2. Resolution 5113 - CDBG GrantREPORT To:
SUBJECT:
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Post Office Box 997 - Kalispell., Montana 'o - "r 7 - Telephone o ` -�7700 Fax 0 )7 8W ...........
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The Honorable Mayor Pamela B. Kennedy and City Council
Susan Moyer, Community Development Director
James H. Patrick, City Manager
Community Development Block Grant - Economic Development Application
MEETING DATE: April 17, Zoo
BACKGROUND: The City ofKalispell held its annual Needs Assessment Public Hear'ng on
February 15, 2006 to identify needs in our community for affordable housing,
special needs housing, public facility issues, planning, and economic development
activities. This meeting, as always, was coordinated with Flathead County,
Northwest Montana Human Resources, the Sama tan House, and Glae .er
Affordable Housmg in an effort to be cost effective and collaborative.
The City o f Kali 1.1s not eligible thi s year to apply for grant funding for either
housing or public facilities projects. NMHR will apply for a grant on behalf o
their Self -Help Homeownership program and the County is st.1.11 committed to the
Senior Hone Repair Project for another year.
The City is eligible to apply for a $400,000 CDBG-ED grant on behalf of a
twenty-year, well-estab 11shed Local business for expansion and new job creation.
The sources and uses of these funds will be forjob training for new and newly
promoted employees as well as acquisition of three pieces of manufacturing,
equipment. The estimated 20 to 24 new or newly promoted positions will be at
and above median income and will receive a full benefit package. The benefit
package inct des 10 % insurance coverage on the employees and provides then
with the ability to pay the premiums for t eIr family members.
ers.
RECOMMENDATION: Staff is recommending that City Council authorize a resolution to submit a
CDBG-ED grant application in the amount of $400,000 on. behalf of Distinctive
Countertops.
FISCAL IMPACT:6% administrative fee ($24,000) will be charged. to the grant to cover the partial
salary of the Redevelopment .manager and all admintstrati.ve expenditures.
$90,000 to $941,000 of the CDBG-ED grant will be granted to the firm for off -site
and on-the-job training. The remaining $284,000 will be provided in the form. o
a. % loan with. a ten year tern.. It i.s important to note that the pry. eipal and
interest wi.11 remain with the City of Kalispell for future loans of this kind -for
business expansion.
ALTERNATIVES: As suggested by Council.
Respect ly submitted,
9 _
� l
SUSA Moyer, Director Ti6i c k
Community Development City Manager
Date Memo Prepared.: p 3, 2006
RESOLUTION AUTHORIZING AN APPLICATION TO THE MONTANA DEPARTMENT
OF COMMERCE FOR A COMMUNITY DEVELOPMENT OPMEN" BLOCK GRANT ON BEHALF
OF DISTINCTIVE COUNTERTOPS*
WHEREAS, the City of Kalispell is applying to the Montana Department of Commerce for a.
Community Development Block Grant to assist. Distinctive Countertops by providing a
loan for job training and three pieces of manufacturing facturing equipment; and
WHEREAS, on February 15, 200, the City of Kalispell conducted a. public hearing in conformance
with CD G requirements to obtain the views of citizens regarding the submittal of this
grant application; and
WHEREAS, the City of Kalispell has the legal jurisdiction and authority to provide assistance to
Distinctive Countertops,
NOW THEREFORE, IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
ASFOLLOWS:
SECTION .I: That the City of Kalispell agrees to conform to the regulations, statutes, terms
and. conditions described in the CD G C r ifia ions for Application.
SECTION II That the City Manager is authorized to submit on behalf of the City of Kalispell,
the CDG Grant to the Montana Department of Commerce and to provide such.
other additional information as may required.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR of THE
CITY of KALISPELL THIS 1 TH DAY OF A RIL, 2006.
Pamela B. Kennedy
Mayor
ATTEST:
Tlieresa White
City Clerk