Annual Action Plan Amendments 2007-08 Econ DevelTHE CITY OF
DUB E
Mast~rpi~~ce nn the M~isszssippi
MEMORANDUM
July 31, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: FY 2007 and FY 2008 Annual Action Plan Amendment
Economic Development Loans
The Community Development Advisory Commission and Housing and Community
Development Department Director David Harris are recommending an amendment to
the Fiscal Year 2007 and Fiscal Year 2008 Annual Action Plans for the City's
Community Development Block Grant program. This amendment will provide for
forgivable loans and grants for economic development activities in the Annual Plans.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~~ ~
,ti~~
Mi hael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
THE CITY OF
DuB E
Masterpiece on the Mississippi
MEMORANDUM
July 20, 2007
To: Michae~~an Milligen, City Manager
From: David Harns, Housing and Community Development
Subject: FY 07 and FY 08 Annual Action Plan Amendment
Economic Development Loans
INTRODUCTION
The purpose of the this memorandum is to request the City Council's approval of the
attached resolution approving an amendment to the Fiscal Year 2007 and Fiscal Year
2008 Annual Action Plans for the City's Community Development Block Grant (CDBG)
program. This amendment will provide for forgivable loans and grants for economic
development activities in the Annual Plans.
DISCUSSION
The Community Development Advisory Commission recently questioned the use of
CDBG funds for economic development forgivable loans. Upon review with Assistant
City Attorney Tim O'Brien, and based on our Citizen Participation Plan, it was
determined that providing ED forgivable loans is a change in the scope of the Annual
Action Plan activities and wouki require a substantial amendment. A substantial
amendment requires a Commission public hearing following a 30 day public comment
period, with final action by the City Council.
Currently, the Annual Plans for FY 2007 and FY 2008 fund two economic development
programs. The CommerciaUlndustrial Building Rehab Loan Program/Revolving Loan
Fund provides low interest loans for rehabilitation of commercial and industrial buildings,
with rehabilitation assistance limited to exterior improvements of the building and to the
correction of code violations. The Economic Development Financial Assistance
Program/Revolving Loan Fund provides low interest loans to support local economic
development efforts, including projects to create or retain jobs, enhance the tax base
and strengthen the local economy.
The proposed amendment would provide for forgivable loans and/or grants for
economic development activfies in the Annual Plans, including the
CommerciaVlndustrial Building Rehab Loan Program and the Economic Development
Financial Assistance Program. In addition, the amendment would affect any CDBG
economic development loans currently being considered.
The Community Devebpment Advisory Commission held a public hearing on July 18,
2007 and approved the proposed amendment. A 30- day comment period was held
folbwing publication of notices in the Telegraph Herald and on the City of Dubuque
website. No public comment was received.
RECOMMENDATION
It is recommended that the City Council approve the proposed amendment to the FY
2007 and FY 2008 Annual Action Plan for forgivable bans and/or grants for economic
development activities.
ACTION STEP
The action requested of the City Council is to approve the Mayor's execution of the
attached resolution approving the Fiscal Year 2007 and Fiscal Year 2008 Annual Action
Plan Amendment to provide for forgivable loans and/or grants for economic
development activities.
Prepared by Aggie Tauke, Community Development Specialist
F:\UsersWTAUKE\CDBG1AnntraR~fan\FY 07\FY07.08 ED Ament! .mvrrt.doc
RESOLUTION NO. 426-2007 (426-07)
RESOLUTION APPROVING AMENDMENT TO THE FISCAL
YEAR 2007 (PROGRAM YEAR 2006) AND FISCAL YEAR 2008
(PROGRAM YEAR 2007) ANNUAL ACTION PLANS FOR COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS.
Whereas, the City of Dubuque has prepared and approved Annual Plans for
Fiscal Year 2007 (Program Year 2006) and Fiscal Year 2008 (Program Year 2007), and
Whereas, it was determined that providing economic development forgivable
loans is a change in the scope of the Annual Action Plan activities; and
Whereas, the City now desires to amend said FY 2007 and FY 2008 Annual
Action Plans to provide for economic development forgivable loans and/or grants; and
Whereas, said amendment is a substantial amendment as provided in the City's
Citizen Participation Plan and must therefore be approved by resolution of the City
Council after a public hearing by the Community Development Advisory Commission;
and
Whereas, the City held a public comment period beginning June 16, 2007; and
Whereas, the Community Development Advisory Commission reviewed the
proposed amendment on July 18, 2007 and voted to approve said amendment and to
recommend approval by the City Council.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Amendment to the Fiscal Year 2007 (Program Year 2006) and
Fiscal Year 2008 (Program Year 2007) Annual Plans for the Community Development
Block Grant (CDBG) program will provide for forgivable loans and/or grants for
economic development activities.
Section 2. That the City Manager is hereby authorized and directed to submit a
copy of this resolution to the U. S. Department of Housing and Urban Development.
Passed, approved and adopted this 6th day of August 2007 .
Roy D ,Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\UsersIATAUKE~CDBG1AnnualPlaMFY 07~FY07.08 Ed Amend .res_doc