05-11-09 Community and Economic Developement Development Committee

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~~-}~ ~~ r, ~~ '~' `~ 4` ~ r .COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE MAY 11, 2009 Committee Members Present: Timothy Rouse, Chairperson; Henry Davis, Vice- Chairperson; Ann Puzzello; Karen White; Catherine Andres, Citizen Member; Steve Cooreman, Citizen Member Other Council Members Present: Derek Dieter; Tom LaFountain; David Varner; AI "Buddy" Kirsits Others Present: Mayor Luecke; Jeff Gibney; Gary Gilot; Jeff Vitton; Rita Kopala; Kathleen Cekanski-Farrand Agenda: Bill No. 26-09 -Appropriation -Fund 212 Community Development Stabilization Program This bill appropriates$4,098,521 in federal dollars granted to the city for its Neighborhood Stabilization Program. Chairperson Rouse recognized Jeff Vitton, who represented Pam Meyer in her absence, to outline appropriation specifics. First addressed was the line item to defray oversight and administrative costs of the NSP: South Bend's Department of Community and Economic Development $95,000; South Bend Heritage $160,000 and Near Northwest Neighborhood Inc. $105,000. the balance of the funds were to be divided among the Near Northwest Neighborhood, South Bend Heritage, Habitat for Humanity and the Department of Code Enforcement. Federal regulations for use of the money required it be spent in areas or census tracks with the highest incidence of vacant and abandoned housing and number of foreclosures. In South Bend, following these criteria, the efforts would focus on neighborhoods in the near northwest and near west side. Jeff Gibney, Director of Community and Economic Development provided a general overview of the city's strategy addressing the challenges of rescue and re-hab in declining neighborhoods. He also stressed these problems were not unique to our town, but reflected all across the "rust belt." Specifically, he cited an article recently published in the SB Tribune (see attached) describing these problems all across the U.S. hitting the Midwest "rust belt" hardest. A rather lengthy discussion followed. At issue was the scope of the problem and the city's strategy to address the problems. Councilmember Henry Davis, most spiritedly, questioned whether dollars were being well spent. He favored a more targeted approach where a concentration of resources would make a more visible impact giving people hope. He felt a concentrated approach would more likely spur outside investment capital. Jeff Gibney defended the overall strategy.