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Council Manager Memo #40 - May 29, 2009

Calendar Details:
Monday, June 1
       5:00 pm -
Council Workshop, Room 267
       7:30pm - Citizens' Forum, Room 267
Tuesday, June 2
       6:00pm - District 2 Community Meeting, East Stonewall AME Zion Church
Wednesday, June 3
     12:00pm -
Budget Adjustments and Straw Votes meeting, Room 267


Information Items:
Housing and Neighborhood Development Committee Follow-Up: Moore Place Development
Resource:
       Patrick T. Mumford, Neighborhood and Business Services, 704-336-5612,
pmumford@ci.charlotte.nc.us

At the request of Council member Barnes, Kathy Izzard, with the Urban Ministries Center, made a presentation to the City Council's Housing and Neighborhood Development Committee on May 13, 2009 on the proposed Moore Place Development. The attached information is prepared in response to questions from the Committee. Attachments A, B, C and D were provided by the Urban Ministries Center.

The proposed Moore Place facility is being developed by Urban Ministries and will provide housing to chronically homeless individuals. The proposed facility is a new 85-unit, single-room occupancy facility that will be constructed at the corner of Lucena Street and Moretz Avenue in the Druid Hills neighborhood. The two-acre site is zoned I-1, which permits the proposed use.

The total project capital cost is projected to be $6.0 million. Urban Ministries applied to the Housing Trust Fund (HTF) for a grant of $2.0 million. Staff completed the application reviews in mid-May. Based on the HTF's Special Needs evaluation criteria, Moore Place scored below the cut-off line for funding and is not being recommended for funding.

Staff will discuss the FY2009 HTF recommendation with Council during the June 1, 2009 Council Workshop. Council action will be requested at the June 22, 2009 meeting.

Charlotte-Mecklenburg Housing Partnership's Request for Funding (Kohler Avenue Apartments)
Resource:
       Stan Wilson, Neighborhood & Business Services, 704-336-3337,
swilson@ci.charlotte.nc.us

On June 8, 2009, City Council will be asked to approve the Charlotte-Mecklenburg Housing Partnership's (CMHP) request for additional funding in the amount of $908,317 from the City Council approved $5 million Double Oaks set-aside ($2.5 million from the 2008 Housing Bonds and $2.5 million from FY2010 Housing Bonds) for Kohler Avenue Apartments.

The site for the apartments is 1238 Kohler Avenue in the Double Oaks neighborhood. The project is located within the bounds of the City Council approved Statesville Avenue Corridor Plan and the Double Oaks Redevelopment Plan. The proposed new development will consist of 48 rental units, 12 of which will serve households earning 30% and below the area median income (AMI); and the remaining 36 will serve households earning 50% or less than AMI.

On June 11, 2007, City Council approved a Housing Trust Fund (HTF) loan in the amount of $430,000 to the CMHP to develop the Kohler Avenue Apartments in response to an application submitted by CMHP as part of the HTF Request for Proposals process.

CMHP is requesting additional loan funds due to a significant drop in tax credit market pricing, meaning tax credits will yield less money for the project. Furthermore the project was redesigned to adapt to a smaller site which, based on recent construction bids, also contributed to increased costs. The redesign was necessary to make the project consistent with the approved Double Oaks Redevelopment Plan that called for Kohler Avenue to be developed as a dense mixed-use area and a primary entrance to the development.

The funds are requested from the Double Oaks set-aside because the Kohler Avenue Apartments are included in CMHP's commitment to replace 300 affordable housing units in the Double Oaks neighborhood. This commitment is also found in the City Council approved Double Oaks Development Agreement. The following represents CMHP's progress toward its 300 affordable unit commitment:

Kohler Avenue Apartments - 48 Units - Construction commencement June 2009
Gables II Elderly - 72 Units - Construction commencement June 2009
     Total Units - 120

CMHP anticipates beginning construction on the Statesville Avenue Apartments, consisting of 96 affordable units, in August 2009. The completion of this building will provide a total of 216 units toward CMHP's 300 affordable unit commitment.

If Council approves the use of set-aside funds for this request, a balance of $1,591,683 will remain in the account from the $2.5 million allocated from 2008 Housing Bonds and would be available for the Statesville Avenue Apartments should they require additional financing.


Proposed Senate Tax Reform Materials
Staff Resource:
       Greg Gaskins, Finance, 704-336-5885,
ggaskins@charlottenc.gov

Attached are the materials requested by Council at the Tuesday May 26, 2009 Dinner Briefing that were used to evaluate the tax reform proposals that could be introduced to the General Assembly this session. These materials include the analysis of the proposal from the League of Municipalities, analysis from the Charlotte Chamber and an article from the June 2009 Business North Carolina.


Utilities Seeks Alternative Funding for Compressed Natural Gas Project
Staff Resource:
       Doug Bean, Charlotte-Mecklenburg Utilities, 704-391-5070,
dbean@ci.charlotte.nc.us

On May 11, 2009 City Council approved submitting a proposal to the U.S. Department of Energy (DOE) for a "bio-refineries" grant due May 29, 2009. The proposal and project approach was to utilize methane gas produced by the anaerobic digesters at the Irwin Creek Wastewater Treatment Plant and convert this gas to compressed natural gas (CNG) to then fuel fleet vehicles. The City's proposal was seeking $12 million to complete the project. The demonstration project also was to include a grease receiving station to accept grease waste that would help increase methane production.

Since May 11, DOE changed the scope of the requests for proposals, limiting it to projects utilizing only liquid fuels. There are no longer provisions for other fuels such as CNG; however, staff has identified another potential funding source.

A DOE stimulus grant from the Advanced Research Projects Agency is seeking projects that provide options to traditional fossil fuels. The total grant funding is $150 million, with individual awards averaging $2 - $5 million, with potential for up to $10 million. The deadline for submitting a pre-proposal for this grant application is Monday, June 1, 2009.  Staff will submit a pre-proposal for the methane-to-CNG project previously intended for the bio-refineries grant. If awarded, this would come back to Council for grant acceptance.

June 2nd – Small Business Resource Event presented by BusinessFirst Charlotte
Staff Resource:
       Jamie Banks, Neighborhood & Business Services, 704-432-5111,
jbanks@ci.charlotte.nc.us

Neighborhood & Business Services is hosting a Small Business Resource Event, presented by BusinessFirst Charlotte, Tuesday, June 2, 2009 from 8:00 a.m. – 11:30 a.m. at Friendship Missionary Baptist Church Conference Center on Beatties Ford Road. The Business Corridor Symposium Stakeholder Group developed the idea for the event, believing our resources would be best utilized to help small businesses during tough economic times. BusinessFirst Charlotte was chosen as presenter to further encourage small business owners to utilize the program when they encounter a problem or issue. The event format includes panel discussions on topics relevant to small business owners as well as an on-site resource fair to deliver information and technical assistance. All Council members are invited to attend.

Event Outline:
8:00 – 8:15 Assemble
8:15 – 8:30 Welcome by Mayor Pat McCrory
8:20 – 8:25 Event Overview – District Council member James Mitchell
8:25 – 8:40 Economic Overview – Presenter TBD

8:45 – 9:30 Panel: Sales and Marketing Strategies that Work
Moderator: Nancy Rosado, Small Business Opportunity Manager, City of Charlotte
Panelists: Wayne Davis –President of EZ-TIXX; Lena Claxton or Alison Woo of New Media Mavens

9:30 – 10:15 Panel: How to Streamline Operations and Address HR Issues
Moderator: Brad Richardson, Business Attraction and Retention Manager, City of Charlotte
Panelists: Mary Bruce – President of Kaleidoscope Business Options; Kendra Dodd – Human Resources Manager, The Employers Association

10:30 – 11:15 Panel: Funding Strategies and Remaining Bankable
Moderator:
Tom Flynn, Economic Development Manager, City of Charlotte
Panelists: Reggie Godette – First Citizens Loan Officer
George McAllister – Small Business and Technology Development Center Regional Director

Resource Fair to include:

Fifth Third Bank
First Citizens
Wachovia/Wells Fargo
Mechanics and Farmers
Self Help

Small Business Administration
Senior Corp of Retired Executives (SCORE)
Business Expansion Funding Corporation (BEFCOR)
Small Business Technology Development Center (SBTDC)
City of Charlotte Small Business Office (SBO)

BusinessFirst Charlotte
US Postal Service
Central Piedmont Community College