Public Hearing - Community Development Block GrantAgenda - January 24, 2000
AGENDA ITEM D - COMMUNITY DEVELOPMENT BLOCK GRANT
REPORT TO:
FROM:
SUBJECT:
MEETING DATE:
City of Kalispell
The Honorable Mayor Boharski and City Council
Susan Moyer, Community Development
Chris A. Kukulski, City Manager
Public Hearings on the need for a Community Development Block Grant (CDBG)
Economic Development Grant Application
January 24, 2000
BACKGROUND: On June 21, 1999, the City Council conducted a public hearing during the course of a
normally scheduled City Council meeting to receive citizen input regarding the need for
an Economic Development Grant Application by the City of Kalispell to assist in the
expansion of existing businesses and their job creation or aid for new businesses wishing
to relocate within the City from out-of-state. The criteria for submitting such an
application is that two public hearings be held within a year's time frame.
The Montana Department of Commerce is in the process of adopting new regulations that
will allow the funds to be utilized as a grant and/or a market -rate loan to the relocating
business. Thus, the need to hold a public hearing on January 24, 2000 and February 7,
2000 to have the City in compliance with the new regulations.
RECOMMENDATION: The City Council, based upon positive input from its citizenry, to apply to the Montana
Department of Commerce for a $400,000 CDBG Economic Development Grant to be
utilized as part of the incentive plan to assist Stream International in locating to the
Gateway West Mall site.
FISCAL EFFECTS: Award of the $400,000 Economic Development Grant will constitute 10% of the total
incentive package for Stream International. If all the proposed funding sources come
together, the City would be eligible to charge an 8% administrative fee ($32,000) for the
coordination and compliance efforts required to administer this grant. These
administration dollars could be used to free up an equivalent amount of UDAG Program
Income normally budgeted to run the Community Development Department.
ALTERNATIVE:
Respectfully submitted,
Susan Moyer,
Community Development
As suggested by Council.
Chris A. Kukulski,
City Manager