Agenda Item # 3
Columbus Consolidated Government
Council Meeting
July 12, 2016
Agenda Report # 01
TO: Mayor and Council
SUBJECT: Housing Authority of Columbus for Redevelopment of Booker T.
Washington
Public Housing - Revised Memorandum of Agreement
INITIATED BY: Community Reinvestment
Recommendation: Approval is requested to enter into a revised Memorandum of
Agreement, and execute a Promissory Note, with the Housing Authority of
Columbus for the Redevelopment of the Booker T. Washington Apartments in the
amount of $2.5 million.
Background:
? On May 31, 2013 Resolution No. 176-13 was passed which authorized the City
Manager to enter into an agreement with the Columbus Housing Authority to
provide financial assistance to construct the Booker T. Washington Apartments.
? A Memorandum of Agreement was entered into on May 31, 2013 between the City
and Columbus Housing Authority which the City agrees to contribute a sum of
$2.5 million to the development. At the time the proposal was originally
brought before Council the City was requesting the use of Economic Development
reserves and the General Fund-Fund Balance.
? The original agreement was for the City to pay the Columbus Housing Authority
$400,000 per year for 5 years with a final payment of $500,000 in the 6th year
beginning in FY 2015.
? On May 26, 2015 Resolution No. 127-15 was passed which authorized the use of
up to $2.5 million in Community Development Block Grant (CDBG) funding for the
Booker T. Washington development to offset the use of Economic Development
reserves and the General Fund- Fund Balance.
? It has been determined there is approximately $1.5 million of eligible site
work construction that can be paid out of CDBG funds. We request that the MOA
be revised to specify the use of CDBG funds, and change the payment schedule as
follows: $500,000 per year for 5 years with the first payment due in FY2016.
? All other requirements of the original MOA will remain unchanged.
Analysis: The redevelopment of this public housing site is in the best interest
of the City and the Liberty District. Revising the MOA will allow the use of
CDBG funding to pay off a portion of the debt, and the adjustment of the
payment schedule.
Projected Annual Fiscal Impact Statement: Up to $1.5 million of the funding
for the Booker T. Washington development project would come from the annual
CDBG funding award from HUD, and CDBG program income. The CDBG funds being
allocated towards this development are from prior year allocations and program
income that were not expended on projects, and future allocations from the
yearly entitlement funds. The amount of funds disbursed each year would be
based on the current balance of unallocated CDBG funds, the annual allocation
of CDBG funds from HUD, and the actual costs for eligible site work activities.
The amount of funds available each year will be determined during the
formulation of the Annual Action Plan. The remaining $1 million that are not
CDBG eligible will be budgeted as part of the General Fund or another
identified funding source.
Financial Considerations: The sources of federal funding for the City's
contribution towards this redevelopment will be the Community Development Block
Grant (CDBG) in the amount up to $1.5 million (FY 16, 17, 18 payments), and the
remaining $1 million that are not CDBG eligible will be budgeted as part of the
General Fund or another identified funding source (FY 19, 20).
Legal Considerations: Council must approve all revisions made to the Memorandum
of Agreement between Columbus Consolidated Government and the Housing Authority
of Columbus.
Recommendations/ Actions: Approval is requested to enter into a revised
Memorandum of Agreement, and execute a Promissory Note, with the Housing
Authority of Columbus for the Redevelopment of the Booker T. Washington
Apartments in the amount of $2.5 million.
A RESOLUTION
NO. ______
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A REVISED MEMORANDUM OF
AGREEMENT, AND EXECUTE A PROMISSORY NOTE, WITH THE HOUSING AUTHORITY OF
COLUMBUS FOR THE REDEVELOPMENT OF THE BOOKER T. WASHINGTON APARTMENTS IN THE
AMOUNT OF $2.5 MILLION.
WHEREAS, on May 31, 2013 per Resolution No. 176-13 the City entered into a
Memorandum of Agreement (MOA) with the Housing Authority of Columbus to provide
$2.5 million towards the redevelopment of the Booker T. Washington Apartments;
and,
WHEREAS, on May 26, 2015 per Resolution No. 127-15 the City authorized the use
of up to $2.5 million in Community Development Block Grant (CDBG) funding for
the Booker T. Washington development to offset the use of Economic Development
reserves and the General Fund- Fund Balance; and,
WHEREAS, the City and the Housing Authority wish to revise the MOA to include
the use of CDBG funding and to revise the payment schedule to begin payments in
FY2016 at an amount of $500,000 per year for 5 years. All other requirements of
the original MOA will remain unchanged.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is hereby authorized to enter into a revised Memorandum
of Agreement, and execute a Promissory Note, with the Housing Authority of
Columbus for the Redevelopment of the Booker T. Washington Apartments in the
amount of $2.5 million.
________________
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
_________ day of _____________, 2016 and adopted at said meeting by the
affirmative vote of ____________ members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
______________________________ ________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
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