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CDBG funds towards land acquisition for the senior apartment building. However, the funds had <br />to be pulled from that project when it became known that CDBG involvement would <br />significantly restrict income eligibility for residents of the facility. Consequently, the funds were <br />reallocated to preservation of the Old Town Hall in hopes that it could be renovated in time for <br />the City's 25th Anniversary celebration. However, that project did not meet Federal guidelines <br />because historic preservation projects must be pristine and some renovation work had already <br />occurred. The City has received a request from the Anoka County Community Action Program <br />(ACCAP) that the funds be reallocated to their organization for acquisition of land in the City for <br />development of affordable townhouse rental units. Since the hearing was called to order on <br />September 28, 1999, Staff has also received a letter from Lord of Life Church inquiring about the <br />possibility of CDBG funds qualifying for options they are considering. Federal regulations <br />require a 30 day comment period following the public hearing for reallocation of CDBG funds. <br />Council may adopt a resolution now to reallocate the funds pending the outcome of the 30 day <br />comment period, or adopt a resolution to reallocate the funds at the termination of the 30 day <br />comment period. <br /> <br />Councilmember Connolly inquired if they could use a portion of the funds on the Comprehensive <br />Plan. <br /> <br />Zoning Administrator Frolik replied that she would have to verify the information, because a <br />City is only allowed to use twenty percent of CDBG funds for planning. <br /> <br />Mayor Gamec stated that the projects that Lord of Life would be looking at would not be able to <br />start in the time frame available, and a gym would not qualify. <br /> <br />Zoning Administrator Frolik explained that if the funds are going to be used for a public <br />building, then a certain percent of the users would have to be low to moderate income levels and <br />they would have to keep track. <br /> <br />Councilmember Hendriksen stated that the City has purchased a piece of property at a significant <br />cost and sold to ACCAP at a significantly lower cost. He inquired if it would be possible to <br />allocate the funds to reduce the cost of the City for acquisition of the site. <br /> <br />Zoning Administrator Frolik replied that she would have to verify the information. <br /> <br />Councilmember Connolly stated that there has been some talk of using the fire department as a <br />shelter or for meeting groups. <br /> <br />Zoning Administrator Frolik replied that they would still have to show that the people benefiting <br />are Iow to moderate income. <br /> <br />Councilmember Hendriksen stated that he wants to know if it is viable to use the funds to cover <br />the cost the City has already occurred in acquiring the property for ACCAP. He inquired if the <br />money has already been paid out for the property. <br /> <br />City Council/October 12, 1999 <br /> Page 19 of 28 <br /> <br /> <br />