Whereas, The City and the Philadelphia Authority for Industrial Development (PAID) desire to obtain funds from the Commonwealth of Pennsylvania's Office of the Budget, in an amount not to exceed Two Million Nine Hundred Thousand Dollars ($2,900,000) for the undertaking of approved Capital Budget projects under Section 4(c) of the Housing and Redevelopment Assistance Law as amended; and
Whereas, Guidelines issued pursuant to the Housing and Redevelopment Assistance Law, as amended, define a blighted area to include portions of an urban community with economically undesirable land uses; and
Whereas, The City and PAID recognize that blighting influences exist due to economically undesirable land use throughout the City; and
Whereas, One project (Project) is being proposed in order to eliminate the existing blighting influence by and
Whereas, The City and PAID desire to advance the necessary development of the above-referenced Project; and
Whereas, The Housing and Community Development Program authorizes PAID to file applications for grants; and
Whereas, The Commonwealth regulations require the City and/or its designated project recipients to assume the provision of the full matching share of the project costs above the aggregate amount of Two Million Nine Hundred Thousand Dollars ($2,900,000); and
Whereas, The Commonwealth regulations require the City to obligate itself to reimburse the Commonwealth for expenditures found to be ineligible and not reimbursed by the project recipient; and
Whereas, The Commonwealth regulations require the City to enter into a Cooperation Agreement between PAID and the City to create the mechanism to reimburse the state for project expenses found to be ineligible and not reimbursed by the project recipient; and to reimburse the state when warranted for project expenses on projects not completed within the agreed upon term of the grants; and
Whereas, The Commonwealth regulations require City Council's approval prior to PAID's submission of an application; now, therefore
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
Section 1. The City of Philadelphia authorizes the Philadelphia Authority for Industrial Development (PAID) to file applications for Redevelopment Assistance Capital Program Grants through the Commonwealth of Pennsylvania's Office of the Budget, including all understandings and assurances contained therein, in an aggregate amount not to exceed Two Million Nine Hundred Thousand Dollars ($2,900,000) to assist in the development of Nueva Esperanza II as described in Capital Budget Project Itemization Act 2004-40 and as described in Exhibit A attached hereto and incorporated herein.
Section 2. The City of Philadelphia authorizes PAID to enter into grant agreements with the Commonwealth of Pennsylvania's Office of the Budget to carry out the purposes of this Ordinance.
Section 3. The City and/or its designated project recipient will assume the provision of the full matching share of project costs above the aggregate amount of Two Million Nine Hundred Thousand Dollars ($2,900,000).
Section 4. The City or the designated project recipient will reimburse the Commonwealth for the State's share of any expenditure awarded pursuant to this Ordinance that is found by the Office of the Budget to be ineligible.
Section 5. The City of Philadelphia and/or its designated project recipient also agree to guarantee that it shall fully complete the projects within the agreed upon term of the grant (including reasonable extensions requested by the City and/or its designated project recipients).
Section 6. The City Council of Philadelphia also authorizes the City to enter into an agreement with the Philadelphia Authority for Industrial Development (PAID) whereby the City and/or its designated project recipient, at the discretion of the City, will assume the provision of the full local share of the project costs above Two Million Nine Hundred Thousand Dollars ($2,900,000); or to reimburse the Commonwealth for project expenditures for projects not completed within the agreed upon term of the grants.
EXHIBIT A
PROJECT DESCRIPTION
Nueva Esperanza II
Nueva Esperanza. Inc. is a social service provider to the Hispanic community within the area bounded by Olney Avenue, Girard Avenue, Front Street, and Ninth Street. Its stated mission is to assist the low- and moderate-income Hispanic community of Philadelphia in developing housing and economic opportunities.
The Nueva Esperanza II project will renovate 15,000 square feet at 4261 N. 5th Steet for commercial space, and 17,000 square feet at 301 W. Hunting Park Avenue and 400 W. Bristol Street for commercial space and expansion of parking at the N. 5th Street property. Construction began in November 2006 and will be completed in December of 2009. The total project cost is $4.89 million of which $2.9 million of RACP will be applied.
RACP Grant $2,900,000
End