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RESOLUTION AUTHORIZING REPROGRAMMING OF $122,854.19 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS ($83,118.19 FROM 2019 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM YEAR AND $39,736 FROM 2018 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM) FOR THE 2021 ACQUISITION DEMOLITION PROGRAM AND AMENDING THE 2019, 2020, and 2021 ACTION PLANS.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to reprogram $83,118.19 from the 2019 Community Development Block Grant Program and are authorized to reprogram $39,736 from the 2020 Community Development Block Grant Program for a total reprogramming amount of $122,854.19 for the 2021 Acquisition Demolition Program and Amend the 2019, 2020, and 2021 Action Plans.
2019 CDBG Program
Fund 262, Agency 020, Object 5434, Project - CD19CD Resolution # 19-0063R
Project Activity Original Budget New Grant Difference
HOUS 6787A Specialized Improvement $100,000 $16,881.81 ($83,118.19) Program Blight Reduction-Ecolibrium3
2020 CDBG Program
Fund 262, Agency 020, Object 5434, Project - CD20CD, Resolution # 20-0074R
Project Activity Original Budget New Grant Difference
HOUS 6787A Specialized Improvement $39,736 $0 ($39,736)
Program Blight Reduction-Ecolibrium3
2021 CDBG Program
Fund 262, Agency 020, Object 5434, Project -CD21CD , Resolution # 21-0246R
Project Activity Original Budget New Grant Difference
PFAC-PF01 Acq/Demolition/Preparation $92,879 $215,733.19 $122,854.19
City of Duluth
Statement of Purpose
STATEMENT OF PURPOSE: The Planning and Development Division reviews past allocations for performance. During this review, it was noticed that the 2019 Specialized Improvement/Blight Reduction Project contract had expired and the 2020 SIA Blight Reduction contract has not been finalized. City staff discussed these contracts with the allocated agency, ECO3; they stated that they were not able to commit to completing the contracts and they would return the funds. The intent of these contracts was blight removal.
City Staff would like to reallocate the funding for these two contracts into the 2021 Acquisition Demolition Program that has been able to remove nine blighted units and is in the process of removing one large mixed-use building that consists of three commercial spaces and three residential units. The 2019 Specialized Improvement/Blight Reduction Project had an allocation of $100,000 in funds; of which $16,273.26 had been spent with no blight reduction. The goal for this project was 16 units. The 2020 SIA Blight Reduction and Coordination had an allocation of $39,736; of which no funds had been spent with no blight reduction. The goal for this contract was 5 units. City staff estimates this funding will be able to remove twelve more blighted units in 2022.
The City of Duluth’s Citizen Participation Plan states that if a project is not carried out in the allocated funding year, then the reprogramming shall be considered a Substantial Amendment which requires a public hearing. The reprograming in this resolution would eliminate the 2020 SIA Blight Reduction project; therefore, this reprogramming was processed as a Substantial Amendment, which requires a thirty day public notice and a public hearing by the community development committee.
The public notice for this reprogramming was published on February 19, 2022 and on March 22, 2022 the community development committee held a public hearing. The community development committee voted unanimously to recommend approval of the Substantial Amendments and the reprogramming.