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Examples of other downtown projects that have been assisted by DRLP funds include McDonald Theatre Building, Adam’s Place, Downtown English, Harlequin Beads & Jewelry, Bradford’s Hi-Fidelity, The Strand Building (occupied by Theo’s & Cozmic Pizza), Full City Coffee Roasters, Saturday Market, The Davis Restaurant & Bar, Zenon Café, and Ambrosia. C. Community Development Block Grant The City of Eugene receives an annual allocation of Community Development Block Grant (CDBG) funds through the US Department of Housing and Urban Development (HUD). CDBG projects must be used for projects that benefit low- and moderate- income individuals. A limited number of projects that eliminate conditions of slums and blight are also eligible. The City has two programs that can provide financial assistance to qualified projects. Brownfields Economic Development Initiative Grant (with HUD Section 108 Loan) BEDI / Section 108 Summary ? $2 million BEDI grant awarded to the City in 2006; $1.315 million remaining ? $7.95 million Section 108 loan pool approved by HUD; $5.189 million remaining ? The remaining BEDI & Section 108 funds are currently committed to Beam Development ? Individual project approval process: 1) Public hearing at City Council, 2) Council approval (resolution), & 3) HUD approval ? Project must meet HUD national objective Benefit low/mod income through job creation or provision of services o Eliminate conditions of slums and blight o ? Projects must be in Downtown or Riverfront urban renewal districts ? Section 108 funds must be repaid to HUD ? Primary collateral and debt service for remaining Section 108 borrowing would be developer repayments and urban renewal . Secondary collateral must also include the City’s pledge of future CDBG funds; City general funds may not be used as collateral The City was awarded a $2 million BEDI grant to assist redevelopment projects within the City's Downtown Urban Renewal and Riverfront Urban Renewal Districts. BEDI funds must be used in conjunction with a Section 108 guaranteed loan. HUD administers the BEDI as a key competitive grant program to stimulate and promote economic and community development. BEDI is designed to assist cities with the redevelopment of abandoned, idle, and underused industrial and commercial facilities where expansion and redevelopment is burdened by real or potential environmental contamination. BEDI grant funds are targeted for use in the redevelopment of brownfield sites in economic development projects to increase economic opportunities for low- and moderate-income persons as part of the creation or retention of jobs and to eliminate conditions of slums and blight. Section 108 is the loan guarantee provision of the CDBG program. Section 108 allows cities to borrow up to five times their annual CDBG allocation; thereby, providing communities with a source of financing to support large-scale economic development, housing rehabilitation, and public facility projects. In March 2006, the City submitted a $7,895,000 Section 108 application that HUD later approved. Section 108 funds combined with BEDI funds are a loan fund for redevelopment projects within the two urban renewal districts that will make positive economic and community development benefits. Council authorized the use of the Section 108 loan program in an ordinance in February 2007. To draw down Section 108/BEDI funds, the specific project funding request is subject to a HUD public comment process, and a public hearing is required, followed by City Council and HUD approval. Projects that receive Section 108/BEDI funds must 1) meet a CDBG national objective of benefiting low or moderate income persons or eliminating conditions of slums or blight, 2) lead to economic revitalization in connection with brownfields, 3)