Summary The City Commission authorized the application to the Community Development Block Grant program for Economic Development (CDBG-ED) for FFY 2016 on April 24, 2017, which is administered through the Florida Department of Economic Opportunity (DEO). The application was for $1,259,964 in grant funds to provide public street improvements, water lines, wastewater lines and a wastewater lift station to serve a proposed new hotel to be located at 16119 NW US HWY 441 (NW Corner of US 1-75 interchange at US Highway 441).
In general, the purpose of the CDBG program is to develop and preserve decent affordable housing, provide services to the most vulnerable in our communities, and to create and retain jobs. The City's CDBG-ED application focuses on job creation for low and moderate income households. As part of the grant requirements, job creation must be achieved. This particular application has a job creation requirement of at least thirty-six (36) full-time new jobs, of which nineteen (19) are to be for members of low or moderate income households.
The City received notification of grant award in March 2018. The City is required to enter into a Participating Party Agreement with the job creating entity in order to move forward with the grant. The job creating entity is Alachua Highpoint LLC. The purpose of the Participating Party Agreement is to obligate the job creating entity to perform as required by the grant.
City staff and the City Attorney have worked with the City's retained grant administration firm (Summit Professional Services, Inc.) and Alachua Highpoint LLC to finalize the Participating Party Agreement.
Alachua Highpoint LLC has executed the Participating Party Agreement and related Guaranty. Therefore, the City's execution of the Agreement is required. Furthermore, the City Commission's authorization is required to execute the Subgrant Agreement with (DEO). |