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three years, for federal monies, including discretionary funds, to be used for community development and improvement. He directed attention to the cover memo of the three reports which sets forth nine major policy areas for discussion. The City Manager introduced the three people responsible for preparation of the position papers, Richard Goblirsch, Executive Director of the Redevelopment Agency; Charles Zimmerman, Planning Director and Manuel Rede, Assistant to City Manager - Community Relations. Mr. Goblirsch reviewed his position, stating that if the federal monies are used in a concerted effort in the downtown Redevelopment Project Area, it will produce a more visible re- sult and also reduce the cost to the taxpayer by spending federal dollars in lieu of tax increment dollars. In the discussion that followed, questions were raised regard- ing the purpose of the Community Development Act and the legality of using the monies in the Redevelopment Project Area along with the advantages and disadvantages of spreading the funds throughout the various areas of the City to improve housing for low and moderate incomes, and for other projects to improve living conditions in the City. Mr. Goblirsch stated that the federal monies could be used in the Redevelopment Project Area to create senior citizens hous- ing; to acquire needed property; to relocate families; and to improve redevelopment sites. Mr. Rede stated that the intent of the Act is to assist people of low and moderate income; that the principal beneficiaries of the Redevelopment Project Area are commercial and industrial; that the primary benefit to low and moderate income people of that area would be to be relocated elsewhere; that Council should consider the needs of the entire City rather than one concentrated area; that the Act requires low and moderate income citizen participation for implementation of its benefits; and that Council should not support the Redevelopment Project at the expense of the rest of the community. He recommended that Community Relations be authorized to prepare a Community Development Plan under guidance from the City Manager and in cooperation with the Building Department, Housing Authority, Planning Department, Public Works Department, and Redevelopment Agency, and other City departments and community groups. Mr. Goblirsch stated that downtown redevelopment would have an impact on the entire community because for every dollar spent by the Agency, private enterprise spends five dollars; and that redevelopment will be the biggest long-term job generator ever to happen in the City. He recommended that a majority of the funds be committed to Redevelopment, and that the overall plan for Community Development be combined effort of the various City departments, with the Planning Department being charged with the responsibility of producing the actual plan. Mr. Zimmerman stated that the Planning Department believes that the money spent should have a maximum priority impact upon a given area; that it is premature to identify target areas prior to completion of the Housing Element which will point to defini- tive areas of concern; that when the various state mandated elements are completed, Planning will do some very specific community planning; and that right now theirs is a neutral position with respect to the position of the Community Redevelop- ment and Community Relations recommendations. He added that the ripple effect - every dollar spent of Community Development funds should result in a concomitant type of public effect; and that the Planning Department is best qualified by past CITY COUNCIL MINUTES 3 97 OCTOBER 23, 1974