DISCLAIMER

06-0838R


RESOLUTION AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE 2007 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. 06-0837, adopted December 18, 2006, approved the FY 2007 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); and

     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:

2007 CITY OF DULUTH COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM-FUND 262 PROJECT CD07CD

SUB PROJECT

ACTIVITY

AMOUNT

PROJECTS

HOUSING PROJECTS

HOUS

1291

$ 47,800

HOPE VI individual dev. account - Community Action Duluth

HOUS

1734

$1,050,000

Duluth property rehabilitation program - HRA and/or NCLT

HOUS

1091

$ 242,000

Duluth weatherization program - AEOA

ECONOMIC DEVELOPMENT PROJECT

ECDV

1244

$ 40,000

Lifecyclers, LLC

PUBLIC FACILITY IMPROVEMENT PROJECTS

PFAC

PF01

$ 154,900

Central Hillside accessibility - Phase IIV

PFAC

PF02

$ 123,000

Parking lot accessibility - Damiano Center

PFAC

PF03

$ 150,000

American Indian Center - AICHO

PFAC

PF04

$ 180,000

Harbor Highlands homeowner infrastructure - TCG Harbor Homes, LLC

PFAC

PF05

$ 46,825

Harrison Community Center parking

 

 

$ 73,359

Construction contingency

PUBLIC SERVICE PROJECTS

PSVC

1244

$ 72,000

Duluth hunger project - CHUM

PSVC

1929

$ 65,000

Primary health care services - Lake Superior Community Health Center

PSVC

1348

$ 20,000

Clothes That Work and social services - Damiano Center

PSVC

2511

$ 35,000

Emergency heating assistance - Salvation Army

PSVC

1735

$ 33,200

Landlord/tenant counseling - Housing Access Center

PSVC

1974

$ 25,000

Youth Center - Life House

PSVC

2509

$ 25,000

Battered women’s shelter program - Safe Haven Shelter and/or AICHO

PSVC

251A

$ 47,500

Transitional housing program - Salvation Army and/or WCDO

PSVC

1168

$ 93,800

Youth development: Valley Youth Center, Grant Community School Collaborative, Boys & Girls Club, YMCA Mentor Duluth Collaborative, and/or YWCA girls & youth programs

PSVC

2412

$ 20,000

Career development - Project SOAR

PLANNING/PROGRAM ADMINISTRATION

ADMC

AD01

$ 467,840

Program administration

ADMC

AD02

$ 70,000

Neighborhood planning

ADMC

ADO3

$ 33,000

Youth apprenticeship program - NYS

$3,114,324

Total

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

SOURCE OF FUNDING

Year 2007

CDBG grant - city

$2,898,000

Year 2001

CDBG grant - city

$ 1,501

Year 2002

CDBG grant - city

$ 23,124

Year 2003

CDBG grant - city

$ 5,142

Year 2004

CDBG grant - city

$ 39,831

Year 2005

CDBG grant - city

$ 146,726

Total

 

$3,114,324


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

 

Original budget

Amount of change

Revised budget

2001 CD01CD

PFAC-PFO9

Harrison Cmty Ctr improv

$ 81,518

-$ 1,501

$ 80,017

2002 CD02CD

Bal.Sh.2220

Grant Rec Ctr improv

$ 23,002

-$ 23,002

    -0-

AD03

Harrison Cmty Ctr improv

$ 95,000

-$ 122

$ 94,878

2003

PFAC-PF07

Accessible parking improv

$ 71,100

-$ 5,142

$ 65,958

2004

PFAC-PF01

Acquisition and demolition

$ 8,000

-$ 4,941

$ 3,059

PFAC-PF02

Damiano Ctr restroom renov

$100,000

-$ 9,120

$ 90,880

PFAC-PF05

Morgan Park streets-Ph. I

$150,000

-$ 20,000

$130,000

ECDV-1346

Opportunities Cooking

$ 46,000

-$ 3,066

$ 42,934

ECDV-2264

NE Entrepreneur Fund

$ 75,000

-$ 416

$ 74,584

HOUS-2239

NHS Affordable Housing Svcs

$ 86,900

-$ 1,250

$ 85,650

Bal.Sh.2031

Life House

$ 23,700

-$ 1,038

$ 22,662

2005

PFAC-PF08

Morgan Park streets-Ph. II

$ 88,000

-$ 2,180

$ 85,820

PSVC-1050

AICHO-transitional housing

$ 4,740

-$ 2,314

$ 2,426

ECDV-1346

Opportunities Cooking

$ 49,000

-$ 711

$ 48,289

ECDV-2804

Women in Construction

$ 46,000

-$ 500

$ 45,500

PSVC-2755

Valley Youth Program

$ 22,700

-$ 218

$ 22,700

Bal.Sh.2220

Lien repayments

$140,803

-$140,803

   -0-

 

         $216,324 - 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, 2006, to December 5, 2006, on 2007 annual action plan, which includes recommended funding for the 2007 CDBG, HOME, and ESG programs. The CD committee held a public hearing on December 5 to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 5, 2006, with the concurrence of the community development manager.


Sources of funds: $2,898,000 in new 2007 HUD CDBG funds and $216,324 reprogrammed CDBG funds (2004 CDBG program).


     $2,898,000 Estimated CDBG funds

        216,324  Reprogrammed CDBG funds and program income

     $3,114,324 2007 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 2007 CDBG program and authorizes appropriate city officials to execute contracts when funds are received.


Contracts for housing programs and construction activities typically 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


07-HS-02

Project Name: HOPE VI Individual Development Accounts - Community Action Duluth

Project Summary: This proposal assists 60 IDA (Individual Development Account) participants as they save money for homeownership. Fifteen are HOPE VI eligible and 45 are low-income participants in the FAIM matched savings program. The program provides financial education, credit counseling, on-going housing counseling, and match money for closing costs or the down payment based on participant’s deposits in a financial institution.

Location: Citywide

Goal: 60 households

Amount Recommended: $47,800


07HS-03 / 07-HM-04

Project Name: Duluth Property Rehab Program – HRA and/or NCLT

Project Description: HRA will provide rehabilitation assistance to rental property owners and eligible homeowners of properties within the City of Duluth. This program provides necessary improvements, revitalizes neighborhoods, maintains quality housing stock, and promotes employment and economic stimulus to the community.

Location: Citywide - Preference for housing in 1) At Home in Duluth focus areas, 2) CDBG eligible areas, and 3) the balance of the City of Duluth

Goal: 139 housing units

Amount Recommended: $1,050,000


07-HS-04

Project Name: Duluth Weatherization Program - AEOA

Project Description: Arrowhead Economic Opportunity Agency (AEOA) provides energy conservation measures in homes of income eligible energy assistance clients within the city of Duluth. Energy conservation is achieved through mechanical repairs/replacements, air sealing and insulating.

Location: Citywide

Goal: 67 housing units

Amount Recommended: $242,000

 

ECONOMIC DEVELOPMENT


07-ED-02

Project Name: Lifecycers

Project Description: Lifecyclers Electronic Recycling Services is a limited liability company (LLC) that provides employment and on-the-job training to low-income Duluth citizens. The business processed over 500 tons of electronic equipment last year and presently employs thirteen people. Project is open to any Low-Moderate Income (LMI) Duluth resident.

This deferred loan funding will be used to create 2 new jobs for the business over a two-year period. These jobs will be COT/CDL certified Truck Drivers earning a starting wage of $7.25/hour plus benefits, with an opportunity to earn up to $10.00/hour plus benefits by the end of the two year contract term.

Location: 202 North 40th Avenue West, Duluth

Goal: 2 jobs

Amount Recommended: $40,000


PUBLIC FACILITY IMPROVEMENTS


07-PF-01

Project Name: Central Hillside Accessibility Phase IV- Engineering Division

Project Description: To construct additional pedestrian curb ramps at alleys and street intersections, thus improving Duluth’s pedestrian access routes for all citizens and visitors by removing barriers (curbs). This improvement would improve access for people who use wheelchairs or walkers, parents with strollers, or others who are transporting wheeled carts.

Location: Central Hillside Neighborhood

Goal: 57 facilities

Amount Recommended: $154,000


07-PF-02

Project Name: Parking Lot Accessibility - Damiano Center

Project Description: The Damiano Center parking lot is in need of critical repair including replacing a large retaining wall and rebuilding the parking lot. The repairs will ensure the structural integrity of the lot and the building and aid in accessibility.

Location: 206 West Fourth Street

Goal: 1 facility

Amount Recommended: $123,000


07-PF-04

Project Name: American Indian Center - AICHO

Project Description: The developers of Gimaajii Mino-Bimaadiziyaan, the American Indian Community Housing Organization (AICHO), will purchase the historic YWCA building in downtown Duluth and substantially rehabilitate the building into 26 units of permanent supportive housing for families and create an American Indian Center (Center). CDBG funding will be used to increase accessibility within the Center.

Location: 202 West Second Street

Goal: 1 facility

Amount Recommended: $150,000


07-PF-05

Project Name: Harbor Highlands Homeownership Infrastructure – TCG Harbor Homes, LLC

Project Description: The HOPE VI revitalization of Harbor View Homes will build 269 new units including affordable and market rate rentals and homeownership. CDBG funding sought will underwrite the installation of streets and utilities for 15 affordable homeownership units in this neighborhood.

Location: HOPE VI Neighborhood

Goal: 15 households

Amount Recommended: $180,000


07-PF-06

Project Name: Harrison Community Rec Center Parking Lot – Parks & Rec

Project Description: To provide safe and accessible parking for users of the Harrison Community Recreation Center building and the surrounding green spaces, which include a playground, basketball court, tennis courts, and soccer and softball fields.

Location: 3002 Grand Avenue

Goal: 1 facility

Amount Recommended: $46,825


Project Name: Construction Contingency:

Project Description: Funds set-aside for cost overruns on CDBG construction project funded in 2007. After projects have been bid out and theere is a cost overrun it will be determined how to address that situation.

Amount Recommended: $73,359


PUBLIC SERVICE


07-PS-01

Project Name: Duluth Hunger Project - CHUM

Project Description: The Duluth Hunger Project is a coalition of four agencies working together to prevent and alleviate chronic hunger and malnutrition among the lowest income of Duluth’s residents. CHUM is fiscal agent for the project.

Location: 102 North First Avenue West

Goal: 7,000 people

Amount Recommended: $72,000


07-PF-02

Project Name: Primary Health Care Services - Lake Superior Community Health Center

Project Description: The project is a city-wide program which provides access to free and sliding fee clinical health care, health education, medical social work, mental health counseling, dental care, assisted referrals, and advocacy for low-income, uninsured and underinsured community members.

Location: 4325 Grand Avenue

Goal: 2,300 people

Amount Recommended: $65,000


07-PS-03

Project Name: Clothes That Work & Social Services - Damiano Center

Project Description: The Damiano Center provides low to moderate income people with access to free professional attire and transportation services to help them get to or find work. Clothing is through our Clothes That Work program, transportation services through Damiano Social Services.

Location: 206 West Fourth Street

Goal: 1,175 people

Amount Recommended: $20,000


07-PS-04

Project Name: Emergency Heating Assistance – The Salvation Army

Project Description: The Salvation Army Emergency Heating Assistance program provides utility assistance to low income households. Cash grants will be provided to eligible households to prevent shut offs at Comfort Systems, Minnesota Power, and to provide oil/propane to households who heat with those sources of fuel.

Location: 215 South 27th Avenue West

Goal: 180 people

Amount Recommended: $35,000


07-PS-05

Project Name: Career Development – SOAR Career Solutions

Project Description: SOAR Career Solutions will provide career development services and ongoing job seeking/job retention support to 50 Duluth residents, most with multiple employment barriers. Training focuses on job search skills, strategies to gain employment, assessment of strengths/barriers, and goal setting.

Location: 205 West Second Street

Goal: 50 people

Amount Recommended: $20,000


07-PS-06

Project Name: Tenant/Landlord Counseling - Housing Access Center

Project Description: Housing Access Center promotes equal opportunity for residents to obtain and maintain safe, decent, affordable housing by providing tenant/landlord counseling and mediations, resulting in eviction preventions, code violations repairs, and a better understanding of their housing rights and responsibilities.

Location: 206 West Fourth Street

Goal: 800 people

Amount Recommended: $33,200


07-PS-07

Project Name: Youth Center – Life House

Project Description: Life House provides the only homeless youth drop-in Center in Northeastern Minnesota. Our approach gives youth guidance and support to actively participate in services targeted to break cycles of abuse, isolation, homelessness, and poverty. Street youth call it “home”.

Location: 631 West Skyline Parkway

Goal: 600 people

Amount Recommended: $25,000

 

07-PS-08 / 07-ES-03

Project Name: Battered Women’s Shelter Programs - Safe Haven Shelter and/or AICHO

Project Description: Safe Haven Shelter for Battered Woman (SHS) Shelter Program and Dabinoo’Igan, the American Indian Community Housing Organization (AICHO) Shelter Program, seek funding to provide safe, temporary housing, food, clothing, advocacy and support for battered women and their children.

Location: P. O. Box 3558, Duluth, and 202 West Sedond Street

Goal: 400 people

Amount Recommended: $25,000


07-PS-10 / 07-ES-04

Project Name: Transitional Housing Program–Salvation Army and/or WCDO

Project Description: The Salvation Army and Women’s Community Development Organization seeks funding to provide safe, affordable housing with support services to homeless single women and homeless one and two parent families. This partnership project will administer 37 housing units.

Location: 215 South 27th Avenue West and 1401 East Second Street, Apt. A

Goal: 180 people

Amount Recommended: $47,500


Project Name: Youth Development Programs

Project Description: The youth agencies in Duluth will collaboratively provide after-school and summer recreational and academic enrichment activities and a mentoring program for youth, primarily ages 6-12, from low- and moderate-income families. The funding allocation will be as follow: $18,400 for each of the following: Valley Youth Center, Grant Community School Collaborative, Boys & Girls Club, YMCA Mentor Duluth Collaborative, and YWCA Girls & Youth Programs

Location: Valley Youth Center, 727 North Central Avenue; Grant Community School Collaborative, 1027 - 8th Avenue East; Boys & Girls Club, 2623 West Second Street; YMCA Mentor Duluth Collaborative, 302 West First Street; and/or YWCA of Duluth, 302 West First Street

Goal: 880 people

Amount Recommended: $92,000

PROGRAM ADMINISTRATION


07-AD-06

Project Name: Youth Apprenticeship Project - NYS and/or Woodland Hills

Project Description: Neighborhood Youth Services (NYS) asks for support to plan a Youth Apprenticeship Project that would assist youth and young adults in overcoming poverty and becoming economically self-sufficient thru job readiness and leadership development.

Location: 310 North First Avenue West

Amount Recommended: $33,000