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HomeMy WebLinkAbout25C - EMPOWERMENT ZONE GRANTS REQUEST FOR COUNCIL ACTION 81TV COUNCIL MEETING DATE: ~ ~ CLERK OF COUNCIL USE ONLY: MAY 17, 2004 TITLE: APPROVED AMENDMENT TO EMPOWERMENT ZONE GRANT AGREEMENT 0 As Recommended 0 As Amended 0 Ordinance on 1" Reading 0 Ordinance on 20d Reading 0 Implementing Resolution 0 Set Public Hearing For !a~R CONTINUED TO FILE NUMBER RECOMMENDED ACTION Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an amendment to the Empowerment Zone Memorandum of Agreement between the City, State, and the U.S. Department of Housing and Urban Development. 8 DISCUSSION At its April 19, 1999 meeting, the City Council authorized the execution of a Memorandum of Agreement (MOA) with the U.S. Department of Housing and Urban Development (HUD) and the State of California establishing Santa Ana as an Urban Empowerment Zone. The Santa Ana Empowerment Zone has been allocated $994,100 for year six funding from HUD. In order to accept the additional Empowerment Zone funds, it is necessary to amend the MOA. In accordance with the Operating Agreement executed between the City of Santa Ana and the Santa Ana Empowerment Corporation (SAEC), the Empowerment Zone Board of Directors is responsible for appropriating funds to the operating budget and to eligible programs that are consistent with the Zone's strategic plan. with this allocation, the Santa Ana Empowerment Zone has received a total of $24,953,300 in federal funding. To date, the Empowerment Zone Board has allocated and/or obligated approximately $22,900,000 to projects/programs that are consistent with the strategic plan and the SAEC Business Plan. In May 2002, the SAEC Board approved a new economic development-driven Business plan that is currently being implemented. ~e new sixth year funds will be added to the unallocated balance utilized for projects/programs that are consistent with the SAEC Business Plan. 25C-1 Amendment to Empowerment Grant Agreement May 17, 2004 Page 2 Zone ENVIRONMENTAL IMPACT This item is purely financial and not subject to the California Environmental Quality Act (CEQA). HUD remains the lead agency for the purposes of compliance with the National Environmental Policy Act (NEPA). FISCAL IMPACT Funds will be appropriated as part of the Fiscal Year 2004-2005 budget. APPROVED AS TO FUNDS AND ACCOUNTS Jo . Reekstin Exe tive Director Community Development Agency !."":.~}::.-w t Executive Director 1J Finance & Management Services Agency JPR/MY-F/m1r H:Actions\2004CC\AmendmentEZGrantAgrmt 5-17-04 25C-2 8 8 8 AMENDMENT TO 1999 EMPOWERMENT ZONE PLANNING AND IMPLEMENTATION GRANT NO. EZ-99-CA-OOOl. BUD's Appropriation for Fiscal Year 2004 provides an additional $14,911,500.00 for grants in connection with the second round of Empowerment Zones program in urban areas designated by the Secretary in 1999 pursuant to the Taxpayer Relief Act of 1997. This appropriation includes $994,100 "for each Empowerment Zone for use in conjunction with economic development activities consistent with the strategic plan of each empowerment zone." At the end of the existing paragraph a new sentence is added to read: In addition to amounts previously provided, and subject to the provisions of the Grant Agreement, BUD will make additional grant funds in the amount of$994,100 available to the EZ. These monies must be drawn down from LOCCS by Sept. 30, 2010. After the end of Article I, Section D of the Grant Agreement is amended by adding a new sentence to read: The Administrative requirements of24 CFR Part 84, including the procurement requirements of 24 CFR Part 84.40 through 84.48, and the requirements of OMB Circular A-122, Cost Principles for Non-Profit Organizations, as appropriate. Article n, Section D, is removed by striking "BUD must approve Request for Release of Funds, Form 7015, prior to drawdown of funds." Authorized Signature U.S. Department of Housing and Urban Development Title Authorized Signature Roy A. Bernardi Date State of California Title Assistant Secretary for Community Planning and Development Authorized Signature Date Title City of Santa Ana Date 25C-3