Washington Neighborhood Development Corporation (WNDC)THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Washington Neighborhood Development Corporation
DATE: April 29, 2009
With the publishing of the Strategic Plan report for the Washington Neighborhood and
its presentation to the City Council at a work session on April 20, the City is moving
ahead with the goal of establishing a Washington Neighborhood Development
Corporation (WNDC). The mission of the WNDC will be to implement the
recommendations of the Strategic Plan, through recruitment and involvement of
neighborhood residents and stakeholders in activities designed to promote sustainable
neighborhood development.
A first year operating budget has been estimated at $82,735, to include afull-time
Executive Director. Additional start-up costs totaling $11,950 bring the first-year budget
to $94,685.
Housing and Community Development Department Director David Harris recommends
City Council authority to reallocate $100,000 from the Homeownership Grants CIP to
fund the activities of the Washington Neighborhood Development Corporation.
I concur with the recommendation and respectfully request Mayor and City Council
approval
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: Michael C. Van Milligen, City Manager
FROM: David Harris, Housing & Community Development Department
SUBJECT: Washington Neighborhood Development Corporation
DATE: 27 April 09
Introduction
The purpose of this memorandum is to request reallocation of funds to support first year
operations of a neighborhood development. corporation, to further Washington
Neighborhood revitalization efforts.
Discussion
With the publishing of the Strategic Plan report for the Washington Neighborhood and
its presentation to the City Council at a work session on 20 April, we are moving ahead
with the goal of establishing a Washington Neighborhood Development Corporation.
The mission of the WNDC will be to implement the recommendations of the Strategic
Plan, through recruitment and involvement of neighborhood residents and stakeholders
in activities designed to promote sustainable neighborhood development.
A first year operating budget has been estimated at $82 735, to include afull-time
executive director. Additional start-up costs totaling $11 950 bring the first-year budget
to $94 685. A copy of the budget is attached.
There is a current balance of $413 000 in the Homeownership Grants -Targeted
Neighborhoods fund (CIP #1001595.) This activity provides home purchase and rehab
grants to non-income eligible households, to acquire and improve houses in the
Washington Neighborhood. The large balance reflects our inability to-date to effectively
attract more moderate-income buyers to the neighborhood.
It is proposed that $100 000 be reallocated from this activity to fund first-year operations
of the WNDC. A priority goal for the new corporation will be to identify federal, state and
foundation sources of funds to continue operations in subsequent years. One of these
potential funding sources includes proceeds from sale of New Market Tax Credits -
should Dubuque Initiatives be awarded an allocation. Community Development Block
Grant (CDBG) funds could also be used, although this would necessitate reallocation of
currently funded public service activities. We are also pursuing a relationship with the
Neighborhood Development Corporation/NeighborWorks network, although it appears
at this time that only staff and board training assistance will be made available to us.
Action Step
The action requested of the City Council is to reallocate $100 000 from the
Homeownership Grants. CP # 1001595 to fund the activities of the Washington
Neighborhood Development Corporation.
cc:
Jennifer Larson, Budget Director
Washington Neighborhood Development Corporation (WNDC)
Proposed Annual Operating Budget
Rent (1000 square foot office) $ 7 200
Heat 1 200
Electricity 600
Water/sewer/trash 400
Custodial/snow removal (in-house) N/C
Telephone/internet service 600
Fax line 450
Copy machine lease/contract 1 095
Staff:
Executive Director (Grade 34 equivalent) 50 000
FICA 3 600
Health Insurance ($600/month) 7 200
Worker Comp Insurance 640
Business liability insurance 250
Property loss insurance 200
Directors and Officers insurance 1 200
Advertising 600
Printing 1 500
Postage 600
Office supplies 400
Accounting/payroll 500
Audit 1 000
Legal (pro Bono) N/C
Training 3 500
Total $ 82 735
Non-recurrina costs
Consulting:
Board training/business plan/fund raising
plan (Teska Associates) $ 7 800
Tax exempt filing/incorporation 750
Phone system (2 phones) 100
Computers (2)/printer/router 3 300
Office furnishings (used from City) N/C
Total $ 11 950
Washington Neighborhood Development Corporation (WNDC)
Mission:
- Implementation of the Washington Strategic Plan
Strategy:
- Involve residents and stakeholders in revitalization of Neighborhood
- Promote sustainable neighborhood through resident initiative and ownership
Goal:
-Neighborhood self-governance
Mechanism:
- Non-profit corporation
- Governed by community stakeholder board of directors
- Storefront operation
- Executive Director; professional staff
- $90 000 initial annual operating budget
Potential funding sources:
-Durable Initiatives - New Market Tax Credits
- Neighborhood Development Corporation/NeighborWorks partnership
- Direct City allocation
- Community Foundation of Greater Dubuque
- Federal and state grants; foundations