Title
Approval to Launch the Program Year 2019 Community Development Block Grant (CDGB) Amendment Public Process
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Amendment Process for the CDBG Program Year 2019 Action Plan and direct staff to prepare for a 30-day public comment period November 13 - December 13, 2019.
Report
Issue:
Whether the Council should launch a Program Year 2019 CDBG Amendment Public Process to re-allocate the $425,000 from the cancelled Salvation Army Day Center / Community Kitchen Project?
Staff Contact:
Anna Schlecht, Community Service, Community Planning and Development Department, (360) 753-8182
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Salvation Army Olympia Corps has informed staff that they have decided to cancel the Community Development Block Grant (CDGB) loan offered them by the City to help fund their Day Center/Community Kitchen project. Instead of using City funds, they plan to pursue other less-restrictive sources of funding. The formal letter from Salvation Army Dated October 24, 2019, details this cancellation. This means that the City now has a total of $425,000 that must be reallocated.
The City submitted its original Program Year (PY) Action Plan on July 15, 2019, which contained an additional $125,000 for the Salvation Army Day Center/Community Kitchen project. This PY 2019 allocation was in addition to the prior year's PY 2018 allocation of $300,000, coming to a total of $425,000 allocations for Salvation Army. Since July, the Salvation Army has determined they do not want to encumber their property with a Deed of Trust and are further concerned about other government regulatory issues tied to the CDBG funds that would increase the cost of their proposed project. Instead, they anticipate pursuit of other less restrictive funds. They have approximately $800,000 from several sources including a $250,000...
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