Federal Foundation Assistance Monitor

(COMMUNITY DEVELOPMENT) NE Seeks $3.35M in CDBG-R Funding

\r\nNebraska is expecting to use its $3.35 million of Community Development Block Grant stimulus (CDBG-R) funding to create $13 million of business expansion, infrastructure improvements and business use in buildings bought and renovated using the funds.

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The state's share of the stimulus CDBG funding comes through the American Recovery & Reinvestment Act of 2009 (ARRA) and the state Dept. of Economic Development (DED) proposes to use the money in four cities.

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The DED offers to use $500,000 in the City of Fremont to buy and renovate a building that will attract an overseas business manufacturing and assembling radiators, the state's application says. The radiators produced there will meet federal pollution standards and cut down on the pollution created by importing the product.

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Also, DED seeks to use $850,000 in CDBG-R money for economic development in the City of Columbus, where a new railroad spur will be built to allow a business manufacturing wind towers to expand. The project is expected to create 40 full-time equivalent jobs for at least three years and foster overall energy independence.

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The state will send $850,000 to the City of Kearney to improve local infrastructure and result in movement of a warehouse and distribution facility to the city.

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Finally, the City of Kimball also would get $850,000, which the application says would be used to create another railroad spur. This one, however, would result in expansion by two new businesses. One of these businesses manufactures products for the water and oil industries, while the other specializes in toxic waste removal. The project is expected to create 12 full-time equivalent jobs for at least three years.

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Each project's funding leverages a much larger cost to complete them. For instance, the Fremont CDBG-R funding leverages another $500,000, making it a $1 million project. The Columbus project's CDBG-R funds leverage $2.15 million, making it a $3 million project. Kearney's CDBG-R money leverages another $3.15 million, making that a $4 million project, while the City of Kimball's project leverages another $4.15 million, making it a $5 million project.

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EntitlementCity Proposals

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Lincoln and Omaha were the only cities that qualified for CDBG-R direct funding as CDBG entitlement cities and therefore were not part of the state's plans. Omaha is to receive $1.3 million, while Lincoln is expected to get $474,000.

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Omaha is proposing to use the money for three projects. About $450,000 is headed to finance one project that will result in the demolition of a building, followed by site preparation, installation of both public improvements and geothermal wells, and the conveyance of the property to Greater St. Paul Ministries. Greater St. Paul then will build a 28-unit senior living housing facility using low-income housing tax credits to do so. The CDBG-R money will be combined with nearly $4.1 million in leveraged funding to complete the project.

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A second project will use $275,000 to contract for professional services, prepare sites, install public improvements and geothermal wells that will allow for new housing construction in the Clifton Hills neighborhood. And the city wants to use $460,942 to demolish buildings, obtain professional services, prepare sites and install public improvements and geothermal wells as it sees fit to create new affordable housing at various sites within the city's Neighborhood Revitalization Strategy Areas.

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Lincoln is expected to use $474,644 for four projects. One street-lighting and streetscaping project will use $132,546 and leverage another $89,366. A second street-lighting and streetscaping project will use $226,730, while leveraging the same amount as the first project. Exactly $56,636 in CDBG-R money will be used to conduct a water reclamation project that would involve reusing effluent from the water playground to help irrigate turf and landscaping. Some $35,000 will be used to create hard surface access for those at a park with mobility limitations.

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Info: Lara Huskey, DED, 402/471-3759; James Thele, assistant director, Omaha, 402/444-5206

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