HomeMy WebLinkAbout04/19/2011 04B-2 Minutes 04-06-2011 Council Neighborhood Development Committee Yakin'
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• New' Development Committee
Wednesday, April 6, 2011
9:30 a.m. •
Council Members present: Chair Bill Lover, Kathy Coffey, Dave Ettl
Staff: Michael Morales, Joan Davenport, Archie Matthews
Guests: Maria Garcia - RCDR
RCDR 2011 CDBG Funding Request — Microenterprise Technical Assistance $50,000
Maria Garcia presented the RCDR (Rural Community Development Resources) request for
a $50,000 grant from CDBG funds to continue to provide technical assistance and access to
capital for low /moderate income entrepreneurs. She provided statistics from prior years.
Councilmember Coffey noted that for several statistics the actual numbers exceeded
the projections and asked if RCDR can provide more actual numbers. Chairman Lover
voiced concern about the pressure on infrastructure funding; noting that CDBG funds can
also be used to pay for infrastructure in some circumstances. He encouraged discussion
regarding the amount of the contract in general and specifically in relation to other economic
development contracts. Michael Morales commented on two historic reasons for the RCDR
contract: to incentivize RCDR to focus on building businesses within the city of Yakima, and
to help achieve the economic development component of the HUD Renewal Community
designation. He noted that the Renewal Community designation has expired. Coffey asked
if there are other similar financial outreach programs serving the city or county. Morales
mentioned programs at the Greater Yakima Chamber and New Vision and the Grow Yakima
Fund. He characterized the RCDR focus as being intent on business startups.
Lover suggested the item be forwarded to the full Council for discussion with no
_ recommendation for funding. Coffey said she wished to study the request more thoroughly
but was not opposed to discussing the amount of the contract. She noted RCDR's proven
track record and asked to see more statistics as soon as possible. Councilmembers
Coffey and Ettl asked to see the names of the companies that RCDR has worked with
along with retention figures for those companies. Ettl said he wants to see this same
type of detailed information from all other contracted economic development
agencies. He moved to forward the item to the full Council for discussion but without a
recommendation on . the dollar amount of the contract. The motion passed unanimously.
OIC CHDO request: Archie Matthews spoke briefly about HUD / CHDO requirements and
OIC's request to renew the $50,000 set -aside grant. Matthews and Bill Cook gave an
update on the Marvin Gardens development. Cook explained that OIC uses the grant funds
to cover overhead expenses that cannot be passed on to the homebuyer. He also reported
that OIC has recently started working with Aspen Realtors for marketing and loan
preparation. Ettl moved to forward the request to the full Council with a recommendation to
approve.. The motion passed unanimously.
IV lock Grant Entitlement Update: Matthews said the latest information proposes no
hange for 2011 CDBG funds and a 4% decrease in HOME funding; however, given the
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current budget situation the reality is uncertain at best. He hopes the contracts will be
received by mid -July. In the meantime ONDS continues to closely monitor expenses.
Neighborhood Development Assistant: stant: Morales notified the Committee that an ONDS
employee may require extended leave due to a family medical issue. Because the
employee's duties are related to financing it may be necessary to consider filling a vacant
position to avoid delays in processing.
Request to purchase property: Matthews gave an update on the North 3 and 4 Street
NSP project. He suggested the city consider the purchase of another piece of property in
the neighborhood — a corner lot with utilities. The existing substandard structure would be
removed and replaced with a new home built by the OIC crews that are already working in
the area. Coffey moved to forward the completed proposal to the full Council with a
recommendation to approve. The motion was unanimously approved.
United Builders loan - Seasons: Morales said he is working on final details to modify the
existing agreement with United Builders. It is expected to go to Council April 19.
The next meeting of the Council Neighborhood Development Committee will be
Wednesday, May 4, 2011, at 9:30 a.m., in the CED Conference Room
:15
Cha',, •• - n Bill Lover Date