MINUTES
SMALL CITIES GRANT PUBLIC HEARING
JANUARY 24, 2007
Mayor Jeff Thompson opened the public hearing at 6:45 p.m. Council members present were Jean Soine, Jeff Bertram, Tom Lindquist, and Gene Beavers. Others present were Renee Eckerly, City Administrator; Ron Mergen, Public Works Director; Jennifer Welling, Administrative Assistant; Mike Jacobson, Paynesville Press; Bill Spooner, City Attorney; Chuck DeWolf, Bolton & Menk, Inc.; Stephanie Hormann, Cable Coordinator; Dan Roberts, Bob McDaniel, and Jim Anderson, Stearns County HRA.
Jim Anderson, Stearns County HRA reviewed the following:
Ø Fact Sheet
Ø Target Area – Map
Ø Total Grant Amount - $835,201.00
Ø Comprehensive Breakdown –
o Single Family Rehabilitation – 18 units
§ Households with income level below 50% of median = 100% grant
§ Households with income between 50% - 80% of median = 60% grant, 20% - 0% loan, 20% private financing
§ Households with income in excess of 80% of median = not eligible
o Rental Rehabilitation – 13 units
§ All units = 40% grant, 30% - 0% loan, 30% private financing
o Commercial Rehabilitation – 20 units
§ All units = 40% grant, 25% - 0% loan, 15% EDA – 4% loan, 20% private financing
Grants are forgivable if the property is not sold, transferred or conveyed within 10 years of signing the Repayment Agreement.
Ø Matching Funds – MN Housing Finance Agency, TriCAP Weatherization Funds, Rural Development Grant Programs and local banks
Ø Displacement – During the project, displacement of owners/tenants will most likely not occur. A displacement minimization plan will be put into place when funding occurs.
Ø Schedule
o Application due February 1, 2007
o Award date (approximate) March 19, 2007
o Project start date (approximate) June 1,2 007
o Project completion date September 2009
Stearns County HRA administers the grant, City staff is not directly involved.
Local lumber yards have lowered their cost of materials for this project and local banks have given competitive interest rates.
The Council needed to consider a letter of support and two resolutions.
There was some discussion on where the money would come from. Eckerly reported that she made a call to DEED to see if EDAP Revolving Loan Funds could be used for the grant; if not money could be taken from City reserves.
There being no further comments, the public hearing was closed at 7:09 p.m.