To

Mayor and Council

Subject

FY04 CDBG Budget Amendment

Initiator

Finance Department

Recommendation

Approve an ordinance in the amount of $610,000 to amend the FY04 CDBG \n \n Fund to $ 6,544,318.

Approval

Approved

Background

The City of Columbus purchased property in the 900 block of Broadway and Front

Avenue using Community Development Block Grant (CDBG) funds in 1976. This

property is now the location of the River Parking garage. The Department of

Housing and Urban Development (HUD) performed a monitoring visit in 2000,

wherein it was discovered the construction of a parking deck on this property

was an ineligible activity. For the past four years, HUD and the City have

negotiated on actions needed to remedy this issue and resolve the finding.

Analysis

Through negotiations, it was been determined that the City will reimburse the

CDBG program $610,000 from a non-federal source for an eligible activity

It has been proposed that the 1999 Special Purpose One Cent Sales Tax (SPLOST)

money be used as the "non-federal ? source. An infrastructure improvement

(flood abatement) project in a "redevelopment area? would meet eligibility

standards for SPLOST funding and CDBG eligible activities. A flood abatement

project has been identified in a ?redevelopment area?. To clear this finding,

staff recommends $610,000 will be transferred to the CDBG program and paid

directly to the contractor for the identified infrastructure improvement

project.

Financial Considerations

An amount of $610,000 will be transferred to the CDBG Fund for infrastructure

improvements. This solution will clear all findings related to the property

development of the Parking Garage.

Projected Annual Fiscal Impact Statement

Legal Considerations

None

Recommendations/ Actions

Approve an ordinance in the amount of $610,000 to amend the FY04 CDBG Fund to $

6,544,318.

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