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HomeMy WebLinkAbout03-30-09Minutes of the called Town Council meeting held March 30, 2009 at 5:30 p.m. in the Council Chambers of the Municipal Building. There were present: Jeffrey S. Worrell, Mayor Town Council: David L. Clark, Larry G. Clevinger, H. M. Kidd (arrived at 5:40 p.m.), Robert A. Bopp, Morgan Welker Council absent: Joel B. Burchett, Jr. Staff: John J. Hawley, Town Manager Patricia Cruise, Clerk of Council David Quesenberry, Asst. to the Town Manager Chief Gary Roche Mayor Worrell called the meeting to order at 5:38 p.m. Following roll call, Mayor Worrell advised that the first item on the agenda was Resolution 2009-04, Authorizing the Preparation and Filing of an Application for Community Improvement Grant Funds Through the Virginia Small Cities Community Development Block Grant Program. Mr. Hawley reviewed the most current budget and information regarding how the Town would fund the portion of the Town share for this project. Mayor Worrell inquired what foregone revenue was? Mr. Hawley advised that was where the Town would be waiving building permit fees, sewer and water connection fees etc. He added that these items can be counted as a match. Councilman Bopp inquired whether in committing the Town VDOT funds, the Town would still have enough funds to work with? Mr. Hawley advised that he felt the numbers would be okay over the two years and would work out using the line item for street improvements. Councilman Welker advised for the record that he lives in the project area and while he had no personal benefit from the project, he felt it best to eliminate the appearance of conflict and would abstain. Councilman Kidd arrived at 5:40 p.m. Mayor Worrell advised Mr. Kidd that Council had been discussing Resolution 2009-04. March 30, 2009/Page 1 of 2 RESOLUTION 2009-04 AUTHORIZING THE PREPARATION AND FILING OF AN APPLICATION FOR COMMUNITY IMPROVEMENT GRANT FUNDS THROUGH THE VIRGINIA SMALL CITIES COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the Town of Pulaski has previously participated in the Small Cities Community Development Block Grant (CDBG) program as administered by the Virginia Department of Housing Community Development (VDHCD) in order to address the Town's priority community development needs; and WHEREAS, the Town of Pulaski has identified the Dora Highway Neighborhood as the priority area targeted for a Comprehensive Community Development (CCD) project based on the neighborhood's deteriorating housing conditions, blighted properties in need of clearance, insufficient water supply and fire suppression system, deficient streets, drainage problems, and insufficient street lighting and the need to provide additional opportunities for decent, safe, sanitary, and affordable housing in the Town of Pulaski; and WHEREAS, the Town applied for and received a FY 2009 CDBG Planning Grant from VDHCD to undertake a comprehensive neighborhood improvement study to identify needs, develop a proposed improvement program and budget, and identify additional funding resources to implement said project and has prepared a Community Improvement Grant (CIG) application; and WHEREAS, the Town conducted door-to-door surveys in the Dora Highway Neighborhood, conducted citizen meetings, formed a project management team, and completed a needs assessment of the community and individual properties with participation of the neighborhood residents and property owners; and WHEREAS, said needs assessment and surveys identified deteriorated housing, blighted properties, insufficient water supply and fire suppression, deficient streets, drainage problems, insufficient street lighting, and underutilized sites as major needs and concerns of the property owners and residents of the neighborhood because said conditions have served as a disincentive for new housing development and private investment and maintenance of existing residential properties; and WHEREAS, a CCD Improvement Program for physical improvements has been developed by the Town in cooperation with the Dora Highway Neighborhood residents and property owners and related stakeholders pursuant to requirements for funding set forth by VDHCD including targeted public improvements outlined in A Preliminary Engineering Report; a housing assistance program for the rehabilitation of existing units to generate and support private investment and for the construction of new infill, affordable housing; and a relocation and assistance program for any households that may have to be permanently or temporarily relocated; and r WHEREAS, the Town wishes to apply for CDBG funds to assist in implementing the Dora Highway Neighborhood Comprehensive Community Development project with said project benefiting Page 1 of 4 forty-eight (48) existing, habitable and occupied residential units with one hundred thirty-nine (139) residents of which forty-two (42) households (87%) are estimated to be low- and moderate-income (LMI) households with one hundred twenty-two (122) LMI residents based on returned surveys and benefiting six (6) new LMI households through the construction of six (6) infill, affordable residential units resulting in an estimated increase of fifteen (15) additional persons of which 100% are LMI, for a total neighborhood benefit of fifty-four (54) households with one hundred fifty-four (154) people of which one hundred thirty-seven (137) (88%) are LMI beneficiaries; and WHEREAS, one hundred percent (100%) direct benefit will result from the implementation of the rehabilitation component of the housing assistance program for ten (10) LMI owner-occupied units with twenty (20) persons; substantial reconstruction of five (5) LMI owner-occupied units with seven (7) persons; the rehabilitation of four (4) investor owned units with twenty-three (23) persons to standard housing units; one hundred percent (100%) direct benefit will result from the implementation of the infill housing component of the housing assistance program for six (6) LMI households as new homeowners with (15) persons; and indirect benefit for fifty-four (54) households with one hundred fifty-four (154) people of which one hundred thirty-seven (137) (88%) are LMI beneficiaries who currently reside or will reside in the Dora Highway Neighborhood resulting from the clearance of blighted properties, water and fire suppression system improvements, street and street light improvements, drainage improvements, right-of--way clearing, and neighborhood clean-up efforts; and one hundred percent (100%) direct benefit will result from the relocation and assistance program for nineteen (19) LMI households that may have to be temporarily relocated during rehabilitation of their homes and two (2) households That may be permanently relocated. WHEREAS, the Town has committed to use $259,810 of its Virginia Department of Transportation road maintenance allocations during the term of the project, but not less than a period of two (2) years to address street deficiencies necessary for improving vehicular circulation and emergency vehicle access within the neighborhood particularly at the dead end of Jackson Ave., the intersection of Stuart Ave. and Baskerville St., and the intersection of First St., SE and Pine St.; to resurface the blocks of Holly St., Jackson Ave., and Pine St.; and to provide additional street lighting, clear the shoulders of the roads, and make improvements to the drainage and signage throughout the Dora Highway Neighborhood project area; and WHEREAS, the Town has committed $6,750 from the Operating Budget and $37,750 in Force Account work and Equipment usage during the term of the project, but not less than a period of two (2) years to correct deficiencies in alleys, drainage ditches, rights-of--way, and signage; assist with neighborhood clean-up efforts; and inspect improvements made to the water lines in the Dora Highway Neighborhood; and WHEREAS, the Town has committed $16,200 from the Operating Budget during the term of the project, but not less than a period of two (2) years for the clearance of three (3) blighted structures in the Dora Highway Neighborhood; and _ WHEREAS, the Town has committed $9,000 from the Operating Budget for the purchase of t three (3) lots for use where a house slated for rehabilitation can not be rehabilitated, but must be reconstructed on a neighboring site due to site constraints; and Page 2 of 4 WHEREAS, the Town has committed $3,500 from the Operating Budget for legal, advertising, and training services related to implementing a CIG project; and WHEREAS, the Town has committed to waive building permit fees for rehabilitating nineteen (19) houses for LMI beneficiaries and the construction of six (6) new LMI infill houses valued at $10,426 and to waive water and sewer connection and availability fees for the construction of the six (6) new infill LMI houses valued at $8,400; and WHEREAS, the Town has committed $49,850 in inactive CDBG Program Income from a previous VDHCD-funded Comprehensive Community Development project for project costs including procuring a rehabilitation specialist; constructing utility laterals, site work, and providing downpayment and closing cost assistance for six (6) new infill, affordable housing units; and soft costs for housing rehabilitation and housing production activities including legal/appraisal services, deed recordation, acquisition/relocation, and home maintenance education services for nineteen (19) existing LMI households and for the six (6) households that will reside in the new infill housing; and WHEREAS, the Town has secured a commitment from Community Housing Partners based in Christiansburg, Virginia to provide $167,750 in assistance from its Weatherization Assistance Program funding allocations during the term of the project to help fund housing rehabilitation; and WHEREAS, the New River Valley HOME Consortium has committed $300,000 in HOME funding for the construction of six (6) new single-family homes on available lots in the Dora Highway Neighborhood for sale at affordable prices for first-time homebuyers and an estimated fifteen (15) persons of which all fifteen (15) (100%) will be LMI and $19,000 in HOME funding for the temporary relocation of nineteen (19) households during the rehabilitation of their homes of which all nineteen (19) will be LMI; and WHEREAS, Community Housing Partners has committed to construct the six (6) single-family homes on available lots in the Dora Highway Neighborhood requiring an additional $501,000 in homeowner's equity to provide three (3) homes valued at $125,000 and three (3) homes valued at $142,000; and WHEREAS, both The New River Valley HOME Consortium and Community Housing Partners have committed to work with households in the Town to stabilize their financial resources, pre-qualify them for homeownership, and conduct home ownership education classes for first-time homeowners; and WHEREAS, the Town will provide trucks, dumpsters, and other equipment; pay the cost of tipping fees; and provide Town employees to work with Dora Highway Neighborhood residents, property owners, and community volunteers to conduct neighborhood wide clean-up efforts to remove trash, debris, old appliances, and junk vehicles from the community during the term of the CDBG _ project; and WHEREAS, residents and property owners of the Dora Highway Neighborhood have requested the Town to proceed post haste in resolving the problems identified in the neighborhood and in securing necessary funds to carry out the Comprehensive Community Development project; and Page 3 of 4 WHEREAS, the Town of Pulaski has properly advertised and conducted public hearings on March 2, 2009 and March 17, 2009 which addressed the CDBG program and the CDBG project application, thereby meeting citizen participation requirements. NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Pulaski, Virginia that: 1. The Town of Pulaski wishes to apply for a FY 2009 CDBG Community Improvement Grant in the amount of $1,400,000 for the Dora Highway Neighborhood Comprehensive Community Development Project; and hereby commits a total of $401,686 in Town investment and has secured $987,750 in non-CDBG funds for a total project cost of $2,789,436 for the purpose of undertaking a comprehensive neighborhood improvement program to address 100 percent of the identified needs. 2. The Town hereby authorizes the Town Manager, the Town's chief administrative official to execute and file all appropriate documents necessary for submission of the Town of Pulaski's 2009 Community Development Block Grant application on or before April 8, 2009 and to provide such additional information as may be required by the Virginia Department of Housing and Community Development. This Resolution is effective upon adoption and is hereby adopted this 30`h day of March, 2009 by the duly recorded vote of the Town Council of the Town of Pulaski, Virginia as follows: David L. Clark -Aye Joel B. Burchett, Jr. -Absent Larry G. Clevinger, II -Aye Robert A. Bopp -Aye H. M. Kidd -Abstain Morgan P. Welker -Abstain THE TOWN OF PULASKI, VIRGINIA By: y S. orrell, Mayor ATTEST: Patricia Cruise, Clerk of Council r Page 4 of 4 RESOLUTION 2009-05 A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A HOME LOAN AGREEMENT WITH COMMUNITY HOUSING PARTNERS COALITION WHEREAS, the Town Council of the Town of Pulaski, Virginia desires to improve the condition and affordability of housing within the Town for the benefit of its citizens; and, WHEREAS, the Town has, with the support of the Town of Blacksburg and the New River Valley HOME Consortium, applied for grant funds for the Dora Highway, Holly Street, Jackson Avenue Neighborhood. project area for development of affordable housing in the Town; and, WHEREAS, the Town of Pulaski, the Town of Blacksburg, and the New River Valley HOME Consortium have agreed, with the Community Housing Partners Corporation on the terms and conditions for a loan to the Community Housing Partners Corporation for the development of affordable infill housing units in the project area; NOW THEREFORE, be it RESOLVED by the Town Council of the Town of Pulaski, Virginia sitting in special session this 30th day of March 2009 that the Town Council does hereby authorize the Town Manager to execute a loan agreement with Community Housing Partners Corporation for the development of affordable housing in the Dora Highway, Holly Street, Jackson Avenue Neighborhood project area in the Town of Pulaski. This resolution is effective upon adoption and is hereby adopted this 30th day of March 2009 by the duly recorded vote of the Town Council of the Town of Pulaski, Virginia as follows: David L. Clark Larry G. Clevinger, II H.M. Kidd ATTEST: ~~ Patricia Cruise, Clerk of Council - Aye Joel B. Burchett, Jr. -Absent - Aye Robert A. Bopp -Aye -Aye Morgan P. Welker -Abstain THE TOWN OF PULASKI, VIRGINIA BY: ey . W rrell, Mayor Councilman Bopp moved to adopt Resolution 2009-04, Authorizing The Preparation And Filing Of An Application For Community Improvement Grant Funds Through The Virginia Small Cities Community Development Block Grant Program. The motion was seconded by Councilman Clark and carried on the following recorded vote: David L. Clark -Aye Joel B. Burchett -Absent Larry G. Clevinger -Aye Robert Bopp -Aye H. M. Kidd -Abstain Morgan P. Welker -Abstain The next item on the agenda was Resolution 2009-05, Authorizing The Town Manager To Execute A Home Loan Agreement With Community Housing Partners Coalition. Mr. Hawley advised that included in the packet was a draft home loan agreement between the HOME Consortium, the Town of Blacksburg and the Town of Pulaski and Community Housing Partners. The agreement allows $50,000 per house to be used from HOME Consortium funds to go to Community Housing Partners so that they can provide an affordable house. A lien to the HOME Consortium would be placed on the house. The home owner would repay the HOME loan funds upon the sale of their home during the term of the loan as described in the deed of trust. The Resolution authorized the Town Manager to execute the agreement. Councilman Clark moved to adopt Resolution 2009-05, Authorizing The Town Manager To Execute A Home Loan Agreement With Community Housing Partners Coalition. Councilman Clevinger seconded the motion and carried on the following recorded vote: David L. Clark -Aye Joel B. Burchett -Absent Larry G. Clevinger -Aye Robert Bopp -Aye H. M. Kidd -Aye Morgan P. Welker -Abstain At 5:45 p.m., there being no further business, the meeting adjourned on motion by Councilman Welker, seconded by Councilman Clark and carried on voice vote. March 30, 2009/Page 2 of 2