11/16/1987 Meeting (2) - Laserfiche WebLink

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Ms. Ehrman said she understands the reasoning behind a one-year review of the program, but supports a three-year proposal to demonstrate the council's long- e term commitment to the business community and economic development. Mr. Miller said he supported a three-year program, and pointed out the council can still reject the program before that time if it proves unsuccessful. Ms. Schue said she also favors a three-year program, and remi nded other councilors there is already a process in place whereby the council receives annual reports on the money. Mr. Holmer indicated the proposal before the council is for a permanent program with no termination date. However, the proposal for a Community Block Grant Three-Year Plan does contain an annual review where the council can evaluate the status of the Targeted Business Assistance Program. He said he is also supportive of a long-term target program. Ms. Ehrman moved, seconded by Mr. Holmer, to approve the CDBG-funded Targeted Business Assistance Program. Ro 11 call vote; the motion carried unanimously, 8:0. V. COMMUNITY DEVELOPMENT BLOCK GRANT THREE-YEAR PLAN Mr. Gleason introduced the item. Linda Dawson, Community Development Division, gave the staff report. Ms. Dawson said the plan allocates over $6 million in Community Development Block Grant funds over the next three years. The financial sources for the funds include entitlement monies that are e estimated at over $1 million annually, income from the revolving loan funds, carryover monies, and funds unallocated in the current three-year plan. All the major current programs are maintained in the new plan. The Targeted Business Assistance Program and a Housing Acquisition Program are established in the new plan. Ms. Dawson said social service projects will continue to be selected through the Joint Social Service Fund and will cover both operations and capital projects. Responding to a question from Mayor Obie, Ms. Dawson said the new plan calls for maintaining the existing funding levels for Housing & Investment Property Redevelopment. She said the new plan is not a significant change in the percentages of new dollars allocated to program areas. Funding for social services has also not significantly changed. However, funding for the Capital Improvement Program has fluctuated between 7 and 10 percent. Responding to other questions from Mayor Obie, Ms. Dawson said the proposed plan shows an increase in capital improvement funding in the second year due to specific projects already identified. She said the proposed plan includes a reduction in new funds for the Business Development Fund (BDF), but that this fund will be able to sustain itself. The method for determining if the program will support itself is based on income figures from the existing loans and projections for future loans including an estimated loss rate, she said. e MINUTES--Eugene City Council November 16, 1987 Page 13