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Home My WebLink About8A - Frontage Roads Funding , ~ CITY COUNCIL AGENDA REPORT AGENDA ITEM: AUGUST 2, 1999 SA GREG ILKKA, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER CONSIDER APPROVAL OF REPORT WITH RESPECT TO POTENTIAL FUNDING SOURCES FOR FRONTAGE ROADS ALONG CSAH 42 FROM COMMERCE TO RUTGERS AND RUTGERS TO HARBOR PLACE. DATE: AGENDA #: PREPARED BY: DISCUSSION: HISTORY Development of the "Marketplace at 42" retail center in Savage last year created additional impetus for the City of Prior Lake to look at access and safety issues in the Trunk Highway 13 and County Highway 42 intersection area. A feasibility report was authorized by the Council to look at frontage road systems along both County Highway 42 and Trunk Highway 13. Specifically, a frontage road along CH 42 connecting Commerce Avenue to Rutgers Street and Rutgers Street to Harbor Place, as well as frontage roads connecting Commerce Avenue and Boudin Street along Trunk Highway 13 with a full access signalized intersection were investigated. This agenda report does not address the TH 13 frontage roads. The City Council accepted the Feasibility Report for the County Highway 42 frontage roads at the May 17, 1999 meeting. While the Council accepted the report, the main issue identified was the economic feasibility of the project. Staff was given additional time to investigate alternative funding options for this project. CURRENT CIRCUMSTANCES In an effort to identify potential funding sources for this project staff investigated several alternatives. Attached is a letter to Brad Larson, County Engineer, inquiring about 1626{I)R~@CCreek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER county or federal funds for the project. Mr. Larson's response is also attached. The County has not yet formulated any policies from the recommendations from the CH 42 Corridor Study. At this point in time, this frontage road project probably would not be able to demonstrate tangible benefits to the County highway. Therefore, it is doubtful the County would provide funding. As Mr. Larson states in his letter, while the project may be eligible for federal funding, it is questionable whether it could compete against other Principal Arterial projects metropolitan-wide, particularly at this time. Beyond the use of municipal state-aid (MSA) dollars allocated to the City each year, there are no state transportation funds available for which this project is eligible. The City's MSA dollars are currently programmed in the Capital Improvement Program for the next five years. This project would require a minimum of four years of the City's MSA allocation. Further, it might be difficult to show the proposed frontage roads would meet the criteria for designation on the state-aid system. As reported previously, the Scott County Housing and Redevelopment Authority (HRA) would work with the City in acquiring properties, however, they would only act as the City's agent. The HRA would then manage acquired properties for the City until such time as the property was needed for street construction. Funding required for property acquisitions would be the responsibility of the City. In addition to the staff's investigation, the Economic Development Authority discussed the issue of funding for this project at two of their meetings (see attached agenda reports). Their conclusion was that the project was not economically feasible. ISSUES Based on the findings presented, there are no additional issues with this item. SUMMARY AND CONCLUSION Based on the findings presented, frontage roads along County Highway 42 between Commerce and Rutgers and 42FROAD.DOC FINANCIAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: 42FROAD.DOC Rutgers and Harbor Place are not economically feasible at this time. None The alternatives are as follows: 1. Approve this report. 2. Table this Agenda item for a specific reason. 3. Deny this Agenda item for a specific reason. Motion and second to approve report with respect to potential funding sources for frontage roads along CSAH 42 from Commerce to Rutgers and Rutgers to Harbor Place indicating that the frontage roads are not economically at this time. June 17, 1999 Mr. Brad Larson, P.E. Scott County Highway Department 600 Country Trail East Jordan,~ 55352 Subj: FUNDING OPTIONS FOR CH 42 FRONTAGE ROADS Dear Brad: As you are aware, development in the TH 13 and CH 42 intersection area has caused the City of Prior Lake to look at access issues in the Prior Lake quadrant of the intersection. One of the issues we have looked at is a frontage road system that would connect Commerce Avenue to Rutgers Street and Rutgers Street to Harbor Place. Of course, one impediment to realizing such a project is funding. I am writing to inquire if a project of this nature, which would reduce access to a Principal Arterial, would be eligible for County participation, and if so at what level? More importantly, based on your experience with the federal funding programs, do you know if this project would be eligible for funding under any of the federal programs? In light of the recommendations from the CH 42 Corridor Study such a project would greatly benefit CH 42, would this provide justification for funding a project of this type? Thanks for your consideration of these issues, I look forward to your reply. Sincerely, a,P.E. Pu c Works Director/City Engineer CITY OF PRIOR LAKE cc: Frank Boyles, City Manager 162~~1\H~9€ek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ". SCOTT COUNTY PUBLIC WORKS AND LANDS DIVISION IDGHWAYDEPARTMENT 600 COUNTRY TRAIL EAST JORDAN, MN 55352-9339 (612) 496-8346 BRADLEY J. LARSON ASSOCIATE ADMINISTRATOR Fax: (612) 496-8365 June 21, 1999 Greg Dkka, P.E. Prior Lake City Engineer 16200 Eagle Creek Avenue S. E. Prior Lake,MN 55372-1714 1m fE @ fE a rv fE fRl !1IJ JUN 24 1999 : ~J u By_ -- Subject: Funding CSAH 42 Frontage Roads Dear Greg: This is in response to your June 17, 1999, letter concerning funding options for a proposed frontage road paralleling CSAH 42 between Harbor Place and Commerce Avenue. As you noted, the CSAH 42 Conidor Management Plan raised the issue of County participation in off-system projects if the project could demonstrate tangible benefits to the County road and/or reduction or elimination of improvements needed on the County highway. When Scott County adopted the Plan, this issue was noted to the County Board as one that will need to be addressed in the near future. At this time, neither staff or the County Board has recommended/adopted a policy on off-system funding, but this project along with a potential project in Savage, provides impetus to develop such a policy. During the process we will be very interested in the City's input/views on this as there may also be situations where a County project might benefit the City system. As to whether this type ofproject is eligible for Fedeiid funding, my betiefis yes. County State Aid Highway 42 is a non-freeway Principal Arterial that is eligible to compete for Federal funds. Current project criteria states that frontage road projects and access control/elimination projects would qualify. Whether such a project could contend against other Principal Arterial projects metropolitan-wide is questionable. To compete, the benefits need to be clearly identified and. measurable - capacity increase, accident reduction, positive benefit-cost ratio, etc. At this time, this area of CSAH 42 does not seem to have the capacity/safety problems in comparison to other metro-area principal arterials. An Equal OpportunitylSafetyAware Employer '.... .- --, Greg Ilkka, P .E. Funding CSAH 42 Frontage Roads Page 2 A solicitation package is scheduled to be sent out within the next month. At that time we should review the criteria and determine whether.an application is worthwhile. We would look to the City to be the lead in the application process. . Please call us if you need additional information. Sincerely, Bradley J. Larson, P.E. Scott County Highway Engineer BJL/jkf C: Barbara Marschall, Scott County Commissioner Dave Unmacht, Scott County Administrator jf-w:\word\1etter\jt\bl\ilkka42.doc ._t MEETING DATE: AGENDA #: PREPARED BY: REVIEWED BY: AGENDA ITEM: DISCUSSION: RECOMMENDED MOTION: REVIEWED BY: ECONONUCDEVELOPMENTAUTHORITY JUNE 21, 1999 8B JANE KANSIER, PLANNING COORDINATOR DON RYE, PLANNING DIRECTOR CONSIDER APPROVAL OF REPORT ON FUNDING OPPORTUNITIES FOR THE CSAH 42 FRONTAGE ROAD At the last EDA meeting, the members requested staff report on the funding alternatives for the CSAH 42 Frontage Road. Funds are required to cover the costs of land acquisition, demolition; relocation, and construction. Staff has researched the opportunities available to the EDA for raising revenue and funding different projects. These opportunities include levying authority, grants from the federal Department of Housing and Urban Development (HUD), and grants from the Minnesota Department of Trade and Economic Development (DTED). Copies of this information is attached to this report. The available funds for the CSAH 42 project are very limited. The EDA levy cannot be used for property acquisition. The HOD grants are geared toward providing assistance to low and moderate income families. Finally, the DTED grants must meet minimum criteria for private investment, number of jobs created or retained, and wage thresholds. The CSAH 42 project, and the potential redevelopment site, is too small to meet any of these criteria. In conclusion, there are few outside funding opportunities available for the CSAH 42 project. This project will most likely be funded through the City Collector Street fund and through Municipal State Aid funds. None needed. 16200~\~~EP'\~~lt%R€?!=Minnesotat>5372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER . ""T ~. ,,,,,'r:::~~~~~~;~~~'':'"_~~ ,:," '... 'O;.,~, ~~"":-~ CPD Economic Development Page 1 of2 ~d f;fU. Overview of CPD Economic Development Initiatives CPD has developed a range of economic development initiatives to complement these efforts. They are designed to exploit the newly-recognized competitive advantage or location efficiency of the ~. The initiatives and tools include: . Economic Development Loan Fund (Section 108) . Section 108 Fact Sheet . Economic Development Initiative . Community and Individual Investment Corporation . CDBG Economic Development Activities (State and Entitlement) . Urban Action Development Grant Amendments . Y outhbuild This advantage can be a key weapon in reducing wage disparities and boosting local economies. Cities are particularly well positioned to take advantage of the emergence of regional cluster economies, which rely on the proximity of businesses and supporting institutions as well as tightknit social networks to succeed. Cities can be the engines of growth in the new metropolitan economies., This approach to economic development has been built around four key initiatives: . New Initiatives: The Economic Development Loan Fund (Section 108) In 1993, CPD began reinventing its existing Economic Development Loan Fund (Section 108) as a tool for community revitalization. In FY 1994 and FY 1995, the Loan Fund had its most productive years guaranteeing more than $2.1 billion in loans to create jobs in large and small communities throughout the United States. It is a powerful tool for economic development. The strength of the guaranteed Loan Fund is that it permits communities to use federally-guaranteed loans, rather than CDBG funds to leverage private funds for the purposes of economic development and community revitalization. This enables communities to use their scarce CDBG dollars for other activities. Since the program was created, HOD never has called on the Treasury to pay back defaulted loans. . New Initiatives: The Economic Development Initiative (EDI) EDI is a new initiative that provides grant funds to enhance the security ofthe Loan Fund and/or strengthen the economic feasibility of assisted projects. Enacted and implemented for the first time in 1994, EDI enables localities to carry ou t economic development activities where public and private dollars can be leveraged to create jobs and other benefits, especially for low- and moderate-income persons, and reduce the risk of potential future defaults on Loan Fund supported projects. . Enhancing Access to Capital: The Community and Individual Investment Corporation http://www.hud.gov/cpd/econdev1.html 5/19/99 , CPD Economic Development Page 2 of2 A new round of (1996) EDI funds will support the creation of Community and Individual Investment Corporations (CITCs). The CITC is intended to provide ongoing credit for small business development in Enterprise Zones, Enterprise Communities, and other CDBG-eligible communities. CITCs are intended to complement the ongoing activity of existing community development financial institutions (CDFIs). They provide a new opportunity to stimulate asset-building among low- and moderate-income persons and to return these assets to the community in the form of investments in housing, _ community, and economic development. A unique feature of the CITC is that community residents will have an economic stake in the venture by purchasing shares in the corporation. . Revising Regulations and Streamlining Programs:CDBG and UDAG as Economic Development Tools CPD significantly increased its job creation capacity by streamlining and revising rules and regulations for its programs. This included a makeover of the CDBG program that involved comprehensive \ revisions of once- restrictive regulations. The regulations for the Urban Development Action Grant program also were amended to optimize the job creation effect of the grant funds remaining under this discontinued program. ----- Economic Development Community Planning & Development http://www.hud.gov/cpd/econdevl.html 5/19/99 i ill "..,,,,,. "," , ,;11.. _!III_'}"'~__ rr ,. " ','~.' ',-'~._Il,i!!l'lW~_, ." -';', Ill!J ,1':1 .. Progr...: Community Development Block Grant (CDBG) Entitlement Communities Progra Page 1 of 4 TOPICS hud news audience qroups own a home rental help homeless your community business consumer info complaints about hud readinq room handbooks/forms kids let's talk local info fed one-stops HOME Q &A SHORTCUTS SEARCH I INDEX E-MAIL community development block grant (cdbg) entitlement communities program Summary: COBG provides eligible metropolitan cities and urban counties (called "entitlement communities") with annual direct grants that they can use to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low- and moderate-income persons. Purpose: Since 1974 COBG has been the backbone of improvement efforts in many communities, providing a flexible source of annual grant funds for local governments nationwide-funds that they, with the participation of local citizens, can devote to the activities that best serve their own particular development priorities, provided that these projects either (1) benefit low- and moderate-income persons; (2) prevent or eliminate slums or blight; or (3) meet other urgent community development needs. The COBG Entitlement Communities program provides this Federal assistance to almost 1000 of the largest localities in the country. As one of the Nation's largest Federal grant programs, the impact of COBG- funded projects can be seen in the housing stock, the business environment, the streets and the public facilities of these entitlement communities. Although the rehabilitation of affordable housing has traditionally been the largest single use of COBG funds, the program is also an increasingly important catalyst for economic development activities that expand job and business opportunities for lower income persons and neighborhoods. Type of Assistance: Each year, the grant funds available for entitlement communities are allocated according to relative need on the basis of the higher of two formulas. The first considers the presence of overcrowded housing in the locality, its population, and poverty rate. The second uses housing age, population growth lag, and poverty rate. Eligible Grantees: Recipients of COBG entitlement funds include local governments with 50,000 or more residents, other local governments designated as central cities of metropolitan areas, and urban counties with populations of at least 200,000 (excluding the population of entitled cities). Local governments may carry out all activities themselves or award some or all of the funds to private or public nonprofit organizations as well as for-profit entities. A separate component of COBG-the State COBG Program-provides program funds to the States, which they allocate among localities that do not qualify as entitlement communities. http://www .hud.gov/progdesc/cdbgent.html 5/19/99 Progr...: Community Development Block Grant (CDBG) Entitlement Communities Progra Page 2 of 4 Eligible Customers: Low- and moderate-income persons (generally defined as members of a family earning no more than 80 percent of the area median income) benefit most directly and most often from COBG-funded activities. Grantees must use at least 70 percent ofCOBG funds for activities that principally benefit low- and moderate-income persons. This includes activities where either the majority of direct beneficiaries (from the jobs created, for example, or the housing units rehabilitated) are low- or moderate-income persons and activities that serve an area generally (a new community center, for example, or sidewalk repairs) where the majority of the residents of that service area are low- and moderate-income persons. Eligible Activities: Grantees may use COBG funds for activities that include (but are not limited to): -- Acquiring real property (primarily land, buildings, and other permanent improvements to the property) for public purposes. This type of activity might include, for example, buying abandoned houses for rehabilitation or an old industrial site in a distressed neighborhood for redevelopment. COBG also helps communities demolish property and clear sites to prepare the land for other uses. - -- Reconstructing or rehabilitating housing and other property. From homeless shelters to single-family homes and from playgrounds to shopping centers, COBG enables communities to improve properties that have become less usable, whether due to age, neglect, natural disaster, or changing needs. New construction of housing is allowed only in certain circumstances. -- Building public facilities and improvements, such as streets, sidewalks, sewers, water systems, community and senior citizen centers and recreational facilities. -- Helping people prepare for and obtain employment through education and job training, welfare-to-work activities, and other services. -- Assisting for-profit businesses for special economic development activities. Such projects might include microenterprise loans to low-income entrepreneurs, assembling land to attract new industry, or business expansion loans to help retain existing businesses that employ low-income workers. -- Providing public services for youths, seniors, or the disabled. These might include day care centers, youth services and meals on wheels for the elderly, health care facilities, transportation, or counseling. -- Carrying out crime reduction initiatives such as establishing neighborhood watch programs, providing extra police patrols, rehabilitating or constructing police substations, and clearing abandoned buildings used for illegal activities. -- Assisting low-income homebuyers directly through, for example, down payment assistance, subsidizing interest rates or helping with closing costs for first-time buyers. -- Enforcing local building codes to reverse housing deterioration and other signs of blight. http://www .hud.gov/progdesc/cdbgent.html 5/19/99 ,Oli ...,.~ I""litl', ',,. .,; .'/* _ '~';'_'''''''''.:J ;. ;.L.". :t!:. .,,,.,_...>t.-._<~;'i ..f, Progr...: Community Development Block Grant (CDBG) Entitlement Communities Progra Page 3 of 4 __ Paying for planning and administrative expenses, such as costs related to developing a Consolidated Plan and managing CDBG funds. Application: To receive its annual CDBG entitlement grant, a recipient must have an approved Consolidated Plan, which fulfills the application and reporting requirements for entitlement communities and contains an action plan describing how the jurisdiction will use its CDBG funds. Funding Status: FY 1997, $3.017 billion (out of a $4.6 billion CDBG allocation); FY 1998, $2.937 billion (out of a $4.67 billion CDBG allocation); FY 1999, $2.958 billion (out of a $4.75 billion CDBG allocation). Approximately 70 percent of this amount is distributed by formula to entitlement communities. Current listing of CDBG allocations to entitlement communities nationwide. Technical Guidance: The CDBG program is authorized under Title I of the Housing and Community Development Act of 1974, Public Law 93-383, as amended; 42 U.S.C.-5301 et seq. Program regulations are at 24 CFR 570. HUD's CDBG Electronic Policy Guidance Library provides program notices, and other relevant information in electronic form. Community Connections has information on CDBG technical assistance. providers. and events. The Office of Block Grant Assistance in HUD's Office of Community Planning and Development (CPD) administers the program. Contact: Deirdre Maguire- Zinni, Director, Entitlement Communities Division, Room 7282, 451 7th Street, SW, Washington, DC 20410, (202) 708-1577. Hearing impaired users may call the Federal Information Relay Service at 1-800-877-8339. Community Connections has information on CDBG technical assistance. providers. and events. Other technical and administrative guidance for entitlement communities include Guide to National Obiectives and Eligible Activities for Entitlement Communities; Everything You Ever Needed to Know About CDBG but Couldn't Find!, CD1043; Secondary Markets for City-Owned CDBG Loans (1996), CD1045; Training Guide for CDBG Grantee Training of Subrecipients in Administrative System (Anthony A. Phipps and Scott Hebert; August, 1993). These are available from Community Connections (1-800-998- 9999). For More Information: General-Planned and recently implemented activities undertaken by individual entitlement communities with CDBG funds are described in summaries of each community's Consolidated Plan, available online at HUD's website. For other program information, contact Community Connections (1- 800-998-9999). Available publications of general interest include: Communities That Work: CDBG = Jobs (February 1997), CD1060, as well as an annual report on the program. Research-A recent two-volume report prepared by the Urban Institute for HUD, entitled Federal Funds, Local Choices: An Evaluation of the CDBG Program (Office of Policy Development and Research, 1995) concluded that CDBG "has made an important contribution to city community development, including demonstrated success in achieving local neighborhood stabilization and revitalization objectives." It found that CDBG funds were more effectively targeted to low and moderate-income people than required under law. This http://www .hud.gov/progdesc/ cdbgent.html 5/19/99 Progr...: Community Development Block Grant (CDBG) Entitlement Communities Progra Page 4 of 4 report and other research publications on COSG are available from HUO USER at 1-800:'245-2691. Success Stories: Through the John J. Gunther Blue Ribbon Practices in Community Development awards,. HUO. recognizes the most notable and innovative practices in community development, including many successful uses of COSG funds. Click here for the COSG 25th Anniversary web site. Last Modified: May 13,1999 http://www .hud.gov/progdesc/cdbgent.html 5/19/99 ".. -'r,":i.. T ~"""!,,,....,,~. ~ . ',' Minnesota Investment Fund ."t '. 'r...r +.1'-1 -nade&- Economic ~opment www.dted.state.mn.us 500 Metro Square, 121 7th Place East SaInt Paul, MInnesota 55101-2146 USA Program purpose: How it works: Eligible applicants: Minimum requirements: Eligible projects: Ineligible projects: Maximum available: Other funds required: Interest rate: Page 1 of2 [ Home] [ Business Assistance] [ International Trade Assistance] [ Community Assistance] [ Explore Minnesota] [ Minnesota Economy] [News & Events] Minnesota Investment Fund To create new and retain the highest quality jobs possible on a state wide basis with a focus on industrial manufacturing and technology related industries; to increase the local and state tax base and improve the economic vitality for all Minnesota citizens. Grants are awarded to local units of government who make loans to assist new expanding businesses. Cities, counties, townships and recognized Indian tribal governments. All projects must meet a minimum criteria forn private investment, number of jobs created or retained, and wage thresholds, Loans for land, buildings, equipment and training are eligible. Funds may also be used for infrastructure improvements necessary to support businesses located or intending to locate in Minnesota. Working capital, retail business and new industrial park development. $500,000. Only one grant per state fiscal year can be awarded to a government unit. At least 50% oftotal project costs must be privately financed through owner equity and other lending sources. Most applications selected for funding have at least 70% private financing. Negotiated. http://www.dted.state.mn.us/commasst/mninv .html 5/19/99 ,/ . Small Cities Development Program Page 3 of3 Contact: Business and Community Development Division of the Minnesota Department of Trade and Economic Development at 1-800-657- 3858. 03.98 E-mail questionsorcommentstodted@State.mn.us , or contact us by mail or phone. @ 1998 State of Minnesota Department of Trade and Economic Development. All rights reserved. http://www.dted.state.mn.us/commasstlsmallcit.html ,':!'lI . -:::II""':':; {, . '1lI, ."111 .......~;,>,'""::;:J-""'r""._ :l 5/19/99 . .f .l"_,';.::j~b~ 'I ~- ~ ~' '. Minneota Once-Through Cooling Loan Program Page 1 ofl +.~ - 'fi'ade &- Economic lJe\dopment [ Home] [ Business Assistance] [ International Trade Assistance] [ Community Assistance] [ Explore Minnesota] [ Minnesota Economy] [News & Events] www.dted.state.mn.us 500 Metro Square, 111 7th Place East Saint Paul. Minnesota 55101-2146 USA Redevelopment Grant Program Program purpose: The Minnesota Department of Trade and Economic Development offers grants to development authorities for land acquisition, demolition, infrastructure improvements, ponding, environmental infrastructure and other costs on sites where a subsequent redevelopment will occur. Eligible applicant: Development authorities, including cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities, are eligible. Eligible costs: Land acquisition, demolition, infrastructure improvements, ponding, environmental infrastructure and other eligible redevelopment costs. Availability: Grants pay up to 50 percent of redevelopment costs for a qualifying site. There is a 50 percent local match from the eligible applicant. Restrictions: At least 25 percent of the funds must be awarded outside the Twin Cities Metro area, unless an insufficient number of applications are received. Contact: Meredith Udoibok, Business and Community Development Division of the Minnesota Department of Trade and Economic Development at 651/297-4132 or toll-free at 1-800-657-3858. 07-98 E-mail questionsorcommentstodted@state.mn.us , or contact us by mail or phone. @ 1998 State of Minnesota Department of Trade and Economic Development. All rights reserved. http://www.dted.state.mn.us/commasst/redevelo.html 5/19/99 . ~-. Minnesota Investment Fund Page 2 of2 " Terms: . Real estate a maximum of20 years; machinery and equipment a maximum of 10 years. . Collateral requirements: Negotiated. Personal guarantees may be required. Applications accepted: On a year-round basis using the Business and Community Development application. Approving authority: Department of Trade and Economic Development. Disbursement of funds: As costs are incurred but prorated with other sources of funding. Contact: Your regional representative of the Minnesota Department of Trade and Economic Development at 1-800-657-3858 or contact Office of Business Finance at 651/297-1391. 07-98 .....,.................--.....................-...-... --...-............ .......-.................-......................................................... ...... ...-.....................................................-.... E-mail questionsorcommentstodted@State.mn.us ,or contact us by mail or phone. @ 1998 State of Minnesota Department of Trade and Economic Development. All rights reserved. http://www.dted.state.mn.us/commasst/mninv.html 5/19/99 ',A.-ltidi .. ,:a;i ~,. ',1~.."._ ;.; :..1 . ~iit ;,j.~'l :.~ ' ........._"...L: ....1., .' . .' .~ . Small Cities Development Program +.~ -1rade&- Eccm.omic :De\d.opment www.dted.state.mn.us 500 Metro Square, 121 7th Place East Saint Paul, Minnesota 55101-2146 USA Program purpose: How it works: Eligible applicants: Minimum requirements: Eligible projects: Page 1 of3 [ Home] [ Business Assistance] [ International Trade Assistance] [ Community Assistance] [ Explore Minnesota] [ Minnesota Economy] [News & Events] Small Cities Development Program To provide decent housing, a suitable living environment and expanding economic opportunities, principally for persons of low- and-moderate income. Provides federal grants from the U.S. Department of Housing and Urban Development (HOD) to local units of government on a competitive basis for a variety of community development projects. Cities and townships with populations under 50,000 and counties with populations under 200,000. Indian tribal governments, which can receive funds directly from HUD, are ineligible for this program. Proposed projects must meet one of three national objectives: 1. Benefit to low-and-moderate income persons; 2. Elimination of slum and blight conditions; or 3. Elimination of an urgent threat to public health or safety. In addition, proposed project activities must be eligible for funding, project need must be documented, and the general public must be involved in the application preparation. State program rules subdivide grant funds into three general categories: 1. Housing Grants. Small Cities Development Program (SCDP) funds are granted to a local government which, in turn, loans funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly http://www.dted.state.mn.us/commasst/smallcit.html 5/19/99 : Small Cities Development Program Maximum available: Other funds required: Terms: Applications accepted: Grant awards: Approving authority: Disbursement of funds: Page 2 of3 ~ payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. SCDP funds may also be used to assist new housing construction projects. Funds may also be used for land acquisition, site improvements, infrastructure or housing unit construction. In all cases, housing funds must benefit low-and-moderate income persons. 2. Public Facility Grants. SCDP funds are granted for wastewater treatment projects, including collectioIJ. systems and treatment plants; fresh water projects, including wells, water towers, and distribution systems; storm sewer projects; . flood control projects; and, occasionally, street projects. 3. Comprehensive Grants. Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses for building renovation/construction, purchase of equipment, or working capital. The most common economic development activity is rehabilitation of local commercial districts. The maximum grant award for a Public Facility or Housing project is $600,000. The maximum grant for a Comprehensive project is $1.4 million. The amount of other funds required is variable and contingent on -the project type, other available sources of funds for the project, and the financial capacity of the applicant and local benefiting residents. The length ofproject period is normally between two and three years, depending on the size and scope of the project. Part 1 of the Business and Community Development application can be submitted year-round. Complete applications (including Part 2) must be submitted by October 1 of each year. The annual review and ranking period will commence on October 1. Grant awards will be announced each March. Department of Trade and Economic Development. Grant monies are disbursed as project costs are incurred. .,;: j".~."...h."""""':::'~~c..., http://www.dted.state.mn.us/commasst/smallcit.html . I ...... MIlt M_ ~.ol"'_I"'" ;.,......~",. ,~, k..;.,;;,;;., >>-, .... ...;":..,,.~,... .. 5/19/99 MEETING DATE: AGENDA#: PREPARED BY: AGENDA ITEM: DISCUSSION: RECOMMENDED MOTION: REVIEWED BY: Document3 ECONOMIC DEVELOPMENT AUTHORITY CITY OF PRIOR LAKE JULY 19,1999 7C DONALD RYE, PLANNING DIRECTOR FINDINGS OF FUNDING REPORT FOR CSAH 42 FRONTAGE ROAD At the last EDA meeting, the EDA considered a report on funding alternatives for the proposed CSAH 42 frontage west of Highway 13. That report concluded that were realistically no other sources of funds beyond those traditionally used for street construction. The EDA asked that assessments also be considered as a source. In order to uphold an assessment, the City must demonstrate that the assessment does not exceed the increase in value of the assessed property resulting from the improvement being assessed. In this case, the proposed frontage road does not give the properties which are being assessed any greater or better access than that which previously existed and, consequently, it is likely that there would be no net increase in property values which could be attributed to the improvement. One possibility is voluntary contributions from the affected property owners, but it seems unlikely that the full cost of the project could be recovered in this fashion, particularly when the result does not improve the access to the area. Motion to accept report. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER