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HomeMy WebLinkAbout25D - AMEND EMPOWER ZONE GRANTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 5, 2004, TITLE: AMENDMENT TO EMPOWERMENT ZONE GRANT AGREEmeNT WITH HUD AND THE STATE OF CALIFORNIA CLERK OF COUNCIL USE ONLY: APPROVED [] As Recommended [] As Amended [] Ordinance on 1st Reading [] Ordinance on 2"d Reading [] Implementing Resolution [] Set Public Hearing For_ CONTINUEDTO FILENUMBER RECOMMENDED ACTION Direct the City Attorney to prepare and authorize Clerk of the Council to execute an amendment to OAgreement with the United States Department of Development, the State of California and the City of the designation of the City of Santa Aha as a Empowerment Zone. the City Manager and the Memorandum of Housing and Urban Santa Aha regarding Round II Federal DISCUSSION In January of 1999, the City of Santa Aha was awarded a Round II Urban Empowerment Zone designation by the United States Department of Housing and Urban Development (HUD). The current Grant Agreement between the City of Santa Ana and HUD obligates the City to conform to the requirements of 24 CFR 85.25 (g) regarding program income as set forth in our Memorandum of Agreement (MOA). Specifically, under provision 24 CFR 85.25 (g) (1) program income is required to be used for program costs ~unless the Federal agency authorizes otherwise." Currently the City has an agreement with the Santa Aha Empowerment Corporation (SAEC) that transfers these obligations to the SAEC. The SAEC is currently generating program income from the repayment of loans. Further, the SAEC will continue to generate program income through investments as part of the "Investment Component" of the SAEC Business Plan. Without amending the existing Grant Agreement and the MOA, the SAEC is limited in its use of these funds (Exhibit A). November 19, 2003, the SAEC Board of Directors approved a recommendation that the Santa Aha City Council approve the subject amendment as presented in this report. Page 41 25.D. Amendment to Empowerment Zone Grant Agreement with HUD and the State of California January 5, 2004 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action item. Executive Director Community Development Agency JPR/WRM/mlr H: AC t ions \ 2004CC \GrantAgreemt 1999 Plning& Impl eGrant &MOAgreemt 1-5-04 25.D. Page 42 AMENDMENT TO 1999 EMPOWERMENT ZONE PLANNING AND IMPLEMENTATION GRANT NO. EZ-99-CA-0001 This Amendment is made to the Grant Agreement for 1999 Empowerment Zone Planning and Implementation Grant No. EZ-99-CA-0001, in the amount of $3,000,000, and the Memorandum of Agreement, among the Department of Housing and Urban Development ("HUD") and the State of California; City of Santa Ana (the "Nominating Entity"), as executed by HUD on or about June 3, 1999, and as previously amended by the Addendum of the same date, the FY 2000 Amendment in the amount of $3,666,667, the FY 2001 Amendments in the amounts of $5,000,000 and $7,306,200, and the FY 2002 Amendment in the amount of $3,000,000 (the "Grant Agreement"). 1. The Grant Agreement is hereby amended as follows: A. Article I, Section D is amended by adding the following at the end thereof: "Notwithstanding the foregoing, amounts received in repayment of loans authorized under this Grant Agreement shall be miscellaneous revenues of the Nominating Entities and Santa Ana Empowerment Corporation, the use of which shall not be restricted or otherwise limited by the requirements of 24 CFR 85.25(g). Any such loan repayments shall not be deducted from total allowable costs pursuant to 24 CFR 85.25(g)(1) and instead shall be added to the funds committed, at any time and from time to time, under the Grant Agreement in accordance with 24 CFR 85.25(g)(2)." B. Article Ili, Section B is amended by adding the words "as modified hereby," after the Words "follow the requirements of 24 CFR Part 85." 2. This Amendment shall be deemed effective as of the date of the Grant Agreement. 1N WITNESS WHEREOF, HUD and the Nominating Entity hereby executes this Amendment. U.S. Department of Housing and Urban Development State of California Authorized Signature Authorized Signature Title Title Date Date City of Santa Ana, California Authorized Signature Title Date 25.D.