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Kenner council approves HUD Section 108 loan application for Arthur P. Clay center reconstruction
Summary
The Kenner City Council unanimously approved a Section 108 application to HUD seeking $2,080,445 toward a proposed $4.4 million reconstruction of the Arthur P. Clay Resource Center, which the city plans to lease to a health provider and retain as a public polling site.
The Kenner City Council voted 7-0 on March 10 to approve summary ordinance 13,740, authorizing submission of a Section 108 application to the U.S. Department of Housing and Urban Development for $2,080,445 toward rebuilding the Arthur P. Clay Resource Center.
The application seeks a Section 108 loan as part of a project estimated at $4,400,000 to replace a building the city says was rendered unusable after wind damage. Community Development Department staff presented the plan during a public hearing, saying the replacement would include a new building that houses Inclusive Care — a provider that will offer pharmacy, medical, dental and behavioral health services — a community room and a polling site. Inclusive Care would pay rent under a lease, and the city says any shortfall in rent would be covered from CDBG (Community Development Block Grant) allocation rather than the general fund.
The City’s presentation said the Section 108 vehicle is a low-interest loan repaid over 20 years. The city expects to combine HUD funding with insurance proceeds, prior CDBG funds and other state and local awards; officials said insurance proceeds must be used first and that the final project budget will depend on amounts realized from insurance and other awards.
During the hearing, staff noted demolition cannot proceed until the river stage falls below 11 feet per a Corps of Engineers restriction; the contractor will stage fencing and be ready to demolish once the river level permits. Councilmembers asked about timing and funding; staff said a notice to proceed has been issued and that demolition is anticipated once the levee/river conditions allow. In response to cost questions, staff gave a project estimate in “today’s dollars” but said final funding depends on grant and loan awards and insurance settlement amounts.
No members of the public spoke against the proposal; the council closed the hearing and immediately approved the ordinance. The motion to open the public hearing was made by Council Member Dunne, seconded by Council Member McKenney; the motion to approve the Section 108 application was made by Council Member Dunne, seconded by Council Member McKenney. Vote: 7-0.
The council and staff said they will hold community meetings about the design and scope as the project advances and that the replacement project had been included in the city’s consolidated plan published in February 2023.
