02/09/99 Special Meeting - Laserfiche WebLink

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The Council can opt for no project in 1999, do a project in 1999 with just 1999 funds, do a project in 1999 with 1999 and 2000 funds, or do a project in 2000 with the 1999 and 2000 funds. However, it is very important that Council reallocate the funds diverted from the senior housing project; and, if they are not encumbered by December of this year, HUD has the authority to reclaim the funds. Funds allocated and approved in 1999 are not available for use until July 1 and must be encumbered by December 31 of 2000. Likewise, funds allocated in 2000 are not available for use until July 1 of that year and must be encumbered by December 31, 2001. If Council desires to do a project in 1999, the project scope and cost must be identified and forwarded to the County in resolution form by February 19. One of the reasons that HUD is putting pressure on Anoka County to convert to a competitive based system like other counties for distribution of CDBG funds is because of the amount of unallocated funds in the County's program. Therefore, if we don't name a specific project(s) by February 19 we will have to wait until this tirne next year. The staff at the County Community Development Department will not support and the County Board will most likely deny an open-ended resolution to reserve the funds and name a project later this year. Staff did learn that if CDBG funds are dedicated to the ACCAP townhome project in 1999, it will probably lessen, but not eliminate, the amount of tax increment financing requested. The participation of tax increment funds will provide for design upgrades to twinhomes versus quads and increase garage size from 1 to 2 stall. A CDBG allocation in 1999 of $60,000+ cannot replace the upgrades that TIF would provide in the project but would be used towards site improvements such as landscaping, fencing, berming. A CDBG allocation to the townhomes in 2000 could only be used for a project add-on such as a playground. Recommendation: Staff recommends that at a minimum the $63,988 in funds diverted from the senior housing project be reallocated to a specific project. Preservation of Schoolhouse #28 (old town hall) is CDBG eligible and would be timely in conjunction with Ramsey's 25t~ anniversary celebration. Council Action: Will be based on Council's discussion. Motion to adopt Resolution #99-02- reallocating 1998 CDBG funds for Motion to adopt Resolution #99-02- allocating 1999 and/or 2000 CDBG funds for -or- Motion to decline funding a CDBG project in 1999. Review Checklist: CC: City Administrator Community Development Director Finance Officer 02/09/99