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Council reviews CDBG/HOME allocations and demolition-lien releases for East 10th Street redevelopment
Summary
Council reviewed the annual CDBG ($1.25M) and HOME (~$351K) allocations and heard a proposal to release demolition liens on eight parcels to enable a developer to combine sites for five quad townhouses (20 units) on East 10th Street; staff said lien amounts are roughly $4,000'$4,500 each and proceeds would return to the CDBG program.
Staff presented the annual Community Development Block Grant (CDBG) and HOME allocations and a related redevelopment proposal for properties on East 10th Street.
Chief staff explained that the CDBG budget in the draft action plan totals $1.25 million and the HOME program funding is roughly $351,000 for the program year starting July 1. Council was reminded that these allocations are recurring items included in the draft action plan.
On demolition liens, Lisa explained the request to release liens on properties in the 300 block of East 10th Street that the Chester Redevelopment Authority still holds; the city used CDBG funds years earlier to demolish structures and liens remain. "The leans actually are on the 300 block of East 10th Street. We are working with a redeveloper to combine six properties owned by the Chester redevelopment authority with two properties owned by the developer to do a project of five quads which would be 20 units of rental housing," Lisa said. She told council the liens are each "in the range of 4,000 to 4,500" and date to the late 1990s.
Lisa said the proposed project is market-rate housing, not subsidized housing, and that releasing the liens would facilitate settlement and the developer's land-development approvals. She added that if the liens are removed and the sale proceeds, the money would be returned to the CDBG program.
Council asked about planning approvals and next steps; staff said the project has been shown as a sketch plan but has not yet gone through planning department approvals. Council will consider the lien-release request and the staff memo that explains why removal is appropriate to move the redevelopment forward.
Next steps: staff will prepare the required memos and documentation to support lien removal and the item will be considered by council at its scheduled meeting.
