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January 24, 1977 Page 11 Administrator Achen stated that the City could only apply for funding of one project. Admin. Achen stated that the proposal for merely land acquisition probably would rank low in the grant criteria, because the land by itself creates no real benefit. The City would have to be committed to constructing the improvements if the land were acquired. The park shelter buildings would rank higher. The City could emphasize the drainage improvements in those areas of low and moderate income houses. The City stands the best chance of getting funds if it focuses attention on the east one -half of the City, since that is where there are more low and moderate income houses. Bob Glazer stated that this sounded like an inducement for low income housing. Admin. Achen stated that the grant money is to be used to benefit those people, not to encourage more low income residents. Councilmember Baumgartner stated that this would not financially benefit anyone. Mr. Glazer stated that some cities have declined from participating in this block grant program. Admin. Achen stated that New Brighton didn't like the red tape involved in working with HUD. Councilmember Rowley asked what the City's chances were of getting the funding. Admin. Achen stated that it was better than 50/50 if we can develop an application that meets their criteria. HUD only asks for final applications from cities that have a chance of getting funding. The final application is the one that takes a lot of time and work but then you know that you have a good chance of getting the funds. Admin. Achen suggested that the application be for acquiring the land and also making the improvement to that land. Mayor Pickar suggested that the Administrator come up with a pro- posal for land acquisition and storm drainage construction. Admin. Achen stated that one problem with this is assessment policies. There are some drainage districts with a tremendous cost, and some districts with no cost. With the previously suggested assessment policy, the cost per residential lot could be from nothing to $2200. If the City is defined as an entire benefit district and the costs distributed equally throughout the city, the average cost would be $720 without deducting any income from the other two grants. Mayor Pickar reviewed a letter from the Rice Creek Watershed District on a grant for restoring Long Lake. He stated that the Council will be getting more information on this in the future. Councilmember Baumgartner stated that the staff has spent a lot of time working on grant applications. Admin. Achen stated that the City has gotten at least $100,000 the last two years. Mayor Pickar stated that if Mounds View doesn't get the grants, someone else will.