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Motion carried. Voting Yes: Mayor Gamec, Councilmembers Hendriksen, Connolly, Anderson, <br />and Zimmerman. Voting No: None. <br /> <br />Case #4: <br /> <br />Consider Reallocation of Community Development Block Grant (CDBG) <br />Funds <br /> <br />Mayor Gamec closed the regular portion of the City Council meeting at 8:26 p.m. in order to <br />conduct a public hearing. <br /> <br />Public Hearing <br /> <br />Mayor Gamec called the public hearing to order at 8:26. <br /> <br />Presentation <br /> <br />Community Development Director Sherman stated that CDBG funds are limited to being used <br />for projects that benefit the handicapped, senior citizens and Iow to moderate income persons; <br />planning projects; economic development; and historical preservation. Ramsey previously <br />allocated $63,988.00 in CDBG funds towards land acquisition for the senior apartment building. <br />However, the funds had to be pulled from that project when it became know that CDGB <br />involvement would significantly restrict income eligibility for residents of the facility. <br />Consequently, the funds were reallocated to preservation of the Old Town Hall in hopes that it <br />could be renovated in time for the City's 25th Anniversary celebration. However, that project did <br />not meet Federal guidelines because historic preservation projects must be ~pristine and some <br />renovation work had already occurred. The City has received a request from the Anoka County <br />Community Action Program (ACCAP) that the funds be reallocated to their organization for <br />acquisition of land in the City for development of affordable tow~]house rental units. Federal <br />regulations require a 30 day comment period following the public hearing for reallocation of <br />CDBG funds. Council may adopt a resolution now to reallocate the funs pending the outcome of <br />the 30 day comment period, or adopt a resolution to reallocate the funds at the termination of the <br />30 day comment period. <br /> <br />Mayor Gamec questioned if other organizations could request the funds. <br /> <br />Community Development Director Sherman replied that Staff has not opened it up to other <br />organizations because the funds are being reallocated. <br /> <br />Councilmember Connolly stated that she did not want to commit to any project at this time. <br /> <br />Councilmember Hendriksen inquired if the funds would reduce the cost of the project for ACAP. <br /> <br />Community Development Director Sherman replied that it has not been determined how the <br />funds would be used. <br /> <br />City Council/September 28, 1999 <br /> Page I3 of 26 <br /> <br /> <br />