04/15/1981 Meeting - Laserfiche WebLink

Home Browse Search

e e e III. PUBLIC HEARINGS A. Urban Development Action Grant (memo distributed) Mr. Gleason explained that this was the first of two public hearings. At this public hearing, the council is ascertaining whether the Urban Development Action Grant (UDAG) is needed and what project the council would like to consider. The subsequent public hearing will take testimony on the proposed project. He introduced Chris Hofmann, Department of Housing and Community Conservation. Ms. Hofmann reviewed the Pockets of Poverty Program for UDAG. In February, council directed staff to prepare an application for Pockets of Poverty deter- mination to make Eugene eligible as a UDAG city. Currently, the numbers-- demographic for the City of Eugene--do not qualify Eugene as a "distressed city" for UDAG. Staff has determined that Eugene is qualified by having a Pocket of Poverty. The application will be submitted to the HUD office this week. The Pocket of Poverty noted is between Blair Boulevard on the west, the University of Oregon campus on the east, the railroad tracks on the north, and 18th Avenue on the south. The UDAG program can assist the City to leverage private invest- ment for economic development. projects. It has two major goals: 1) to leverage the private investment to at least 2-1/2 private dollars for every public dollar, and 2) to provide employment opportunities in the distressed area for CETA-eligible people. Ms. Hofmann clarified the process. The City sends in the application this week for determination of eligibility for the Pockets of Poverty Program. The project application will be the second portion. The Community Development Committee is suggesting a specific project for UDAG funding--Blair Commercial Revitalization developed by NEDCO. This "Red Barn Project" has been started with the CD money and now needs extra equity to proceed and to provide a district-wide parking area. The project would provide a solution for the problems of businesses in the Blair area. It is in conformance with the Whiteaker Refinement Plan. Ms. Hofmann explained this public hearing is to discuss the need for UDAG assistance. The second hearing is to discuss specific proposals and the NEDCO proposal for the Red Barn. Council action is required before the proposal is submitted. UDAG requires that the project increase the property value and provide additional tax revenue to the City. The Red Barn project would do that. Ms. Smith asked about the criteria used in the determination of the Pocket of Poverty. Ms. Hofmann replied they were the number of low-income (incomes 80 percent below the median income), people (area of 10,000 people), and the amount of unemployment and underemployment, along with the block grant criteria, such as substandard housing. The Red Barn project is the only project that has progressed enough with a private commitment to apply for UDAG at this time. Ms. Wooten was pleased about the application and wanted to make it clear that the application could not go forward without a private commitment of 2-1/2 times the amount of public commitment and that with that commitment, there was no guarantee that the project would be funded. Ms. Hofmann said that this was correct. MINUTES--Eugene City Council April 15, 1981 Page 5