PARKS, RECREATION, AND COMMUNITY ENHANCEMENT
The Parks, Recreation, and Community Enhancement Committee Meeting was held on March 9, 2009, at 12:00 noon with Chairwoman Russell presiding. Members present were Mr. Ruane, Mrs. Horsey, and Mr. Lewis. Mr. McGlumphy was absent.
AGENDA ADDITIONS/DELETIONS
Mr. Lewis moved for approval of the agenda, seconded by Mr. Ruane and unanimously carried.
Proposal to Leverage Neighborhood Stabilization Program Funding
During their meeting of February 9, 2009, members were provided information entitled “NMTC/Leveraging Proposal - Questions and Answers 2/1/09” as well as an example of a Letter of Intent with regards to the proposal to leverage Neighborhood Stabilization Program funding. After expressing concerns regarding further discussion on the issue and an expectation that this matter be treated like any other staff recommendation, which would include an action form that includes input from all principle staff members, the committee tabled the matter.
Mr. Ruane moved to remove the matter from the table, seconded by Mrs. Horsey and unanimously carried.
Mrs. Townshend, Director of Planning and Inspections, reminded members that the Delaware State Housing Authority (DSHA) has awarded the City of Dover $1.5 million for the Neighborhood Stabilization Program (NSP) to purchase foreclosed properties, renovate them and sell them to qualified home buyers. The City has partnered with Diamond State Community Land Trust (DSCLT), Dover Housing Authority, and the National Alliance of Mental Illness in Delaware in developing the application for NSP funding that was approved by DSHA. On February 2, 2009, the City Manager, City Controller, City Planner, DSHA, and the NSP Partners attended a meeting in which a full presentation was given on leveraging NSP funds through the New Market Tax Credits (NMTC) program. Mrs. Townshend explained that by investing NSP funds and an equal amount of leverage loan funds in an NMTC structure, every NSP $1.00 would turn into approximately $2.50. The City Manager, City Controller, City Planner, DSHA, and the City of Dover NSP Partners supported this proposal subject to two (2) conditions, as follows: 1) that the DSHA provide a letter indicating that they are supportive of the leveraging approach; and 2) that the nonbinding Letter of Intent be modified to clearly state that the City of Dover’s credit will not be leveraged or obligated in any way. She assured members that the non-binding Letter of Intent has been modified and approved by the City Solicitor, and provided members the letter of support from DSHA.
Staff recommended that the Letter of Intent be forwarded to City Council for approval.
Mr. Lewis explained his concern for the lack of employment in the area and questioned if the proposal would provide jobs for Dover. Responding, Mrs. Walls of Discover Bank stated that the properties will be in a state of “ready to sell”; therefore, the only jobs that would possibly be provided would be for those properties that have construction needs.
With reference to the information entitled “NMTC/Leveraging Proposal - Questions and Answers 2/1/09” (Attachment #1) that was previously provided to members, Mr. Ruane noted that Q&A #23 refers to the development of a full program pro-forma and requested that staff provide a status. Responding, Mr. Parks of Discover Bank explained that Discover Bank’s involvement with the leveraging proposal is strictly for technical assistance for CRA Service Credit, as well as to serve as a lender or investor in order for Discover Bank to meet their community reinvestment act obligations. Their main goal is to advise local representatives and to make them aware of programs such as these that are successful throughout the country and, in doing so, to let their federal regulator know that they are assisting the community. He stated that although a preliminary draft of the pro-forma has been completed, it has not been finalized nor made official.
In response to Mr. Ruane, Mrs. Townshend explained that a non-binding letter of intent typically precedes a pro-forma. Mr. Ruane noted that the pro-forma was to identify any issues and he felt that there were issues and unanswered questions regarding this matter, such as the relationship of this program to the HUD parent funding source. He stated that Q&A #7 refers to any problems with co-mingling NSP and NMTC funds and questioned HUD’s opinion. As mentioned by Mr. Ruane, Mr. Parks confirmed that although HUD has informally commented on the proposal, they have not officially approved the proposal.
After much explanation and discussion, Mr. Ruane stated his concurrence with Mr. Parks regarding his feeling that the Delaware State Housing Authority should serve as the entity to be involved with the program, which would still allow Dover and other jurisdictions to have their foreclosed homes sold. He felt that this concept would simplify the complexity of this issue.
With reference to concerns of Mr. Ruane, Mrs. Townshend explained that, with the exception of the City’s down payment assistance program, the City will not be maintaining any second mortgages on the foreclosed houses. Concurring, Mr. Parks indicated that the Dover Housing Authority will be serving as the catalyst for this program. Mrs. Townshend stated that the City of Dover will serve as the grant administrator and will be a participant in the decision making process for the selection of homes, etc.
Mr. Ruane suggested that the Delaware State Housing Authority consider the proposal, with the provision that the City of Dover be provided their allocation and gain the benefit of it, which would allow for 20 houses instead of 10, but he felt that to get into the intricacy and complexity and required paperwork is asking the City of Dover to be overly involved.
Mrs. Horsey stated her understanding of the issue and felt that the Non-Binding Letter of Intent is very clear with regards to the City’s role in the program.
Due to the complexity of this issue, members suggested that when this matter is presented to City Council on March 23rd, that staff make a similar presentation. It was noted that the pro-forma should be finalized by the time this matter will be considered by Council.
Mrs. Horsey moved to recommend that the Letter of Intent (Attachment #2) and the letter from the Delaware State Housing Authority (Attachment #3) be forwarded to City Council for approval, seconded by Mr. Lewis and unanimously carried.
Mr. Ruane moved to recommend that the City of Dover send a letter to the Delaware State Housing Authority requesting them to reconsider the role being played in this proposal, that the City of Dover feels it would be better for the Delaware State Housing Authority to distribute Neighborhood Stabilization Program Funds rather than the local jurisdictions with the assurance that the City of Dover would continue to get their allocation and continue to benefit from the additional funds that would be brought to the program from this investment (Attachment #4). The motion was seconded by Mrs. Horsey and unanimously carried.
The American Recovery and Reinvestment Act of 2009 (Federal Stimulus Program): Community Development Block Grant (CDBG) and Neighborhood Stabilization Program
Members were provided information received from the United States Conference of Mayors which summarizes all aspects of the stimulus funding. Mrs. Townshend, Director of Planning and Inspections, advised members that the City has not yet received information in writing as to how this program will be administered. According to the HUD Website, it has been determined that the City will be receiving approximately $73,000 in additional funding for the current year’s allocation. She stated that staff has contacted the City’s HUD representative; however, staff has not received a response to date. After speaking with the Delaware State Housing Authority, Mrs. Townshend stated that the added allocation must be used for infrastructure, such as sewer, water, roads, etc.; however, she stated that this has not been confirmed. She assured members that staff has been discussing possible infrastructure projects.
In response to Mr. Ruane regarding the possibility of receiving other program funding, Mrs. Townshend stated that the stimulus money will be coming through the State of Delaware and that guidance has not been provided by the State as to how they would be distributing the funds to local governments. She advised members that some of the stimulus program funds will be allocated to existing programs for supplemental purposes.
Mr. Ruane suggested that the City go on record with the State indicating the City’s desire for consideration of the additional program funds.
Mr. Ruane moved to recommend that staff review the list of economic recovery dollars to identify those programs for which City Council has already expressed an interest (examples: Youth Services, Homelessness, etc.) and identify the appropriate State agencies to which to direct letters of inquiry and interest so that the City can be considered for this and attach thereto relevant information regarding specific City of Dover programs or needs. The motion was seconded by Mr. Lewis and unanimously carried.
In reviewing the available programs, Mrs. Russell stated that she would like for the City to obtain assistance with Head Start, Child Care, and, not only for men, but she would also like to see Transitional Housing for Women, and requested that staff include this in their letter.
Updates
Members were provided the following updates:
Puncheon Run Watershed Action Team Update
Due to the absence of Mr. Koenig, no update was provided for the Puncheon Run Watershed Action Team.
Planning and Funding for New Library
Ms. Cyr, Library Director, reviewed update information regarding the planning and funding for the new Library. She advised members that, beginning today, soil testing for environmental issues on the parking lot has begun and should take approximately one week to complete. It is anticipated that the schematic designs should be received by mid-April and the next phase will be the design and development phase. Ms. Cyr stated that staff is currently working with Horizon Philanthropic to design a capital campaign for the Library’s fund raising project and will be reviewing their proposal at the Library Steering Committee meeting on Thursday.
Ms. Cyr stated that City Council approved the creation of a library foundation and the paperwork has been sent to the IRS for the 501(C)3 status. She advised members that the process of looking for a construction manager for the library’s building project has begun and that the architects will be back on March 30th and 31st and a public hearing will be held on March 30th at 7:00 p.m. in the Council Chambers at City Hall.
Mrs. Russell suggested that there be a contest to allow for public participation in the naming of a room at the new library. Ms. Cyr stated that she would present the idea to the Steering Committee for their consideration.
Referring to a recent discussion between the City and County, Mr. Ruane requested that the committee be kept abreast of the proposal to collaborate on funding the library. Ms. Cyr stated that she would discuss the presentation of the proposal with the City Manager to determine how the proposal would be presented. At the request of Mr. Ruane, Ms. Cyr stated that the Power Point Presentation provided to the City/County Committee would be made available to the committee for their information. She stated that a presentation of the proposal would be made at a Library Commission Meeting scheduled for March 18th, at 5:00 p.m., and that anyone is welcomed to attend the meeting.
After discussing the matter, it was suggested that a separate presentation be provided to the committee during their next regular meeting scheduled for April 13th.
CDBG Program
Mrs. Harvey, Community Development Director, reviewed the Status of the FY2008 CDBG Program provided to members. She advised members that all projects are on schedule with the exception of the Dover Interfaith Ministry to the Homeless, who are in the process of negotiations for the purchase of property located on Forest Street (across from the Salvation Army).
Mrs. Russell questioned the possibility of using the condemned City-owned property at 101 Jefferson Court for transitional housing for women. Responding, Mrs. Harvey stated that she would have to talk with the Director regarding the time limits for property to remain vacant in accordance with the vacant building ordinance and report this information back to members.
Mrs. Mitchell, Treasurer/Controller, advised members that there is a receivable on the City’s books for the costs for renovations, demolition, etc. that would be recouped with the sale of the property. Should the City choose not to sell the property, these expenses would need to be written off. Mrs. Russell suggested that the property would remain on the market; however, rather than it being vacant, she felt that it could be beneficial if the property were used during this interim period.
Schutte Park Space - Boys and Girls Club/CDSA
Mr. Tingle, Executive Director of the Greater Dover Boys and Girls Club, advised members that although the Greater Dover Boys and Girls Club remains committed to building a facility at Schutte Park, due to the economic situation across the nation, he stated that the Corporate Board has decided to suspend any public campaigns to raise funds for 12 to 18 months. After this time period, he stated that the Board will revisit the economic situation and the position of their major donors.
During this “quiet phase”, Mr. Tingle stated that they will finalize their plans for the facility, as well as work on putting together the leadership team to guide this project. He relayed appreciation for the City’s patience and understanding during this difficult period.
Responding to Mrs. Russell, Mr. Tingle suggested that any recommendations for appointment of members to the Boys and Girls Club Board should be directed to him.
Youth Advisory Committee
Mrs. Russell advised members that the first Youth Advisory Committee meeting was held on February 18, 2009 and that their next meeting will be held on March 18, 2009, at which time they will be electing their officers. She stated that the members will also be participating in the St. Patrick’s Day Parade on Saturday.
Ms. Horsey moved for adjournment, seconded by Mr. Lewis and unanimously carried.
Meeting Adjourned at 1:40 P.M.
Respectfully submitted,
Sophia R. Russell
Chairwoman
SR/JJS/AC/TM/jg
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Attachments
Attachment #1 - NMTC/Leveraging Proposal - Questions and Answers 2/1/09
Attachment #2 - Non-Binding Letter of Intent
Attachment #3 - Letter dated February 12, 2009 from the Delaware State Housing Authority
Attachment #4 - Draft Letter to the Delaware State Housing Authority Requesting them to Reconsider the Role being Played in the Proposal to Leverage Neighborhood Stabilization Program Funding