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Session 1258, Minutes Page 13 September 22, 1980 'k--~$22,500 are available towards this project, which was previously approved by the City Council. The following bids were received: Joseph F. Schiermeier Company Novack Construction Company $ 24,445 $ 26,044 It was recommended that the low bid from Joseph F. Schiermeier Company be accepted. CASA will pay the difference between the Block Grant funds and the total bid. The contractor has been approved by the Department of Human Resources of St. Louis County. Mr. Adams moved approval, with Mr. Sabol seconding the motion. All voted Aye except Mr. Lieberman, who voted Nay. REHABILITATION LOAN GUIDELINES The City Manager said under the Community Development program, revised guidelines for encouraging rehabilitation of multi-family buildings have been submitted to the Council. The City currently reduces the interest rate on a $25,000 loan to 10% at a cost of $8,755. It is proposed that principal reduction of $5,000 be provided, rather than a 5% interest rate reduction. The result on a $25,000 loan would be an expenditure of $5,000 instead of the $8,755 current cost. At the same time, the property owner would be paying somewhat less than at present. This will allow the City to place nearly 80% more loam than under the current guidelines. Mr. Ollen- dorff recommended approval. Mr. Adams moved approval, with Mrs. Thompson seconding the motion. In response to Mr. Kelley's questions, Mr. Ollendorff said the $5000 would be in the form of a cash grant, and would be paid as the work is being done--it can only be used for that purpose. Mr. Kelley asked if the grant is given during the first or the last part of the construction. Mr. Mike Parquette, Community Development Coordinator, was asked to come forward to respond to questions. Mr. Parquette said he is the holder of the check, and if money is needed for certain work, the owner can get a portion, but most of it is held by Mr. Parquette until the work is completed. Mr. Sabol asked if the City will get back any of the grant money, and Mr. Ollendorff said this is not a loan, but a grant. The money comes from Community Development Block Grant funds, and amounts to $50,000, which would be a total of 10 grants under the new guidelines. Mr. Kelley moved the question. Mrs. Metcalfe said she wished to be certain that this grant will not be given in addi- tion to any other form of assistance, that is, that there not be "double-dipping." Mr. Ollendorff said no money is loaned to those using Section 8, but he hoped that those receiving a grant might be able to get assistance elsewhere. 'K"~All voted Aye.