2011-01-24 Reg - Laserfiche WebLink

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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 Mr. Walker said the email sent to Council regarded the Community Development Block Grant Disaster Assistance application that Council approved at the last Council session. The City has preceded working on the acquisition of the properties on Wilson Ave. The City was advised this past Friday there was an opportunity for the City to acquire some additional funds through the Missouri Department of Economic Development. We have requested $987,000 through the Community Development Block Grant Disaster Assistance program and if awarded that amount of money, it would provide the City the opportunity to use monies already set aside for the buyouts for either future buyouts of flood prone properties or to use the funds to help the City address the City’s budget situation. Mr. Walker noted there are implications associated with it that he would like to advise the Council of and he is seeking the direction of the Council on that now. It would delay the purchase of the properties on Wilson Ave.; essentially there would be a one month window until we find out if the City gets the grant. The City would be advised by the end of February as to whether or not the City would be on the list to obtain funds under this additional grant. If so, the City staff would do an environmental assessment which would take about a week. The City would then have to go through a review process, which we have been advised can take sixty to ninety days. Mr. Walker said there are essentially two options: 1.) The City can withdraw from CDBG Disaster Assistance consideration and proceed with the Wilson flood buyout as previously scheduled; making offers to the first ten properties the first week in February. The City would be responsible for FEMA matching funds in the amount of one million dollars. 2.) The City can remain in consideration for the CDBG Disaster Assistance grant. The Missouri Economic Development will announce the grant recipients by the end of February. This would cause a delay in the original buyout plans. Mr. Walker said he knows this would cause concern for the residents in the flood buyout but it would provide the City the opportunity, if successful, for the City to receive additional one million dollars whereby the City could help more residents in flood prone areas or use money to address the City’s dire fiscal situation. Mr. Price said he was against the delay. He said it was like bait and switch; the City has been fooling with this for two years. The people have been promised things along the way and the purchase was supposed to take place next week. Now at the last hour, you submit an application and if you get it and if it is approved, the funding would not start till April or May. Mr. Price noted that the larger government does not work on the time table they say. Therefore, we are asking the people to go through the stormy season again, expecting a ton of rain from all the snow up north. Mr. Price said the people were told something a week ago and today the Council is voting on something contradictory to what folks were told a week ago. He said the million dollars was already budgeted for; has nothing to do with the dire straits. Mr. Glickert said he has not had a chance to digest the options. He said in a cursory glance at the email, it is his understanding that the City has until January 28 to make a decision and will not be voted on tonight. Mayor Welsch said Mr. Walker has asked for Council’s 7