

Location: 19 North 21st Avenue West

Goal: 15 Harbor View tenants displaced by the HOPE VI Project

Amount Recommended: $21,600



06-HS-03

Project Name: Duluth Property Rehabilitation Program

Project Summary: - Duluth Housing & Redevelopment Authority (HRA) and Northern Communities Land Trust (NCLT) Housing rehab loans and assistance to homeowners and rental property owners. The NCLT works with homebuyers in their Homeland program, and the HRA manages the rehab portion of that program. The HRA also administers a low-interest rate loan program for rehab of rental properties. Included in this request are administrative funds for the HOME-funded owner-occupied rehabs, State grants, lead-based paint remediation, and monitoring of past rental rehab projects.

Location: 222 East 2nd Street

Goal: 60 (15 HOME units) single-family owner-occupied rehabs, 30 rental units

Amount Recommended: $741,010



06-HS-04

Project Name: Duluth Weatherization Program

Project Summary: Arrowhead Economic Opportunity Agency provides weatherization assistance for low-income households within Duluth. Crews will rehabilitate housing units to increase energy efficiency. Energy conservation is achieved through mechanical repairs/replacements, air sealing, and insulating. The assistance is in the form of a grant at an average cost of $2,000 per unit.

Location: 222 East Second Street

Goal: 67 units

Amount Recommended: $242,000



06-HS-05

Project Name: Deconstruction / Reconstruction

Project Summary: Northern Communities Land Trust will acquire and demolish “condemned for demolition” housing units and construct new housing units on the sites. The new units will be sold to income qualifying homebuyers. NCLT will use $75,000 of CDBG funds for demolition activities and $75,000 for construction activities.

Location: 206 West Fourth Street

Goal: 3 housing units

Amount Recommended: $150,000



06-HS-06

Project Name: Minnesota Supportive Housing Development Project Summary: Accessible Space, Inc., will construct 21 unit (one for an onsite employee) apartment building, 15 one bedroom and 6 two bedroom units. The building will be two story slab on grade with central elevator, and serve as an independent living facility for 20 persons with a variety of physical disabilities.

Location: Maple Grove Road (between Eklund & North Robin Avenue)

Goal:20 Households

Amount Recommended: $25,000



ECONOMIC DEVELOPMENT RECOMMENDATION


06-ED-05

Project Name: CHUMWorks, Inc. - Lifecyclers – Employment, Training & Support Services

Project Summary: Provides employment, on-the-job training and education and stabilization services to low-income Duluth residents who have significant multiple barriers to employment at the Lifecyclers Electronic Recycling Services business.

Location: 212 North 40th Avenue West

Goal: 5 Jobs

Amount Recommended: $47,096



PUBLIC FACILITY IMPROVEMENT RECOMMENDATIONS


06-PF-01

Project Name: West Duluth Police Station

Project Summary: Construction of a 4,6782 square foot building addition the City Center West facility to a new Police Station in West Duluth. The new station will enable the City to base 40 police officers in the western half of the City.

Location: West Duluth

Goal: 1 facility

Amount Recommended: $286,275



06-PF-02

Project Name: Downtown Accessibility - Phase III

Project Summary: Construction of additional curb (pedestrian) ramps at alleys and street intersections thus improving pedestrian access routes for all citizens and visitors by removing barriers (existing curbs). Phase III will complete the removal of curbs and provide barrier free access on both sides of the avenues between 4th Street and Superior Street from the downtown area to the hospital district.

Location: Downtown Area

Goal: 42 facilities (ramps)

Amount Recommended: $177,900



06-PF-03

Project Name: Community Development Area Street Assistance Program

Project Summary: The FY 2006 program would continue to provide financial assistance to LMI households by using CDBG funds for the payment of street improvement assessments for qualified homeowners in the CDBG Target Neighborhoods. This project directly assists LMI homesteaded property owners based exclusively on their household income.

Location: CDBG Target Areas

Goal: 61 people

Amount Recommended: $64,000



06-PF-04

Project Name: Interior Floor Renovation – Sacred Heart Music Center

Project Summary: In order to remain open and continue to provide quality musical and other cultural arts performances, the historic (built in 1894) cathedral’s interior floor must be replaced and related electrical performed. CDBG funds will be combined with matching dollars to accomplish this task.

Location: 201 West 4th Street

Goal: 1 facility

Amount Recommended: $91,016



06-PF-05

Project Name: West Third Street Lighting Project

Project Summary: Will provide enhanced safety and aesthetics along West 3rd Street – a primary route for vehicles and pedestrians corridor through and within the Lincoln Park area of Duluth. This project is in conjunction with the extensive reconstruction of West Third Street being underwritten by the MSA (Municipal State Aid) program.

Location: Lincoln Park

Goal: 4,377 people

Amount Recommended: $25,350



06-PF-06

Project Name: Morgan Park Streets, Phase III

Project Summary: The FY 2006 program would continue to provide financial assistance to households living in the Morgan Park Target Area. This is a cost-share project that uses CDBG funds to directly assists LMI property owners by paying their portion (12.5%) of the costs of the street/utility improvements.

Location: Morgan Park

Goal: 42 households

Amount Recommended: $80,000



PUBLIC SERVICES RECOMMENDATIONS


06-PS-01

Project Name: Churches United in Ministry (CHUM) - Duluth Hunger Project

Project Summary: The Duluth Hunger Project is a coalition of four organizations that provide daily meals and emergency food packages to low-income, homeless people in Duluth. Congregate meal sites are located at the CHUM Center, Damiano Center and Union Gospel Mission, all located in the Central Hillside CDBG target neighborhood, and the Salvation Army, located in the Lincoln Park CDBG target neighborhood. Emergency food shelves are operated by Salvation Army and CHUM.

Location: 102 West Second Street

Goal: 7,000 people

Amount Recommended: $57,000



06-PS-02

Project Name: Lake Superior Community Health Center – Primary Health Care

Project Summary: The Health Center provides primary health care to low-income, uninsured and under-insured persons who are generally the working poor. Medical services are provided by the Center’s clinical staff and volunteer physicians. The Health Center is located in the Central Hillside, CDBG target neighborhood.

Location: 4325 Grand Avenue

Goal: 2,300 people

Amount Recommended: $59,800



06-PS-03

Project Name: Clothes that Work

Project Summary: Located in the Damiano Center in the Central Hillside CDBG target neighborhood, Clothes that Work provides free job appropriate clothing to low and moderate-income people who are employed, entering the job market, or beginning a new job.

Location: 206 West Fourth Street

Goal: 850 people

Amount Recommended: $12,000


 

06-PS-05

Project Name: Housing Access Center Tenant/Landlord Counseling Program

Project Summary: Housing Access Center provides information, education and counseling services to Duluth tenants and landlords to help parties mediate problems and resolve issues that often lead to eviction or other court actions. Education and counseling focus on rights and responsibilities of tenants and landlords under the Tenant/Landlord Act and the Fair Housing Act. Housing Access Center also provides information and referral to the Duluth Human Rights Office in matters of housing discrimination of protected class persons.

Location: 206 West Fourth Street

Goal: 2,000

Funding Amount: $32,000



06-PS-07

Project Name: Life House Youth Center

Project Summary: Life House Youth Center provides a variety of services and access to programs for at-risk, homeless and troubled teens. Through the Live House Youth Center, at-risk teens (age 14-21) can access educational assistance, job training assistance, mental health services, medical services, drug/alcohol treatment services, parenting classes and temporary or permanent housing for teens who are homeless or at risk of homelessness.

Location: 102 West First Street

Goal: 400 teens

Funding Amount: $15,000



06-PS-09

Project Name: Renaissance Teen Transitional Housing Program

Project Summary: A program of Lutheran Social Services, Renaissance House provides six units of transitional housing for homeless young men and women (ages 16-21). Transitional housing residents receive case management and other supportive services that focus on education, job seeking, life skills, and follow-up services.

Location: 104 West First Street

Goal: 22 teens

Funding Amount: $11,000



06-PS-10

Project Name: Safe Haven Shelter for Battered Women

Project Summary: Safe Haven Shelter provides temporary emergency shelter for homeless battered women and their children. Along with advocacy and support, shelter residents receive assistance in obtaining transitional or permanent housing, assistance in applying for financial and medical assistance, child care services, transportation, mental health counseling and funds for rent deposits and other needs.

Location: P. O. Box 3558

Goal: 400 Persons

Funding Amount: $24,700



06-PS-11

Project Name: The Salvation Army Family Transitional Housing Program

Project Summary: The Salvation Army operates 16 units of transitional housing for homeless men and women with children and homeless women with children who are chemically dependent and in treatment programs. Transitional housing residents receive case management and other supportive services that focus on education, job training, children’s programming and follow-up services.

Location: 215 South 27th Avenue West

Goal: 80 Persons

Funding Amount: $23,500



06-PS-12

Project Name: Veterans Outreach North (VON)

Project Summary: A program of the Minnesota Assistance Council for Veterans, Veterans Outreach North provides transitional housing, support services and assistance to homeless veterans and veterans at risk of becoming homeless. Veterans assisted receive case management services that focus on helping individuals become self-sufficient and productive members of the community by addressing underlying causes of homelessness, such as financial resources, housing, alcohol and chemical dependency, independent living skills and job skills.

Location: 101 West Second Street, Suite 211A

Goal: 75 persons

Funding Amount: $12,000



06-PS-13

Project Name: Women's Transitional Housing (WTH)—a program of the Women’s Community Development Organization

Project Summary: The Women's Community Development Organization operates, under the Transitional Housing Program, 20 units of transitional housing for single women and women with children who are homeless. Transitional housing residents receive case management and other supportive services that focus on education, job training, children’s programming and follow-up services.

Location: 1401 East Second Street, Apartment A

Goal: 90 Persons

Funding Amount: $23,500



06-PS-15

Project Name: Boys & Girls Club Bridging the Digital Divide

Project Summary: Boys & Girls Club of Duluth proposes to reduce the number of disadvantaged youth in danger of becoming victims of the “digital divide” by connecting technology and education through quality programs in a safe and structured environment conducive to individual needs through a new technology center on site.

Location: 2623 West Second Street

Goal: 400 people

Amount Recommended: $25,900



06-PS-16

Project Name: Grant Community School Collaborative Youth and Family Enrichment Program

Project Summary: Grant Collaborative provides a variety of after-school and summer programming for youth (ages 6 B 15) from low and moderate-income families in the East Hillside/Endion CDBG target neighborhoods. The various programs available include the Mind 2 Mind after-school and summer programs at St. Paul’s Church, Summer Theatre Program at Grant School and Cultural Programs at Grant School.

Location: 1027 - 8th Avenue East

Goal: 200 people

Amount Recommended: $13,900



06-PS-17

Project Name: Neighborhood Youth Services Washington Center

Project Summary: Neighborhood Youth Services provides structure, age-specific, supervised learning activities to youth ages 6-18 years after school Monday – Friday from 3:30pm to 8:30 pm, and during summer weekdays, with occasional weekend activities. Youth share in educational programming, cultural experiences, mentoring, computer lab, games room, arts and crafts, snack program, tumbling, drill team, skiing, basketball leagues, other gym and sport opportunities and special events.

Location: 310 North First Avenue West

Goal: 490 people

Amount Recommended: $24,000



06-PS-18

Project Name: Valley Youth Center Youth Development

Project Summary: The Valley Youth Center serves children in grades K-12 in the West Duluth area. The program provides educational, social, and recreational services with special emphasis placed on assisting youth who may be experiencing problems with their families, school, peer group, or the legal system.

Location: 727 North Central Avenue

Goal: 250 people

Amount Recommended: $17,900



06-PS-19

Project Name: YMCA Mentor Duluth Program

Project Summary: The YMCA serves as the lead agency in a six-agency collaboration that coordinates mentoring services for low- and moderate-income youth throughout Duluth. The Mentor Duluth program matches area youth with adult mentors and provides training and support to mentors, youth and their families as well as recreational activities throughout the year.

Location: 302 West First Street

Goal: 500 people

Amount Recommended: $26,000



06-PS-20

Project Name: YWCA Girls and Youth Programs

Project Summary: The YWCA provides after-school and summer educational and recreational opportunities for youth from low-to-moderate-income families. Youth programming provided at Grant School and serves youth (primarily ages 6 - 12) from the East Hillside CDBG target neighborhood. Programming through the YWCA Girl Power! Program serves girls from Nettleton and Grant Elementary Schools at the YWCA building, located in the Central Hillside neighborhood.

Location: 202 West Second Street

Goal: 218 people

Amount Recommended: $15,900



06-PS-22

Project Name: Damiano of Duluth, Inc. - Opportunities Cooking

Project Summary: Provides four 12-week culinary training, career development and job placement programs for low-income, hard-to-employ food service workers. Students train while providing meals to diners at the Damiano Center Soup Kitchen. Graduates are placed and provided follow-up services for at least one year.

Location: 206 West Fourth Street

Goal: 13 people

Amount Recommended: $23,500



06-PS-23

Project Name: Project SOAR of NE Minnesota - Career Development

Project Summary: Project SOAR will provide Career Development services to low-moderate income people in Duluth. SOAR provides the in-depth, long-term services needed by those who face multiple employment barriers to their achievement of economic self-sufficiency and break the cycle of poverty.

Location: 205 West Second Street - Suite 101

Goal: 50 people

Amount Recommended: $23,500