R2002-109 REGARDING INTENT TO PROVIDE INFRASTRUCTURE ASSISTANCE

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' � � r . ` , � , � Economic & Urban Development Department Memorandum # 02-61 June 13, 2002 TO: Honorable or Terry M. Howley and City Council Members FROM: Steve G ity Manager A.J. Kriege , sistant City Manage�� SUBJECT: Near North Resolution of Intent to Provide Infrastructure Assistance RECOMMENDATION: Council approval of the attached resolution will establish the City of Decatur's intent to provide up to $10,339,218.00 in assistance for the construction of infrastructure and other public improvements within the Near North redevelopment area. City staffrecommends approval of the resolution. BACKGROUND: As Council members aze aware the Decatur Housing Authority (DHA) is the recipient of a $34.8 million HOPE VI grant. The purpose of the grant is to demolish the existing Longview site and replace it with a mixed-income neighborhood providing a broad range of quality housing choices; from very low income public housing, to moderate income t� credit housing, and market rate units for both ownership and rental. It is expected that when fully built out the redeveloped neighborhood will provide up to 650+ units of housing of various type, and be occupied by persons of various income levels. The combined total project investment is expected to exceed $100 million. In support of this project the City of Decatur is being asked to commit up to $10,339,218.00, toward a total estima.ted cost of$15,204,733.00 for infrastructure and other public improvements. Within the last year the project has made several important steps including: • The preparation of a neighborhood design plan/pattern book (currently being completed by Goody Clancy&Associates). • A developer(EastLake Management&Development Corp.)has been recruited. • An application to the Illinois Housing Development Authority (IHDA) for the purpose of obtaining low-income housing taa�credits(LIHTC) has been submitted. • The City, DHA, and EastLake have jointly e�lored and applied for various other financing tools. In short, the project ha.s taken many necessary steps to prepare for an April 2003 construction commencement date. In addition to the points listed above HUD also prescribes a series of milestone dates/objectives which must be met before a project can draw down grant funds and proceed with construction. One of those critical milestones,the submission of a project Revitalization Plan, is set for June 25, 2002. The DHA must submit to HiJD a Revitaliza.tion Plan that outlines the various sources and uses of funds, the contributing party, the timing of the commitment, and other relevant detaiLs to demonstrate to HUD that the project is advancing toward construction. As part of this Revitalization Plan DHA must submit documentation establishing the intent of the various contributors to provide funding for specified activities. The purpose of the attached resolution is to demonstrate the City of Decatur's intent to provide funding for infrastructure and other public improvements.