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Housing and Redevelopment Minutes Page 2 <br /> October 6,2014 <br /> 6. Public Hearings - None <br /> 7.1 Small Cities Development Program Preliminary Application <br /> Authorization <br /> (Commissioner Kuester arrived at this time—6:33 p.m.) <br /> Jeremy Barnhart stated that last year the city completed a pre-application for a <br /> $575,000 Small Cities Development Program (SCDP) grant, to facilitate forgivable <br /> loans for rehabilitation of owner-occupied homes in the older part of the <br /> community. The grant was to be administered by Central Minnesota Housing <br /> Partnership (CMHP) and the HRA's contribution was to be $50,000. Staff seeks <br /> authorization to reapply in 2015. Staff also recommends reducing the size of the <br /> study area by about one-half, adding 5 commercial projects on the north side of <br /> Highway 10 and 5 projects on the south side of Highway 10, and increasing the HRA <br /> contribution to $100,000. He noted that$50,000 was budgeted for this grant and the <br /> additional$50,000 could come from the HRA's cash reserves. If authorized, CMHP <br /> will begin the grant writing process to meet the November 13, 2014 deadline at a <br /> cost of$600 for preparation and submission of the preliminary proposal. <br /> Commissioner Toth asked what the size of the study area was previously. Mr. <br /> Barnhart stated he did not have the acreage. Commissioner Motin asked clarification <br /> of the boundaries. Mr. Barnhart referenced the map attached to the staff report to <br /> the HRA which outlined the previous area and the proposed area. Mr. Barnhart <br /> reviewed the details of the grant program,also detailed in the staff report. <br /> Commissioner Motin stated he had a concern with providing grants to commercial <br /> properties that may be impacted by the realignment of Jackson due to Highway 10 <br /> changes. Mr. Barnhart stated that was a valid point and those properties can be <br /> removed. Commissioner Motin asked if the city set the criteria for the grants for the <br /> commercial properties, such as job creation. Mr. Barnhart stated no,that the criteria <br /> includes health, safety and bringing properties up to code. <br /> Commissioner Toth stated that there were some areas along Norfolk which were <br /> previously included, but now are not. He felt the Evans Meadows apartments and <br /> Catholic Church properties should not be included. Mr. Barnhart explained that the <br /> boundary was drawn logically,not meandering to avoid a particular property. <br /> Discussion followed regarding details of grant program (owner occupied vs. <br /> commercial, maximum amount, owner contributions,percentage of funds, and <br /> forgivable and repayment terms). <br /> Further discussion focused on the percentage of owner occupied residential and <br /> commercial properties to be eligible for the grant. Chair Wilson stated he would not <br /> want to see over 50 percent of the funds going to commercial. Commissioner Toth <br /> concurred. Mr. Barnhart suggested a 60-40 percent of residential to commercial. <br /> Commissioner Motin agreed and suggested a "drop dead" date for applications. Mr. <br /> F 0 W I R I U 9 Y <br /> 1`4M UREJ <br />