HomeMy WebLinkAboutAgenda Statement 1988/01/26 Item 5• CITY COUNCIL AGENDA STATEMENT
Item .5
Meeting Date_ 1/26/88
ITEM TITLE: RESOLUTION ~
of funds rrei~Aasrrefundshf appropriation
development revolving loan projectsonomic
SUBMITTED BY: Community Development Director
REVIEWED BY: City Manager 4 ~
( /5ths Vote: YES X NO )
As part of the City's Economic Development Revolving Loan
Program, Community Development Block Grant (CDBG) funds have
been used to fund the cost of undergrounding utilities along
Maxwell Road and at the site of the Home Depot Store. As
new development has occurred on Maxwell Road, fees have been
levied on that development to refund the cost of the
utilities undergrounding. The City has also received
refunds from SDG&E for the Home Depot utility undergrounding
project because the actual cost of the
the original estimated amount. The refunds are proposedhto
be appropriated to the economic development revolving loan
program for future use in additional similar projects.
• RECOMMENDATION: That the Council ap rove t
of funds received as refunds for economicapdevelopment
revolving loan projects.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The City's economic development revolving loan program has
been used for the installation of infrastructure
improvements supporting industrial
development in order to relieve undue burdens be n mmercial
on any single developer. The City financed lathe
undergrounding of utilities along Maxwell Road so that the
first developer in that area would not have to carry the
entire burden. The payment was made with the understanding
that the City would be repaid as new development occurred on
the then vacant parcels along Maxwell Road. The City has
recently received a $27,273.80 refund as a result of the
development of the SDG&E regional facilities on Maxwell
Road.
The City also financed undergrounding utilities at the Home
Depot site to induce the store to locate at that site. The
City has received two refunds from SDG&E of $49,359.67 and
• $11,273.83 because the actual cost of the project was less
than the amount paid to SDG&E at the onset of the project.
A portion of those funds ($7,054.32) has already been
•
Page 2, Item 5
Meeting Date_ 1/26/88
appropriated to the Traffic
Palomar Street project.
Signal at Second Avenue and
The U.S. Department of Housing and Urban Development
requires that all income received from CDBG funded programs
be used for CDBG eligible activities.
It is proposed that all of the unallocated refund monies
mentioned above be appropriated for reuse in the economic
development revolving loan program.
FISCAL IMPACT: The following appropriations are proposed.
FROM AMOUNT
TO
Unappropriated balance of $27 273.80
fund 630 (Maxwell Utilities Account No.
Undergrounding Refund) 630-6300-BG201
• Unappropriated balance of
fund 633 (Home Depot Utility $11,273.83 Account No.
Undergrounding Refund) 633-6330-BG201
Unappropriated balance of $42,305.35 Account No.
fund 634 (Home Depot Utility
Undergrounding Refund) 634-6340-BG201
TOTAL: $80,852.98
the City Council of
Chula Vista, California
Dated