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Neighborhood Stabilization ProgramMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Application for Neighborhood Stabilization Program Funds DATE: June 15, 2010 Housing and Community Development Department Director David Harris recommends City Council approval of the submittal of an application to the Iowa Department of Economic Development for $626,593 in Neighborhood Stabilization Program funds. 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 Dubuque hitill All-America City 11111 ' 2007 Masterpiece on the Mississippi TO: Michael Van ��ligen, City Manager FROM: David �ris, Housing and Community Development Department SUBJECT: Application for Neighborhood Stabilization Program funds DATE: 14 June10 Dubuque AY- AmedcaCity 1 2007 Introduction The purpose of this memorandum is to request the City Council to approve the attached resolution, authorizing submittal of an application to the Iowa Dept of Economic Development (IDED) for Neighborhood Stabilization Program (NSP) funds. Background We received an NSP 1 award of $444 328 in April 09. Grantees were required to have their funds obligated by the end of March. Those failing to meet this deadline had their awards recaptured. IDED has made these funds available to other grantees, under a competitive application process. We received notification of this opportunity on May 13 with a 28 May submission deadline. For that reason, the application has been prepared and submitted prior to City Council approval. We have obligated our previous funding award in a variety of ways, including purchase and rehabilitation of foreclosed properties located at 2515 White, 1925 Washington, 1699 Washington and 2315 Jackson. In addition, we have obligated NSP funds to move and rehab an acquired Bee Branch home, from 324 East 24 Street to 2300 Washington; and to renovate and sell two City -owned Bee Branch houses located at 2312 and 2268 Washington Street. And $40 000 has been set aside for Dubuque's Habitat for Humanity organization to purchase and renovate a City- acquired Bee Branch home at 2227 Elm Street and move it to 517 East 22 Street. Discussion We have submitted a request for $626 593 additional NSP funds to continue our program of acquiring, renovating and re- selling vacant and /or foreclosed properties in Census Tracts No. 5 and 11.02 (primarily in the Washington Neighborhood.) In particular, we will use the requested funds to rehab, finance and re -sell eight homes the City acquired in the 2200 -2400 block of Washington Street, for the Bee Branch project, that are not required for the right -of -way. Action Step The action requested of the City Council is to approve the attached resolution, for the purpose of approving an application to the Iowa Department of Economic Development for Neighborhood Stabilization Program funds, in the amount of $626 593 . RESOLUTION NO. 217-10 A RESOLUTION AUTHORIZING AN APPLICATION TO THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT (IDED) FOR NEIGHBORHOOD STABILIZATION PROGRAM (NSP) FUNDS WHEREAS, the City Council of the City of Dubuque, Iowa set a public hearing on 7 June 2010 and published a public notice for receiving public comment on 21 June 2010 for the purpose of submitting an application to IDED for Neighborhood Stabilization Program funds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA; Section 1. That the City Manager is hereby authorized and directed to prepare and to submit to the Iowa Department of Economic Development an application for Neighborhood Stabilization Program funds, and to sign the standard contract for administration of the awarded funds. Passed, approved and adopted this 21st day of June 2010. Attest: anne F Schneider, CMC, City Clerk (94J Roy Buol, Mayor