Item 3H: Approval of Funding for CDBG and HOME Programs

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accessible pedestrian signals at locations prioritized by the Human Rights Commission Accessibility Committee. Kaufman Senior Center Wheelchair Lift The Kaufman Senior Center has two 20-year-old wheelchair lifts. Both lifts are outdated and do not comply with current elevator codes. The lifts have proven to be unreliable and repair parts are no longer available. One lift travels from the ground level to the main floor of the center. The other lift travels from the ground level to the basement level. A ramp was recently installed to provide wheelchair access to the main floor, but a reliable wheelchair lift is still needed to access the basement. The funding will be used to replace the lift that travels to the basement level. Parts from the removed lift will be salvaged and used to repair the lift to the main floor if and when the upper lift breaks down. $37,500 in CDBG funds will be used to replace the lower lift. Soreng Theater Wheelchair Lift The stage of the Soreng Theater is only accessible to a person in a wheelchair by way of a freight elevator. A wheelchair lift will be installed at the Hult Center’s Soreng Theater to provide performers and the public access to the stage. The Soreng Theater is used by many community groups both for performances, presentations, and recognition events. Some of the regular community users who will benefit from this improvement include LILA (Lane Independent Living Alliance), ACT-SO, (a year-long enrichment program for African-American high school students), Emerald Awards (a Eugene Chamber of Commerce event where audience members are recognized for contributions to the community), Mobility International,ACE Awards(A Champion in Education) and regular school tours and public tours of the Hult Center. CDBG funds totaling $70,000 will be used to install a new lift. Economic Development - $775,000 in program income will be used for loans to businesses creating jobs for low-income persons through the Business Development Fund (BDF) and the Emerging Business Loan Pool. The BDF is a CDBG revolving loan fund for new and expanding local businesses that promotes job creation for low and moderate income individuals. The program funds projects unable to access 100% of financing through conventional lending sources. Matching funds in the form of private bank loans and/or owner equity is required for BDF eligibility. BDF loans typically cover 25 – 50% of project financing. To maximize program goals, interest rates are below-market and terms are based on project needs. Although the program is mainly focused on job creation, commercial revitalization projects that eliminate conditions of slums and blight are also eligible. The Loan Advisory Committee, a six-member citizen advisory committee, reviews all loan proposals prior to approval. Loan repayments are restricted to re-lending activity within the revolving fund. To date, the BDF has loaned over $13.8 million to over 200 businesses, leveraged private investments exceeding $35 million, and created over 1,040 jobs. The Emerging Business Loan Pool (EBLP) was established in the late 1980’s as a spin-off program within the BDF to reach businesses that face extraordinary credit barriers, defined as impediments to small business formation and expansion that stem from high risk and socio-economic factors, such as low-income status and cultural differences. The EBLP can provide up to 100% financing for a project. The CDBG program has targeted 25% of its business lending to occur in the EBLP. During the last five years, $1,355,000 (43% of BDF disbursements) has been loaned through the EBLP and has helped create 55 jobs (37% of the total jobs created). Lane MicroBusiness will receive $25,000 to provide micro-enterprise business development services such as training, education, and workshops for Eugene low-income micro-business entrepreneurs. F:\CMO\2008 Council Agendas\M080414\S0804143H.doc