HomeMy WebLinkAboutResolution - 2005-R0272 - Approve CDBG - COL-Community Development Economic Development Loan Program - 06_23_2005Resolution No. 2005-RO272
June 23, 2005
Item 53
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock does hereby approve for and on
behalf of the City of Lubbock, a Community Development Funding Proposal, for the
COL -Community Development Economic Development Loan Program from the
Community Development Block Grant Program and all related documents. Said Proposal
is attached hereto and incorporated in this resolution as if fully set forth herein and shall
be included in the minutes of the City Council.
2005
Passed by the City Council this 23rd day of JU4a .
MAYOR
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
Nancy Haney
Community T
APPROVED AS TO.FO
y i lty Attorney
ccdocs/res-COL Comm Dev Economic Development Loan Prog-CDBG.res
June 14, 2004
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FY 2005-2006 Funding Request
FY 2004-2005 Funding Request
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To submit an application, complete Part A — J, Attachments 14 (if applicable) and any other items requested. Do
not bind the application or include any items that are not requested. Submit one proposal per project. Submit one
original and one copy of each application (SINGLE SIDE ONLY) to Community Development, 1625 13th Street,
PO Box 2000, Lubbock, Texas 79457 by March 26, 2004 5:00 PM. Please review the "Citizen's Guide" for the
Community Development programs, goals, requirements and timelines. For assistance, please call the Community
Development Department at 775-2301.
A. GENERAL INFORMATION
1. Name of Applicant: Community Development
❑ Non-profit ❑ Neigh.Assoc. ❑ For -Profit ❑ CHDO X City Dept.
(Please include a copy of your IRS ruling providing tax exempt status under
Section 501(c)(3) of the 1986 IRS Code if you are a non-profit.)
2. Name of Project: Economic Development Program
3. Area or Location of Project: Citywide, within the city limits of Lubbock
4. Contact PersonlTitle: Todd Steelman or Bill Howerton, Jr.
Mailing Address/Zip: P.O. Box 2000 Lubbock, TX 79457
Telephone/Fax Number(s): 775-2297/775-3281
5. Grant Request: X CDBG ❑ ESG
Issue Area: ❑ Public Service ❑ Rehab to Shelters
❑ Public Facility
❑ Infrastructure
❑ Housing
X Economic Dev.
❑ Other
❑ Essential Services
❑ Homeless Prevention
❑ Operations of Shelters
❑ HOME
❑ CHDO Project
❑ Single -Unit Housing
❑ Multi -Unit Housing
6. Amount of Funds Requested for Project: $100,000
7. Amount of Matching Funds for Project: N/A
Match Type: ❑ Cash ❑ Sweat Equity ❑ Other Grants ❑ Donations
Identify Source of Match:
1-1
Match Status: []Confirmed ❑ Requested
Unduplicated Units Served (agency's definition) 5iobs retained or created
(a) Total CD Funds Requested $100,000 (a) Total Project _$100,000,
(b) Total Unduplicated Units Served-5_ (b) Total Unduplicated Units
(c) Average CD Cost Per Unit ( a/b ): Served _5
$20,000 (c) Average Cost Per Unit (d/e):
$20,000
9. Is this project? X New _ Second Year _ Third Year _ Fourth Year or More
This would be the Yd time this project receives funding.
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B. PROPOSED PROJECT: Project Description: In two sentences concisely describe your project.
This description will be used in future publications should your application be approved. Limit two
sentences
This program would be a continuation of a small business loan program that offers a source of
capital for business start-ups and expansions. Business must be able to show the propensity to
create or retain 1 job for every $35,000 borrowed.
C. CONSOLIDATED PLAN GOAL Check the ONE GOAL that best describes your project.
Check
One
Prioritized Objective
from Consolidated Plan
Number of Units
This Project Will Serve
Hausing
H-1 Owners -Rehab
Households:
H-2 Owners -Limited Rehab
Households:
H-3 Owners -Assistance for
Home Buyers
Households:
a5t6n Housing Community levetopmeat
Economic Development
CD-1 Rehab of Publicly/Privately Owned
Businesses
# of Low -Mod Business Owners:
X
CD-2 ED-Direct Assistance to For -Profit
# of Jobs Created:
5
CD-3 Micro -Enterprise Assistance
# of Low -Mod Business Owners:
Infrastructure
CD-4 Street Improvements
# of Low -Mod Households:
CD-5 Sidewalks
# of Low -Mod Households:
Public Service
CD-6 Handicapped Services for Job Training
# of People Served:
CD-7 Handicapped Services for Recreation
# of People Served:
CD-8 Substance Abuse Services for Rehabilitation
# of People Served:
CD-9 Substance Abuse Services for Shelter
# of People Served:
CD-10 Substance Abuse Services for Training
# of People Served:
CD-11 Employment Training for Computer Skills
# of People Served:
CD-12 Employment Training for Job Readiness
# of People Served:
CD-13 Employment Training for Reading Skills
# of People Served:
CD-14 Health Services for Children
# of People Served:
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FY 2005-2006 Funding Request Page 4
CD-15 Mental Health Facilities for Operations # of People Served:
Youth Pro rams
CD-16 Child Care Centers for Subsidized Care
# of People Served:
CD-17 Youth Services -Education
# of People Served:
CD-18 Youth Services -Job Training
# of People Served:
CD-19 Youth Services-Mentoring
# of People Served:
CD-20 Child Care Services -After School Care
# of People Served:
CD-21 Child Care Services -Care Subsidies
# of People Served:
CD-22 Child Care Services -Summer Programs
# of People Served:
CD-23 Abused & Neglected Children -Short Term
Care
# of People Served:
CD-24 Abused & Neglected Children -Mental Health
Services
# of People Served:
CD-25 Abused & Neglected Children-Mentoring
# of People Served:
Other
CD-26 Code Enforcement
# of People Served:
CD-27 Repayment of Section 108 Loan Principal
# of People Served:
CD-28 Planning & Administration -Oversight &
Monitoring
N/A
oless Ansl Sair-Pt►liulat� m�ergehitt'tt
HS-1 Shelter Operations
itof Facilities Impacted:
HS-2 Essential Services
# of People Served:
HS-3 Homeless Prevention
# of People Served:
HS4 Facilities Rehab
# of Facilities Impacted:
D. PROJECT SUMMARY
1. Summarize your proposed program. Explain how this program fits with your mission. How will it
impact your current operation? How does this program relate to the Consolidated Plan priority?
Does this program serve a targeted area? Who is the target population? Where will the program take
place? How will this program benefit the Low -Mod income community? Are you working with
other organizations in a cooperative effort on the program? LIMIT 3 pages
This program will assist new or expanding businesses who will create jobs for the low to
moderate income population. Funding will be based on the number of jobs created. We
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FY 2005-2006 Funding Request
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will encourage those businesses to be in CD eligible areas if possible. As an additional
incentive, the payback of the loan will be reduced if they exceed the required number of
jobs created for low mod persons. Economic Development is a vital piece in the
redevelopment of communities. It adds to the tax base, and creates jobs for the lower
income families. By encouraging development in CD areas we hope to stimulate its
development. Businesses on 30 Street will be targeted. This will coincide with the
proposed development along this corridor. While these businesses will be targeted, the
funds will be available to businesses within the city limits of Lubbock.
We will be looking for partners in this program. Financial institutions will be challenged
to match funding; Market Lubbock will be used to assist in identifying projects. These
funds will be used in different ways. It may be direct assistance for the purchase of
equipment, a facility, or other operation costs. We may use it as a loan guarantee to
ensure a bank's participation, or it may be used to buy down the interest rate from a
bank. It will be tailored to fit the needs of the business to make the deal work.
Each applicant will be reviewed by staff and the new Economic Development sub-
committee from the CDSB Board. That recommendation will go to the Board for a vote,
then a contract will be sent to City Council.
The mission of the Community Development Department is to create positive change for
the citizens of Lubbock by promoting self-sufficiency through partnerships in economic
development, quality housing, and neighborhood reinvestment. This program is an
obvious step toward satisfying our mission. The opening or expansion of a business
means jobs. Many of these businesses are opened in areas of town that have seen slow
business growth during recent years. The loan will facilitate the creation of new jobs.
The hope is that these businesses will attract other businesses back into these
neighborhoods.
2. List Goals, Objectives and Outcomes. What outcome are you trying to achieve? Please include the
number of people or households that will directly benefit from the program. How will you measure
the outcomes? Please list at least one output and outcome. LEMT 1/2 page
The end result of the program is to retain or create jobs for low -moderate income
families in the city of Lubbock. With these funds, a minimum of 5 jobs will be created.
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3. List Activity Measures/Steps required to reach Goals and Objectives. Include a one-year Timeline
from planning to completion for each activity measure. Please highlight significant milestones or
steps of your proposed program. LBUT 1/2 page
This will be a continuation of the ED funding by Our department. The sub -committee
is in place, and we are taking projects to them for review. This funding will allow the
program to continue through the year.
October 2005 through September 2006
Solicit more applicants for the program
Continue to build relationships with other organizations within the community
Constant review of the loan applications and procedures of the program
4. Evaluation: Explain how you plan to evaluate the program. What criteria will you use to measure if
the program is successful? Please be specific and elaborate on the output and outcome that you listed
above. LMT 1/2 page
The program will continue to be considered a success if we are able to create or retain
a minimum of 5 jobs.
E. PROGRAM INCOME
1. Please list applicant's anticipated program income from this project and detail how applicant will
create a return of investment to the grantor particularly if proposed project includes facilities,
housing, or economic development. LEMT 1/2 page
The Economic Development Loan Program will offer low interest loans to the business
owner that submits a successful application. The monies that the city receives in
payments will go back into the Community Development programs. The loan review
sub -committee will determine the terms of the loan and the interest rate to be assessed.
F. PUBLIC SERVICE APPLICANTS ONLY
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1. If program is a public service, outline your plan to develop alternative funding to replace Community
Development funds at the end of the three-year cycle. Provide a timeline, with measurable goals and
objectives as a part of your plan. Limit 1 page---Non-applicable.
2. If this is your second or third year of funding, update your accomplishments in meeting the goals and
objectives in your funding plan and timeline. Limit 1 page--------Non-applicable.
G. PROJECT BUDGET
1. Please list applicant's anticipated expenditures, detailing requested funds and applicant's matching
funds. Please place C=Cash, S=Sweat Equity, Other Grants, D=Donations beside each amount
under "Applicant's Match" to denote the type of match being used.
ADMINISTRATION:
Personnel (# )
Payroll Taxes
Employee Benefits
Office Supplies
Copy Supplies
Postage
Telephone
Promotional
Professional Service
Vehicle Fuel/Mileage
Other:
PROGRAM:
Acquisition
Reconstruction
Rehabilitation
Installation
Demolition
Training/Tech. Asst.
Direct Assistance $100,000 $100,000
Rental of Space
Rental of Equipment
Professional Services
for Clients
Other:
Professional services
Construction
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TOTALS $100,000 $100,000
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H. APPLICANT INFORMATION
1. Capacity of Organization: Describe your organization, highlight the following areas: history of
organization, mission statement, prior experience, population served, and annual budget. Does your
organization perform annual audits? If not, what procedures do you use to ensure proper financial
management? L1l1 M 3 pages
The Community Development/Housing Department staff oversees in excess of
$4,000,000 in projects annually. This request for funding is a continuation of an existing
program. Economic Development is a priority of both the city of Lubbock and the
Community Development Department.
This program relates directly to our mission statement. Our mission is to create positive
change for the citizens of Lubbock by promoting self-sufficiency through partnerships in
economic development, quality housing, and neighborhood reinvestment.
2. Staffing: Describe your current organizational structure. For those staff positions that will be
involved in the program, list the position, job responsibilities, qualifications, and name of person if
available. If the position is filled by a volunteer, please designate as such.
LOUT 1 page
Nancy Haney CD Director
Bill Howerton, Jr. Sr. Program Specialist
Both will facilitate the successful operation of the program. Bill Howerton will actually
be responsible for the day-to-day operations of the program. He has been serving in this
capacity for the past 2.5 years. Nancy Haney will have oversight responsibilities for the
Program.
3. Reporting Capabilities: Describe your organization's system for collecting and reporting data. Are
you providing reports to any other funding entities? LIMIT 1/2 page
This program will be offered through the Community Development. Staff is well trained
and capable of handling all monetary transactions and any HUD reporting requirements
that are necessary. The department also has an accountant on staff.
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FY 2005-2006 Funding Request
I. GOVERNING BODY PROFILE
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In order to demonstrate compliance with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000(d)) and
regulations pursuant thereto (Title 24 CFR Part I), which state that no person in the United States shall,
on the ground of race, color or national origin, be excluded from participation in, be denied the benefits
of, or be otherwise subjected to discrimination under any program or activity for which the applicant
receives Federal financial assistance:
1. Describe the method of selection of officers and directors of the board and indicate the time and
place of regular meetings. LIMTT 1/2 page
Non -applicable.
2. List all board members' names, number of years on board, occupation, and breakdown the gender
and ethnicity of the board members. Please indicate officers. LD41T 1 page
Non -applicable.
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J. Conflict Of Interest
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Federal law (24CFR570.611) prohibits persons who exercise or who have exercised any functions or
responsibilities with respect to the above grants... or who are in a position to participate in a decision
making process or to gain inside information with regard to such activities, may obtain a financial interest
or benefit from an assisted activity... either for themselves or those with whom they have family or
business ties, during their tenure or for one year thereafter.
1. Is there any member of the applicant's staff, member of the applicant's Board of Directors, or officer
who currently is or has/have been within one year of the date of this application a City employee, a
member of the Community Development & Services Board, or a member of the City Council?
❑ Yes ❑ No
If yes, please list names: NIA
2. Will the funds requested by the applicant be used to pay the salaries of any of the applicant's staff or
award a subcontract to any individual who is or has been within one year of the date of this application
a City employee, a member of the Community Development & Services Board, or a member of the
City Council?
❑ Yes
If yes, please list names: NIA
❑ No
3. Is there any member of the applicant's staff, member(s) of the Board of Directors, or officer(s) who
are business partners or immediate family of a City employee, a member of the Community
Development & Services Board, or a member of the City Council?
❑ Yes
If yes, please list names: NIA
❑ No
The applicant certifies to the best of his/her knowledge and belief that the data in this application is true
and correct and that the filing of the application has been duly authorized by the governing body of the
applicant and that the applicant will comply with all the requirements of each grant respectively if the
application is approved.
Please include: 1) the minutes of the board meeting at which this item was autho6zed, and 2) who is
authorized to sign the application and/or contracts.
Name: Bill Howerton, Jr. Signature: ,!
Title: CD -Sr. Program Specialist Date: