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HomeMy Public PortalAbout1983_02_23_R034The Town of Leesburg in Virginia RESOLUTION NO. A RESOLUTION: PRESENTED February 23, 1983 83-34 ADOPTED February 2.3~ 1983. AUTHORIZING AN Ab~NDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRANT APPLICATION RESOLVED by the Council of the Town of Leesburg in Virginia as follows: The manager is authorized and directed to amend the second year community development block grant application in order to improve project cash flow and to ensure timely implementation to reflect the revised three-year budget shown in a memo to Mayor and Council dated February 10, 1983. PASSED this 23rd day of February , 1983. Robert E ~evi~, ~Mayor' Town of Leesburg ATTEST: Clerk of C~ncil ~ The Town of Leesburg in Virginia February 10, 1983 TO MAYOR AND COUNCIL RE SOUTH HARRISON STREET PROJECT REVISED BUDGET A revised three-year budget for the South Harrison Street Community Develop- ment Project is shown below: Activity Year 1 Street Improvements $ 233,700 Water and Sewer 45,000 Housing Rehabilitation 20,000 Land Acquisition 137,300 Relocation Farmers' Market Town House Park Demolition/Clearance Administration 14,000 TOTAL $ 450,000 Two major changes are proposed. Year 2 Year 3 Total $ 195,800 $ $ 429,500 45,000 15,000 15,000 50,000 174,000 147,900 459,200 50,000 50,000 90,000 90,000 85,000 85,000 75,000 75,000 21,100 21,100 15~.200 16,000 45~200 $ 450~000 $ 450~000 $1~350.,000 First, the townhouse development is shifted from program year two to program year three. Second, purchase of the VEPCO tract is funded over two program years. These changes are necessary to avoid cash flow problems resulting from the nature of block grant funding and impact of purchasing the VEPCO tract in one program year. Purchase of the VEPCO tract as proposed above will cost the town approximately $4,000 in interest, because interest is not an eligible grant expense. Implementa- tion of the South Harrison Street Project would be delayed, however, without these changes. An additional change in strategy may benefit Leesburg substantially. The VEPCO tract will be marketed on a lease/purchase basis so that the majority of -2- program income will be received after the project is complete. This may pro- vide $100,000 to $200,000 which the town can use for a variety of grant-eligible projects throughout Leesburg. Planning and Development