14-H
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to provide direction to the City Manager regarding the reallocation of unused Community Development Block Grant Coronavirus Relief funds (CDBG-CV) for the updated design and sidewalk improvements of the TownCenter Gateway Plaza area located at the northeast corner of Belmont Street and Bellflower Boulevard.
DATE: February 24, 2025
EXECUTIVE SUMMARY
Following completion of the youth, family, and senior citizen services program, there is approximately $307,553 in CDBG-CV funds remaining that can be reallocated towards other programs. An additional $100,000 in CDBG-CV funds previously allocated towards small business start-ups in the Belle Fleur Centre is also available as this amount was not used because of changes to the development. The total amount of CDBG-CV funds proposed for reallocation is $407,553. The Director of Economic Development (“Director”) is seeking direction from the City Council concerning the reallocation of approximately $407,533 of CDBG-CV funds for improvements to TownCenter Gateway Plaza. CDBG- CV funds must be spent by November 2026 or must be returned to the Department of Housing Urban Development (“HUD”).
RECOMMENDATION TO CITY COUNCIL
1) Direct the City Manager to prepare a substantial amendment to the 202 0-21 Annual Action Plan by reallocating $407,553 of CDBG-CV funds for the updated design and sidewalk improvements of the Town Center Gateway Plaza area; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The remaining CDBG-CV funds of $407,553 are estimated to cover the full cost of the proposed TownCenter Gateway Plaza sidewalk improvement project.
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Staff Report – Sidewalk Improvement
February 24, 2025
BACKGROUND
On March 27, 2020, the CARES Act became effective. It made funding available for local governments to prevent, prepare for, and respond to COVID-19. Under the CARES Act, the City initially received $538,180 in CDBG-CV funds from HUD in the first round of CARES Act funding. On September 11, 2020, HUD announced it would be awarding nearly $2 billion in CARES Act funds (“CDBG-CV3”) to local jurisdictions, focusing on communities with higher risk of eviction. The Director was notified that the City would be receiving an additional $650,300 in CDBG-CV3 funds under this new HUD allocation. The City received a total of $1,188,480 of CDBG-CV funding.
The City allocated these funds towards programs addressing emergency residential relief, small business start-ups, food insecurity, and small business grants. Of the $1,188,480 CDBG-CV funds the City received, $780,927 were expended through various programs.
The City funded an emergency rental relief program, which assisted 42 Bellflower residents. In addition, CDBG-CV funds were also allocated to food insecurity programs including a homeless shelter meal program, which was able to assist 112 persons with food, as well as a food insecurity program which assisted 15 families with biweekly grocery pick up. The City has also allocated CDBG-CV funds to a youth/family/senior services program which was able to assist 276 low-and moderate-income Bellflower residents. Grants were also provided to small businesses.
The following table shows the CDBG-CV programs and expenditures that the City funded:
PROGRAM FUNDED
AMOUNT EXPENDED FUNDS REMAINING
Planning and Administration
(20% cap) $237,696 $237,696 $0
Emergency Housing Needs
Assistance $186,784 $181,143 $5,641
Food Insecurity Program $27,000 $24,564 $2,436
Homeless Shelter Meals
Program $30,000 $30,000 $0
Youth/Family/Senior Services $507,000 $213,024 $293,976 Business Assistance Grants $100,000 $94,500 $5,500
New Small Business Start-up
Program $100,000 $0 $100,000
Totals: $1,188,480 $780,927 $407,553
DISCUSSION
The total remaining CDBG-CV funds of $407,553 need to be reallocated and spent before November 2026.
Staff Report – Sidewalk Improvement
February 24, 2025
DISCUSSION – Continued
CDBG-CV funds can be used for a wide range of community development programs to help communities prevent, prepare for, and respond to the direct and indirect effects of the COVID-19 pandemic and to mitigate future risks. As we move away from the COVID-19 crisis it is difficult to address the negative impacts from the pandemic with the required background documentation. As such, we need to re-focus on “Preparing and Preventing” strategies for the future.
These funds can be used to create, expand, or enhance public facilities, such as improved street lighting, the redesign of public sidewalks to encourage social distancing, and physical improvements that ensure accessibility pursuant to the Americans with Disabilities Act (ADA). Funding can also be used for public rights-of-way and outdoor recreational facility improvements. As a COVID-19 tieback, this can be an effective way of creating or updating existing outdoor public spaces with ample lighting suitable for pedestrian traffic and long-term spaces designed to reduce the transmission of future COVID-19.
Working with the Director of Public Works, Economic Development s taff have identified TownCenter Gateway Plaza, the area in front of and adjacent to the kiosks on Belmont Street, as an area for a sidewalk redesign, improved lighting, and ADA improvements.
The existing improvements are 17 years old and in need of a refresh due to the elements, invasive tree roots and years of wear and tear. The Director met with a HUD representative who represented that this use of CDBG-CV funds would have a COVID- 19 tieback by enhancing the public area to encourage social distancing to prevent the spread of COVID-19.
If this direction is approved by City Council, the Director will return in a couple of months with a substantial amendment to the 2020-21 Annual Action Plan HUD requires a 30-day public comment period for a substantial amendment to the CDBG-CV funding allocation.
This reallocation will fund both the design and the construction of the improvements for TownCenter Gateway Plaza.