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G. Public Hearing - CDBG Fund Reallocation for Parkline ConstructionCITY OF KALISPELL Report To: Doug Russell, City Manager Development Services Department 201 1' Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/planning From: Katharine King, Community Development Manager Subject: Public Hearing regarding CDBG Fund Re -allocation Meeting Date: June 7, 2021 BACKGROUND: On September 14, 2020, Council held a work session regarding the potential re- allocation of fully revolved CDBG monies in the amount of $525,000.00. Historically, these funds have been used to make small loans to Kalispell Businesses. At the work session staff presented multiple options including the potential of using the funds for the Kalispell Parkline construction. BIDS for the construction of the Kalispell Parkline were recently received and there is a need for the full amount of revolved CDBG funds to support construction of the Kalispell Parkline in accordance with community priorities. Re -allocating the funds will create a lasting benefit to the community as the project is located within an urban renewal area with the purpose of eliminating blighted conditions and spurring redevelopment. The only limitations to the re -allocation of the funds are that the monies be used in a way that they meet one of the three national objectives listed below: • Benefit to low and moderate income (LMI) persons; • Aid in prevention or elimination of slums or blight; and • Meet a need having a particular urgency. The CDBG Program requires two public hearings for projects. The City holds an annual public needs assessment hearing, in November. At the November 2020 hearing the completion of the trail as part of the urban renewal plan was documented as a community priority. A second hearing is required that is project specific. In this case, the reallocation of the revolved CDBG funds for the completion of the Kalispell Parkline would be a project necessitating a project specific public hearing. The Kalispell City Council, at their meeting on May 17, 2021, approved Resolution 6028, which set a public hearing date of June 7, 2021. At the public hearing, Council will take public comment on the proposed CDBG reallocation. At the following meeting on June 21, 2021, the Council can formally reallocate the fully revolved CDBG funds in the amount of $525,000.00 to support construction of the Kalispell Parkline. RECOMMENDATION: It is recommended that the Council hold a public hearing and take public comment on the proposed CDBG reallocation. ALTERNATIVES: As suggested by the City Council. FISCAL EFFECTS: Reallocation would help fund the construction of the Kalispell Parkline. ATTACHMENTS: Resolution 6028 with Notice RESOLUTION NO. 6028 A RESOLUTION OF INTENT CALLING FOR A PUBLIC HEARING REGARDING THE PROPOSED REALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS HELD AND MANAGED BY THE CITY OF KALISPELL. WHEREAS, the City of Kalispell currently holds and manages Community Development Block Grant [CDBG] funds in the amount of $525,000 previously received from the Montana Department of Commerce which the City has utilized in a revolving loan fund to provide gap financing in the form of small loans to Kalispell businesses; and WHEREAS, the subject CDBG funds have been fully revolved and applications for these funds are now scarce due to the widely available low rate of interest offered by commercial banks; and WHEREAS, the City of Kalispell has the option, and may, by resolution, reallocate the subject CDBG funds to any other purpose that meets the objectives of the CDBG funding; and WHEREAS, there is currently a need for additional funding for the Kalispell Parkline construction project which is an urban redevelopment project designed to prevent and eliminate blight and falls within one of the objectives of CDBG funding. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. On the 7th day of June 2021 at 7:00 o'clock P.M., in the Council Chambers, City Hall, 201 1 st Avenue East, Kalispell, Montana, the City Council of the City of Kalispell shall hold a Public Hearing on the proposed reallocation of Community Development Block Grant [CDBG] funds in the amount of $525,000 to the purposes of providing additional funding for the Kalispell Parkline construction project. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 17TH DAY OF MAY, 2021. Mark John n Mayor ATTEST: `����l KA41 I_u WQ J - - �, Aim e Brunckhorst, CMC O ' City Clerk vSE) v: 1892 : P _ 1 CITY OF KALISPELL, MONTANA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council (the "Council") of the City of Kalispell, Montana (the "City") will hold a public hearing to receive public testimony and evidence on June 7, 2021, at 7:00 p.m., regarding reallocation of Community Development Block Grant funds that the city is currently managing. The City of Kalispell has the option to reallocate the subject CDBG funds to the Parkline Trail construction. The public can participate either in person at City Hall or via video conference with the link on the June 7, 2021 Council Agenda at https: www.kalispell.com/agendacenter. Public comment for this hearing can also be provided via email to ubliccomment alkalis ell.com. Further information may be obtained from the City Clerk at Kalispell City Hall, 201 1 st Avenue East, Kalispell, Montana, telephone number (406) 758-7756, cit clerk kalis ell.com, mailing address PO Box 1997, Kalispell, Montana, 59903. Any interested persons may appear either in person or via teleconference and be heard at this scheduled public hearing or may file written comments with the City Clerk prior to such hearing. Dated this 17th day of May, 2021. BY ORDER OF THE CITY COUNCIL By tAimBrunckhorst, CMC City Publication Dates: ,%11111/I11.�''� "mac �♦` ........••4 j:S May 23 2021�O . May 30, 2021: 4 �.