Fiscal Note
$150,000 in Federal CDBG funds is available within the Community Acquisition/Rehab Fund. Use of the funds will not count toward the State expenditure limits.
Title
Authorizing the provision of CDBG funds to assist the Urban League of Greater Madison, Inc. acquire property to develop a Center for Economic Development in ways that address City, Community and Neighborhood Development objectives.
Body
AGENCY:
The Urban League of Greater Madison, Inc. is the local affiliate of the National Urban League. The local organization has sponsored several programs intended to strengthen the job skills or job readiness of many lower income people and people from various racial and ethnic backgrounds.
PROJECT:
Over the last several years, the organization has explored ways to leverage the sale of its current headquarters on Gorham Street and find a site that would be more accessible to its client base, provide space for its programs, and permit it to partner or grow its programs in the business support area. The Urban League has completed a fund-raising study and is now engaged in the development of a more public campaign to raise funds for this new facility. In addition, they have discussed the purchase or lease of space within the Villager Mall with the Community Development Authority, and the availability of space elsewhere in South Madison with other parties. The Executive Director of the CDA has expressed support for their becoming part of the mix of participants in the revitalization of the Villager, and has indicated that the CDA will make a tenant mix decision by the end of March 2007.
ACTIONS:
Whereas, the CDBG program, as amended, and its implementing regulations located at 24 CFR Part 42, permit the City of Madison to help community agencies that serve lower income people;
Whereas, CD staff and the CDBG Commission have reviewed this proposal and find that it furthers the goals expressed in the Five-Year Community and Neighborhood Development Plan;
Now, therefore, be it resolved, that the Common Council approve the provision of funds for the following project, and authorize the Mayor and the City Clerk to enter into an agreement with:
Urban League of Greater Madison, Inc., or a related affiliate for up to $150,000 in CDBG funds toward the acquisition of land, or construction, or related development costs of a building to house the Urban League and its Center for Economic Development.
Be it further resolved that these funds be made available for up to six months after Council approval, although the Council delegates the authority to the CDBG Commission to choose to extend the period of availability through the end of 2007 if the Urban League were to demonstrate to the CDBG Commission a satisfactory level of a commitment for site control for a property suitable for the planned Center, and feasible within the projected budget for the site.
Be it further resolved that the assistance be offered on terms adopted in the 2007-2008 Framework for Community and Neighborhood Development, such that the assistance to the organization be offered in the form of a deferred payment loan payable upon change of use or sale, with repayment equal to the greater of the amount of CDBG funds invested in the property or the percent of appraised value that the funds represent in the value of the property.
Note: The proposal describing the above project and the CD staff and CDBG Commission recommendation are available on file in the Council Office and in the CD Office.