•Wilson Ave. Buyouts & Community Development Block Grant Disaster Assistance application

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Community Development Block Grant Disaster Assistance application - update

From: Lehman Walker

Sent: Monday, January 24, 2011 2:56 PM

To: Arthur Sharpe; Byron Price; L. Michael Glickert; Lynn Ricci; Mayor Shelley Welsch; Shelley Welsch; Stephen Kraft; Terry Crow

Cc: Joyce Pumm

Subject: Community Development Block Grant Disaster Assistance application - update

Subject: Community Development Block Grant Disaster Assistance application - update

On January 7, 2011, City staff submitted an application to the Missouri Department of Economic Development (DED) requesting $987,000 from the Community Development Block Grant (CDBG) Disaster Assistance Program. If awarded, the CDBG funds will be used to match Federal Emergency Management Agency (FEMA) funds for the buyout of the twenty-six (26) properties on Wilson Avenue. The DED plans to announce the grant recipients by the end of February. The award may be for partial or full funding of the grant request.

On Friday January 21, the City learned that all CDBG grant recipients will be required to perform an environmental assessment in accordance with the National Environmental Policy Act. The average time frame for an environmental review is sixty (60) to ninety (90) days. A CDBG grant recipient cannot proceed with certain activities, such as property acquisition, site clearance, etc. or expend any grant funds for such activities (including FEMA funds), until full environmental approval is granted.

Late last week, staff received all necessary documentation from the State Emergency Management Agency to begin acquiring the first ten (10) priority properties on Wilson Avenue. Preliminary discussions with property owners could begin as early as February 1.

Given the recent information about the environmental assessment, there are two (2) options regarding the Wilson Avenue voluntary flood buyout and the CDBG Disaster Assistance Grant:

Option 1: The City can withdraw from CDBG Disaster Assistance Grant consideration and proceed with the Wilson Avenue voluntary flood buyout as previously scheduled. Offers will be made to the first 10 priority properties the week of February 1, 2001. The City will be responsible for FEMA matching funds in the amount of $1 million.

Option 2: The City can remain in consideration for the CDBG Disaster Assistance Grant. The Missouri Department of Economic Development will announce the grant recipients by the end of February. Offers will be made to the first 10 priority properties in April or May 2011, after the environmental assessment has been approved. If awarded the full request amount, CDBG funds will provide a $987,000 match to the FEMA grant, and the City will contribute $13,000 in in-kind match.

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If the City proceeds with Option 2, staff will initiate the environmental assessment process immediately to help expedite the review process. An appropriate City response will be developed to address the anticipated complaints from residents.

I recommend to City Council that we proceed with Option 2, given the financial situation of the City. Please advise if this is acceptable by Friday, January 28, 2011 so that staff can take the appropriate action.

Lehman Walker

City Manager

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