Agenda Item Title:
Approve FY2013 & 2017 Community Development Block Grant – Youth & Family Services CDBG Grant Funds Subordination Request
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
03/14/2018
City Council Hearing Date:
03/19/2018
Petitioner:
Youth and Family Services
Staff Contact:
Barbara Garcia
Agenda Item Summary:
Staff is seeking City Council approval for the Mayor and Finance Officer to sign the Youth & Family Services request for subordination of the Indentures of Covenants for the following grants:
• $15,000 FY2013 Kitchen HVAC dated October 21, 2013; and
• $112,251 FY2017 HVAC, Bathroom remodel, convection ovens and food warming oven.
The YFS building expansion project meets the eligibility for New Markets Tax Credits (NMTC) financing of approximately $2.7 million. Youth & Family Services respectfully requests the City of Rapid City subordinate its rights in and under the indentures of covenants to the rights that Wells Fargo Community Development Enterprise Round 12 Subsidiary 22, LLC, a Delaware limited liability company, NCIF New Markets Capital Fund XXIX CDE, LLC, a Delaware limited liability company , and PCG Sub CDE 5, LLC, a District of Columbia limited liability company, (collectively the NMTC Lenders) will have in the property pursuant to MNTC Lenders leasehold and other security instruments to be executed by Youth & Family Services QALICB, Inc.
Subordination is eligible under CDBG as long as the project will continue to meet the National Objective of providing youth activities with at least 51% of the beneficiaries being low-to-moderate income families
The purpose, mission, and population served and benefiting from these projects will remain the same.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
| Community Development Block Grant FY2013 & FY2017 | |
Recommendations:
Origination Recommendation Action:
Approve