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F C CAS # &- CONSIDERATION OF UNALLOCATED 1997 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS By: Zoning Administrator Sylvia Frolik Background: On February 11, 1997 the City Council considered allocation of $32,120.00 in CDBG funds. At that time, the Council designated the following funds: Alexandra House CEAP Opportunity Services Child Care Resource & Referral $2,500.00 $2,500.00 $5,000 $7,600.00 That left an unallocated balance of $13,520.00, which City Council directed be forwarded to this Finance Committee meeting for further discussion. Observations: In addition to the unallocated $13,520.00, the City has a previous allocation in the amount of $23,769.00 for preservation of the old schoolhouse on T.H. #47. CDBG regulations required that this allocation be encumbered by December 31, 1996 and due to various delays, this has not happened. If progress is not made in the very near future to encumber that allocation, we risk losing it. At the current time, the Council is considering enacting a development moratorium to provide the City with the opportunity to amend the Comprehensive Plan to include housing and environmental elements. Staff has also been approached by representatives from Lord of Life Church regarding a senior housing project in Ramsey. It was determined that the first step in such a project would be a needs assessment. Recommendation: City Staff recommends that the unallocated $13,520.00 and the $23,769.00 historic preservation allocation be reallocated for planning purposes; $7,000 for senior housing needs assessment and the remainder for housing and environmental elements to the Comprehensive Plan. Committee Action: Motion to: Recommend that City Council direct City Staff to prepare consideration to allocate CDBG funds for planning purposes. a resolution for Council Review Checklist: FC: City Administrator Finance Officer 3/25/97