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HomeMy WebLinkAboutAgenda Statement 1977/05/24 Item 11CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT ITEM N0. 11 FOR MEETING OF: 5 24 77 ITEM TITLE: RESOLUTION N0. 8636 -Amending Resolution No. 8492 which Approved the Submission of an Application to the Department of Housing and Urban Development for Community Development Block Grant F s SUBMITTED BY~ Community Development Director ITEM EXPLANATION Background The 1977-78 Block Grant Application is now being reviewed by HUD personnel. As you may recall, public hearings for the funding were held last December and January. With final Council action on February 1, 1977 (Resolution No. 8492), the application was forwarded to CPO for the A-95 Review. On February 28, 1977, the CPO Board approved the City's application as presented. Then, with additional statistics and documentation, the application was forwarded to the Federal Government on April 6, 1977. Subsequently, HUD officials informed the City that the new Secretary for HUD, Ms. Patricia Harris, issued revised directives relative to the funding of all Block Grant activities. The directives were based upon interpretation of the enabling legislation - the Housing and Community Development Act of 1974 and did not reflect any changes in the law. Basically, Ms. Harris directed that eligible programs must meet either of two criteria: 1) Assist in the removal of slums and blight; 2) Serve low and moderate income persons (facilities/improvements must be of benefit to 50% plus one of this income group in a particular area). (continued) tXF11tSl I J 1-11 I Hl.l-ItU Agreement Resolution X Ordinance Plat Other Environmental Document; Attached Submitted on STAFF RECOMMENDATION: 1. Request public comment. 2. Direct staff to reprogram from the Third Year Communtiy Development Block Grant Application $325,000 earmarked for Third Avenue Street Improvements and reallocate from this amount $150,000 for the acquisition of blighted property in the Collins project area and $175,000 for associated relocation costs. 3. Direct staff to reprogram the Third Year Community Block Grant Application by decreasing Administration allocation to $30,000 and by increasing Local Option allocation to $51,500. BOARDS AND COMMISSIONS: The Town Centre Association and the Project Area Committee endorse the reprogramming of the Third Avenue Improvement funds COUNCIL ACTION for land acquisition and for clearance/demolition and relocation costs in the Collins project area. . ITEM.NO. 1 1 MEETING OF 5/24/77 ANALYSIS Our program, as submitted to HUD, does not meet the new interpretations as described above. Of the $965,000 application to HUD for third year funding, two projects totalling $675,000 were questioned. In an effort to resolve these conflicting elements in our application, HUD officials visited the City. The two projects that were questioned by the HUD officials are the Third Avenue Street Improvements and Land Acquisition adjacent to the park in the downtown renewal area. Third Avenue Street Improvements - $325,000 A total of $325,000 has been programmed next program year for street and sidewalk improvements on Third Avenue between E and F Streets. After viewing the site, it is the opinion of the HUD officials that the street improvements do not meet either of the two criteria required for funding. Even though the proposed street improvements are part of an eligible census tract (sufficient amount of low and moderate income residents), the completed work would serve more than the immediate residents. This is substantiated by the fact that the City's Redevelopment Plan states as a goal the creation of a specialty shopping area for the entire South Bay. It will be necessary for the City to reprogram the $325,000 previously programmed for street improvements. There are several types of eligible activities: 1) acquisition of blighted property within the Collins project area; 2) clearance/~ demolition and relocation costs associated with the acquisition of blighted property; 3) construction of school parks similar to Mueller School; 4) expansion of the Community Housing Improvement Program (CHIP);or 5) the construction or improvement of alleys and other neighborhood facilities. It is recommended that the $325,000 be reprogrammed to acquire blighted property within the Collins project area and for the associated relocation costs. The $325,000 would be divided between acquisition ($150,000) and clearance/demolition and relocation ($175,000). It is the opinion of staff that the reprogrammed funds will have their greatest impact if expended to improve the feasibility of the Collins project. These additional funds can expedite the progress of the Collins project and provide additional impetus to the downtown renewal area. Land Acquisition - $350,000 In addition to the Third Avenue Street Improvements, the HUD officials questioned the acquisition of vacant land adjacent to the park in the downtown renewal area. A total of $350,000 has been included in next year's program for this purpose. The HUD officials indicated that Block Grant funds can only be used for the acquisition of blighted property. The vacant land adjacent to the park does not qualify as blighted. The HUD officials did suggest that there is sufficient blighted property in the Collins project area for Block Grant use, and that relocation and demolition expenses could also be used in this particular area. (continued) ' ITEM N0. 11 MEETING OF 5/24/77 To substantiate the blighted condition of the properties in the Collins project area, inspectors from the Building and Housing Department visually rated each structure. In addition, relocation personnel from our contracted agency (the City of San Diego) have estimated relocation costs. These surveys have shown that there is considerable blighted property in the Collins project area and the relocation costs will be substantial. With Council approval for the reprogramming of the street improvement funds, the total funds programmed for land acquisition and associated relocation costs will be as follows: $140,000 Land Acquisition, current program year 350,000 Land Acquisition, Fiscal Year 1977-78 program year 150,000 Land Acquisition, reprogrammed Third Avenue funds 175,000 Clearance/Demolition and Relocation, reprogrammed Third Avenue funds Total Land Acquisition: $640,000 Total Clearance/Demolition and Relocation $175,000 GRAND TOTAL: $815,000 The surveys mentioned above indicate that the costs for acquiring blighted property and the associated relocation costs will surpass the grand total of $815,000. In addition, to the reprogramming outlined above, it is recommended that the City's application be revised by decreasing the allocation for Administration by $20,000(from $50,000 to $30,000)and increasing the allocation for Local Option by the same amount (from $31,500 to $51,500). It is now anticipated that Administration costs will not exceed $30,000 during the next program year and the revision will give the City greater flexibility in the expenditure of these funds. HUD has advised the City that the reopening of public hearings on the Block Grant is not necessary. However, in anticipation of this docket item, we have notified the press and placed an advertisement stating that this matter has been docketed and public input is solicited. Full scale public hearings are not feasible because the City's response must be forwarded to HUD no later than June 10, 1977.