HomeMy WebLinkAboutMINUTES - 06231998 - C141 Contra
TO: BOARD OF SUPERVISORS ''"` ` oto
County j[��JJ/
FROM: Dennis M. Barry, AICP M
Director of Community Development
DATE: June 23, 1998
SUBJECT. Allocation of FY 1997/98 CDBG Economic Development Assistance Funds
and Execution of Required Legal Documents for the North Richmond
Commercial Center
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. APPROVE the allocation of $250,000 in FY 1997/98 Community
Development Block Grant Economic Development Assistance Funds
(CDBG/EDAF) to Eden Housing, Inc. (Eden) and Community Housing
Development Corporation (CHDC) for the North Richmond Commercial
Center.
2. AUTHORIZE the Deputy-Director or his designee to execute a CDBG
Project Agreement and required legal documents for this purpose.
FISCAL IMPACT
No General Fund impact. Funds for this project will come from
the FY 1997/98 CDBG/EDAF. CDBG funds are provided to the County
on a formula basis through the U.S. Department of Housing and
Urban Development.
CONTINUED ON ATTACHMENT: XX YES SIGNATURE: '
RECOMMENDATION OF COUNTY ADMINISTRATORRECOMM DATION BOARD COMM EE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
4f UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Belinda Smith
335-1254 .SUN 2 3 1998
Original : Community Development ATTESTED
CC: CAO PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
BY F ,#.c 'i.a ° , DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATION
Can April 8, 1997, the Board of Supervisors approved the allocation of
20,550 to the FY 1997/98 CDBG/EDRF for use in funding economic
development projects as they developed during the program year.
Including prior year carryover and reallocated funds, the current balance
of the CDBG/EDRF is $601,713.
On June 3, 1998 the Economic Development Committee voted to recommend
that the Board of Supervisors approve an allocation of $250,000 to Eden
and CHDC for the North Richmond Commercial Center. The purpose of this
project is to construct an office/commercial building in North Richmond
in order to provide goods and services within the community, and to act
as a catalyst for neighborhood stability and economic growth.
The project sponsors propose to construct a single story, 9,600 square
foot office/commercial building fronting Third Street, between Chesley
and Grove in North Richmond. The building will be adjacent to the Center
for Health (currently under construction) , and a 52--unit senior housing
project. The senior housing project and the office/commercial building
are to be constructed at the same time.
The proposed 9,600 sq. ft. office commercial center will have as an
anchor tenant, the Services Integration Team (SIT) . The STT is a County
agency that provides coordinated services to Welfare to Work clients
(formerly GAIN clients) . The STT will occupy approximately 4,700 sq ft.
office space has also been secured by CHDC and will occupy approximately
2,000 sq. ft. A Sheriff Sub Station which will occupy 803 sq. ft. and an
ATM 100 sq. ft of space, will also be located at the Commercial Center.
it is estimated that between 1,500 to 2,000 sq ft will be set aside for
retail uses.
The building of the Commercial Center is expected to result in the
creation of approximately 17 to 23 full and parttime jobs. A minimum of
six permanent jobs will be available to North Richmond residents . North
Richmond residents will also be targeted for employment in temporary jobs
which will be created during construction.
The total cost of the project is $2,050,803 . If approved, CDBG/EDAF
funds will be used for construction and will be provided to this project
in the form of an deferred residual receipt loan for $250,000. As a
condition of the $685,000 from the U.S. Department of Health and Human
Services, the project must be under construction in September. The
County Redevelopment Agency has agreed to cover the remaining funding gap
ensuring that the project will meet the construction schedule. Funding
sources include:
CCC CDBG $ 350,000 (requested)
U.S. Dept. Health $ 685,000 (approved);
and Human Services
CCC Redevelopment $ 855, 112 (approved)
Agency
CCC Center for Health $ 70,000 (estimated)
City of Richmond CDBG $ 90,691 (requested)
Total $2,050,803
The North Richmond Commercial Center is eligible, timely, and most
importantly carries out the North Richmond Revitalization Strategy. The
North Richmond Revitalization Strategy was adopted by the Board of
Supervisors and approved by HUD in August of 1996, and amendment to the
Consolidated Plan. The purpose of the Revitalization Strategy is to
create opportunities for jobs and housing, viable neighborhood commercial
areas, child care, safe streets, and transportation.
In addition to the North Richmond Commercial Center the Economic
Development Committee recommended, and the Board of Supervisors approved
on March 24, 1998 the allocation of $150,000 for the Rubicon Bakery
Expansion. If the North Richmond Commercial Center is approved by the
Board, the FY 1997/98 EDAF will have a remaining balance of $201, 137 .
This balance will then be carried forward for use in FY 1998/99 .