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HomeMy WebLinkAbout2011-02-23 Business and Economic Development Committee Minutes BUSINESS& ECONOMIC DEVELOPMENT COMMITTEE • Wed., Feb. 23, 2011, 5 pm City Hall Council Chambers MINUTES Councilors: Chair Weston, Blanchette, Bronson, Durgin,Gratwick, Longo Staff: Conlow, McKay, Bradley,Wallace Others: Sally Tardiff, Executive Director at Shaw House, Bangor; Mike Bush, Penquis CAP, Bangor; Dennis Marble, Director at the Bangor Area Homeless Shelter; Mike Andrick, Director of Hope House, Bangor; Kerry Sack with the Charlotte White Center. Bangor. 1. PUBLIC HEARING - Amount of Federal Community Development Block Grant Funds expected to be available for the Period July 1, 2011 through June 30, 2012 and the Eligible Uses of Community Development Funds Community Development Director Rod McKay presented this item to the Committee stating that this is the first of two required Public Hearings to explain the Federal Community Development Block Grant Program (CDBG). This is the process to let the public know of the amount of funds expected to be available for the CDBG Program Year that will begin on July 1, 2011, and to identify the range of activities that are eligible under the program guidelines. Public input may be presented in person at tonight's public hearing or submitted in writing to the Community Development Office prior to the 2"d • public hearing that will be held in late April prior to the Consolidated Plan's submission to HUD by May 15. This year's annual HUD Entitlement grant will be approximately$1,115,432 (the same amount received last year). Rod passed out booklets explaining the CDBG Program in detail. He stated that the City of Bangor is an entitlement community and, as such, receives their funding by formula each year and thusly do not have to apply for the funding. They do, however, have to let the U.S. Dept. of HUD know what they intend to use the funds for. In the initial years of the City's Community Development Program,the funds were used in targeted neighborhoods; for the past 12 years or so the Program has been City-wide. The funds have been used for various activities. The City's Community Development Program has provided property rehabilitation financing to low-and moderate-income homeowners and investment property owners who rent or agree to rent to low-and moderate-income tenants. The Community Development property rehabilitation loans are typically at lower interest rates and longer terms than are available from a private lender. The Community Development staff also prepared a brochure that explains what other programs in addition to the CDBG Program are available in Bangor through local agencies that might assist in making energy improvements to their homes. Under the CDBG Program energy efficiency is one of the things that can be financed, as well as correction of health and safety issues that are violations of the City's Codes, and improvements to homes to make them more readily maintainable. • Other eligible activities currently funded in addition to the Property Rehabilitation Loan Program are: • Business Development Loans for businesses locating or expanding in Bangor that are creating jobs principally for low and moderate-income persons; Park Woods-for case management services as part of the City's transitional housing program; acquisition of property that is not feasible to rehabilitate, and demolition and clearance of acquired property; relocation of persons and businesses that may be displaced from acquired property; disposition of acquired property; improvements to public infrastructure in low-and moderate-income neighborhoods; reimburse to Planning and other City departments for their support of the Community Development program. It is anticipated that the FY 2011-2012 Community Development Block Grant received by the City will continue the general activities of the previous few years. Rod added that at committee meetings between now and May 15, staff will make several suggestions to the BED Committee for what should be funded under the program; will also allow the public to make their requests and accept any suggestions from the City Council members on how they feel these funds should be spent. The submission deadline is May 15;the funding is usually approved by July 1 and then the program can be carried out for the ensuing year. Chair Weston asked those Councilors present if they had any questions or comments. Councilor Nealley expressed that in past years it has been helpful to have funds from the CDBG Program to assist with sidewalk maintenance in the City and he knows that, if necessary in the upcoming budget year,these funds can assist with that basic maintenance. He added that any financial assistance that can be considered to clean up property blight is helpful and in case of City budget shortfalls the opportunity of compensating other City depts. for some of the work they do is also helpful. • Councilor Blanchette inquired if all of the CDBG funds are dispensed in a year's time and if not, do they roll over or go back to the federal government? Rod replied that funding is on a draw down basis as activities take place and that there cannot be more than 3 days of Community Development funding on hand. The City actually finances the activities, then Community Development gets reimbursed. Community Development cannot generally have more than a year and a half of unspent grant funds available, and unspent funds remain available until spent as long as no more than 1 Y2 years of grant funds remain available. HUD has been very happy with the timeliness of the City's use of these funds. Councilor Durgin asked if staff is able to apply for the grant without having specific projects ready or do you need to have those projects ready to go for the grant? Rod replied that the City Council needs to determine in general terms what activities they want to fund such as the waterfront infrastructure (that is an eligible activity). CDBG funds have been generally used to match other federal funds or other grant funds that might be available from the state or federal government. The City Council approves how the funds are expended by project. Councilor Longo, on behalf of a Bangor resident, inquired about the former dry cleaning business on Fern Street—could this property be used for something productive? Rod replied that the property is owned by Bob &Suzanne Kelly who have cleaned it up with federal assistance. They had approached the City for partial financing in order to convert the building into 15-16 condo units. The City Council had approved partial funding up to $250,000 in tax increment financing for that project, but the Kelly's were unable to get the private financing needed to move the project forward. Rod added that he will look into this further as it is an eligible project under the CDBG program. • Councilor Bronson inquired if the CDBG funds could be used to demolish the former police station as it is • a site of blight and possibly a Brownfield? Also, if that could not be organized by May 15, 2011 could it potentially be organized within the next 12 months so that it could be considered; or could the County itself apply for CDBG funds or can we do it together or would we have to do it and then hand the parcel off to them? Rod replied that the larger municipalities in Maine (Bangor, Lewiston, Biddeford, and Portland) are entitlement communities. Funding for communities that aren't entitlement communities is made available through the state;the state has a competitive process where they can apply for funds. As Bangor is an Entitlement Community, Penobscot County could not apply for funds for a project in Bangor. As to whether or not Community Development funds can be used to demolish the former police station, Rod replied that these funds can be used for infrastructure improvements in eligible neighborhoods. Rod added that a problem with demolishing that building is it's holding up the street; you may be able to stretch it a ways but I think it's going to cost probably more then we have available in Community Development funds, but I don't think it's been costed out yet or designed. My understanding is that the building would be demolished and the materials left in place and then terraced to hold up Court Street. If we followed that concept that would be an infrastructure improvement that probably would be eligible. Sally Tardiff, Executive Director at The Shaw House in Bangor, presented a proposal she submitted last year at this time to expand their transitional living program to include a shared-housing model. This would significantly increase the number of people that Shaw House would be able to take into the program now and provide additional support for young people who are beginning to age out of the program. Rod stated that for anyone from the public who has an interest in CDBG funding and has a project in • mind, if they would submit it to the Community Development office, staff will bring them to the BED Committee's attention and let them know if the projects are eligible. Mike Bush from Penquis CAP in Bangor spoke in regard to the housing portion of the CDBG program. He stated that in previous years, historically Penquis has done home repair. Maine Housing formerly supported this program and those monies were eligible to be directed to the City and also 2 other counties. This year,those monies are not available. Consequently, home repairs are one thing that the City program also does but due to lack of funds at Penquis the City won't be getting the support as in past years. Mike added that Penquis wants to be able to work with the City of Bangor anyway they can but so much of the housing is in such bad shape and the neighborhoods are so crucial to the fabric of the City, so he sees the necessity of the Community Development CDBG program keeping some of that money in their repair program. He also suggested that the City look at ways to utilize the money not only to support the existing lower income housing and the housing that is serving lower income people but also to leverage more mixed neighborhoods—thinks there's opportunity to make some of the neighborhoods more vibrant and perhaps CDBG can assist in that way. Councilor Gratwick asked Mike Bush how can the City Council be pro-active in dealing with the possible reduction of HUD and state funds as these have been the life of the inner part of Bangor. Mike replied that at the state level they have been collecting a lot of testimony and comments from communities that they are compiling into a document that they intend to share with our congressional people. Sometimes the state program doesn't always connect with the entitlement program, so I don't know if you folks were invited to participate in that or not, but I think that would be helpful. Mike Baran of the State Dept. of Economic& Community Development is heading this up. This is also a program that is • locally determined and locally built, and this is a great selling point to communities. Communities value the program because it does do that; also federal and congressional people value the program as it puts • local control where it should be. Councilor Gratwick asked Rod and City Manager Conlow (for the next BED Committee meeting)to come up with a specific statement we can push on in order that it will make some difference for future funding. Dennis Marble, Executive Director at the Bangor Area Homeless Shelter, expressed his recognition of Rod McKay's excellent work historically. Dennis added that 'housing' is his major concern and with the way things are poised at the state and federal levels he's afraid that it will increase homelessness and the demand on Bangor as a service center. Housing can be a win,win, although the current CDBG funding will not be enough money to do what Bangor needs to do in terms of both meeting needs and in terms of community development. He advocates for housing over programs like the homeless shelter because he feels it is about serving both needs. Dennis further added that if we do our jobs in terms of infrastructure and actual housing we might have more leverage to talk with the state about doing this in terms of service support which is what's being eroded right now. Scattered site developments, mixed community developments (that Mike Bush alluded to) are much healthier for everybody. Mike Andrick, Director of Hope House (affiliated with Penobscot Community Health Care - PCHC), expressed an interest in PCHC developing a community homeless health clinic. Hope House is a 100-bed facility and has 40 units of transitional housing. They're looking to consolidate their homeless health clinic whether that is adjacent to Hope House or renovating Hope House;they're interested in utilizing CDBG funding to possibly assist with that. Mike concluded by saying that housing can only help homelessness and reduce it in our community. With cutbacks that are being discussed at the state level • and the impact of those this is a complex issue. Kerry Sack, of the Charlotte White Center, expressed her appreciation that the City of Bangor has always taken such a pro-active and active role in solving the problems in the community and that it has been an honor and privilege for her to work with the Community Development office. Kerry further stated that there is a project at 97 Court Street (the former Knights of Columbus Hall)that will provide 7 affordable housing units for people who have physical disabilities who are non-elderly and low income. These people had to be placed in nursing homes because there were no other housing supports for them. The units will be equipped to meet some rigorous physical disabilities. Other benefits in these types of housing projects are that they create jobs; many programs that are social service based or supported housing come with creating additional jobs in the social service sector. Chair Weston thanked those from the public who briefly spoke on their proposed projects. Rod will look forward to hearing back from them at a future committee meeting outlining their projects. Meeting adjourned.