Item 3: Resolution Authorizing HUD Section 108 Revenue Bonds

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In the event that the RFQ concepts that were previously submitted by the developers change to include market rate housing on Section 108/BEDI Properties, the City will submit a change memo to the HUD field office. The memo will detail the specific Section 108/BEDI Property whose national objective will change from job creation to 24 CFR 570.208(b)(1) activities to address slums and blight on an area basis. No more than $4,318,500 (30%) of the combined annual CDBG allocation and BEDI/108 funds will be spent on activities which aid in the elimination of slums or blight. 9.Public Benefit Standards Under 24 CFR 570.703(a) acquisition of improved or unimproved real property, public benefit is provided by the creation of jobs that are available to persons of low and moderate income. Projects funded under 24 CFR 570.703(a) are not required to meet the public benefit test of one job per $35,000 of federal funds pursuant to 24 CFR 570.209(b). a. Jobs Created: The RFQ responses estimated that 1,600 new jobs would be created within the entire Redevelopment Area from the hotel, cinema, grocery store, and retail. Based on industry employment standards for each use, at least 660 full-time, permanent jobs will be created by uses on Section 108/BEDI Properties. A minimum of 51% of the created jobs will be available to low-moderate income individuals. See Exhibit F. b. Cost per Job Created: N/A because no public benefit calculation is necessary. 10.Brownfield Conditions Brownfields are vacant and underutilized properties whereredevelopment is complicated by actual or perceived environmental contamination. The West Broadway Redevelopment Area meets this definition in the following ways: Presence of vacant and underutilized properties – The Redevelopment Area has been characterized by high vacancy rates and depressed market conditions for over 20 years. The area suffered following the exit of major department stores, including JC Penney, Sears, Bon Marche, Kaufman’s, Woolworth’s, and Newberry’s. Many of these buildings remain vacant. Additionally, the Woolworth’s building was demolished and the excavated basement that still remains has created significant blight in the center of downtown. Presence of perceived and actual environmental contamination – The Redevelopment Area includes parcels with a number of historic uses that may have introduced ground contaminants including two gas stations, an auto repair shop, commercial dry cleaning operations, and a brewery/ice house. In addition, there are a number of underground storage tanks located within the Redevelopment Area. See Exhibit G for a map of the previous uses associated with potential ground contamination. See Exhibit H for the summary of the Phase I and Phase II Environmental Site Assessments. While recent tests within the Redevelopment Area have not identified any contamination that threatens human health or the environment, the concentration of potentially harmful historic activities creates a strong perception of environmental contamination and increases the costs and risks for redevelopment.