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Commission approves letter of intent to pursue federal CDBG funding for downtown housing; DDA wins $15,000 Michigan Main Street vibrancy grant
Summary
The commission authorized the city manager to submit a letter of intent so the DDA and Thomas LaVagna Enterprises can pursue up to $700,000 in MSHDA CDBG funding for downtown housing. Separately the DDA announced it received a $15,000 Michigan Main Street vibrancy grant to fund a history walk, mural and other downtown improvements.
The Lapeer City Commission voted Monday to allow the city manager to submit a letter of intent so the Downtown Development Authority (DDA) and Thomas LaVagna Enterprises may pursue Community Development Block Grant funding through the Michigan State Housing Development Authority (MSHDA).
A DDA representative told the commission the letter of intent is required because CDBG funds are federal and must be submitted by the city; the DDA and developer will prepare much of the application work but the city’s signature is necessary to open the opportunity. The grant opportunity, if pursued and awarded, could provide up to $700,000 for a downtown housing project plus administrative fees to the city, the DDA representative said. “Today is just a letter of intent. It doesn't commit to anything. It just opens up that opportunity to apply,” the DDA representative said.
City Manager Mike Womack cautioned commissioners that city staff would likely shoulder some additional workload if the grant is pursued and that the city would be the federal grantee and therefore carry certain federal compliance and liability responsibilities if an award were made. “Buck stops with the city as far as the feds are concerned with grant money,” Womack said. He said city staff would need to review liability issues and the city attorney would be asked to review agreements if the city proceeds to a full application.
Separately, the DDA announced it had received a $15,000 Michigan Main Street vibrancy grant. With DDA contributions the total local investment will be about $18,000, the DDA representative said. The funds will support a downtown history walk, more bike racks, a holiday-themed phone booth installation, a community mural and virtual tour/fundraising software for the downtown.
The commission voted in favor of the letter of intent without recorded roll call; Mayor and commissioners voiced approval by voice vote. Staff said the letter of intent only opens the ability to apply and that any final application and any subsequent grant agreement would return to the commission for approval.
What happens next: the DDA and Thomas LaVagna Enterprises will proceed with application preparations; the city attorney will review liability and grant-administration responsibilities before staff brings any awarded-grant agreements or full applications back to the commission for formal approval.
