ACTION REQUESTED:
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Communication from the City Manager and the Community Development Director with a Request to APPROVE the COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ECONOMIC DEVELOPMENT PROGRAM and to Allocate $463,860.00 to the Program. (Generally Council Districts 1, 2, & 3)
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BACKGROUND:
As an investment of the City's Federal resources and to further the Council's goal to grow employers and job opportunities, $250,000 was allocated from the 2013 CDBG entitlement funds and $163,860 was allocated from the 2014 CDBG entitlement funds for an economic development program. Upon approval of the draft 2015 HUD budget, an additional $50,000 will also be allocated from CDBG funds. A total of $463,860 in CDBG funds will be available for the program.
Staff has attended HUD trainings, researched HUD regulations and statutes, and reached out to other communities with similar programs to craft guidelines that are in compliance with Federal rules and regulations and that meet a need in the City.
Below is an outline of the programmatic guidelines for the program using CDBG funds:
1. The eligible applicant must be a for-profit business who is in good standing with the State of Illinois and eligible to receive Federal fund assistance.
2. Program proceeds can be used for an applicant's project that includes code compliance updated, building renovations/expansions and parking updates.
3. The applicant must create at least one full-time equivalent (FTE) job and the employment position must meet the regulations of the CDBG program related to low-income benefit. City Staff will assist with determining if job creation requirements and low-income benefit meet the CDBG regulations.
4. For each FTE position created, an applicant is eligible to receive $35,000 of assistance. A minimum amount of assistance requested must be at least $10,000 with a maximum amount of assistance at $210,000 per project.
5. Program proceeds are provided as a forgivable grant...
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