RM 04-13-89 - Laserfiche WebLink

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At present, there are a number of public programs available to communities in the State of In- diana that address economic development. Funding sources include the federal and state governments, and the programs may be administered at the federal, state or local level, depend- ing on the specific program. There are four major categories of economic development programs: 1) financial incentives, which help businesses lower their operating costs; 2) technical assistance directed toward businesses and local governments 3) tax incentives, also intended to lower the costs of doing business; and 4) promotion /coordination activities. Within t category of financial assistance, there are very few programs available to local governme is that can be used for land acquisition or public improvements in conjunction with economic development, i.e., job creation. Although these programs can contribute to a community development strategy, they are limited by their specific scope, by the amount of funds available to a community during a specific time period, and by the timing of their availability (annual application submission, etc.). With the current nienu of development assistance programs, very few offer local governments the flexibility to address their unique community development problems with regard to dollars and activities. To the extent that programs and resources are available, the City, WWCRP, and the SBHF should cooperate in establishing and marketing a "package" of technical and financial assistance programs that can be made available to individuals, businesses, groups of businesses, and to private developers considering rehabilitation of existing buildings as new development in the commercial target areas, and in the industrial area. Communit y Development The City of South Bend receives an annual entitlement of Community Development Block Grant r►-, (CDBG) funds through the U.S. Department of Housing and Urban Development (HUD). CDBG funds can be used for a wide range of projects and activities designed to benefit low - and mode ate- income families or aid in the prevention or elimination of blight. In South Bend, these funs are used to support housing rehabilitation, economic development, and public works projects in several areas of the City. In general, the annual funding limitations of the programs, together with the need to support projects on a City -wide, distributed basis, precludes the type of multi -year funding commitment required for an effective neighborhood revitalization program. The amount of CDBG funds obligated to the neighborhood since December of 1987 totals more than $300,000. A portion of this was used to leverage Section 312 How ing Rehabilitation funds totaling close to $250,000. The City's Department of Economic Development has appropriated another $160,000 to the Near Westside Neighborhood for housing rehabilitation and other neighborhood improvement programs. These figures do not reflect th staff time involved in coordinating the various programs and projects within the neighborhood. New sources of funding as well as ways to better leverage the limited funds available are needed to further support the City's commitment to multi -year funding of the neighborhood revitalization efforts. The City is permitted to borrow against CDBG funds for specific one-time projects as part of the Section 108 loan program. In 1988 the City applied for HUD approval of a $600,000 loan to be used to fund property acquisition, relocation and demolitio projects and activities within the West Washington - Chapin Development Area. The Washington Street Target Area has been selected as the first priority area for the Section 108 loan funds. Those funds not needed for the Washington Street project, if any, are proposed to be allocat d for similar activities in the Chapin Street area. CDBG fu be depenc ganizatior share of f iding for residential rehabilitation and other improvements in the neighborhood will ent on future allocations from the City's funding. WWCRP, other neighborhood or- ;, and residents must be prepared to document and advocate a reasonable and fair ending for the neighborhood on a year -to -year basis. 31