09-22-1982 Council Agenda - Laserfiche WebLink

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NORTHWEST ASSOCIATED CONSULTANTS INC. MEMORANDUM TO: Little Canada Mayor and City Council FROM: Brad Nielsen DATE: 16 September 1982 RE: Woodlyn Avenue - Grant Potential FILE NO: 758.09 (82.22) At the 25 August City Council meeting, we were directed to investigate the potential grant programs which might be available regarding the proposed Woodlyn Avenue improvement project. Our research involved primarily the Community Development Block Grant (CDBG) program, however, in general our findings pertain to any grant program the City might choose to pursue. First, the project has potential for funding under the CDBG program. While the program's emphasis has previously been on low and moderate income housing, the emphasis appears to have shifted toward economic concerns, particularly the provision of jobs. For an application to be successful, the City must demonstrate that the proposed project is essential to a development or developments which will create employment opportunities. A project which is necessary in order to maintain existing jobs may also qualify. As you are no doubt aware, grant programs can be highly competitive. Typically, many communities are competing for limited funds. For a job related applica- tion a "rule of thumb" criterion is that HUD is hesitant to fund a project which costs more than $25,000 per job created. In other words, a project costing $100,000 should result in the creation of at least four new jobs. If the same project could yield 10 new jobs, it would be that much more competitive. Obviously, applications with the greatest benefit /cost ratio will be the most successful. It should be noted, however, that if two projects were ranked equally, a community's past low and moderate income housing performance could come into play. The deadline for the current federal program is 12 October. Given the applica- tion requirements, primarily regarding official publication, it is virtually impossible to make that deadline. After the first of the year, the State takes over the administration of the program. The application process will undoubtedly begin sometime after January 1983, which should give Little Canada time to apply. 4820 minnetonka boulevard, suite 420 minneapolis, mn 55416 612/925 -9420