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Clifton Heights council adopts cooperation agreement to close out RACP-funded Hillside project
Summary
The borough council unanimously approved a cooperation agreement with the Redevelopment Authority and R2K to enable state Redevelopment Assistance Capital Program (RACP) funds to be routed for reimbursement and closeout of the Hillside project.
Clifton Heights Borough Council voted unanimously to adopt a cooperation agreement that will allow state Redevelopment Assistance Capital Program (RACP) funds to flow through the Redevelopment Authority and be distributed to both the original borrower and R2K partners, facilitating final reimbursement and project closeout.
The agreement matters because R2K is seeking reimbursement of funds it advanced and the state grant involves a substantial matching requirement, council solicitor said; approval clears an administrative step needed to finish auditing and close the grant file.
Solicitor McLean told the council the agreement is a routine cleanup item tied to a RACP grant awarded about a decade earlier. McLean said the grant originally exceeded $4,000,000 and required matching funds, which the borrower at the time did not cover. “They had obtained for the grant, but it's a matching grant. So you have to come up with, you know, that same amount of money,” McLean said. He added the cooperation agreement will allow the state money to be routed “where the money goes from the state to the redevelopment authority, and then down to both the borrower and R2K.”
McLean said R2K has completed the work for which it seeks reimbursement and that the cooperation agreement will help finalize the grant’s audit and closeout: “so that the the whole project can get closed out.”
Councilman Resnick moved adoption of the cooperation agreement; Councilman John Cannon seconded. The motion carried with voice vote.
Council did not allocate new borough funds for the agreement; McLean and others clarified that the borrower and R2K had already expended their respective monies and this action is an administrative step to complete reimbursement and finalize the grant audit. No further timetable for receipt of state reimbursement was stated during the meeting.
The agreement names the Redevelopment Authority, the County of Delaware, the Borough of Clifton Heights, R2K Partners and R2K Properties as participants and pertains to RACP-funded improvements connected with the Hillside project.
