Item 5: 2011/12 Funding Allocation for Federal CDBG and HOME Programs

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Section 108 loan as a financing tool. The non-emergency ordinance established the City’s general ability to borrow for Section 108 projects with individual projects to be approved by council resolution. The City has focused use of the Section 108/BEDI funds on the Beam Development project at the heart of downtown. The City has an agreement with Beam Development to transform the important intersection of Willamette and Broadway into a vital area with restaurants, retailers, and office space. Section 108/BEDI funds will be utilized in two stages: Project #1 - loan for acquisition of the properties and Project #2 - loan to Beam Development for rehabilitation of the Centre Court building. The City Council approved a resolution in support of Project #1 on July 23, 2007, and a resolution for Project #2 on January 11, 2010. Beam Development is currently completing the work necessary to rehabilitate the renamed Broadway Commerce Center building for office and retail use. The building will provide unique, creative loft-like spaces for established business and incubator space for newly emerging businesses. Prospective tenants currently include an architecture firm and several software development firms. The building is expected to be available for tenants in early fall, 2011. RELATED CITY POLICIES The Action Plan must be developed in accordance with the Eugene-Springfield 2010 Consolidated Plan, which assesses local needs and establishes a five-year strategic plan. In order to allocate funds to specific programs or projects, HUD regulations require a citizen participation process, including advertising and conducting a public hearing, followed by City Council action. The Action Plan is also consistent with other plans adopted by the local jurisdictions, such as the Residential Land Use and Housing Element of the Metropolitan Area General Plan, Eugene City Council Adopted Growth Management Policies, the Diversity and Equity Strategic Plan, the Lane County Ten Year Plan to End Chronic Homelessness, and the Lane County Continuum of Care Plan. The proposed uses of funds also specifically support economic development and affordable housing goals set forth in the Envision Eugene Pillars. COUNCIL OPTIONS The City Council can approve, not approve, or modify the One-Year Action Plan for use of Federal CDBG and HOME funds for 2011/12. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the One-Year Action Plan for use of Federal CDBG and HOME funds in 2011/12. SUGGESTED MOTION Move to approve the One-Year Action Plan for use of Federal CDBG and HOME funds in 2011/12. \\Cesrv500\cc support\CMO\2011 Council Agendas\M110425\S1104255 - and att's A,B and C.doc