Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
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Agenda Item Title
Title
A Resolution Approving a Professional Services Agreement with the National Development Council for Community Development, Inc., d/b/a National Development Council, in an Amount not to Exceed $70,000.00 and Authorizing its Execution
End
Overview
Overview
This resolution will allow the Village Manager to execute an agreement substantially similar to the one attached with the National Development Council for the purpose of providing the Village with underwriting, monitoring and oversight services related to the Village's Community Development Block Grant (CDBG) Section 108 Loan Guarantee Program to create a $3,000,000 Business Loan Fund.
Body
Staff Recommendation
Approve the resolution.
Fiscal Impact
The consultant will be paid using Program Year 2016 CDBG grant funds. As such, it will have no impact on other projects already funded using PY 2016 funds.
Background
The Village has made economic development a high priority and was approved by the federal Department of Housing and Urban Development (HUD) in November of 2016 to establish a $3,000,000 CDBG Section 108 Loan Fund (Fund).
The Fund will be used by the Village to support businesses expansion and improvement, create and/or retain jobs, assist low/moderate-income households, and deliver positive economic benefits for the Village and its residents.
The Fund works by allowing the Village to take on financing that is secured by future CDBG entitlement grants, which it receives each year from HUD. The Village will use the financing to make loans to local businesses primarily for the purposes of developing or upgrading commercial spaces. The Village in turn, will use the proceeds from these loans to service its debt to HUD. For every $35,000 financed, the loan recipient will need to make one job available to low- or moderate income persons.
As such, it will be im...
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