Zoning, Neighborhoods and Development Committee

File: # 130786

Resolution authorizing acceptance & expenditure of a $2 million dollar State Grant for demolition activity

 

Dear Chairman Bohl,

 

The State Department of Financial Institutions is providing a 2 million dollar grant to allow the City to raze 200 residential properties.  A condition of the grant requires that 200 properties be demolished and the City submit for reimbursement by June 14, 2014.  The State will reimburse the City up to $10,000 per property.  The demolition cost for a typical single family or duplex property is approximately $15,700.  To achieve the State’s goal of razing 200 properties will require a City match estimated to be $1.2 million.   A file # 130722 went before today’s Finance & Personnel authorizing additional borrowing to fund the City’s match requirement.  The Committee approved the resolution.

 

If your committee approves this file, the Department will use these funds in concert with demolition funds provided in the 2014 budget.  The proposed budget includes $1,319,000 in demolition funding and $2,220,000 in a Capitol account for demolition activity.  This funding is part of the Mayor’s Strong Neighborhoods Initiative.  The funding in the proposed budget will allow DNS to demolish 200 residential properties.  Combining this with acceptance of the State Grant will increase the number of demolitions to 400.  Additionally, the Mayor’s proposed budget includes funding for DPW to demolish 100 City owned properties (with in-house crews) for a total of 500.

 

The Strong Neighborhoods Initiative proposes to target the activities in specific neighborhoods to gain maximum impact.  While demolition is only one part of a larger strategy, it plays an important part.  Clearing out the seriously distressed properties in a neighborhood will improve the quality of life for the residents, reduce crime, improve property values, and allow for reinvestment in the area.

 

This initiative will draw upon data from multiple agencies to identify which neighborhoods to target.  DNS along with DCD, MPD, MFD, DPW, etc. are already sharing data.  These efforts have identified 3 target areas (Amani, Metcalfe Park, Washington Park).  This will be the starting point.  Other neighborhoods will follow.

 

Please let me know if you would like to meet to discuss this in more detail prior to the Committee hearing.

 

Thank you

 

Art