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HomeMy WebLinkAbout11-527 NOVEMBER 22, 2011 11-527 RESOLUTION (CARRIED___7-0____LOST_______LAID OVER_______WITHDRAWN_______) PURPOSE: APPROVE SUBMITTAL OF 2012 COMMUNITY DEVELOPMENT BLOCK GRANT ACTION PLAN INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT WHEREAS, the primary objective of Title I of the Housing and Community Development Act of 1974, as amended, is the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low- and moderate- income; and WHEREAS, the 2012 Annual Action Plan to implement the Consolidated Plan has been developed to ensure that the activities to be carried out meet one of the national objectives of benefit to low- and moderate-income families; or aid in the prevention or elimination of slums or blight; or meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health and welfare of the community; and WHEREAS, the City developed the 2012 Action Plan and presented the Plan at a neighborhood public hearing on November 2, 2011 and to the Plan Commission on November 1, 2011. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the 2012 Action Plan is hereby approved contingent upon final approval by the U.S. Department of Housing and Urban Development of the projected funds and proposed projects, including any proposed acquisition projects. BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to file and execute the necessary documents and assurances required by the U.S. Department of Housing and Urban Development and any and all additional information required. DRAFT 2012 Community Development Block Grant Program Action Plan PROJECTS Estimated Estimated 2012 2012 Allocation LMI Benefit I. Targeted Central City Redevelopment $0 $0 II. Housing Rehabilitation $581,250 $581,250 III. Public Services A. General Public Services/Consortium $106,250 $106,250 B. Fair Housing Center of Northeast WI $10,000 $0 Subtotal $116,250 $106,250 IV. Administration and Planning $77,500 $0 Total $775,000 $687,500 This 2012 CDBG budget is based on an estimated CDBG entitlement grant award amount with a 0% change from the 2011 allocation. If more or less funds are received than estimated, funds will be distributed proportionally and by following HUD guidelines. OJHKOJH ON THE WATER TO: Honorable Mayor and Members of the Common Council FROM: Darryn Burich Director of Planning Services DATE: November 17, 2011 RE: Approval of 2012 Community Development Block Grant Action Plan Budget (Plan Commission Recommends Approval) BACKGROUND Annually,the CDBG Action Plan Budget is prepared to demonstrate how estimated federal funds from the Department of Housing and Urban Development (HUD) will be spent in the city. The 2012 Program Year begins May 1, 2012 and will end April 30, 2013. The 2012 entitlement grant allocation is estimated to be $775,000, which represents a 0% increase from the 2011 program year allocation. The major project categories include Targeted Central City Redevelopment, Housing Rehabilitation, Public Services and Administration & Planning. A neighborhood meeting was held to inform the public of the proposed budget on November 2, 2011. At its November 1, 2011 meeting, the Plan Commission reviewed the budget for consistency with the City's Comprehensive Plan, official maps and other planned activities and found the projects proposed to be in compliance with those plans. ANALYSIS HUD regulations require that at least 70% of CDBG funds benefit low and moderate income (LMI) persons over a three year certification period. As proposed, over 88% of the funds will be expended on activities that benefit LMI persons. The budget includes four major project categories. Please find program funding activity descriptions below: Targeted Central City Redevelopment. This is an opportunity-based fund that is primarily used to meet the CDBG program's goal of the elimination of slum and blight that typically involves the acquisition and clearance of blighted properties in and around the central city. It is recommended that this activity be funded with $0 because of program funding cuts and the ability to utilize past year's Central City dollars for 2012- 2013. Housing Rehabilitation. This funding is used to make 0% interest, deferred-payment loans to existing homeowners for rehabilitation projects and first-time homebuyers participating in the Housing Authority's Homebuyer Assistance Program. Applications for general rehabilitation are accepted from December to March and projects are prioritized on the basis of location, property condition, credit-worthiness and special needs of the household. Emergency applications are accepted year round and a portion of these funds are segregated for emergency applications only. This category will also include funds for rehabilitation of rental units involving a 50% match from the property owner and 0% interest, deferred-payment loans. It is recommended that this activity be funded with $581,250. Public Services. This activity funds programs that serve local LMI residents with various public service related activities such as emergency shelter and advocacy services, emergency assistance grants, nutrition programs, etc. Public Service funds are contributed to an overall fund consortium that also includes monies from Winnebago County, the Oshkosh Area Community Foundation, and the United Way. In addition to general public services, the Fair Housing Center of Northeast Wisconsin will continue to provide fair housing assistance, discrimination investigation and regulation, and landlord- tenant training programs. It is recommended that this activity be funded with $116,250. Administration and Salaries. This activity provides funding for City staff involved in administration of the CDBG program. A total of $77,500 is necessary to fund salaries and administration costs associated with the CDBG program. FISCAL IMPACT No additional impact on city services is anticipated due to the provision of CDBG funds as proposed. RECOMMENDATION At its November 1, 2011 meeting, the Plan Commission approved the 2012 CDBG Action Plan Budget with a finding that listed projects were not in conflict with the City of Oshkosh's Comprehensive Plan, official maps, or other planned activities. Approved, City Manager ITEM: 2012 CAPITAL IMPROVEMENT PROGRAM AND 2012 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ACTION PLAN BUDGET Plan Commission meeting of November 1, 2011 BACKGROUND Staff requests review and acceptance of the 2012 Capital Improvement Program (CIP)and 2012 Community Development Block Grant Program (CDBG)Action Plan budget. The purpose of this review is for the Plan Commission to make a determination of consistency of the proposed programs and activities in the 2012 CIP and 2012 CDBG Action Plan budget with the City's Comprehensive Plan, official maps, or other planned activities. ANALYSIS CAPITAL IMPROVEMENT PROGRAM Annually,the CIP is prepared by the Department of Public Works and approved by the Common Council. While the five-year CIP covers the period 2010-2014,the City will officially adopt for implementation only one year of the plan (2012), leaving room for change as conditions and opportunities warrant. COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Annually, the CDBG Action Plan budget is prepared to demonstrate how estimated federal funds from the Department of Housing and Urban Development(HUD)will be spent in Oshkosh. The 2012 Program Year begins May 1, 2012 and will end April 30, 2013. HUD regulations require that at least 70%of CDBG funds benefit low and moderate income (LMI)persons over a three year certification period(2010-2012). As proposed, over 88% of the funds will be expended on activities that benefit LMI persons. Public Service applications will be due to the Oshkosh Area Community Foundation later this year. The Public Service Consortium will then review the applications. The review committee will consist of representatives from Oshkosh Area United Way, Winnebago County, Oshkosh Area Community Foundation, and the City of Oshkosh. Staff is recommending an allocation of$106,250 to this Consortium. The City aims to coordinate the expenditure of CDBG funds with the implementation of the City's Capital Improvement Program. PUBLIC HEARING On November 2nd, a public hearing will be held for the 2012 CIP and 2012 CDBG Action Plan budget at the Oshkosh Seniors Center at 6 pm. Prior to Council consideration, a review by the Plan Commission for consistency with the City's Comprehensive Plan, official maps, and other planned activities is required. In this regard, staff has reviewed all proposed projects and activities and none have been identified as being contrary to the Comprehensive Plan, official maps, or other planned activities. RECOMMENDATIONS/CONDITIONS Staff recommends acceptance of the 2012 CIP and 2012 CDBG Program Action Plan budget, together with a finding that listed projects are not in conflict with the City of Oshkosh's Comprehensive Plan. Item:2012 CIP&CDBG 1 The Plan Commission approved of the 2012 CIP and 2012 CDBG Program Action Plan budget with a finding that listed projects are consistent with the City's Comprehensive Plan. The following is the Plan Commission's discussion on this item. Mr. Burich presented the item and reiterated that the Plan Commission's responsibility was to consider the budget in relation to the Comprehensive Plan and not discuss items on an individual basis, outside of the relation to the Comprehensive Plan, as these decisions were made by the Common Council. David Patek, Director of Public Works, stated that the CIP is prepared by the City Manager, and is broken down into ten sections as follows: street construction/improvements, storm sewer construction, sanitary sewer construction, water main projects, sidewalks,traffic improvements, park improvements, major equipment replacement, property improvements, and tax increment district projects. Mr. Patek did a brief overview of each section of the CIP and some of the projects included in said sections. Mr. McHugh commented that there was an item on page 18 for$200,000 for playground equipment at one of the parks and he questioned if that was a misprint. Mr. Patek indicated that the figure was correct. Mr. Burich once again stated that the issue was to determine if the CIP was consistent with the Comprehensive Plan such as the undergrounding of utilities on 9th Avenue and the inclusion of anticipated bike route features on various streets being improved. The approval of individual items not related to the Comprehensive Plan is addressed by the Common Council members. Mr. Borsuk commented that he felt this would be an appropriate time to discuss the City's central garage as he did not believe expanding or reconstructing it in its current location was good planning. Mr. Burich responded that the recommended land use in the Comprehensive Plan for this area was institutional use which would be appropriate for the central garage. Mr. Borsuk stated that it may be consistent with the Comprehensive Plan but questioned whether this was a proper location for this type of use. Mr. Patek replied that they were currently completing an analysis of space needs to determine if adequate space was available at this location and the consultant hired to complete the study is still reviewing it. Mr. Borsuk commented that the item should be removed from the CIP. Mr. Patek responded that the project is being phased in and will be discussed with the Common Council by year end. Depending on the decision made by the Council on how to proceed on the project,the design phase would follow. The $3 million was to cover costs incurred during this process as well as to continue operations at the site as this project would need to be sequenced as far as construction as the site would be required to continue to operate. The whole project is anticipated to require about three years to complete. Mr. Borsuk stated that he still did not feel this was good planning. Mr. Burich commented that the renovation of the central garage is not inconsistent with the Comprehensive Plan. Ms. Lohry questioned if the repaving projects were considering the new pervious surfaces available instead of standard concrete or asphalt surfacing. Mr. Patek responded that the pumping station constructed in Menominee Park was completed with some of these types of surfacing and it was utilized when possible however the soil makeup in the city is not appropriate for this type of pavement on street reconstruction as it would not function properly. Item:2012 CIP&CDBG 2 Mr. McHugh again questioned the replacement of the central garage being consistent with the Comprehensive Plan. Mr. Burich reiterated that the land use in this area is consistent with the plan as is the zoning of the area. Mr. Thorns inquired about the costs of the street repairs and the decision to either just repave the surface or completely reconstruct the utilities as well. Mr. Patek replied that the decisions are dependent on the condition of the street overall. Mr. Thorns questioned the land acquisition relating to the detention basin. Mr. Patek responded that the Sawyer Creek project was underway and the Campbell Creek basin was to service the area by West 9th Avenue and Washburn Street. Mr. Thorns also commented on the central garage and whether this was the highest and best use of the land and appropriate for this area. He felt the Commission should be able to look at the process and comment on the impact of expanding the size of the garage at this site. Mr. Borsuk stated that it was discussed when the school board maintenance building that was constructed in this area was reviewed. Mr. Bowen stated that the appropriateness of the site should not be a discussion item at this time. It is his understanding that the $3 million would be allocated if a site was determined and the dollars allocated were a placeholder for the anticipated expense for development. He also questioned if the $3.8 million allocated to the Armory detention basin was for construction purposes only and the land acquisition had been completed. Mr. Patek responded affirmatively. Mr. Bowen then questioned if the street construction projects that included anticipated bike routes would be utilizing the existing right-of-way to make the routes self-contained or if additional right-of-way would have to be purchased. Mr. Patek replied that the size of the existing right-of-way would remain the same. Mr. Burich commented that the recent review of the Menominee Park restroom construction that came before Plan Commission for approval was no different than the process for the central garage. The current area is zoned industrial and the land use is permitted for that use. Mr. Patek added that the central garage is centrally located in the city and many other municipal buildings are located in the same area. It is a good buffer between the wastewater treatment plant and the University's biodigester plant recently constructed. Ms. Lohry inquired if more effort would be made to beautify the area around the central garage if it is determined to remain at this location. Mr. Patek responded that the City's intent would be to add additional vegetation and green space to the area to improve its appearance. Mr. McHugh questioned if any of the funds allocated for the central garage was to purchase land from UW-O for the garage expansion. Mr. Patek replied that the $3 million allocated for this project was for the building development only. Item:2012 CIP&CDBG 3 Mr. Burich conducted the presentation of the 2012 Community Development Block Grant Program Action Plan for the period of May 2012 through April 2013. Mr. Burich explained that 70%of the federal funds received are required to be spent on programs which meet the national objectives of this funding which are to benefit low to moderate income persons, (LMI), aide in slum/blight removal and prevention, and urgent need assistance such as disasters. The funding for 2012 is anticipated to be $775,000 and is budgeted as follows: Central City Development and Community Facilities 0 Housing&Neighborhood Development 581,250 Public Services 116,250 Administration and Planning 77,500 All programs require heavy reporting to HUD accounting for program expenditures and the Action Plan also requires Common Council approval. Mr. Burich reviewed photos of the past year's projects and the various agencies that received funding under the Public Services category and what programs these funds are utilized to support. A public hearing will be held on November 2nd at the Seniors Center as well as a Common Council workshop on November 16th, and final Council review on November 22nd Mr. Bowen commented that he felt the rehabilitation funds were being utilized correctly however he would like to see more money available for Central City Redevelopment projects. Mr. Burich responded that there were some funds left from previous years that could be utilized if necessary and the rehabilitation program funds eventually come back to the city for re-use when the property is sold. The city is doing its best to fund as many projects as possible but with the reduction of federal funding for this program, allocations have to be reduced to balance with funding received. Mr. Thorns questioned if the reduction in administrative costs from the CDBG funds would be reallocated to the city budget. Mr. Burich replied that some funds would come from the city budget and some would come out of TIF district funding. Mr. McHugh inquired if any money would be allocated to the low income housing development on the riverfront. Mr. Burich responded negatively. Mr. Fojtik opened the public hearing for comment. Several citizens spoke regarding their concerns on the street reconstruction projects. Mr. Fojtik informed them that the Plan Commission was not the appropriate body to discuss these concerns with as their overall approach was to determine the CIP's consistency with the Comprehensive Plan and not making individual budget decisions or getting into the details of a street reconstruction project. Mr. Burich added that anyone with concerns relating to specific street reconstruction projects should discuss the matter with the Common Council or the Department of Public Works or at the neighborhood hearing. Mr. Patek stated that the correspondence that was sent out stated that there would be a neighborhood meeting on November 2nd at the Seniors Center to discuss these issues. As there were no further comments, the public hearing was closed. Mr. Bowen suggested that next year the neighborhood meeting should be held prior to the review by the Plan Commission as there seemed to be some confusion as to the purpose of today's meeting. Item:2012 CIP&CDBG 4 Mr. Patek indicated that the process would be adjusted accordingly next year. Motion by Borsuk to approve the 2012 Capital Improvement Program and 2012 Community Development Block Grant Program Action Plan budget as requested. Seconded by Cummings. Mr. Borsuk stated that he would support the request however he did feel the issues regarding the central garage were confusing and there seemed to be some disagreement as to the appropriateness of the land use in this area. Mr. Thorns also commented that he would support it and although the land use may be consistent with the Comprehensive Plan, he was not sure if it's the best and highest use of the property. Mr. McHugh stated that he would not support this request as he felt the $200,000 for playground equipment and the funds for new carpeting for the library were not appropriate. He felt that City Hall was not in tune with the citizens of the community. Motion carried 7-1. (Ayes-Borsuk/Bowen/Thoms/Fojtik/Hinz/Cummings/Lohry. Nays-McHugh) Item:2012 CIP&CDBG 5