HomeMy WebLinkAbout1995-07-11 - AGENDA REPORTS - EDA FUNDS (2)NEW BUSINESS
DATE:
SUBJECT:
AGENDA REPORT
City Manager Approval
Item to be presented by:
Michael K. Haviland
July 11, 1995
Proposed Expenditure of Economic Development Administration (EDA) Funds
DEPARTMENT: Community Development
Following the January 17 Northridge Earthquake, the Economic Development Administration (EDA)
awarded a grant of approximately five (5) million dollars to the City of Santa Clarita for projects that
demonstrate: 1) Leveraging of the EDA dollars; and, 2) show job creation or retention.
The City Council has approved the use of $837,000 in funds to date, which are currently being
processed through EDA's preapplication process. Staff recommendation of projects was based on
the following criteria: 1) Priorities as identified in the City's Strategic Plan; 2) projects which will be
a substantial impact; and 3) projects which meet EDA requirements of being completed in three (3)
years, demonstrating additional leveraging of EDA dollars, creating jobs, and meeting all Federal
requirements for expenditure of Federal funds. The following is a staff preliminary reconunendation
for projects which would allocate the remaining four (4) million dollars in EDA funds.
Conference Center -$1,675,000
This would be a joint public/private partnership with the Newhall Land and Farming Company to
construct a hotel/conference center near the Valencia MaIL The City's role would be in an investment
in the conference center portion of the project. Preliminary feasibility discussions are underway. No
agreements have been negotiated or entered into. The public interest for conference center is
clearly documented in the City's Strategic Plan process.
Princess CruisesiNewhall Ranch Road Improvement - $1,875,000
A memorandum of agreement would be developed and the City would participate in construction cost
of Newhall Ranch Road up to $1,875,000; if the Newhall Land and Farming Company agrees to
commit $1,875,000 of its funding to subsidize the location of Princess Cruises in Santa Clarita. This
could represent over 1,000 new jobs for Santa Clarita. Construction of the road would be subject
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to the standards of the Davis Bacon Act, and it would be requested that the Newhall Ranch Road
system be owned (dedicated) to the City.
Old Town Newhall Improvements - $320,400
The EDA grant funds must be matched by approximately $500,000. By participating in conjunction
with a tentative proposal for $2,500,000 in CDBG funds for Old Town Newhall earthquake recovery
with $320,400 in EDA funds, the City will meet its "matching" requirement and contribute to the
investment in the revitalization of the Old Town Newhall area. The funds will be used for street
improvement consistent with recommendations of the Old Town Newhall Revitalization Plan.
Staff is currently reviewing alternative investment projects for the Canyon Country area that would
qualify under the EDA guidelines. Various public infrastructure projects such as streets, curbs, and
gutter improvements in conjunction with private development are currently under consideration. No
specific project recommendations are being made at this time.
Because of the time constraints associated with spending these EDA monies, staff has identified a
project that would act as a "back-up" should proceedings on the above projects become halted or
significantly delayed. The project would be an Office/Industrial Development Revolving Loan Fund
to assist new investment into Santa Clarita's office and industrial markets.
It is recoinmended that the City Council review and discuss staff preliminary recommendations and
provide staff with direction to proceed with the identified projects.
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