Harvest Kitchen and Bar_CDBG Loan AgreementTHE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
band
AI -America City
r
2007 • 2012 • 2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: CDBG Funding for a Restaurant in the Schmid Innovation Center
(Caradco Building)
DATE: July 17, 2014
Economic Development Director Maurice Jones is recommending a $175,000 CDBG
forgivable loan to the owners of Harvest Kitchen and Bar, a new business to be located
in the Schmid Innovation Center at 955 Washington Street.
The Harvest Kitchen and Bar is owned by the Offal Food Group, a limited liability
corporation, and other investors who believe in the Historic Millwork District vision. This
is a new company with independent ownership. Members of this entity include:
President, Jonathan Nelson, Vice President, Kevin Scharpf, and Treasurer, Kim
McDermott. The Offal Food Group owns 60% while the other investors own 40%.
The Harvest Kitchen and Bar will be a unique establishment that will create a dining
experience not offered by the numerous other restaurants the area has to offer today.
The restaurant will provide a relaxing and organic atmosphere that will deliver a quality
and unique menu selection.
In addition to financial contributions to local organizations, the management team of
Harvest Kitchen and Bar plans to volunteer their time and services to local nonprofits.
They plan to host educational events for children to teach them the importance of
nutrition and cooking, potentially teaming up with the Dubuque Food Co-op.
The CDBG Economic Development Loan Program provides forgivable loans to
businesses maintaining and creating new job opportunities that will be made available
to low and moderate income persons.
The source for the loan will come from the City's CDBG Economic Development loan
program. Currently there is $185,806 available in the loan program to fund this loan.
The funds will be used for working capital, purchase equipment, and start-up inventory.
The Company plans to create and retain 18 full-time equivalent positions with at least
fifty-one (51) percent of the created positions held by or made available to persons who,
at the time of their employment, are considered by HUD to be of low or moderate
income.
Should the Company meet all the job creation requirements, the loan will be forgiven at
the schedule below:
End of Contract Year Amount Forgiven Balance
2015 $75,000 $100,000
2016 $37,500 $62,500
2017 $37,500 $25,000
2018 $25,000 $0
I concur with the recommendation and respectfully request Mayor and City Council
approval.
.�st✓�'�t Y �
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Alvin Nash, Housing & Community Development Department
Erica Haugen, Assisted Housing Specialist
2
Masterpiece on the Mississippi
Dubuque
teal
All -America City
1111
111'
2007 • 2012 • 2013
Economic Development Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
Fax (563) 589-1733
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Miliigen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: CDBG funding for a restaurant in the Schmid Innovation Center (Caradco
Building)
DATE: July 16, 2014
INTRODUCTION
The Harvest Kitchen and Bar, a company owned by the Offal Food Group as well as
investors, has proposed to open a restaurant in the Schmid Innovation Center, 955
Washington Street. They are requesting $175,000 of CDBG funding to be used as
working capital for launching the restaurant.
BACKGROUND
The Harvest Kitchen and Bar is owned by the Offal Food Group, a limited liability
corporation, and other investors who believe in the Historic Millwork District vision. This
is a new company with independent ownership. Members of this entity include:
President, Jonathan Nelson, Vice President, Kevin Scharpf, and Treasurer, Kim
McDermott. The Offal Food Group owns 60% while the other investors own 40%.
The Harvest Kitchen and Bar will be a unique establishment that will create a dining
experience not offered by the numerous other restaurants the area has to offer today.
The restaurant will provide a relaxing and organic atmosphere that will deliver a quality
and unique menu selection, which will be pleasing to the eye as well as the palate.
In addition to financial contributions to local organizations, the management team of
Harvest Kitchen and Bar plans to volunteer their time and services to local non -profits.
They plan to host educational events for children to teach them the importance of
nutrition and cooking, potentially teaming up with the Dubuque Food Co-op.
DISCUSSION
The CDBG Economic Development Loan Program provides forgivable loans to
businesses maintaining and creating new job opportunities that will be made available
to low and moderate income persons. The program was first authorize in FY 1995 and
currently has a budget of $185,806.
The source for the loan will come from the City's CDBG Economic Development loan
program. Currently there is $185,806 available in the loan program to fund this loan.
The funds will be used for working capital, purchase equipment, and start-up inventory.
The Company plans to create and retain 18 full- time equivalent positions whereas at
least fifty-one (51) percent of the created positions listed below will be held by or made
available to, through first consideration accommodations, persons who, at the time of
their employment, are considered by HUD to be of low or moderate income.
This loan will may be forgiven should the Company create and/or retain the positions
below. Below is a breakdown of the amount of FTE positions to be maintained by
certain dates:
Retention Date Number of FTE
Current 0
May 1, 2015 12
May 1, 2016 18
May 1, 2017 18
May 1, 2018 18
Should the Company meet all the job creation requirements, the loan will be forgiven at
the schedule below:
End of Contract Year Amount Forgiven Balance
2015 $75,000 $100,000
2016 $37,500 $62,500
2017 $37,500 $25,000
2018 $25,000 $0
RECOMMENDATION/ ACTION STEP
Staff has reviewed the loan request and finds it to be in keeping with the requirements
of the Economic Development Loan Program. It is my recommendation that the City
Council adopt the attached resolution approving the forgivable loan agreement of
$175,000 and authorizing the execution of all necessary loan documents by the City
Manager.
RESOLUTION NO. 211-14
APPROVING A COMMUNITY DEVELOPMENT BLOCK GRANT LOAN AGREEMENT
FOR ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($175,000) FOR
HARVEST KITCHEN AND BAR
WHEREAS, under provisions of Title I of the Housing and Community Development
Act of 1974, as amended, the City of Dubuque has received Community Development
Block Grant Funds for the purpose of stimulating economic development activities within
the community; and
WHEREAS, Harvest Kitchen and Bar has applied for Community Development
Block Grant Funds to develop a restaurant and bar in the Historic Millwork District which
will create new permanent employment opportunities for low and moderate income
citizens; and
WHEREAS, the City Council finds that it is in the best interests of the City of
Dubuque to approve the Loan Agreement attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the attached Loan Agreement is hereby approved.
Section 2. That the City Manager is hereby authorized to execute, on behalf of
the City of Dubuque, Iowa, the Loan Agreement and all necessary loan documents and is
further authorized to disburse loan funds from the Community Development Block Grant
Funds Economic Development Loan Program, in accordance with the terms and conditions
of the Loan Agreement.
Passed, approved and adopted this 21st day of July, 2014.
Attest:
Kevin rnstahl
City Clerk
0 Z.
Roy D.uol
Mayor
CITY OF DUBUQUE, IOWA
ECONOMIC DEVELOPMENT LOAN PROGRAM
HARVEST KITCHEN & BAR
LOAN AGREEMENT
NUMBER: CDBG #1-2014
This AGREEMENT (the "Agreement"), dated as of the day of July, 2014, is entered
into by and between the CITY OF DUBUQUE, IOWA, a municipal corporation organized
and existing under the laws of the State of Iowa (hereinafter referred to as the "City") and
HARVEST KITCHEN & BAR, a Limited Liability Company with its principal place of
business in Dubuque, Iowa (hereinafter referred to as the "Company").
WITNESSETH:
WHEREAS, Company has requested a forgivable loan to offset the costs associated
with the start-up of its operations in the Schmid Innovation Center, located 955 Washington
St, Suite 101 in the Greater Downtown Urban Renewal District; and
WHEREAS, City has considered said proposal and has determined that it will create
permanent employment opportunities for the community's low and moderate income
population within a low and moderate income census tract; and
WHEREAS, City is a participating city in the Community Development Block Grant
Program of the United States Department of Housing and Urban Development (hereinafter
referred to as "HUD");
NOW THEREFORE, in consideration of the promises and respective covenants,
agreements and representations hereinafter set forth, the parties agree as follows:
1. SOURCE OF LOAN FUNDS. City, pursuant to its Grant Agreement with HUD,
has obtained a Letter of Credit from HUD, issued by the United States Treasury, for funds
sufficient to carry out its obligations under this Agreement.
2. LOAN TERMS. City agrees to provide a loan to Company in the amount of one
hundred seventy-five thousand dollars ($175,000.00) (the "Loan"). The term of the Loan
shall be up four (4) years. Interest shall accrue at the rate of zero percent (0%) per annum,
computed on a 365 day basis. No payments of interest or principal shall be made during
the term of the Loan, and the Loan shall be fully forgiven within four (4) years if the job
creation requirements of paragraph 9(a) are met. On or before the date of the first
disbursement of loan funds to Company, Company shall execute its Promissory Note in the
form attached hereto as Exhibit A payable to the order of City in the principal amount of one
hundred seventy-five thousand dollars ($175,000.00) (The "Note").
(a) Portions of the Loan may be forgiven if Company satisfies the job creation
requirements specified in Section 9(a). The Annual Reporting requirements specified in
Paragraph 9(b) will determine the amount of forgiveness for the specified year. The
following is the schedule of loan forgiveness should Company meet all job creation
requirements:
End of Contract Year Amount Forgiven Balance
2015 $75,000 $100,000
2016 $37,500 $62,500
2017 $37,500 $25,000
2018 $25,000 $0
The forgiveness will be a pro -rata share of the actual positions filled by Company to the
committed hired positions (Example: Should Company retain 95 percent of the required
amount of positions, then only 95 percent of the scheduled loan forgiveness will be
honored).
3. DISBURSEMENT AND USE OF LOAN FUNDS. Loan funds shall be disbursed
for the benefit of Company by City for Qualifying Project Expenses up to one hundred
seventy-five thousand dollars ($175,000.00). Company shall furnish to City written request
for disbursement of loan funds identifying by serial number or equivalent the machinery
and/or equipment and/or inventory to be purchased. City will reimburse Company within
ten (10) business days of request. It is expressly understood that all funds advanced under
this Agreement shall be specifically earmarked and used by Company only for the purpose
of paying the Qualifying Project Expenses listed in the applicable written request and as
defined in Paragraph 27(c). Company shall complete the Project as defined in Paragraph
27(b) in accordance with the terms of this Agreement within twelve (12) months of the date
of this Agreement. City shall not be obligated to pay any funds not drawn by Company as
of said date and any undrawn funds shall be credited against the balance due on the
Promissory Note.
4. SECURITY. The Loan shall be secured by a UCC -1 Financing Statement on all
Qualifying Project Expenses acceptable to City amounting to at least $300,000 in
machinery, furniture, and equipment.
5. STATUS OF COMPANY. Company represents that it is a limited liability
company duly organized and existing under the laws of the State of Iowa; that it is
authorized to borrow under this Agreement, to execute and deliver the Note and otherwise
perform the obligations of this Agreement; that is has organization authority and power to
own its property and conduct its business as it is currently carried on; that the performance
of its obligations under this Agreement and the issuance of any note under it will not conflict
with any provision of law, the Articles of Organization or the Operating Agreement of
Company, or any agreement binding on it; and that, except as disclosed in writing to City, it
is not a party to any material pending or threatened litigation or to any proceeding or action
for the assessment or collection of additional taxes, and that it knows of no known material
contingent liabilities not provided for or disclosed in the financial statement provided City.
6. FINANCIAL CONDITION OF COMPANY. Company has delivered to City a
statement of Company's financial condition as of the date of application for financial
assistance which fairly represents the financial condition of Company as of the date stated,
prepared in accordance with generally accepted accounting principles consistently applied,
and that the Company represents that the statements still correctly reflect the financial
condition and status of its operations as of the date of this Agreement. Company agrees to
notify City of any material change in Company's financial condition.
7. TITLE OF COMPANY. Except as otherwise disclosed in writing to City,
Company represents that it has good and marketable title, free of mortgage, pledge, lien,
security interest, encumbrance, or charge to all those assets reflected on the financial
statement and to assets since acquired. Taxes not due or payable or otherwise delinquent
are excepted, as are assets disposed of in the ordinary course of business or disclosed in
writing to City.
8. CONDITIONS OF BORROWING. On the date on which any sum is to be
borrowed, Company, in addition to the Note, shall deliver to City such other papers and
documents as may be required to comply with the conditions of this Agreement, as counsel
for City may reasonably request.
Company shall be required at the closing date to comply, or establish compliance, as
follows:
(a) That the representations and warranties of Company are correct on the
closing date, as well as on the date of execution of this Agreement;
(b) That Company has fully complied with the covenants and agreements to
the extent required before the closing date;
(c) That no default or event which might mature into a default has occurred or
continues to the closing date;
(d) That no material litigation or proceeding is pending against Company
which might result in any change in the business or materially adversely affect the
properties of Company, taking into account the entire assets and overall business of
Company;
(e) That since the date of execution of this Agreement and to the closing date
there has been no material adverse change in the financial condition of Company
from that shown by the financial statements delivered to City under Paragraph 6;
(f) That since the date of execution of this Agreement no fire or casualty has
occurred in any building or to any inventories or property of Company that might
substantially, adversely affect the conduct of its business;
(g) That it will furnish to City on the closing date with the opinion of
Company's counsel that Company is a limited liability company duly organized,
existing and in good standing under the laws of the State of Iowa; that it has
organizational power to own its properties and conduct the business in which it is
then engaged; that Company is not in violation of any law, ordinance or regulation of
any governmental authority as to its business, premises or assets; that Company has
full power to execute and deliver this Agreement, to execute and deliver the Note that
evidences the sum borrowed, to borrow moneys under this Agreement, and to
perform its obligations under this Agreement and the Note; that such actions have
been duly authorized by all necessary organization actions and are not in conflict with
any agreement binding on Company known to counsel; and that this Agreement and
the Note when executed and delivered by Company will be a valid and binding
obligation of Company in accordance with its terms.
9. COVENANTS OF COMPANY. Company covenants that until any sums
borrowed under this Agreement are paid in full, or forgiven, it will, unless City agrees in
writing to a modification or otherwise stated herein:
(a) Take all actions necessary and required to create and/or retain the positions
below:
Retention Date Number of FTE
Current 0
May 1, 2015 12
May 1, 2016 18
May 1, 2017 18
May 1, 2018 18
Company shall certify that at least fifty-one (51) percent of created positions
listed above will be held by or made available to, through first consideration
accommodations, persons who, at the time of their employment, are considered by
HUD to be of low or moderate income. Company shall use its best efforts to hire
local area residents whenever practicable and not otherwise in conflict with
nondiscrimination provisions herein stated. For purposes of determining the extent of
employment opportunities created under this Agreement, City and Company agrees
that a total of zero (0) full-time job equivalent exist with Company in Dubuque, Iowa
as of July _ , 2014. If Company meets this requirement prior to the date specified,
City may acknowledge such compliance and thereafter Company shall have no future
obligation under this subparagraph (a). A listing by job title of the new permanent
employment opportunities to be created is attached hereto as Exhibit B and entitled
"Position Analysis",
(b) Submit an Annual Employment Performance Report for the prior year
ending December 31 of each year during the job creation term required in
subparagraph (a) of this Paragraph above summarizing the employment status of
Company and status of new permanent jobs to be created. Said report shall be
submitted to the City by the following April 1 and must note the number of individuals
employed within each job classification (management or service worker) with the
specific title of the position, the wage ranges of each position and the average hours
of work per week of individuals engaged in each job activity. The report shall also
indicate the number of individuals who, prior to their employment with Company, fell
within the low or moderate income guidelines established by HUD. The form of such
Annual Employment Performance Report and required Employee Income
Report/Employee Demographic Report verifying income, ethnic origin and head of
household status are attached hereto as Exhibit C, and D respectively. Upon
reasonable advance notice, City shall have the right to verify the information within
the Annual Employment Performance Report via examination of the underlying
records maintained by Company;
(c) Furnish City within ninety (90) days after the end of each fiscal year with a
copy of its annual report, which shall be prepared in conformity with generally
accepted accounting principles consistently applied, and, within sixty (60) days after
the end of each semi-annual period of its fiscal year, with a copy of its financial
statement similarly prepared and, from time to time, such other financial information
as City may reasonably request;
(d) Pay when due all rent, taxes, assessments and other liabilities, except
those contested in good faith where notice of such contest has been given to City;
(e) Not create or permit to exist any mortgage, pledge, security interest, lien
or other encumbrance on the security for this Agreement provided in Paragraph 4
above and the Note provided pursuant to this Agreement without written consent of
City. City approval of such written consent will not be unreasonably withheld;
(f) Not become a party to any merger, consolidation or sale of Company; not
sell, transfer, convey or lease all or any part of its property except in the ordinary
course of business;
(g) Not cause, suffer or permit any of its subsidiaries to do any of the things
prohibited to Company in this Agreement;
(h) Not change the general character of its business as conducted at the date
hereof, engage in any type of business not reasonably related to its business as
normally conducted, or relocate Company's current Dubuque operations outside the
city limits of the City of Dubuque;
(i) Give prompt notice in writing to City of any adverse development, financial
or otherwise, which would materially affect its business, properties or affairs, or the
ability of Company to perform its obligations under this Agreement or the Note
executed pursuant to the terms of this Agreement;
(j) Use loan funds only for purposes authorized herein;
(k) Take no action that would knowingly cause City to be found in default
under its Community Development Block Grant Agreement;
(I) Pay all fees, expenses and charges in respect to this Agreement or its
making in any way connected therewith including, but not limited to, legal fees,
abstract continuation, recording and filing fees, mortgage taxes, documentary
stamps, and any other taxes, fees and expenses payable in connection with this
transaction;
(m) Comply with all requirements imposed upon City under its Community
Development Block Grant Agreement including, without limitation, the requirements of
24 CFR Part 570 attached as Exhibit E, and the Standard Requirements attached as
Exhibit F.
10. DEFAULT. Company shall be in default if:
(a) It fails to pay any installment of principal or interest on the Note or as
required by the Agreement when due or within ten (10) days thereafter or defaults on
any of its other loan agreements;
(b) It becomes insolvent or admits in writing its inability to pay its debts as
they mature; or applies for, consents to or acquiesces in the appointment of a trustee
or received for any of its property; or in the absence of an application for consent, or
acquiescence, a trustee or receiver is appointed for it or a substantial part of its
property and is not discharged within ten (10) days; or it otherwise commits an act of
bankruptcy; or any bankruptcy, reorganization, debt arrangement or other proceeding
under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding,
is instituted by or against it and if instituted is consented to or acquiesced in by it or
remains for ten (10) days undismissed;
(c) It fails to meet its job creation obligations contained within this Agreement;
however, application of the pro rata forgiveness provisions of 2(a) shall constitute
meeting that specific obligation for purposes of this subparagraph in which case the
failure to meet such job retention obligations shall not be an event of default;
(d) It fails in the performance of the terms and conditions of this Agreement
(other than the payment terms referred to in (a) above) and such non-performance
continues for ten (10) days after notice thereof from City or from the holder of a note;
(e) Any warranty made by Company is untrue in any material respect, or any
schedule, statement, report, notice or writing furnished by Company to City is untrue
in any material respect on the date as of which the facts set forth are stated or
certified;
(f) Any government board, agency, department, commission or public or
private lender takes possession or control of any substantial part of the property of
Company and such possession or control continues for ten (10) days.
11. ACCELERATION AT OPTION OF CITY. If any default occurs, City may
declare the Note immediately due and payable, at which time all unpaid principal and
interest shall immediately become due and payable. City shall promptly advise Company in
writing of any acceleration under this paragraph, but the failure to do so shall not impair the
effect of such declaration.
12. FAILURE TO MEET JOB RETENTION OBLIGATION. If Company is
determined by City to be in default under paragraph 10(c) of this Agreement for failing to
meet the job retention requirements of paragraph 9(a), the entire principal balance will be
due and payable with accrued interest less any job retention forgiveness earned. Should
the number of low and moderate income persons not meet or exceed fifty-one (51) percent
of all those hired as of the annual reporting dates in 9(b), the entire principal balance will be
due and payable to City with accrued interest.
13. MAINTENANCE OF RECORDS AND RIGHT TO INSPECT. Company will
keep and maintain all normal business books and records and all other documents,
invoices and receipts relating directly to the receipt and disbursement of loan funds and job
retention; and any duly authorized independent accounting representative of City, or the
Comptroller General of the United States, shall at all reasonable times have access to and
the right to inspect, copy, audit and examine all such books and other documents of
Company pertaining to the project until the completion of all closeout procedures respecting
the Loan and the final settlement and conclusion of all issues arising out of the Loan.
14. ADDRESS. Company's initial business address is:
Harvest Kitchen & Bar
Attn: Jonathon Nelson
955 Washington Street
Dubuque, Iowa 52001
Company shall promptly give City written notice of any further change in its principal
office address. City's address is:
City Attorney
City Hall
50 West 13th Street
Dubuque, IA 52001
15. ACCESS TO PROJECT. Upon reasonable notice to Company, Company
agrees that any duly authorized representative of City or of the United States shall at all
reasonable times have access to any portion of the project, for monitoring purposes, until
the completion of all closeout procedures respecting the Community Development Block
Grant Loan.
16. LIMITATION OF CITY'S LIABILITY FOR PROJECT ACTIVITIES. City shall
not be liable to Company, or to any party except HUD, for the completion of, or the failure
to complete, any activities that are part of the project, except as may be specifically
provided in this Agreement. Company agrees to indemnify, hold harmless and defend City
from any such claims against City for which liability is limited hereunder.
17. CONFLICT OF INTEREST. Company agrees that no member, officer or
employee of City, or its designees or agents, nor any consultant or member of the
governing body of City, and no other public official of City who exercises or has exercised
any functions or responsibilities with respect to the project during his or her tenure, or who
is in a position to participate in a decision making process or gain inside information with
regard to the project, shall have any interest, direct or indirect, in any contract or
subcontract, or the proceeds thereof, for work to be performed in connection with the
project, or in any activity, or benefit therefrom, which is part of this project at any time
during or after such person's tenure.
18. NONDISCRIMINATION. In carrying out the project, Company shall not
discriminate against any employee or applicant for employment because of race, religion,
color, sex, national origin, age, sexual orientation, or disability. Such action shall include,
but not be limited to, the following: employment upgrading, demotion or transfer;
recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of
compensation; and selection for training, including apprenticeship. Company shall post in a
conspicuous place, available to employees and applicants for employment, notices to be
provided by City setting forth the provisions of this nondiscrimination clause. Company
shall state that all qualified applicants will receive consideration for employment without
regard to race, religion, color, sex, national origin, age, sexual orientation, or disability.
19. NO ASSIGNMENT OR SUCCESSION. Company acknowledges and agrees
that no transfer of loan funds by City to Company shall be deemed an assignment of grant
funds, and Company shall neither succeed to any rights, benefits or advantages of City
authorities or interests in or under the Grant Agreement.
20. DISCLAIMER OF RELATIONSHIPS. Nothing contained in this Agreement
between the parties, nor any act of City or Company shall be deemed or construed by any
of the parties, or by any third persons, to create any relationship of third party beneficiary,
principal or agent, limited or general partnership, or joint venture, or of any association or
relationship involving the United States.
21. NOTICE. Any notice, if mailed by United States certified mail, shall be deemed
given when mailed, postage prepaid, addressed to Company at its address shown above,
or at any other address subsequently designated to City by Company.
22. SUCCESSORS AND ASSIGNS. All covenants, representations, warranties
and agreements herein set forth shall be binding upon Company, and its legal
representatives, successors and assigns. This Agreement may not be assigned by City or
Company, without the express written consent of the other party.
23. LEGALITY. If any provision of this Agreement shall, for any reason, be held to
be invalid or unenforceable, such invalidity or unenforceability shall not affect any other
provision hereof, but this Agreement shall be construed as if such invalid or unenforceable
provision had never been contained herein.
24. GOVERNING LAW. This Agreement and all rights and duties hereunder,
including but not limited to, all matters of construction, validity and performance shall be
governed by the laws of the State of Iowa.
25. SURVIVAL OF REPRESENTATIONS. All representations or warranties of
Company shall survive the execution and delivery of this Agreement and any notes
executed and delivered under it, and no investigation by City nor any closing shall affect the
representations or warranties or the right of City to rely on and enforce them.
26. DELAY. No delay on the part of City or the holder of any note in the exercise of
any right shall operate as a waiver, nor shall any single or partial exercise of any right
preclude other or additional exercise of any right.
27. DEFINITIONS.
(a) "Grant Agreement" shall mean that Community Development Block Grant
Agreement entered into by City and HUD.
(b) "Project" shall mean those activities to be carried out by Company to
purchase equipment for the startup of its operations at 955 Washington Street.
(c) "Qualifying Project Expenses" shall mean those expenditures or expenses
incurred by Company during and for the Project for the acquisition of needed
machinery, furniture and equipment not permanently installed to the Property.
(d) "Full -Time Job Equivalent" shall equal a total of forty (40) hours of labor
per work week. Such hours may be accrued by single individuals or divided among
two or more Company employees.
IN WITNESS WHEREOF, City has caused this Agreement to be executed by the City
Manager. Company has executed this Agreement in its organization name by its duly
authorized officer. All of the above occurred as of th/5rday of July, 2014.
CITY OF DUBUQUE, IOWA HARVEST KITCHEN & BAR
Michael C. Van Miiligen Kim McDermott
City Manager Treasure/Accountant
Exhibit A
PROMISSORY NOTE
Harvest Kitchen & Bar
Community Development Block Grant Loan Program
CDBG Loan#1-2014
Value: $175,000
FOR VALUE RECEIVED, Harvest Kitchen & Bar ("Company") promises to pay to the order
of the CITY OF DUBUQUE, IOWA, a municipal corporation ("City"), the principal amount of
one hundred seventy-five thousand dollars ($175,000.00) together with interest from the
date said monies are disbursed by City pursuant to the terms of the attached Loan
Agreement dated the day of 2014, ("Loan Agreement") which
interest shall be at the rate of 0% per annum.
All payments hereunder shall be made in lawful money of the United States at the
administrative offices of the Finance Department of City, or at such other place as City may
from time to time in writing designate.
Company may, from time to time, prepay all or any portion of the principal balance due
hereunder without penalty and without consent of City. All such payments of principal shall
be applied to principal installments in reverse order of maturity and which last come due
under the terms of this Promissory Note.
This Promissory Note is made, executed and delivered in accordance with and subject to
all of the terms and provisions of the Loan Agreement, entered into and between Company,
as borrower, and City, as lender, which is incorporated herein by reference. This
Promissory Note is secured by an Irrevocable Letter of Credit.
In the event of occurrence of an act of default under Section 10 of the Loan Agreement or
any mortgage or security agreement between the parties, then written notice of said default
shall be given by City to Company, and Company shall have the time specified in such
agreement if any is specified, to cure said default. If default is not cured by Company
within the time allowed, City may, at its option declare the entire unpaid amount, including
interest, to be immediately due and payable or take such other actions as may be permitted
under the Loan Agreement. Principal and interest not paid when due shall draw interest at
a rate of fifteen percent (15%) per annum. Company agrees to pay all expenses of
collection, including reasonable attorney's fees, court costs, abstracting costs, storage
costs, costs of disposition of collateral, and any and all other related and incidental
expenses thereto, all of which shall first be deducted from the proceeds of sale or
foreclosure. In addition, the holder of this Note shall have all other rights and remedies as
are provided for under the Loan Agreement, or as are provided by law.
Makers, endorsers and sureties waive demand of payment, notice of nonpayment, protest
and notice thereof. Sureties, endorsers and guarantors agree to all of the provisions of this
Note and consent that the time or times for payment of all or any part hereof may be
extended after maturity, from time to time, without notice.
Harvest Kitchen & Bar.
Kim McDermott Date
Exhibit B
Position Analysis
Harvest Kitchen & Bar
Job Title Hours Per Week
Bartender 66.00
Busser 40.00
Line Cook 160.00
Pastry Chef -
Dishwasher 60.00
Host/Hostess 47.00
Waitstaff 236.00
Food Service Supervisor 40.00
Exec Chef 40.00
Manager 40.00
Total Weekly Hours 718.00
Full Time Equivalent Positions 17.96
NAME OF COMPANY:
Annual Employment Performance Report
For the Year Beginning July 1, 20_and Ending June 30 20
SUBMITTAL DATE:
BASE EMPLOYMENT:
NEW PERMANENT JOBS GOAL(FTE's):
LOW/MOD JOB GOAL' (FTEs):
JOB INFORMATION
JOB INFORMATION ON HIRES IN NEW POSITIONS
Hispanic
Ethnicity
Number of New Jobs Hires Meeting
Low/Mod Income Status
Year to
Date Total
Job ClassificationPersons
(Please list each separate
positition)
Total Number
Employed
Low/Mod
Income
Interviewed -
Not Hired
New Jobs
Created
During
Past Year
i
Wage
Rate
Range
Average
Hours Per
Week
Above
80%
Income
Moderate
Income
151-80%1
Low
Income
131-50%1
Very Low
Income
10-30%1
Employer
Sponsored
Health Care
Benefits?
Unemployed
at Time of
Application?
Native Hawaiian or Other Pacific Islander
American Indian or Alaska Native and White
Asian White
Asian/Pacific Islander
Officials and Managers
Black or African American and White
American Indian/Alaska Native and Black/African
American
Other Multi -Racial
Total
Professional
Technicians
Sales
Office and Clerical
Craft Workers(skilled)
Operative (Semi -skilled)
Laborers (Unskilled)
Service Workers
' Lav/Mod benefit is met when an employee is hired who has a household incorre of 80% o less of area median income at the ime of app cation. To include
individuals in this column, the Employee Report must be completed by each new employee nd be retained in your files to verify incorre.
2 New jobs are newly created posdions that increase the total employment to rreet the new permanent jobs goal This does not include
new hires for existing positions.
I certifythat these numbers are true and accurate:
Name (Typed):
Signature:
Title:
Date:
Exhibit C
Submit to: City of Dubuque
Economic Development Department
City Hall 50 West 13th Street
Dubuque Iowa 52001
Race of New Hires
Hispanic
Ethnicity
Year to
Date Total
Year to
Date Total
White
Black or African American
Asian
American Indian or Alaska Native
Native Hawaiian or Other Pacific Islander
American Indian or Alaska Native and White
Asian White
Asian/Pacific Islander
Black or African American and White
American Indian/Alaska Native and Black/African
American
Other Multi -Racial
Total
For City Use Only:
Date Received: Received by:
Compliance: Goal Met: Yes No
EMPLOYEE INCOME REPORT Exhibit D
Community Development Block Grant Program
Low to Moderate Income Requirements
CITY OF DUBUQUE, IOWA
The U.S. Department of Housing and Urban Development (HUD) has asked that the following information be collected from
those individuals employed by to verify that your employment is
achieving the goals of the Community Development Block Grant (CDBG) Loan Program. The information is confidential and will
be used solely by HUD for the purposes of monitoring. If you have any questions regarding this form, please contact the Economic
Development Department at (563) 589-4393.
INCOME VERIFICATION
1. Position hired for:
2. Please CIRCLE Family Size on the chart below, showing the total number of related people living in your
household, including yourself Family means all persons living in the same household who are related by birth,
marriage or adoption.
3. Look at the income ranges on the line for the Family Size you circled. CIRCLE Income Range that includes
our cross family income.
Family Size
A
B
C
D
1
$0 - $14.600
$14.601 - $24.300
$24,301-$38,850
Above $38.850
2
$0 - $16,650
$16,651 - $27,800
$27,801-$44,400
Above $44.400
3
$0 - $18,750
$18,751 - $31,250
$31,251-$49,950
Above $49.950
4
$0 - $20,800
$20,801 - $34,700
$34,701-$55,500
Above $55.500
5
$0 - $22.500
$22.501 - $37.500
$37,501-$59,950
Above $59.950
6
$0 - $24.150
$24.151 - $40.300
$40,301-$64,400
Above $64.400
7
$0 - $25.800
$25.801 - $43.050
$43,051-$68,850
Above $68.850
8 or more
$0 - $27,500
$27,501 - $45,850
$45,851-$73,300
Above $73.300
4. Hispanic? ❑ Yes ❑ No
5. What is your race? (Please check only one)
❑ White ❑ Black/African American ❑ Asian ❑ American Indian/Alaskan native
❑ Native Hawaiian/Other Pacific Islander ❑ American Indian/Alaskan Native & White
❑ Asian & White ❑ Black/African American & White ❑ Asian/Pacific Islander
❑ American Indian/Alaskan Native & Black/African American ❑ Other Multi -Racial
6. Female head of household? ❑ Yes ❑ No
I certify that the information above is, to the best of my knowledge and belief, true, correct and complete as of the date prior to hire
and stated herein. I am aware that the information being provided is subject to verification by the local or Federal government.
Name (print)
Signature Date
Address (street, city, state, zip) Telephone Number
Warning: Whoever knowingly and willingly makes or uses a document or writing containing any false, fictitious or
fraudulent statement or entry may be subject to federal prosecution. 12/2013
1
Exhibit E
Title 24 — Housing & Urban Development
Chapter V — Office of Assistant Secretary for Community Planning and Development, Department of
Housing and Urban Development
Part 570_Community Development Block Grants — Table of Contents
Subpart C_Eligible Activities
570.203 Special economic development activities.
A recipient may use CDBG funds for special economic development activities in addition to other
activities authorized in this subpart that may be carried out as part of an economic development project.
Guidelines for selecting activities to assist under this paragraph are provided at § 570.209. The
recipient must ensure that the appropriate level of public benefit will be derived pursuant to those
guidelines before obligating funds under this authority. Special activities authorized under this section
do not include assistance for the construction of new housing. Activities eligible under this section may
include costs associated with project -specific assessment or remediation of known or suspected
environmental contamination. Special economic development activities include:
(a) The acquisition, construction, reconstruction, rehabilitation or installation of commercial or industrial
buildings, structures, and other real property equipment and improvements, including railroad spurs or
similar extensions. Such activities may be carried out by the recipient or public or private nonprofit
subrecipients.
(b) The provision of assistance to a private for-profit business, including, but not limited to, grants,
loans, loan guarantees, interest supplements, technical assistance, and other forms of support, for any
activity where the assistance is appropriate to carry out an economic development project, excluding
those described as ineligible in § 570.207(4. In selecting businesses to assist under this authority, the
recipient shall minimize, to the extent practicable, displacement of existing businesses and jobs in
neighborhoods.
(c) Economic development services in connection with activities eligible under this section, including,
but not limited to, outreach efforts to market available forms of assistance; screening of applicants;
reviewing and underwriting applications for assistance; preparation of all necessary agreements;
management of assisted activities; and the screening, referral, and placement of applicants for
employment opportunities generated by CDBG-eligible economic development activities, including the
costs of providing necessary training for persons filling those positions.
[53 FR 34439, Sept. 6, 1988, as amended at 60 FR 1944, Jan. 5, 1995; 71 FR 30035, May 24, 2006]
Title 24 — Housing & Urban Development
Chapter V — Office of Assistant Secretary for Community Planning and Development, Department of
Housing and Urban Development
Part 570_Community Development Block Grants — Table of Contents
Subpart C_Eligible Activities
§ 570.209 Guidelines for evaluating and selecting economic development projects.
The following guidelines are provided to assist the recipient to evaluate and select activities to be
carried out for economic development purposes. Specifically, these guidelines are applicable to
activities that are eligible for CDBG assistance under § 570.203. These guidelines also apply to
activities carried out under the authority of § 570.204 that would otherwise be eligible under § 570.203,
were it not for the involvement of a Community -Based Development Organization (CBDO). (This would
include activities where a CBDO makes loans to for-profit businesses.) These guidelines are composed
of two components: guidelines for evaluating project costs and financial requirements; and standards
for evaluating public benefit. The standards for evaluating public benefit are mandatory, but the
2
guidelines for evaluating projects costs and financial requirements are not.
(a) Guidelines and objectives for evaluating project costs and financial requirements. HUD has
developed guidelines that are designed to provide the recipient with a framework for financially
underwriting and selecting CDBG-assisted economic development projects which are financially viable
and will make the most effective use of the CDBG funds. These guidelines, also referred to as the
underwriting guidelines, are published as appendix A to this part. The use of the underwriting guidelines
published by HUD is not mandatory. However, grantees electing not to use these guidelines would be
expected to conduct basic financial underwriting prior to the provision of CDBG financial assistance to a
for-profit business. Where appropriate, HUD's underwriting guidelines recognize that different levels of
review are appropriate to take into account differences in the size and scope of a proposed project, and
in the case of a microenterprise or other small business to take into account the differences in the
capacity and level of sophistication among businesses of differing sizes. Recipients are encouraged,
when they develop their own programs and underwriting criteria, to also take these factors into account.
The objectives of the underwriting guidelines are to ensure:
(1) That project costs are reasonable;
(2) That all sources of project financing are committed;
(3) That to the extent practicable, CDBG funds are not substituted for non -Federal financial support;
(4) That the project is financially feasible;
(5) That to the extent practicable, the return on the owner's equity investment will not be unreasonably
high; and
(6) That to the extent practicable, CDBG funds are disbursed on a pro rata basis with other finances
provided to the project.
(b) Standards for evaluating public benefit. The grantee is responsible for making sure that at least a
minimum level of public benefit is obtained from the expenditure of CDBG funds under the categories of
eligibility governed by these guidelines. The standards set forth below identify the types of public benefit
that will be recognized for this purpose and the minimum level of each that must be obtained for the
amount of CDBG funds used. Unlike the guidelines for project costs and financial requirements covered
under paragraph (a) of this section, the use of the standards for public benefit is mandatory. Certain
public facilities and improvements eligible under § 570.201(c) of the regulations, which are undertaken
for economic development purposes, are also subject to these standards, as specified in §
570 .208(a)(4) (v i) (F) (2) .
(1) Standards for activities in the aggregate. Activities covered by these guidelines must, in the
aggregate, either:
(1) Create or retain at least one full-time equivalent, permanent job per $35,000 of CDBG funds used; or
(11) Provide goods or services to residents of an area, such that the number of low- and moderate -
income persons residing in the areas served by the assisted businesses amounts to at least one low -
and moderate -income person per $350 of CDBG funds used.
(2) Applying the aggregate standards.
(1) A metropolitan city, an urban county, a non -entitlement CDBG grantee in Hawaii, or an Insular Area
shall apply the aggregate standards under paragraph (b)(1) of this section to all applicable activities for
which CDBG funds are first obligated within each single CDBG program year, without regard to the
source year of the funds used for the activities. For Insular Areas, the preceding sentence applies to
grants received in program years after Fiscal Year 2004. A grantee under the HUD -administered Small
Cities Program, or Insular Areas CDBG grants prior to Fiscal Year 2005, shall apply the aggregate
3
standards under paragraph (b)(1) of this section to all funds obligated for applicable activities from a
given grant; program income obligated for applicable activities will, for these purposes, be aggregated
with the most recent open grant. For any time period in which a community has no open HUD -
administered or Insular Areas grants, the aggregate standards shall be applied to all applicable
activities for which program income is obligated during that period.
(ii) The grantee shall apply the aggregate standards to the number of jobs to be created/retained, or to
the number of persons residing in the area served (as applicable), as determined at the time funds are
obligated to activities.
(iii) Where an activity is expected both to create or retain jobs and to provide goods or services to
residents of an area, the grantee may elect to count the activity under either the jobs standard or the
area residents standard, but not both.
(iv) Where CDBG assistance for an activity is limited to job training and placement and/or other
employment support services, the jobs assisted with CDBG funds shall be considered to be created or
retained jobs for the purposes of applying the aggregate standards.
(v) Any activity subject to these guidelines which meets one or more of the following criteria may, at the
grantee's option, be excluded from the aggregate standards described in paragraph (b)(1) of this
section:
(A) Provides jobs exclusively for unemployed persons or participants in one or more of the following
programs:
(1) Jobs Training Partnership Act (JTPA);
(2) Jobs Opportunities for Basic Skills (JOBS); or
(3) Aid to Families with Dependent Children (AFDC);
(B) Provides jobs predominantly for residents of Public and Indian Housing units;
(C) Provides jobs predominantly for homeless persons;
(D) Provides jobs predominantly for low -skilled, low- and moderate -income persons, where the business
agrees to provide clear opportunities for promotion and economic advancement, such as through the
provision of training;
(E) Provides jobs predominantly for persons residing within a census tract (or block numbering area)
that has at least 20 percent of its residents who are in poverty;
(F) Provides assistance to business(es) that operate(s) within a census tract (or block numbering area)
that has at least 20 percent of its residents who are in poverty;
(G) Stabilizes or revitalizes a neighborhood that has at least 70 percent of its residents who are low -
and moderate -income;
(H) Provides assistance to a Community Development Financial Institution that serve an area that is
predominantly low- and moderate -income persons;
(1) Provides assistance to a Community -Based Development Organization serving a neighborhood that
has at least 70 percent of its residents who are low- and moderate -income;
(J) Provides employment opportunities that are an integral component of a project designed to promote
spatial deconcentration of low- and moderate -income and minority persons;
(K) Wth prior HUD approval, provides substantial benefit to low-income persons through other
innovative approaches;
4
(L) Provides services to the residents of an area pursuant to a strategy approved by HUD under the
provisions of § 91.215(el of this title;
(M) Creates or retains jobs through businesses assisted in an area pursuant to a strategy approved by
HUD under the provisions of § 91.215(e) of this title.
(N) Directly involves the economic development or redevelopment of environmentally contaminated
properties.
(3) Standards for individual activities. Any activity subject to these guidelines which falls into one or
more of the following categories will be considered by HUD to provide insufficient public benefit, and
therefore may under no circumstances be assisted with CDBG funds:
(I) The amount of CDBG assistance exceeds either of the following, as applicable:
(A) $50,000 per full-time equivalent, permanent job created or retained; or
(B) $1,000 per low- and moderate -income person to which goods or services are provided by the
activity.
(11) The activity consists of or includes any of the following:
(A) General promotion of the community as a whole (as opposed to the promotion of specific areas and
programs);
(B) Assistance to professional sports teams;
(C) Assistance to privately -owned recreational facilities that serve a predominantly higher -income
clientele, where the recreational benefit to users or members clearly outweighs employment or other
benefits to low- and moderate -income persons;
(D) Acquisition of land for which the specific proposed use has not yet been identified; and
(E) Assistance to a for-profit business while that business or any other business owned by the same
person(s) or entity(ies) is the subject of unresolved findings of noncompliance relating to previous
CDBG assistance provided by the recipient.
(4) Applying the individual activity standards.
(1) Where an activity is expected both to create or retain jobs and to provide goods or services to
residents of an area, it will be disqualified only if the amount of CDBG assistance exceeds both of the
amounts in paragraph (b)(3)(i) of this section.
(11) The individual activity standards in paragraph (b)(3)(i) of this section shall be applied to the number
of jobs to be created or retained, or to the number of persons residing in the area served (as
applicable), as determined at the time funds are obligated to activities.
(iii) Where CDBG assistance for an activity is limited to job training and placement and/or other
employment support services, the jobs assisted with CDBG funds shall be considered to be created or
retained jobs for the purposes of applying the individual activity standards in paragraph (b)(3)(i) of this
section.
(c) Amendments to economic development projects after review determinations. If, after the
grantee enters into a contract to provide assistance to a project, the scope or financial elements of the
project change to the extent that a significant contract amendment is appropriate, the project should be
5
reevaluated under these and the recipient's guidelines. (This would include, for example, situations
where the business requests a change in the amount or terms of assistance being provided, or an
extension to the loan payment period required in the contract.) If a reevaluation of the project indicates
that the financial elements and public benefit to be derived have also substantially changed, then the
recipient should make appropriate adjustments in the amount, type, terms or conditions of CDBG
assistance which has been offered, to reflect the impact of the substantial change. (For example, if a
change in the project elements results in a substantial reduction of the total project costs, it may be
appropriate for the recipient to reduce the amount of total CDBG assistance.) If the amount of CDBG
assistance provided to the project is increased, the amended project must still comply with the public
benefit standards under paragraph (b) of this section.
(d) Documentation. The grantee must maintain sufficient records to demonstrate the level of public
benefit, based on the above standards, that is actually achieved upon completion of the CDBG-assisted
economic development activity(ies) and how that compares to the level of such benefit anticipated when
the CDBG assistance was obligated. If the grantee's actual results show a pattern of substantial
variation from anticipated results, the grantee is expected to take all actions reasonably within its control
to improve the accuracy of its projections. If the actual results demonstrate that the recipient has failed
the public benefit standards, HUD may require the recipient to meet more stringent standards in future
years as appropriate.
[60 FR 1947, Jan. 5, 1995, as amended at 60 FR 17445, Apr. 6, 1995; 71 FR 30035, May 24, 2006; 72
FR 12535, Mar. 15, 2007; 72 FR 46370, Aug. 17, 2007
Title 24 — Housing & Urban Development
Chapter V — Office of Assistant Secretary for Community Planning and Development, Department of
Housing and Urban Development
Part 570_Community Development Block Grants — Table of Contents
Subpart C_Eligible Activities
§ 570.208 Criteria for national objectives.
The following criteria shall be used to determine whether a CDBG-assisted activity complies with one or
more of the national objectives as required under § 570.200(a)(2):
(a) Activities benefiting low- and moderate -income persons. Activities meeting the criteria in
paragraph (a) (1), (2), (3), or (4) of this section as applicable, will be considered to benefit low and
moderate income persons unless there is substantial evidence to the contrary. In assessing any such
evidence, the full range of direct effects of the assisted activity will be considered. (The recipient shall
appropriately ensure that activities that meet these criteria do not benefit moderate income persons to
the exclusion of low income persons.)
(1) Area benefit activities.
(1) An activity, the benefits of which are available to all the residents in a particular area, where at least
51 percent of the residents are low and moderate income persons. Such an area need not be
coterminous with census tracts or other officially recognized boundaries but must be the entire area
served by the activity. An activity that serves an area that is not primarily residential in character shall
not qualify under this criterion.
(11) For metropolitan cities and urban counties, an activity that would otherwise qualify under §
570.208(a)(1)(i), except that the area served contains less than 51 percent low- and moderate -income
residents, will also be considered to meet the objective of benefiting low- and moderate -income persons
where the proportion of such persons in the area is within the highest quartile of all areas in the
recipient's jurisdiction in terms of the degree of concentration of such persons. This exception is
6
inapplicable to non -entitlement CDBG grants in Hawaii. In applying this exception, HUD will determine
the lowest proportion a recipient may use to qualify an area for this purpose, as follows:
(A) All census block groups in the recipient's jurisdiction shall be rank ordered from the block group of
highest proportion of low and moderate income persons to the block group with the lowest. For urban
counties, the rank ordering shall cover the entire area constituting the urban county and shall not be
done separately for each participating unit of general local government.
(B) In any case where the total number of a recipient's block groups does not divide evenly by four, the
block group which would be fractionally divided between the highest and second quartiles shall be
considered to be part of the highest quartile.
(C) The proportion of low and moderate income persons in the last census block group in the highest
quartile shall be identified. Any service area located within the recipient's jurisdiction and having a
proportion of low and moderate income persons at or above this level shall be considered to be within
the highest quartile.
(D) If block group data are not available for the entire jurisdiction, other data acceptable to the Secretary
may be used in the above calculations.
(iii) An activity to develop, establish, and operate for up to two years after the establishment of, a
uniform emergency telephone number system serving an area having less than the percentage of low -
and moderate -income residents required under paragraph (a)(1)(i) of this section or (as applicable)
paragraph (a)(1)(ii) of this section, provided the recipient obtains prior HUD approval. To obtain such
approval, the recipient must:
(A) Demonstrate that the system will contribute significantly to the safety of the residents of the area.
The request for approval must include a list of the emergency services that will participate in the
emergency telephone number system;
(B) Submit information that serves as a basis for HUD to determine whether at least 51 percent of the
use of the system will be by low- and moderate -income persons. As available, the recipient must
provide information that identifies the total number of calls actually received over the preceding 12 -
month period for each of the emergency services to be covered by the emergency telephone number
system and relates those calls to the geographic segment (expressed as nearly as possible in terms of
census tracts, block numbering areas, block groups, or combinations thereof that are contained within
the segment) of the service area from which the calls were generated. In analyzing this data to meet the
requirements of this section, HUD will assume that the distribution of income among the callers
generally reflects the income characteristics of the general population residing in the same geographic
area where the callers reside. If HUD can conclude that the users have primarily consisted of low- and
moderate -income persons, no further submission is needed by the recipient. If a recipient plans to make
other submissions for this purpose, it may request that HUD review its planned methodology before
expending the effort to acquire the information it expects to use to make its case;
(C) Demonstrate that other Federal funds received by the recipient are insufficient or unavailable for a
uniform emergency telephone number system. For this purpose, the recipient must submit a statement
explaining whether the lack of funds is due to the insufficiency of the amount of the available funds,
restrictions on the use of such funds, or the prior commitment of funds by the recipient for other
purposes; and
(D) Demonstrate that the percentage of the total costs of the system paid for by CDBG funds does not
exceed the percentage of low- and moderate -income persons in the service area of the system. For this
purpose, the recipient must include a description of the boundaries of the service area of the
emergency telephone number system, the census divisions that fall within the boundaries of the service
area (census tracts or block numbering areas), the total number of persons and the total number of low -
and moderate -income persons within each census division, the percentage of low- and moderate -
income persons within the service area, and the total cost of the system.
7
(iv) An activity for which the assistance to a public improvement that provides benefits to all the
residents of an area is limited to paying special assessments (as defined in § 570.200(c)) levied against
residential properties owned and occupied by persons of low and moderate income.
(v) For purposes of determining qualification under this criterion, activities of the same type that serve
different areas will be considered separately on the basis of their individual service area.
(vi) In determining whether there is a sufficiently large percentage of low- and moderate -income
persons residing in the area served by an activity to qualify under paragraph (a)(1) (i), (ii), or (vii) of this
section, the most recently available decennial census information must be used to the fullest extent
feasible, together with the section 8 income limits that would have applied at the time the income
information was collected by the Census Bureau. Recipients that believe that the census data does not
reflect current relative income levels in an area, or where census boundaries do not coincide sufficiently
well with the service area of an activity, may conduct (or have conducted) a current survey of the
residents of the area to determine the percent of such persons that are low and moderate income. HUD
will accept information obtained through such surveys, to be used in lieu of the decennial census data,
where it determines that the survey was conducted in such a manner that the results meet standards of
statistical reliability that are comparable to that of the decennial census data for areas of similar size.
Where there is substantial evidence that provides a clear basis to believe that the use of the decennial
census data would substantially overstate the proportion of persons residing there that are low and
moderate income, HUD may require that the recipient rebut such evidence in order to demonstrate
compliance with section 105(c)(2) of the Act.
(vii) Activities meeting the requirements of paragraph (d)(5)(i) of this section may be considered to
qualify under this paragraph, provided that the area covered by the strategy is either a Federally -
designated Empowerment Zone or Enterprise Community or primarily residential and contains a
percentage of low- and moderate -income residents that is no less than the percentage computed by
HUD pursuant to paragraph (a)(1)(ii) of this section or 70 percent, whichever is less, but in no event
less than 51 percent. Activities meeting the requirements of paragraph (d)(6)(i) of this section may also
be considered to qualify under paragraph (a)(1) of this section.
(2) Limited clientele activities.
(I) An activity which benefits a limited clientele, at least 51 percent of whom are low- or moderate -
income persons. (The following kinds of activities may not qualify under paragraph (a)(2) of this section:
activities, the benefits of which are available to all the residents of an area; activities involving the
acquisition, construction or rehabilitation of property for housing; or activities where the benefit to low -
and moderate -income persons to be considered is the creation or retention of jobs, except as provided
in paragraph (a)(2)(iv) of this section.) To qualify under paragraph (a)(2) of this section, the activity must
meet one of the following tests:
(A) Benefit a clientele who are generally presumed to be principally low and moderate income persons.
Activities that exclusively serve a group of persons in any one or a combination of the following
categories may be presumed to benefit persons, 51 percent of whom are low- and moderate -income:
abused children, battered spouses, elderly persons, adults meeting the Bureau of the Census' Current
Population Reports definition of "severely disabled," homeless persons, illiterate adults, persons living
with AIDS, and migrant farm workers; or
(B) Require information on family size and income so that it is evident that at least 51 percent of the
clientele are persons whose family income does not exceed the low and moderate income limit; or
(C) Have income eligibility requirements which limit the activity exclusively to low and moderate income
persons; or
(D) Be of such nature and be in such location that it may be concluded that the activity's clientele will
primarily be low and moderate income persons.
8
(11) An activity that serves to remove material or architectural barriers to the mobility or accessibility of
elderly persons or of adults meeting the Bureau of the Census' Current Population Reports definition of
"severely disabled" will be presumed to qualify under this criterion if it is restricted, to the extent
practicable, to the removal of such barriers by assisting:
(A) The reconstruction of a public facility or improvement, or portion thereof, that does not qualify under
paragraph (a)(1) of this section;
(B) The rehabilitation of a privately owned nonresidential building or improvement that does not qualify
under paragraph (a)(1) or (4) of this section; or
(C) The rehabilitation of the common areas of a residential structure that contains more than one
dwelling unit and that does not qualify under paragraph (a)(3) of this section.
(iii) A microenterprise assistance activity carried out in accordance with the provisions of § 570.201(o)
with respect to those owners of microenterprises and persons developing microenterprises assisted
under the activity during each program year who are low- and moderate -income persons. For purposes
of this paragraph, persons determined to be low and moderate income may be presumed to continue to
qualify as such for up to a three-year period.
(iv) An activity designed to provide job training and placement and/or other employment support
services, including, but not limited to, peer support programs, counseling, child care, transportation, and
other similar services, in which the percentage of low- and moderate -income persons assisted is less
than 51 percent may qualify under this paragraph in the following limited circumstance:
(A) In such cases where such training or provision of supportive services assists business(es), the only
use of CDBG assistance for the project is to provide the job training and/or supportive services; and
(B) The proportion of the total cost of the project borne by CDBG funds is no greater than the proportion
of the total number of persons assisted who are low or moderate income.
(3) Housing activities. An eligible activity carried out for the purpose of providing or improving
permanent residential structures which, upon completion, will be occupied by low- and moderate -
income households. This would include, but not necessarily be limited to, the acquisition or
rehabilitation of property by the recipient, a subrecipient, a developer, an individual homebuyer, or an
individual homeowner; conversion of nonresidential structures; and new housing construction. If the
structure contains two dwelling units, at least one must be so occupied, and if the structure contains
more than two dwelling units, at least 51 percent of the units must be so occupied. Where two or more
rental buildings being assisted are or will be located on the same or contiguous properties, and the
buildings will be under common ownership and management, the grouped buildings may be considered
for this purpose as a single structure. Where housing activities being assisted meet the requirements of
paragraph § 570.208 (d)(5)(ii) or (d)(6)(ii) of this section, all such housing may also be considered for
this purpose as a single structure. For rental housing, occupancy by low and moderate income
households must be at affordable rents to qualify under this criterion. The recipient shall adopt and
make public its standards for determining "affordable rents" for this purpose. The following shall also
qualify under this criterion:
(I) When less than 51 percent of the units in a structure will be occupied by low and moderate income
households, CDBG assistance may be provided in the following limited circumstances:
(A) The assistance is for an eligible activity to reduce the development cost of the new construction of a
multifamily, non -elderly rental housing project;
(B) Not less than 20 percent of the units will be occupied by low and moderate income households at
affordable rents; and
(C) The proportion of the total cost of developing the project to be borne by CDBG funds is no greater
9
than the proportion of units in the project that will be occupied by low and moderate income households.
(ii) When CDBG funds are used to assist rehabilitation eligible under § 570.202(b)(9) or (10) in direct
support of the recipient's Rental Rehabilitation program authorized under 24 CFR part 511, such funds
shall be considered to benefit low and moderate income persons where not less than 51 percent of the
units assisted, or to be assisted, by the recipient's Rental Rehabilitation program overall are for low and
moderate income persons.
(111) When CDBG funds are used for housing services eligible under § 570.201(k), such funds shall be
considered to benefit low- and moderate -income persons if the housing units for which the services are
provided are HOME -assisted and the requirements at 24 CFR 92.252 or 92.254 are met.
(4) Job creation or retention activities. An activity designed to create or retain permanent jobs where
at least 51 percent of the jobs, computed on a full time equivalent basis, involve the employment of low -
and moderate -income persons. To qualify under this paragraph, the activity must meet the following
criteria:
(I) For an activity that creates jobs, the recipient must document that at least 51 percent of the jobs will
be held by, or will be available to, low- and moderate -income persons.
(ii) For an activity that retains jobs, the recipient must document that the jobs would actually be lost
without the CDBG assistance and that either or both of the following conditions apply with respect to at
least 51 percent of the jobs at the time the CDBG assistance is provided:
(A) The job is known to be held by a low- or moderate -income person; or
(B) The job can reasonably be expected to turn over within the following two years and that steps will be
taken to ensure that it will be filled by, or made available to, a low- or moderate -income person upon
turnover.
(111) Jobs that are not held or filled by a low- or moderate -income person may be considered to be
available to low- and moderate -income persons for these purposes only if:
(A) Special skills that can only be acquired with substantial training or work experience or education
beyond high school are not a prerequisite to fill such jobs, or the business agrees to hire unqualified
persons and provide training; and
(B) The recipient and the assisted business take actions to ensure that low- and moderate -income
persons receive first consideration for filling such jobs.
(iv) For purposes of determining whether a job is held by or made available to a low- or moderate -
income person, the person may be presumed to be a low- or moderate -income person if:
(A) He/she resides within a census tract (or block numbering area) that either:
(1) Meets the requirements of paragraph (a)(4)(v) of this section; or
(2) Has at least 70 percent of its residents who are low- and moderate -income persons; or
(B) The assisted business is located within a census tract (or block numbering area) that meets the
requirements of paragraph (a)(4)(v) of this section and the job under consideration is to be located
within that census tract.
(v) A census tract (or block numbering area) qualifies for the presumptions permitted under paragraphs
(a)(4)(iv)(A)(9) and (B) of this section if it is either part of a Federally -designated Empowerment Zone or
Enterprise Community or meets the following criteria:
10
(A) It has a poverty rate of at least 20 percent as determined by the most recently available decennial
census information;
(B) It does not include any portion of a central business district, as this term is used in the most recent
Census of Retail Trade, unless the tract has a poverty rate of at least 30 percent as determined by the
most recently available decennial census information; and
(C) It evidences pervasive poverty and general distress by meeting at least one of the following
standards:
(1) All block groups in the census tract have poverty rates of at least 20 percent;
(2) The specific activity being undertaken is located in a block group that has a poverty rate of at least
20 percent; or
(3) Upon the written request of the recipient, HUD determines that the census tract exhibits other
objectively determinable signs of general distress such as high incidence of crime, narcotics use,
homelessness, abandoned housing, and deteriorated infrastructure or substantial population decline.
(vi) As a general rule, each assisted business shall be considered to be a separate activity for purposes
of determining whether the activity qualifies under this paragraph, except:
(A) In certain cases such as where CDBG funds are used to acquire, develop or improve a real property
(e.g., a business incubator or an industrial park) the requirement may be met by measuring jobs in the
aggregate for all the businesses which locate on the property, provided such businesses are not
otherwise assisted by CDBG funds.
(B) Where CDBG funds are used to pay for the staff and overhead costs of an entity making loans to
businesses exclusively from non-CDBG funds, this requirement may be met by aggregating the jobs
created by all of the businesses receiving loans during each program year.
(C) Where CDBG funds are used by a recipient or subrecipient to provide technical assistance to
businesses, this requirement may be met by aggregating the jobs created or retained by all of the
businesses receiving technical assistance during each program year.
(D) Where CDBG funds are used for activities meeting the criteria listed at § 570.209(b)(2)(v), this
requirement may be met by aggregating the jobs created or retained by all businesses for which CDBG
assistance is obligated for such activities during the program year, except as provided at paragraph
(d)(7) of this section.
(E) Where CDBG funds are used by a Community Development Financial Institution to carry out
activities for the purpose of creating or retaining jobs, this requirement may be met by aggregating the
jobs created or retained by all businesses for which CDBG assistance is obligated for such activities
during the program year, except as provided at paragraph (d)(7) of this section.
(F) Where CDBG funds are used for public facilities or improvements which will result in the creation or
retention of jobs by more than one business, this requirement may be met by aggregating the jobs
created or retained by all such businesses as a result of the public facility or improvement.
(1) Where the public facility or improvement is undertaken principally for the benefit of one or more
particular businesses, but where other businesses might also benefit from the assisted activity, the
requirement may be met by aggregating only the jobs created or retained by those businesses for which
the facility/improvement is principally undertaken, provided that the cost (in CDBG funds) for the
facility/improvement is less than $10,000 per permanent full-time equivalent job to be created or
retained by those businesses.
(2) In any case where the cost per job to be created or retained (as determined under paragraph
11
(a)(4)(vi)(F)(1) of this section) is $10,000 or more, the requirement must be met by aggregating the jobs
created or retained as a result of the public facility or improvement by all businesses in the service area
of the facility/improvement. This aggregation must include businesses which, as a result of the public
facility/improvement, locate or expand in the service area of the facility/improvement between the date
the recipient identifies the activity in its action plan under part 91 of this title and the date one year after
the physical completion of the facility/improvement. In addition, the assisted activity must comply with
the public benefit standards at § 570.209(b).
(b) Activities which aid in the prevention or elimination of slums or blight. Activities meeting one
or more of the following criteria, in the absence of substantial evidence to the contrary, will be
considered to aid in the prevention or elimination of slums or blight:
(1) Activities to address slums or blight on an area basis. An activity will be considered to address
prevention or elimination of slums or blight in an area if:
(1) The area, delineated by the recipient, meets a definition of a slum, blighted, deteriorated or
deteriorating area under State or local law;
(11) The area also meets the conditions in either paragraph (A) or (B):
(A) At least 25 percent of properties throughout the area experience one or more of the following
conditions:
(1) Physical deterioration of buildings or improvements;
(2) Abandonment of properties;
(3) Chronic high occupancy turnover rates or chronic high vacancy rates in commercial or industrial
buildings;
(4) Significant declines in property values or abnormally low property values relative to other areas in
the community; or
(5) Known or suspected environmental contamination.
(B) The public improvements throughout the area are in a general state of deterioration.
(111) Documentation is to be maintained by the recipient on the boundaries of the area and the
conditions and standards used that qualified the area at the time of its designation. The recipient shall
establish definitions of the conditions listed at § 570.208(b)(1)(ii)(A), and maintain records to
substantiate how the area met the slums or blighted criteria. The designation of an area as slum or
blighted under this section is required to be redetermined every 10 years for continued qualification.
Documentation must be retained pursuant to the recordkeeping requirements contained at § 570.506
(b)(8)(ii).
(iv) The assisted activity addresses one or more of the conditions which contributed to the deterioration
of the area. Rehabilitation of residential buildings carried out in an area meeting the above requirements
will be considered to address the area's deterioration only where each such building rehabilitated is
considered substandard under local definition before rehabilitation, and all deficiencies making a
building substandard have been eliminated if less critical work on the building is undertaken. At a
minimum, the local definition for this purpose must be such that buildings that it would render
substandard would also fail to meet the housing quality standards for the Section 8 Housing Assistance
Payments Program -Existing Housing (24 CFR 882.109).
(2) Activities to address slums or blight on a spot basis. The following activities may be undertaken
on a spot basis to eliminate specific conditions of blight, physical decay, or environmental contamination
that are not located in a slum or blighted area: acquisition; clearance; relocation; historic preservation;
12
remediation of environmentally contaminated properties; or rehabilitation of buildings or improvements.
However, rehabilitation must be limited to eliminating those conditions that are detrimental to public
health and safety. If acquisition or relocation is undertaken, it must be a precursor to another eligible
activity (funded with CDBG or other resources) that directly eliminates the specific conditions of blight or
physical decay, or environmental contamination.
(3) Activities to address slums or blight in an urban renewal area. An activity will be considered to
address prevention or elimination of slums or blight in an urban renewal area if the activity is:
(1) Located within an urban renewal project area or Neighborhood Development Program (NDP) action
area; i.e., an area in which funded activities were authorized under an urban renewal Loan and Grant
Agreement or an annual NDP Funding Agreement, pursuant to title I of the Housing Act of 1949; and
(11) Necessary to complete the urban renewal plan, as then in effect, including initial land redevelopment
permitted by the plan.
Note:
Despite the restrictions in (b) (1) and (2) of this section, any rehabilitation activity which benefits low and
moderate income persons pursuant to paragraph (a)(3) of this section can be undertaken without regard
to the area in which it is located or the extent or nature of rehabilitation assisted.
(c) Activities designed to meet community development needs having a particular urgency. In
the absence of substantial evidence to the contrary, an activity will be considered to address this
objective if the recipient certifies that the activity is designed to alleviate existing conditions which pose
a serious and immediate threat to the health or welfare of the community which are of recent origin or
which recently became urgent, that the recipient is unable to finance the activity on its own, and that
other sources of funding are not available. A condition will generally be considered to be of recent origin
if it developed or became critical within 18 months preceding the certification by the recipient.
(d) Additional criteria.
(1) Where the assisted activity is acquisition of real property, a preliminary determination of whether the
activity addresses a national objective may be based on the planned use of the property after
acquisition. A final determination shall be based on the actual use of the property, excluding any short-
term, temporary use. Where the acquisition is for the purpose of clearance which will eliminate specific
conditions of blight or physical decay, the clearance activity shall be considered the actual use of the
property. However, any subsequent use or disposition of the cleared property shall be treated as a
"change of use" under § 570.505.
(2) Where the assisted activity is relocation assistance that the recipient is required to provide, such
relocation assistance shall be considered to address the same national objective as is addressed by the
displacing activity. Where the relocation assistance is voluntary on the part of the grantee the recipient
may qualify the assistance either on the basis of the national objective addressed by the displacing
activity or on the basis that the recipients of the relocation assistance are low and moderate income
persons.
(3) In any case where the activity undertaken for the purpose of creating or retaining jobs is a public
improvement and the area served is primarily residential, the activity must meet the requirements of
paragraph (a)(1) of this section as well as those of paragraph (a)(4) of this section in order to qualify as
benefiting low and moderate income persons.
(4) CDBG funds expended for planning and administrative costs under § 570.205 and § 570.206 will be
considered to address the national objectives.
(5) Where the grantee has elected to prepare an area revitalization strategy pursuant to the authority of
§ 91.215(e) of this title and HUD has approved the strategy, the grantee may also elect the following
13
options:
(1) Activities undertaken pursuant to the strategy for the purpose of creating or retaining jobs may, at the
option of the grantee, be considered to meet the requirements of this paragraph under the criteria at
paragraph (a)(1)(vii) of this section in lieu of the criteria at paragraph (a)(4) of this section; and
(11) All housing activities in the area for which, pursuant to the strategy, CDBG assistance is obligated
during the program year may be considered to be a single structure for purposes of applying the criteria
at paragraph (a)(3) of this section.
(6) Where CDBG-assisted activities are carried out by a Community Development Financial Institution
whose charter limits its investment area to a primarily residential area consisting of at least 51 percent
low- and moderate -income persons, the grantee may also elect the following options:
(1) Activities carried out by the Community Development Financial Institution for the purpose of creating
or retaining jobs may, at the option of the grantee, be considered to meet the requirements of this
paragraph under the criteria at paragraph (a)(1)(vii) of this section in lieu of the criteria at paragraph
(a)(4) of this section; and
(11) All housing activities for which the Community Development Financial Institution obligates CDBG
assistance during the program year may be considered to be a single structure for purposes of applying
the criteria at paragraph (a)(3) of this section.
(7) Where an activity meeting the criteria at § 570.209(b)(2)(v) may also meet the requirements of either
paragraph (d)(5)(i) or (d)(6)(i) of this section, the grantee may elect to qualify the activity under either
the area benefit criteria at paragraph (a)(1)(vii) of this section or the job aggregation criteria at
paragraph (a)(4)(vi)(D) of this section, but not both. Where an activity may meet the job aggregation
criteria at both paragraphs (a)(4)(vi)(D) and (E) of this section, the grantee may elect to qualify the
activity under either criterion, but not both.
[53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1945, Jan. 5, 1995; 60
FR 17445, Apr. 6, 1995; 60 FR 56912, Nov. 9, 1995; 61 FR 18674, Apr. 29, 1996; 71 FR 30035, May
24, 2006; 72 FR 46370, Aug. 17, 2007]
Title 24 — Housing & Urban Development
Chapter V — Office of Assistant Secretary for Community Planning and Development, Department of
Housing and Urban Development
Part 570_Community Development Block Grants — Table of Contents
Subpart C_Eligible Activities
14
Exhibit F
STANDARD REQUIREMENTS
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENTS
TABLE OF CONTENTS
GENERAL CONDITIONS -----------------------------------1
A. General Compliance 1
D. Independent Contractor 1
C Hold Harmless 1
D Workers' Compensation 1
E. Insurance and Bonding 1
F. Grantor Recognition 1
G. Amendments 1
H. Suspension or Termination 2
ADMINISTRATIVE REQUIREMENTS
A. Financial Management 2
1. Accounting Standards 2
2. Cost Principles 2
B. Documentation and Recordkeeping 2
1. Records to be Maintained 2
2. Retention 2
3. Client Data 3
4. Disclosure 3
5. Closeouts 3
6. Audits and lnspections.3
C. Reporting and Payment Procedures 3
1. Program Income 3
2. Payment Procedures 3
3. Indirect Costs 4
4. Progress Reports 4
D Procurement 4
1. Compliance 4
2. OMB Standards 4
3. Travel 4
F. Use and Reversion OfAssets
|||
RELOCATION, PROPERTY ACQUISITION AND ONE-FOR-ONE HOUSING REPLACEMENT4
IV. PERSONNEL AND PARTICIPANT C[)ND|T|OV8------------------------z
A. Civil Rights 4
1. Compliance 4
2. Nondiscrimination 5
3. Land Covenants 5
4. Section 504 5
B. Affirmative Action 5
1. Approved Plan 5
2. Women -Minority Businesses (W/MBE) 5
3. Access toRecords 6
4. Notifications 6
5. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement 6
6. Subcontract Provisions 6
C. Employment Restrictions 6
1. Prohibited Activity 6
15
2. Labor Standards 6
3. "Section 3" Clause 7
a. Compliance 7
b. Notifications 7
c. Subcontracts 8
Conduct 8
1. Assignability 8
2. Hatch Act 8
3. Conflict of Interest 8
4. Subcontracts 8
a. Approvals 8
b. Monitoring 8
. Content 8
d. Selection Process 8
5. Lobbying 9
6. Copyright 9
7 Religious Organization 9
ENVIRONMENTAL CONDITIONS...................................................................................9
A. Air and Water 9
B. Flood Disaster Protection 9
C. Lead Based Paint 10
D. Historic reservation............................................................................................10
VI.
SEVERABILITY.
.10
VII SECTION HEADINGS AND
SUBHEADS.........................................................................10
VIII
WAIVER
.10
IX ENTIRE
AGREEMENT. .10
16
EXHIBIT F
STANDARD REQUIREMENTS
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENTS
I. GENERAL CONDITIONS
A. General Compliance
The Subrecipient agrees to comply with the requirements of Title 24 Code
of Federal Regulations, Part 570 of the Housing and Urban Development
regulations concerning Community Development Block Grants (CDBG)
including subpart K of these regulations, except that (1) the Subrecipient
does not assume the recipient's environmental responsibilities described in
24 CFR 570.604 and (2) the Subrecipient does not assume the recipient's
responsibility for initiating the review process under the provisions of 24
CFR Part 52. The Subrecipient further agrees to utilize funds available
under this Agreement to supplement rather than supplant funds otherwise
available. The Subrecipient agrees to comply with all applicable federal,
state and local laws and regulations governing the funds provided under
this contract.
B. Independent Contractor
Nothing contained in this Agreement is intended to, or shall be construed in
any manner, as creating or establishing the relationship of
employer/employee between the parties. The Subrecipient shall at all
times remain an independent contractor with respect to the services to be
performed under this Agreement. The Recipient shall be exempt from
payment of all Unemployment Compensation, FICA, retirement, life and/or
medical insurance and Workers' Compensation Insurance as the
Subrecipient is an independent contractor.
C. Hold Harmless
The Subrecipient shall hold harmless, defend and indemnify the Recipient
from any and all claims, actions, suits, charges and judgments whatsoever
that arise out of the Subrecipient's performance or nonperformance of the
services or subject matter called for in this Agreement.
D. Workers' Compensation
The Subrecipient shall provide Workers' Compensation Insurance coverage
for all employees involved in the performance of this contract.
E. Insurance and Bonding
The Subrecipient shall maintain insurance to the extent and against such
hazards and liabilities as are in keeping with the current insurance program
of Recipient.
The Subrecipient shall comply with the bonding and insurance
requirements of 24 CFR 84.31 and 84.48, Bonding and Insurance.
F. Grantor Recognition
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
The Subrecipient shall insure recognition of the role of the Recipient in
providing services through the agreement. All activities, facilities and items
utilized pursuant to this contract shall be prominently labeled as to funding
source. In addition, the Subrecipient will include a reference to the support
provided herein in all publications made possible with funds available under
this contract.
G. Amendments
Recipient or subrecipient may amend this Agreement at any time provided
that such amendments make specific reference to this Agreement, and are
executed in writing, signed by a duly authorized representative of both
organizations and approved by the Recipient's governing body. Such
amendments shall not invalidate this Agreement, nor relieve or release
Recipient or Subrecipient from its obligations under this Agreement.
Recipient may, in its discretion, amend this Agreement to conform with
federal, state or local governmental guidelines, policies and available
funding amounts, or for other reasons. If such amendments result in a
change in the funding, the scope of services, or schedule of, the activities
to be undertaken as part of this Agreement, such modifications will be
incorporated only by written amendment signed by both Recipient and
Subrecipient.
H. Suspension or Termination
In accordance with 24 CFR 85.43, the Recipient may suspend or terminate this Agreement if
the Subrecipient materially fails to comply with any terms of this Agreement, which include (but
are not limited to) the following: 1) Failure to comply with any of the rules, regulations or
provisions referred to herein, or such statutes, regulations, executive orders, and HUD
guidelines, policies or directives as may become applicable at any time; 2) Failure, for any
reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this
Agreement; 3) Ineffective or improper use of funds provided under this Agreement; or 4)
Submission by the Subrecipient to the Recipient reports that are incorrect or incomplete in any
material respect.
In accordance with 24 CFR 85.44, this Agreement may also be terminated for convenience by
either the Recipient or the Subrecipient, in whole or in part, by setting forth the reasons for
such termination, the effective date, and, in the case of partial termination, the portion to be
terminated. However, if in the case of a partial termination, the Recipient determines that the
remaining portion of the award will not accomplish the purpose for which the award was made,
the Recipient may terminate the award in its entirety.
II. ADMINISTRATIVE REQUIREMENTS
A. Financial Management
1. Accounting Standards
The Subrecipient agrees to comply with 24 CFR 84.21-28 and agrees
to adhere to the accounting principles and procedures required
therein, utilize adequate internal controls, and maintain necessary
source documentation for all costs incurred.
2. Cost Principles
The Subrecipient shall administer its program in conformance with
OMB Circular A-122, "Cost Principles for Nonprofit Organizations" or
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
A-21, "Cost Principles for Educational Institutions" as applicable.
These principles shall be applied for all costs incurred whether
charged on a direct or indirect basis.
B. Documentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall maintain all records required by the federal
regulations specified in 24 CFR Part 570.506 that are pertinent to the
activities to be funded under this Agreement. Such records shall
include but not be limited to:
a. Records providing a full description of each activity undertaken;
b. Records demonstrating that each activity undertaken meets one
of the National Objectives of the CDBG program'
c. Records required determining the eligibility of activities;
d. Records required to document the acquisition, improvement,
use or disposition of real property acquired or improved with
CDBG assistance,
e. Records documenting compliance with the fair housing and
equal opportunity components of the CDBG program, and
f. Financial records as required by 24 CFR Part 570.502, and 24
CFR 84.21-28: and
g. Other records necessary to document compliance with Subpart
Kof24CFR 570.
2. Retention
The Subrecipient shall retain all financial records, supporting documents, statistical
records, and all other records pertinent to the Agreement for a period of five (5) years.
The retention period begins on the date of the submission of the Recipient's annual
performance and evaluation report to HUD in which the activities assisted under the
Agreement are reported on for the final time. Notwithstanding the above, if there is
litigation, claims, audits, negotiations or other actions that involve any of the records
cited and that have started before the expiration of the four-year period, then such
records must be retained until completion of the actions and resolution of all issues, or
the expiration of the four-year period, whichever occurs later.
3. Client Data
The Subrecipient shall maintain client data demonstrating client
eligibility for services provided. Such data shall include, but not be
limited to client name, address, income level or other basis for
determining eligibility, and description of services provided. Such
information shall be made available to Recipient monitors or their
designees for review upon request.
4. Disclosure
The Subrecipient understands that client information collected under
this contract is private and the use or disclosure of such information,
when not directly connected with the administration of the Recipient's
or Subrecipient's responsibilities with respect to services provided
under this contract, is prohibited by law unless written consent is
obtained from such person receiving service and, in the case of a
minor, that of a responsible parent/guardian.
5. Closeouts
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
Subrecipient obligation to the Recipient shall not end until all closeout
requirements are completed. Activities during this closeout period
shall include, but are not limited to, making final payments, disposing
of program assets (including the return of all unused materials,
equipment, unspent cash advances, program income balances, and
accounts receivable to the Recipient), and determining the
custodianship of records. Notwithstanding the foregoing, the terms of
this Agreement shall remain in effect during any period that the
Subrecipient has control over CDBG funds, including program
income.
6. Audits and Inspections
All Subrecipient records with respect to any matters covered by this Agreement shall
be made available to the Recipient, grantor agency, and the Comptroller General of the
United States or any of their authorized representatives, at any time during normal
business hours, as often as deemed necessary, to audit, examine, and make excerpts
or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully
cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of
the Subrecipient to comply with the above audit requirements will constitute a violation
of this contract and may result in the withholding of future payments. The Subrecipient
hereby agrees to have an annual agency audit conducted in accordance with current
Recipient policy concerning subrecipient audits and OMB Circular A-133
C. Reporting and Payment Procedures
1. Program Income
The Subrecipient shall report quarterly all program income (as defined at 24 CFR
570.500(a)) generated by activities carried out with CDBG funds made available under
this contract. The use of program income by the Subrecipient shall comply with the
requirements set forth at 24 CFR 570.504. By way of further limitations, the Subrecipient
may use such income during the contract period for activities permitted under this
contract and shall reduce requests for additional funds by the amount of any such
program income balances on hand. All unexpended program income shall be returned
to the Recipient at the end of the contract period. Any interest earned on cash advances
from the U.S. Treasury and from funds held in a revolving fund account is not program
income and shall be remitted promptly to the Recipient.
2. Payment Procedures
The Recipient will pay to the Subrecipient funds available under this
agreement based upon information submitted by the Subrecipient and
consistent with any approved budget and Recipient policy concerning
payments. With the exception of certain advances, payments will be
made for eligible expenses actually incurred by the Subrecipient, and
not to exceed actual cash requirements. Payments will be adjusted
by the Recipient in accordance with advance fund and program
income balances available in Subrecipient accounts. In addition, the
Recipient reserves the right to liquidate funds available under this
contract for costs incurred by the Recipient on behalf of the
Subrecipient. Approved budget is included as Exhibit G.
3. Indirect Costs
If indirect costs are charged, the Subrecipient will develop an indirect
cost allocation plan for determining the appropriate Subrecipient's
share of administrative costs and shall submit such plan to the
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
Recipient for approval, in a form specified by the Recipient.
4. Progress Reports
The Subrecipient shall submit quarterly Activity Progress Reports to
the Recipient in the form and content as required by the Recipient.
D. Procurement
1. Compliance
The Subrecipient shall comply with current Recipient policy
concerning the purchase of equipment and shall maintain inventory
records of all nonexpendable personal property as defined by such
policy as may be procured with funds provided herein. All program
assets (unexpended program income, property, equipment, etc.) shall
revert to the Recipient upon termination of this Agreement.
2. OMB Standards
Unless specified otherwise within this agreement, the Subrecipient shall procure all
materials, property, or services in accordance with the requirements of 24 CFR
84.40-48.
3. Travel
The Subrecipient shall obtain written approval from the Recipient for
any travel outside the metropolitan area to be paid for with funds
provided under this contract.
Use and Reversion of Assets
The use and disposition of real property and equipment under this Agreement shall be
in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503,
and 570.504, as applicable, which include but are not limited to the following:
1. The Subrecipient shall transfer to the Recipient any CDBG funds on hand and any
accounts receivable attributable to the use of funds under this Agreement at the time of
expiration, cancellation, or termination.
2. Real property under the Subrecipient's control that was acquired or improved, in
whole or in part, with funds under this Agreement in excess of $25,000 shall be used to
meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5)
years after expiration of this Agreement. If the Subrecipient fails to use CDBG-assisted
real property in a manner that meets a CDBG National Objective for the prescribed
period of time, the Subrecipient shall pay the Recipient an amount equal to the current
fair market value of the property less any portion of the value attributable to
expenditures of non-CDBG funds for acquisition of, or improvement to, the property.
Such payment shall constitute program income to the Recipient. The Subrecipient may
retain real property acquired or improved under this Agreement after the expiration of
the five-year period.
3. In all cases in which equipment acquired, in whole or in part, with funds under this
Agreement is sold, the proceeds shall be program income (prorated to reflect the extent
to that funds received under this Agreement were used to acquire the equipment).
Equipment not needed by the Subrecipient for activities under this Agreement shall be
(a) transferred to the Recipient for the CDBG program or (b) retained after
compensating the Recipient [an amount equal to the current fair market value of the
equipment less the percentage of non-CDBG funds used to acquire the equipment].
III. RELOCATION, PROPERTY ACQUISITION AND ONE-FOR-ONE HOUSING
REPLACEMETN
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
The Subrecipient agrees to comply with (a) the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, as amended (URA), and implementing
regulations at 49 CFR Part 24 and 24 CFR 570.606(b); (b) the requirements of 24 CFR
570.606(c) governing the Residential Anti -displacement and Relocation Assistance
Plan under section 104(d) of the HCD Act; and (c) the requirements in 24 CFR
570.606(d) governing optional relocation policies. The Subrecipient shall provide
relocation assistance to displaced persons as defined by 24 CFR 570.606(b)(2) that
are displaced as a direct result of acquisition, rehabilitation, demolition or conversion
for a CDBG-assisted project. The Subrecipient also agrees to comply with applicable
Recipient ordinances, resolutions and policies concerning the displacement of persons
from their residences.
IV. PERSONNEL AND PARTICIPANT CONDITIONS
A. Civil Rights
1. Compliance
The Subrecipient agrees to comply all federal, state and local regulations in effect as of
the date of this Agreement as they apply to federally assisted programs and activities
of the Department of Housing and Urban Development and with Title VI of the Civil
Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended,
Section 104(b) and Section 109 of Title I of the Housing and Community Development
Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans
with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order
11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478,
12107 and 12086.
2. Nondiscrimination
The Subrecipient agrees to comply with the non-discrimination in employment and
contracting opportunities laws, regulations, and executive orders referenced in 24
CFR 570.607, as revised by Executive Order 13279. The applicable non-
discrimination provisions in Section 109 of the HCDA are still applicable.
3. Land Covenants
This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.
L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease, or other
transfer of land acquired, cleared or improved with assistance provided under this
contract, the Subrecipient shall cause or require a covenant running with the land to be
inserted in the deed or lease for such transfer, prohibiting discrimination as herein
defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any
improvements erected or to be erected thereon, providing that the Recipient and the
United States are beneficiaries of and entitled to enforce such covenants. The
Subrecipient, in undertaking its obligation to carry out the program assisted hereunder,
agrees to take such measures as are necessary to enforce such covenant, and will not
itself so discriminate.
4. Section 504
The Subrecipient agrees to comply with all Federal regulations issued pursuant to
compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which
prohibits discrimination against the individuals with disabilities or handicaps in any
Federally assisted program. The Recipient shall provide the Subrecipient with any
guidelines necessary for compliance with that portion of the regulations in force during
the term of this Agreement.
B. Affirmative Action
1. Approved Plan
The Subrecipient agrees that it shall be committed to carry out pursuant to the
Recipient's specifications an Affirmative Action Program in keeping with the principles
as provided in President's Executive Order 11246 of September 24, 1966. The
Recipient shall provide Affirmative Action guidelines to the Subrecipient to assist in the
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
formulation of such program. The Subrecipient shall submit a plan for an Affirmative
Action Program for approval prior to the award of funds.
2. Women -Minority -Owned Businesses (W/MBE)
The Subrecipient will use its best efforts to afford small businesses, minority business
enterprises, and women's business enterprises the maximum practicable opportunity to
participate in the performance of this contract. As used in this contract, the terms "small
business" means a business that meets the criteria set forth in section 3(a) of the Small
Business Act, as amended (15 U.S.C. 632), and "minority and women's business
enterprise" means a business at least fifty-one (51) percent owned and controlled by
minority group members or women. For the purpose of this definition, "minority group
members" are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish -
heritage Americans, Asian -Americans, and American Indians. The Subrecipient may
rely on written representations by businesses regarding their status as minority and
female business enterprises in lieu of an independent investigation.
3. Access to Records
The Subrecipient shall furnish and cause each of its own
subrecipients or subcontractors to furnish all information and reports
required hereunder and will permit access to its books, records and
accounts by the Recipient, HUD or its agent, or other authorized
Federal officials for purposes of investigation to ascertain compliance
with the rules, regulations and provisions stated herein.
4. Notifications
The Subrecipient will send to each labor union or representative of
workers with which it has a collective bargaining agreement or other
contract or understanding, a notice, to be provided by the agency
contracting officer, advising the labor union or worker's representative
of the Subrecipient's commitments hereunder, and shall post copies
in conspicuous places available to employees and applicants for
employment.
5. Equal Employment Opportunity and Affirmative Action (EEO/AA)
Statement
The Subrecipient will, in all solicitations or advertisements for
employees placed by or on behalf of the Subrecipient, state that it is
an Equal Opportunity or Affirmative Action employer.
6. Subcontract Provisions
The Subrecipient will include the provisions of Paragraphs X A, Civil
Rights, and B, Affirmative Action, in every subcontract or purchase
order, specifically or by reference, so that such provisions will be
binding upon each of its own subrecipients or subcontractors.
C. Employment Restrictions
1. Prohibited Activity
The Subrecipient is prohibited from using funds provided herein or
personnel employed in the administration of the program for political
activities; inherently religious activities; lobbying, political patronage,
and nepotism activities.
2. Labor Standards
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
The Subrecipient agrees to comply with the requirements of the Secretary of Labor in
accordance with the Davis -Bacon Act as amended, the provisions of Contract Work
Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable
Federal, state and local laws and regulations pertaining to labor standards insofar as
those acts apply to the performance of this Agreement. The Subrecipient agrees to
comply with the Copeland Anti -Kick Back Act (18 U.S.C. 874 et seq.) and its
implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The
Subrecipient shall maintain documentation that demonstrates compliance with hour
and wage requirements of this part. Such documentation shall be made available to the
Recipient for review upon request.
The Subrecipient agrees that, except with respect to the rehabilitation or construction
of residential property containing less than eight (8) units, all contractors engaged
under contracts in excess of $2,000.00 for construction, renovation or repair work
financed in whole or in part with assistance provided under this contract, shall comply
with Federal requirements adopted by the Recipient pertaining to such contracts and
with the applicable requirements of the regulations of the Department of Labor, under
29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices
and trainees to journey workers; provided that, if wage rates higher than those required
under the regulations are imposed by state or local law, nothing hereunder is intended
to relieve the Subrecipient of its obligation, if any, to require payment of the higher
wage. The Subrecipient shall cause or require to be inserted in full, in all such
contracts subject to such regulations, provisions meeting the requirements of this
paragraph.
3. "Section 3" Clause
a. Compliance
Compliance with the provisions of Section 3 of the HUD Act of 1968, as
amended, and as implemented by the regulations set forth in 24 CFR 135, and
all applicable rules and orders issued hereunder prior to the execution of this
contract, shall be a condition of the Federal financial assistance provided under
this contract and binding upon the Recipient, the Subrecipient and any of the
Subrecipient's subrecipients and subcontractors. Failure to fulfill these
requirements shall subject the Recipient, the Subrecipient and any of the
Subrecipient's subrecipients and subcontractors, their successors and assigns,
to those sanctions specified by the Agreement through which Federal assistance
is provided. The Subrecipient certifies and agrees that no contractual or other
disability exists that would prevent compliance with these requirements.
The Subrecipient further agrees to comply with these "Section 3" requirements
and to include the following language in all subcontracts executed under this
Agreement:
"The work to be performed under this Agreement is a project assisted
under a program providing direct Federal financial assistance from
HUD and is subject to the requirements of Section 3 of the Housing
and Urban Development Act of 1968, as amended (12 U.S.C. 1701).
Section 3 requires that to the greatest extent feasible opportunities for
training and employment be given to low- and very low-income
residents of the project area, and that contracts for work in connection
with the project be awarded to business concerns that provide
economic opportunities for low- and very low-income persons residing
in the metropolitan area in which the project is located."
The Subrecipient further agrees to ensure that opportunities for training and
employment arising in connection with a housing rehabilitation (including
reduction and abatement of lead-based paint hazards), housing construction, or
other public construction project are given to low- and very low-income persons
residing within the metropolitan area in which the CDBG-funded project is
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
located; where feasible, priority should be given to low- and very low-income
persons within the service area of the project or the neighborhood in which the
project is located, and to low- and very low-income participants in other HUD
programs; and award contracts for work undertaken in connection with a housing
rehabilitation (including reduction and abatement of lead-based paint hazards),
housing construction, or other public construction project to business concerns
that provide economic opportunities for low- and very low-income persons
residing within the metropolitan area in which the CDBG-funded project is
located; where feasible, priority should be given to business concerns that
provide economic opportunities to low- and very low-income residents within the
service area or the neighborhood in which the project is located, and to low- and
very low-income participants in other HUD programs.
The Subrecipient certifies and agrees that no contractual or other legal
incapacity exists that would prevent compliance with these requirements.
b. Notifications
The Subrecipient agrees to send to each labor organization or
representative of workers with which it has a collective
bargaining agreement or other contract or understanding, if any,
a notice advising said labor organization or worker's
representative of its commitments under this Section 3 clause
and shall post copies of the notice in conspicuous places
available to employees and applicants for employment or
training.
c. Subcontracts
The Subrecipient will include this Section 3 clause in every
subcontract and will take appropriate action pursuant to the
subcontract upon a finding that the subcontractor is in violation
of regulations issued by the Recipient. The Subrecipient will not
subcontract with any entity where is has notice or knowledge
that the latter has been found in violation of regulations under
24 CFR 135 and will not let any subcontract unless the entity
has first provided it with a preliminary statement of ability to
comply with the requirements of these regulations.
D. Conduct
1. Assignability
The Subrecipient shall not assign or transfer any interest in this
contract without the prior written consent of the Recipient thereto;
provided, however, that claims for money due or to become due to
the Subrecipient from the Recipient under this contract may be
assigned to a bank, trust company or other financial institution without
such approval. Notice of any such assignment or transfer shall be
furnished promptly to the Recipient.
2. Hatch Act
The Subrecipient agrees that no funds provided, nor personnel
employed under this contract, shall be in any way or to any extent
engaged in the conduct of political activities in violation of Chapter 15
of Title V United States Code.
3. Conflict of Interest
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
The Subrecipient agrees to abide by the provisions of 24 CFR 84.42 and 570.611,
which include (but are not limited to) the following:
a. The Subrecipient shall maintain a written code or standards of conduct that shall
govern the performance of its officers, employees or agents engaged in the award
and administration of contracts supported by Federal funds.
b. No employee, officer or agent of the Subrecipient shall participate in the selection,
or in the award, or administration of, a contract supported by Federal funds if a
conflict of interest, real or apparent, would be involved.
c. No covered persons who exercise or have exercised any functions or
responsibilities with respect to CDBG-assisted activities, or who are in a position
to participate in a decision-making process or gain inside information with regard
to such activities, may obtain a financial interest in any contract, or have a
financial interest in any contract, subcontract, or agreement with respect to the
CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted
activity, either for themselves or those with whom they have business or
immediate family ties, during their tenure or for a period of one (1) year thereafter.
For purposes of this paragraph, a "covered person" includes any person who is
an employee, agent, consultant, officer, or elected or appointed official of the
Recipient, the Subrecipient, or any designated public agency.
4. Subcontracts
a. Approvals
The Subrecipient shall not enter into any subcontracts with any
agency or individual in the performance of this contract without
the written consent of the Recipient prior to the execution of
such agreement.
b. Monitoring
The Subrecipient will monitor all subcontracted services on a
regular basis to assure contract compliance. Results of
monitoring efforts shall be summarized in written reports and
supported with documented evidence of follow up actions taken
to correct areas of noncompliance.
c. Content
The Subrecipient shall cause all of the provisions of this contract
in its entirety to be included in and made a part of any
subcontract executed in the performance of this agreement.
d. Selection Process
The Subrecipient shall undertake to insure that all subcontracts
let in the performance of this agreement shall be awarded on a
fair and open competition basis in accordance with applicable
procurement requirements. Executed copies of all subcontracts
shall be forwarded to the Recipient along with documentation
concerning the selection process.
5. Lobbying
The Subrecipient hereby certifies that:
a. No Federal appropriated funds have been paid or will be paid, by or on
behalf of it, to any person for influencing or attempting to influence an officer
or employee of any agency, a Member of Congress, an officer or employee
of Congress, or an employee of a Member of Congress in connection with
the awarding of any Federal contract, the making of any Federal grant, the
making of any Federal loan, the entering into of any cooperative agreement,
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
and the extension, continuation, renewal, amendment, or modification of any
Federal contract, grant, loan, or cooperative agreement;
If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with this
Federal contract, grant, loan, or cooperative agreement, it will complete and
submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions; and
c. It will require that the language of paragraph (d) of this certification be
included in the award documents for all subawards at all tiers (including
subcontracts, subgrants, and contracts under grants, loans, and cooperative
agreements) and that all Subrecipients shall certify and disclose accordingly:
d. Lobbying Certification
This certification is a material representation of fact upon which reliance was
placed when this transaction was made or entered into. Submission of this
certification is a prerequisite for making or entering into this transaction
imposed by section 1352, title 31, U.S.C. Any person who fails to file the
required certification shall be subject to a civil penalty of not less than
$10,000 and not more than $100,000 for each such failure.
Copyright
If this contract results in any copyrightable material or inventions, the Recipient and/or
grantor agency reserves the right to royalty -free, non-exclusive and irrevocable license
to reproduce, publish or otherwise use and to authorize others to use, the work or
materials for governmental purposes.
5. Religious Organization
The Subrecipient agrees that funds provided under this Agreement will not be utilized
for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship,
religious instruction, or proselytization.
V. ENVIRONMENTAL CONDITIONS
A. Air and Water
1. The Subrecipient agrees to comply with the following regulations
insofar as they apply to the performance of this contract:
2. Clean Air Act, 42 U.S.C., 7401, ET seq.
3. Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et
seq., as amended 1318 relating to inspection, monitoring, entry,
reports and information, as well as other requirements specified in
said Section 114 and Section 308, and all regulations and guidelines
issued hereunder.
4. Environmental Protection Agency (EPA) regulations pursuant to 40
CFR, Part 50, as amended.
Flood Disaster Protection
In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4001), the Subrecipient shall assure that for activities located in an area identified by the
Federal Emergency Management Agency (FEMA) as having special flood hazards, flood
insurance under the National Flood Insurance Program is obtained and maintained as a
condition of financial assistance for acquisition or construction purposes (including
rehabilitation).
C. Lead Based Paint
The Subrecipient agrees that any construction or rehabilitation of residential
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
structures with assistance provided under this contract shall be subject to
HUD Lead Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part
35 subpart B. Such regulations pertain to all CDBG assisted housing and
require that all owners, prospective owners, and tenants or properties
constructed prior to 1978 be properly notified that such properties may
include lead based paint. Such notification shall point out the hazards of
lead based paint and explain the symptoms, treatment and precautions that
should be taken when dealing with lead based paint poisoning and the
advisability and availability of blood lead level screening for children under
seven. The notice should also point out that if lead-based paint is found on
the property, abatement measures may be undertaken. The regulations
further require that, depending on the amount of Federal funds applied to a
property, paint testing, risk assessment, treatment and/or abatement may
be conducted.
D. Historic Preservation
The Subrecipient agrees to comply with the Historic Preservation
requirements set forth in the National Historic Preservation Act of 1966, as
amended (16 U.S.C. 470) and the procedures set forth in 36 CFR, Part
800, Advisory Council on Historic Preservation Procedures for Protection of
Historic Properties, insofar as they apply to the performance of this
contract.
In general, this requires concurrence from the State Historic Preservation
Officer for all rehabilitation and demolition of historic properties that are fifty
years old or older or that are included on a federal, state or local historic
property list.
VI. SEVERABILITY
If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be
affected thereby and all other parts of this Agreement shall nevertheless be in full force and
effect.
VII. SECTION HEADINGS AND SUBHEADINGS
The section headings and subheadings contained in this Agreement are included for
convenience only and shall not limit or otherwise affect the terms of this Agreement.
VIII. WAIVER
The Recipient's failure to act with respect to a breach by the Subrecipient does not waive its
right to act with respect to subsequent or similar breaches. The failure of the Recipient to
exercise or enforce any right or provision shall not constitute a waiver of such right or
provision.
IX. ENTIRE AGREEMENT
This agreement constitutes the entire agreement between the Recipient and the Subrecipient
for the use of funds received under this Agreement and it supersedes all prior or
contemporaneous communications and proposals, whether electronic, oral, or written
between the Recipient and the Subrecipient with respect to this Agreement.
NOTE: For the above sections, if the Subrecipient is a governmental or quasi -governmental agency, the
applicable sections of 24 CFR Part 85, "Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments," and OMB Circular A-87 would apply.
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
Exhibit G
Section 2: Financial Contributions to the Proposed Project
2.1. Use of Proceeds
USE OF Proceeds
Activity
Loan Requested
(Enter gross dollar
amount rounded to
the nearest hundreds)
Land acquisition
$
New Construction/Expansion Repair
$ 350,000
Acquisition and/or Repair of Machinery
and Equipment
$ 300,000
Inventory Purchase
$ 53,000
Working Capital (including accounts
payable)
$ 30,000
Acquisition of Existing Business
$
All Other (provide description)
Pre -opening advertising, pre-opening/soft
opening expenses, signage, design fees,
uniforms, POS/AV equipment
$ 67,000
Total Loan Requested (All Uses):
$ 800,000
2.2. Terms of Proposed Financing (Sources)
Proposed Financing
Amount
Monthly
Payment
Typel'l
Rate
Term
Financial Institution: EDSB lending
$ 350,000
3,101
DL
4.25%
7 yrs
Financial Institution :
$
Other : Landlord contribution
$ 275,000
Dubuque CDBG Economic Dev. Fund
$ 175,000
TOTAL SOURCES:
$ 800,000
l'lFor example: forgivable loan, direct loan, or grant.
NOTE: Total Loan Requested - Uses (2.1) and Total Sources (2.2) should be equal.
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
hems,
Unit
Mfr
Specified Model
VE
MFG/14
nom
._ . -.
- _..
Original UNIT
PRICE
VE UNIT
PRICE
QUANTITY.
'FREIGHT
-
- VE
FREIGHT
..
'ORIG. EXT.
TOTAL (NO
TAXI
VE EC-.
TOTAL (NO
TAXI
_:-
ea
budgetary
food
opening Inventory
various
920,000.00
cabeverage
budgetary
Opening inventory
various
931,000.00
W
e
budgetary
chemicals
opening IOventOry
various
9812.00
Hobart- Mixer Table
1,274.00
1
51,274.00
Hobart- Mixer Attachments
659.00
1
9659.00
ea
John800s- Cutting Table
539.00
1
9539.00
ea
Bunn- Coffee Brewer
604.09
1
9604.09
_
ea
Polysclance
Thermal Greulator
799.99
2
$1,599.98
ea
Robot coupe
Food Processor
800.00
1
5800.00
ea
Immersion blender
289.00
1
9289.00
ea
Gamboge can- slim Jim
49.99
10
9499.90
ea
Garabage can- 44981
54.99
2
9109.98
ea
IW
freshman
Chairs -Dinning
15500
74
$11,470.00
ea
IW
habitus
Stools - Bar
180.00
34
96,120.00
ea
IW
morals
Chairs -Outside
145.00
24
93,480.00
ea
madlson
santlago
chair highback leather
224.00
12
92,688.00
0a
MNTW
rustic patina
Tables -Dinning
625.00
10
96,250.00
ea
MNIW
rustic patina
Tables -Dar
350.00
5
91,750.00
ea
MNTW
rustic patina
Tables- Dinning 2 top
470.00
6
$2,820.00
ea
IW
Tables -Outside
380.00
6
92,280.00
01.1
ea
ea _�_---
Fisher
4731
POT FILLER
5144.00
1
9194.00
02
Hetco
01,14-775-00
DECORATIVE HEAT LAMP
$297.00
7
$2,079.00
05.1
ea
Eagle
W51548-14/3
WALL SHELF
9264.00
1
$264.00
06.1
ea
Eagle
WS1584.14/3
WALL SHELF
9346.001
9346.00
19
ea
Hobart
TABLEHW-141,2012
MIXER TABLE
91,274.001
91,274.00
20
ea
Hobart
HL200-1ST0DEL
MIXER, FOOD
94,724.001
94,724.00
21.1
ea
Eagle
WS1584-19/3
WALL SHELF
9346.001
9346.00
22
ea
John800s
SNSO4A
CUTTING TABLE
9476.001
9476.00
23
ea
Eagle
1848E74
SHELVING UNIT
9144.00
2
5288.00
23
ea
Eagle
2448E74
SHELVING UNIT
9172.00
11
91,892.00
24
ea
Cagle
4009
DUNNAGE RACK
5221.00
2
9442.00
32
ea
1lateo
CUSTOM
ESPRESSO MAKER
51,652.001
51,652.00
IN0004
a
budgetary
entry103
sofa
$1.000.00
2
$2,000.00
WOWS
a
budgetary
entry 100
dhor rug
5300.001
9300.00
IN0006
ea
Anderson
R1072
floor mat
5140.00
2
9280.00
070007
ea
IW
coffee table
5350.00
1
5350'00
IN0008
ea
Gl.slender
11375
host station
51.750.00
1
91,750.00
150011
00
IW
8r7195
harvest table
51,750.001
51,750.00
100016
ea
Inter P
DR 101
chalk board
5500.00
1
5500.00
150017
ea
Inter P
011 101
chalk board
5500.00
2
$1,1100.00
010018
ea
InterP
DR101
chalkboard
5500.00
1
$500'00
100019
as
millennium
1007744
floor runner
$150.00
1
9350.00
100026
ea
shun Jim
13251
Nash receptade
554.69
2
9109.38
100029
ea
Hamilton beach
1151
glass washer
5340.90
1
5340.90
/50030
ea
wtamIx quiet
51,035,029.00
blender
51,39200
1
91,392.00
-
050031
a
Will slop
5181
geol. nock pourers
51.32
26
947.52
IN0032
ea
San lama,
K4861
tutting board bar
510.63
2
921.26
150033
ea
<artiste
M496
Glass rimmer
511.99
1
911.99
150934
ea
Carlisle
11619
Store N pour Condiment systam
566.79
2
9133.58
IN0035
ea
Carlisle
N620
Store N Pour Set
375.34
1
975.34
100036
ea
San lama,
K116
Sett swop ice
518.48
2
036.96
F:UJSERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
1110037
8
Don
65631
torturous,
53.79
6
522.74
160036
ea
4001 stop
5390
bar strainers
$3.66
4
514,64
190039
ea
Don
51621
Bar 46a4er1
51036
6
562.16
160040
ea
Imbed
double {tees
92.99
6
517.94
_ _ _ _.
160051
ea
table crab
158689
olive lone
51.49
1
$1.49
160062
as
Don
11692
bas spoon
51.99
6
$11.94
1340043
ea
AMC
14600
Muddler
53.19
4
512.76
360044
ea
will stop
61722
overflow pipe
53.84
4
515.56
160045
ea
Don
61593
Decd mals
54.99
12
559.88
150046
ea
Don
81813
sheltie.>
594.99
2
5189.98
160047
ea
spill slop
61651
Dar malt
5819
6
549.14
160045
ea
spill slop
71426
bar aid
$54.79
2
5109.58
'I1
160049
ea
Vollrath
49308
Cutlery boa
514.00
4
95'��_-I__
190030
ea
San lama,
1.11111
cheek spindle
514.00
2
$28.50
1140051
ea
cardinal
01701
wIMPdeunler
514.00
4
$56.00
_F
160052
ea
c,rd.M
01142
wine glass 1404 goblet
53.92
120
5470.10
180053
ea
tempered
pint elan
5166
96
5351.36
160454
oa
440x444
(WS
52.90
84
5243.60
1100055
ea
W
water elan
51.72
025
5387.00
160056
ea
Sot
111084(444
5151
36
$5436
160057
ea
14ot
beverage elan
53.72
144
5535.68
160059
ea
Ont worts
apron UM/.
59.99
40
9399.60
4140061
ea
chef'pecia.iet
pepper mill
533.80
6
5202.80
1110072
ea
bun 3 gallon
lee tea brew
5854.00
1
5854.00
1110063
ea
boon the.04a3
coffee carafe
593.49
4
$373.96
1140066
ea
lohn boos
preptable
51,268.00
1
51,288.00
1110070
ea
fen ARM 6444
Safe scoop ice
534.99
1
$34.99
640081
ea
focus
glass ractwa1 shevIlne
$516.00
2
51,032.00
160055
44
2,04,4,6
flatware rack
522.39
4
$89.06
490086
a
camra4c
dish racks
522.99
6
$137.99
460087
64
camract
11155 racks
558.39
17
5700.68
160088
ea
644140381
Elan rack ora
5128.00
2
5256.00
460094
4a
advance taboo
work table with miler bate
51,672003
$1,622.00
170105
ea
2341 rails
96.61
6
539.66
190127
ea
sale
520000
I
0200.00
160129
ea
lane range
pager>plumn
51,025.00
1
51,025.00
410130
ea
mb6ermsl4
watts Import withlb
5338.00
1
5538.00
110131
ea
ail vacrnaster 8732016• seal bar
51,729.00
1
51,729.00
160132
ea
Varmister bags 410
542.99
2
585.98
-
_
30111
ea
0atmester W.13014
$89.99
2
5179.98
160134
ra
Parma.. bags 14416
559.99
2
$119.98
190135
ea
lhermal circulator
5299.99
2
51,599.98
-
-
1140116
ea
ertchen Aid Miser 801
5699.00
1
$699.00
130137
01
Bobo:Coupe
$100.00
1
$800'00
160138
ea
3mmer4ien blender 12' Waring 11.61150
5259.00
1
f200.9
-,
110139
ea
11030ne nu.
592.75
5
5463.75
1110740
ea
Saute pan 10• cpminu,al fry
57.99
40
5319.60
1110141
ea
22'820'06" 000090( Dan
500.00
1
5109.00
190142
ea
1581 Crazies (rondo)
$106.99
2
5213.98
1140143
ea
Sauce pan 4.58t ST
532.99
5
8114.95
- .-.
.
660144
ea
Sauce pan 64t 57
527.49
7
554'98
160145
a
Sauce pot 1541
54299
2
S85.98
1110146
ea
Sauce pot 2648
55599
2
9111.98
130147
ea
Stelnkss sleet bowl 3q3
57.28
12
527.36
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
190148
ea
Sulneeu fuel bowl 498
52.89
6
917.34
710149
ea
---
SUMkfs fled bowl 1341
55A92
910.98
190150
03
---Stainless
steel bowl 20.81
$12.99
1U■
$12.99
190191
ea
---
sleet pan 680
57.81
72
$562.32
190137
190153
ea
ea
---
---SAstt
Sheet pan 8
23.59
30
$107.70
gate full
$9.39
8
275.12
190854
ea
---
Sheet grate X
24.99
12
959.89
190135
ea
---
Hotel pan 8112.
$1032
12
9123.61
190156
ea
---
Motel pan 1.88'
513 26
12
9159.12
90157
190158
ea
ea
---
---
Hotel Pan )12'
56.93
12
583.16
hotel pan h 4'
28.23
12
998.76
190159
ea
---
Hotel pan 1/34'
56.54
12
578.48
190160
ca
---
Hotel pan 1/64'
54.41
24
1105.84
1110161
N0167
190163
ea
ea
ea
---
---
Hotel pan 3766•
56.70-
12
$80.40
Hotel pan 1/94'
5).05
12
$36.60
Aluminum 910 lint
5175
48
984.00
160164
ea
12' Weadlre basket
$6.39j
$12.78
190165
ea
51and•up FON (Ari (replace Immersion •
5449.991
9449'99
190166
ea
88 41d.er3.5.29
4
521.16
.-
190167
as
e204idor
55.29
4
121.16
190148
ea
.130
alb dn6er
57.994
631.96
190169
to
dasher
97 998
1
■■
97.90
190170
190171
to
ea
---
---
S4uewa bottle pack boy
/eater
55.391
57.992
55.39
■
55.98
IN0172
190177
�_--Nraa
---
Pine pad
dock
535.492
$25.792-
551.491_�
530.98
951.58
551.49
190174
ea
---Pizza
87180
190175
to
---
Plata Mud6'ur 9.r
537.091
932.49
190174
to
t4dlea Diva
$5.694--
522.76
I90172
a
Spatulas 10'
56.49
8
551.92
190318
ea
Spatulas la'
$4.194
--
616.76
190179
ea
---Send
tulnlats $p70n
$1.79
6
58.95
190180
ea
---
P710081ted stainless spoon
9179
$5.37
190181
ea
---
ladle 1208
55.89
517.67
190182
ea
---
ladle 802
$4.796
528.74
IMO3
ca
---ladlr
408
$3.396
520.34
890184
to
-_.
Heavy Duty Tong
$1.99
12
523.88
190185
ea
IIeaW Duty Ten87'
7"
51.196
57.14
910186
ea
-_.
Mandoline
5129 99
1
190181
190188
fa
ea
--I1hih68
Cuffing loud 18.24
513.99
■
B
■■
511192
18112
624.49
$87.92
190189
<a
['eland. 1101q 1
924,19
59.192
■
2■■
548.98
918.38
1110190
ea
00uble messstrainer
190191
ea
Bouillon strainer 10'
532.991
532'99
190192
ea
bleasunnB cup/dry
$9.99j
$19.98
1840193
ea
Me8341in8 sup71iquid lcup
5 493
530.47
NO194
ea
t tsambr0mrowre
9
51049
3
531.47
190195
ea
Measuring spoon
$2 193
3
■
16.57
190196
ea
---
Scale 115
549.99-
2
599.98
190197
a
---
TAHno WAV 32' (96860)
$6.696
640.14
I90890
ea
Thermo WAV 18'
58.496
950.94
190199
ea
Pteltr
$2.293
--
56.87
190200
ea
441 Inset Dol
$4.694
--
526.76
190201
ea
7qt Inset pet
59.59
4
938.36
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
110207
ea
Dough won. boa
511.49
12
0137.88
190203
ea
210x1 Mobile 6)18
5106.99
3
5320.97
10204
ea
4q1 Cambro
54.79
20
595.80
1
190205
ea
Bgt Cambria
57.79
20
$155.80
100206
ea
124t Cambro
511.99
10
5114.90
100207
pa
22gt Cambro
521.49
10
$219.90
190208
ea
4.891 lid
51.39
40
$55.60
190209
ea
12,2291 lid
5209
20
541.80
190210
ea
Food storage 18.12.6
512.99
10
$129.90
190211
ea
Food storage 16812x9
517.49
10
5174.90
1110212
ea
food storage 26.18.3
017.99
5
$89.95
100213
ea
Food storage 268184
522.99
10
5229.90
190214
ea
Food storage 76.18.9
$30.49
5
5152.45
190215
ea
Food storagelld 18812
56.39
20
5127.80
100716
ea
Food storage Ild 26.13
511.99
20
5239.80
190217
ea
Pasta Roller (cheap)
528.99
1
528.99
910218
ea
9' Manual stainless steel (nice)
5639.00
1
5639.00
190219
ea
Meat grinder (for mixer) all in one
5659.00
1
5659.00
IN0220
ea
Mop bucket
51109
1
531.99
190221
ea
Mop Handle(rubbermaid Q749)
55.79
4
$23.16
190232
ea
C849111e 369320 MOp 5044
$4.75
12
$57.00
190223
ea
5an1llrer bucket 39)
52.99
12
515.88
190224
ea
Dern Brunt 909918 40471 61.10
58.19
2
$16.38
010225
ea
Carlisle 36883 warehouse boom
$8.89
2
517.78
190226
ea
Dust pan Rubbermaid 2531 upright
515.99
2
$30.98
190227
ee
Plastic dust pan
52.99
2
05.98
190778
ea
Rubbermaid 420903 step stool
541.99
1
541.99
10229
ea
Dish rack Dat, full
59.50
6
857.00
190230
ea
Dish rack spike, full
59.50
10
S95'00
190231
ea
Flatware rack, 86emp, 51 die
$9.99
8
579.92
180797
ea
Garbage cans 23gal slim pm
549.99
10
9999.90
190233
ea
Garbage can 44gal round
559.99
2
5109.98
190234
ea
libbey
1051712
R88 plate 6'
55.78
144
0832.32
190235
ea
Iibbp
1051713
Salad 'date 8"
58.06
144
51,160.61
190236
ea
1701W
1051715
Dinner plate 10'
513.71
144
51,974.24
190237
ca
Ilbbay
1051720
Seep/Salad bowl
59.33
90
$839.70
190238
ea
hbbey
811527
Pita platter
519.92
50
$996.00
190239
ea
bbb.
1051726
Sall shaker
52.84
36
9102.29
--
190240
ea
hbbey
1051726
pepper shaker
52.84
36
0102.24
190241
ea
hbbey
1051723
Coffee Cup
56.58
36
5237.00
190242
ea
libbey
1051724
Coffee Saucer
55.78
36
5308'00
190243
ea
libbey
10511727
Creamer
54.02
36
0199.72
1110244
ea
Wood peal
r16
Bread container
528.90
30
5867.00
190245
ea
American Metakraf
squat lolly Or
15M1194
Salad container Faux slate square
513.46
36
F
$4134•S6
100246
ea
ball
Butter container
50.79
100
579.00
190147
ea
116585
F11527
Blackboard Oates
$19.93
40
5757.20
190748
n.0
Wn,IdTahlowa,n
InS7977
T.aapnnn
54.63
200
5926.00
190249
ea
World Tableware
10522319
Bouillon spoon
54.25
200
5850.00
90250
ea
World Tableware
1052340
Dinner lock
54.63
200
5926.00
190251
to
World Tableware
1052382
Dinner knife
56.15
200
51,230.00
190252
ea
World Tableware
1052378
Dessertspoon
54.63
150
0694.50
180253
ea
ConRefr
01.48.1814
SANDWICH UNIT
53,908.00
2
07,816.00
190154
ea
ConRMr
CRA93486.0
MODIFIED
REFRIGERATOR
$5,396.001
$5,346.00
110255
ea
ConRefr
CPA60
PIZZA PREP TABLE
53,294.00
1
93,294.00
F:UJSERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc
F:\USERS\Econ Dev\CDBG Loan Program\CARADCO Restaurant\Harvest CDBG Loan Agreement Final Copy.Doc