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HomeMy WebLinkAbout04/15/2008 07 Community Development Block Grant Allocation for Yakima Food Bank Property Acquisiton and Relocation BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON III AGENDA STATEMENT Item No. 7 For Meeting of April 15, 2008 ITEM TITLE: Resolution to obligate a maximum of $130,000 from the City's Community Development Block Grant program for the Yakima Food Bank to purchase real propert and relocation of their program. SUBMITTED BY: illiam Cook, Director of Community and Economic Development (509) 575 -6113 CONTACT PERSON /TELEPHONE: Michael Morales, 575 -3533 SUMMARY EXPLANATION: The Yakima Food Bank is requesting $130,000 in CDBG funds towards the acquisition of a building for its operation. Total cost of the project is $285,000, with the Food Bank responsible for raising the balance of the funds through private donations and grants. The subject property is located at 313 -315 South 2 Street in Yakima. CDBG funds will be used for up to 50% of the acquisition cost, and will be matched with private donations and grants .to be secured by the Food Bank. This is an eligible use of CDBG funds. e The Food Bank has outgrown its present facility at the Southeast Community Center grounds, and is of the opinion that expanding the building would not be feasible. The committee voted to forward the proposal to the full council with a recommendation to approve, provided that the following conditions were met: CONTINUED ON NEXT PAGE Resolution X Ordinance Contract Other (Specify) Funding Source 2008 CDBG funds APPROVED FOR SUBMITTAL: ��c.--6 J City Manager STAFF RECOMMENDATION: Approve Resolution with conditions. BOARD /COMMISSION RECOMMENDATION: Recommended for full Council consideration by the Council's Neighborhood Development Committee. COUNCIL ACTION: III a. City participation will be limited to a maximum of $130,000 b. Certified appraisal of the property to demonstrate fair market value.. c. The .submission of a business plan showing operating expenses and cash flow projections; d. Acquisition must be completed within six months of award (October 15, 2008); e. No occupancy of the building without prior authorization from the city. f. .Review and approval under federal NEPA and all other applicable local, state and federal environmental requirements prior to release of funds; g. Execution of a lien in the City's favor for $130,000 in the event of a future sale. This proposal was discussed at the meeting of the City Council's Neighborhood Development Committee on April 9, 2008; the committee recommended that this proposal be forwarded to the full Council for approval. • 4 • • 2 -- April 10, 2008