HomeMy WebLinkAbout25A - AMEND FEZ GRANT AGREEMENT· REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
J~ARY 5, 2004~
TITLE:
AMENDMENT TO EMPOWERMENT ZONE
GRANT AGREEMENT WITH HUD AND
THE STATE OF CALIFORNIA
CLERK OF COUNCIL USE ONLY:
APPROVED
CITY MANAGER
[] As Recommended
[] As Amended
Ordinance on 1st Reading
B Ordinance on 2nd Reading
[] Implementing Resolution
[] Set Public Hearing For
RECOMMENDED ACTION
Direct the City Attorney to prepare and authorize the City Manager and
Clerk of the Council to execute an amendment to the Memorandum of
Agreement with the United States Department of Housing and Urban
~evelopment, the State of California and the City of Santa Aha regarding
the designation of the City of Santa Aha as a Round II Federal
Empowerment Zone.
DISCUSSION
In January of 1999, the City of Santa Ana 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 Aha 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).
~__n November 19, 2003, the SAEC Board of Directors
recommendation that the Santa Ana City Council approve
. amendment as presented in this report.
Page 37
approved a
the subject
25.A.
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.
J~P. R~e-ks t in
Executive Director
Community Development Agency
JPR/WRM/mlr
H:Actions\2004CC\GrantAgreemt1999Plning&I~leGrant&MOAgreemt 1-5-04
25.A. Page 38
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 thereofi
"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 III, 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.
IN WITNESS WHEREOF, HUD and the Nominating Entity hereby executes this
Amendment.
U.S. Department of Housing and Urban
Development
State of California
Authorized Signature
Title
Authorized Signature
Title
Date Date
EXHIBIT A
Page 39
25.A.
City of Santa Ana, California
Authorized Signature
Title
Date
25.A.
EXHIBIT A
Page 40