SPECIAL

PARKS, RECREATION, AND COMMUNITY ENHANCEMENT

A Special Parks, Recreation, and Community Enhancement Committee Meeting was held on October 27, 2008, at 3:30 p.m. with Chairwoman Russell presiding. Members present were Mr. Ruane, Mr. McGlumphy, Mrs. Horsey, and Mr. Lewis (departed at 4:27 p.m.). Mayor Carey was also present.

AGENDA ADDITIONS/DELETIONS

Mr. McGlumphy moved for approval of the agenda, seconded by Mr. Lewis and unanimously carried.

Neighborhood Stabilization Program - City of Dover Funding Request

During a Special Parks, Recreation, and Community Enhancement Committee Meeting held on October 15, 2008, members were provided information regarding the Housing and Economic Recovery Act of 2008. Staff advised members that the State of Delaware received $19.6M in grant funding to help stabilize the neighborhoods throughout the State and that the City of Dover has the opportunity to apply for a portion of the grant to help stabilize the neighborhoods in the City. After much discussion, members recommended the following:

1)that the City serve as the lead applicant with the understanding that the City is partnering with those that are on the street and know how to do this and get it done;

2)that the initial application include the notion of partnering with the Dover Housing Authority with the understanding that if they go for it, they will do the housing within the City of Dover and a three (3) mile radius around the City; and

3)that the application include the City’s due proportion for administration and that the application to be reviewed by members at the next meeting include all sufficient dollars necessary to bring the houses up to code before they are sold and to make a recommended amount to be specified for other improvements with “not to exceed” amounts.

Mrs. Townshend, Director of Planning and Inspections, introduced the “team of partners” involved in the Neighborhood Stabilization Program for the City of Dover that were present, as follows: Mr. Phil McGinnis, Kent County Board of Realtors; Ms. Carlyle Hooff, Executive Director for the National Alliance on Mental Illness Delaware; Ms. Jeanine Kleimo, Interfaith Mission for Housing; Ms. Ami Sebastian-Hauer and Mr. Rufus Minsley, Dover Housing Authority/Dover Community Partnership; and Mrs. Tracy Harvey, City of Dover, who has served as the leader for this program. She also noted that there were several others partners not in attendance, as follows: Diamond State Community Land Trust, NCALL, and Kent County.

Mrs. Townshend explained that the grant funds would go through the Delaware Housing Authority. The City will be provided 18 months to obligate funds and four (4) years to expend the funds. She advised members that if a house is purchased, rehabilitated, and sold, there will be proceeds which will be put back into the program for the purchase and rehabilitation of another house. She explained that although the grant request is for an estimated $6.6M, with the recycling of these grant funds, there will be program income, which would provide additional funds for the program.

At the request of Mr. McGlumphy, each partner explained their participation in the program.

Mrs. Harvey, Community Development Director, reviewed the Delaware Neighborhood Stabilization Program and explained the Request for Proposals.

Responding to Mr. Ruane, Mrs. Townshend stated that between now and Friday, staff can ensure that the grant is consistent in its application between the Community Land Trust and the Dover Housing Authority in terms of how they are portrayed and maintaining the $6.6M grant. Due to the time frame, she indicated that there would not be ample time to bring this matter back to the committee for their review. For further clarification, Ms. Sebastian-Hauer stated that there would be a total of 70 homes between the Community Land Trust and Dover Housing Authority.

Mr. Ruane referred to the budget pages and questioned the discrepancy with the estimated activity costs provided in the individual charts for appraisals ($3,600 and $14,000) and the total budgeted amount provided for appraisals ($17,500). Responding, Mrs. Harvey explained that each applicant included estimated appraisal fees and that after meeting with the realtor, a revised estimate of $17,500 was provided, which is reflective of 50 properties at a cost of $350 per property. She concurred that the budgets will be modified by eliminating the appraisal estimate in the budget for the Dover Housing Authority and including the estimate provided by the realtor in the budget.

At the request of Mr. Ruane, Mrs. Harvey explained the individual budgets provided by each applicant.

In response to Mr. Ruane, Ms. Sebastian-Hauer advised members that the program regulations allow for the development on vacant land and that the Dover Housing Authority has proposed to build five (5) new houses on vacant property that they plan to purchase. It was Mr. Ruane’s feeling that there should be additional comments provided in the summary to better clarify the intention to redevelop vacant property.

Referring to the map provided to members, Mr. Ruane noted that it reflects a time frame of January 2008 through August 2008 and is not reflective of the current foreclosures in the City of Dover and surrounding areas. He stated that since foreclosures occur on a daily basis, the information is constantly changing. He suggested that staff include a statement on the map indicating that the information reflects a time frame of January 2008 through August 2008, as well as the source: Delaware State Housing Authority - information obtained from www.LexusNexus.com. Responding, Mrs. Harvey explained that the Delaware State Housing Authority indicated that the map provided on their website should be included in the grant application packet.

Mr. Ruane moved to recommend approval of the Neighborhood Stabilization Program application with the changes indicated by members and with the understanding that there may be additional changes necessary as the document is “scrubbed” further by staff. The motion was seconded by Mrs. Horsey and unanimously carried (Mr. Lewis absent).

It was noted that, due to time constraints, staff requested that this matter be considered during the Council Meeting later this evening for final approval.

Mr. Ruane moved for adjournment, seconded by Mrs. Horsey and unanimously carried.

Meeting Adjourned at 4:38 P.M.

Respectfully submitted,

Sophia R. Russell

Chairwoman

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