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CDBG Annual Action Plan_Cottingham & ButlerTHE CITY OF DUB E Masterpiece on the Mississippi MEMORANDUM October 26, 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: FY 07 Annual Action Plan Amendment Cottingham and Butler Loan Housing and Community Development Department Director David Harris recommends City Council approval of an amendment to the Fiscal Year 2007 Annual Action Plan for the City's Community Development Block Grant (CDBG) program. This amendment will facilitate the reallocation of $320,000 for rehabilitation of the former House of China building at 803 Main to demolition and construction of a new building. The project will be partially funded with a forgivable CDBG loan and will provide for the creation of 10 jobs. The Community Development Advisory Commission held public hearings on June 13tH and July 18, 2007, and approved the proposed amendment. Public comments were received in favor of the proposed change. A 30-day comment period was held following publication of notices in the Telegraph Herald and on the City of Dubuque website. I concur with the recommendation and respectfully request Mayor and City Council approval. vin ~,~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director THE CITY OF DuB E Masterpiece on the Mississippi MEMORANDUM October 15, 2007 To: Michael Van Milligen, City Manager From: David Harris, Housing and Community Development Subject: FY 07 Annual Action Plan Amendment Cottingham and Butler Loan 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 Annual Action Plan for the City's Community Development Block Grant (CDBG) program. This amendment will facilitate the reallocation of funds for the Cottingham and Butler economic development project. DISCUSSION Cottingham and Butler was approved for a CDBG Commercial Industrial Building Rehab loan as part of the FY 2007 Annual Action Plan on November 6, 2006 by Resolution 520-2006. The proposed amendment to the Plan provides for reallocation of the $320,000 for rehabilitation of the former House of China building at 803 Main to demolition and construction of a new building. The project will be funded with a forgivable CDBG loan and will provide for the creation of 10 jobs by the building owner and/or tenant. The Community Development Advisory Commission held public hearings on June 13tH and July 18, 2007 and approved the proposed amendment. Public comments were received in favor of the proposed change. A 30- day comment period was held following publication of notices in the Telegraph Herald and on the City of Dubuque website. RECOMMENDATION It is recommended that the City Council approve the proposed amendment to the FY 2007 Annual Action Plan for a forgivable loan to Cottingham and Butler to provide for demolition and construction of a building at 803 Main. 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 Annual Action Plan Amendment for demolition and construction. Prepared by Aggie Tauke, Community Development Specialist F:\Users\ATAUKE\CDBG\AnnualPlan\FY 07\FY07 C&B Amend.mvm memo.doc RESOLUTION NO. 518-2007 (518-07) RESOLUTION APPROVING AMENDMENT TO THE FISCAL YEAR 2007 (PROGRAM YEAR 2006) ANNUAL ACTION PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS. Whereas, the City of Dubuque has prepared and approved an Annual Plan for Fiscal Year 2007 (Program Year 2006), and Whereas, Cottingham and Butler has requested reallocation of CDBG funds from the Commercial and Industrial Building Rehab loan program to demolition and construction for removal of slum and blight; and Whereas, the City now desires to amend said FY 2007 Annual Plan to reflect the reallocation of CDBG funds; 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 held by the Community Development Advisory Commission; and Whereas, the City held a public comment period beginning May 12, 2007; and Whereas, the Community Development Advisory Commission reviewed the proposed amendment on June 13 and 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) Annual Plan for the Community Development Block Grant (CDBG) program will provide for a forgivable loan to Cottingham and Butler to provide for demolition and construction of a building at 803 Main. 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 5th day of November, 2007 . Roy D B , ,Mayor Attest: Jeanne F. Schneider, City Clerk F:\Users\ATAUKE\CDBG\AnnualPlan\FY 07\FY07 C&B Amend.res.doc