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Case #5: <br /> <br />USE <br /> <br />OF 1989 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS <br /> By: Mark S. Banwart, Community Development Director <br /> <br />Background: <br /> <br />R~msey has been allocated approximately $23,000 in CDBG funds for 1989. Part of the CDBG <br />process requires designation of the funds. As you recall, in November of 1988, the Council took <br />action to redesignate Ramsey's CDBG fund balance from the years 1985 through 1988 from <br />Economic Development activities to expansion of River's Bend Park to include a passive use area <br />for senior citizens and handicapped persons. Council may wish to consider designating 1989 <br />CDBG funds for Economic Development activities. <br /> <br />Observations: <br /> <br />It has been Federal Administration policy to alter the use of CDBG funds away from economic <br />development activities such as revolving funds, etc. by increasing the administration requirements <br />to the extent that it is not worth it. The required forms needed and City Staff time required would <br />be very disproportionate for the limited amount of funds ($23,000) we can receive. Major surveys <br />and mountains of paperwork are required. Use of CDBG funds for handicapped services are <br />much more straight-forward. Sihff time can be much better used in economic development <br />activities by development of effective communications (e.g., production of information packets and <br />follow-through with potential new businesses). <br /> <br />Recommendation: <br /> <br />Staff recommends 1989 CDBG funds to be used for up~ading handicap accessibility to <br />Cit3, Hall (electric door openers, improved ramps, etc.) and the new Central Park Activities <br />Center (electric door openers). <br /> <br />CITY COUNCIL ACTION: <br /> <br />Action based upon discussion. <br /> <br />Review Chec ~klist: <br /> <br />City Admirfistrator <br />City Attorney <br />City Engineer <br />Community Development Director <br /> <br />X <br /> <br />Chief of Police <br />Finance Officer <br />Planning & Zoning Commission <br /> <br /> <br />