Authorizing the City to transfer a total of $902,255 in CDBG-CV award funds
to a specific account for COVID-related spending activities. (Laid over from
October 6.)
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Councilmember Noecker said this stood out. It is a lot of money and it is the end of
this money. She did not see a lot of detail that accompanied this item.
Council President Brendmoen said there is a staff member available.
Claudia Klinkhammer, PED (Planning and Economic Development) said Keystone
Community Services purchased the properties in December 2020 to develop a 20,000
square foot site. It would consolidate food services into one location to distribute food
annually. This project was chosen because of the COVID pandemic. In response to
the pandemic, Keystone provided emergency food due for more than 30,000 additional
people, 4477 households, 21 drive-through food distribution sites since June 2020,
food supports for many people who never used assistance programs before. They
started a new home delivery with 575 individuals. Across Minnesota, food shelves
have seen an increase. Additionally, CDBG services to low and modern income folks
are met by this project. 99% of individuals served by Keystone quality as low to
moderate income. When housing costs require more than 30% of their income,
Keystone provides a critical stop gap. This project is ready to go. They expect to
begin construction in July 2022.
Councilmember Noecker said it sounds like a worthy project. There are lots of worthy
organizations. Was this open to others to apply? How did we come to choose
Keystone? Klinkhammer responded that Brendmoen put this one forward. She
suggested this project when another one was not approved. Brendmoen responded
she is talking about the Firehouse 51 project. The question was is there a process
around that. She recommended something right after that. The question is: "was
there a process?"
Klinkhammer responded she cannot speak in detail to the processes. There were
initial set of projects proposed. She was not part of that team or selection process.
Others involved were not able to be with them today. Brendmoen responded that a
recommendation from a councilmember is not a process. During the pandemic, they
did a lot of food distribution. One backed up Highway 94. People lined up at 10:00
a.m. to give out food. They made people schedule an appointment. They collected
e-mail addresses and cell phone numbers. They were able to reach out to the clients
and asked how would you like to get food distributed to you. They really learned that
people found it or decided to pick it up instead of waiting in line at a food shelf. This
includes closing some food shelves in the neighborhood. Brendmoen said this could
be a replacement for Firehouse 51.
Councilmember Jalali said it was her understanding that the city has an annual CDBG
project. Keystone was motivated to apply because they are moving into the building.
She has visited with them there. They are looking at a range of funding sources. It
was tricky to make the requirements meet the needs. Claudia was not part of that
review team. She wondering if there was anyone else who could speak to the process.
John McCarthy, Office of Financial Services Director, said this is a different bucket of
CDBG funds than they typically receive. They have a process for the typical funding.
This was a special COVID allocation the City received. Keystone reached out to the
City for special funding. They had them submit the same application.
Councilmember Tolbert said this is a fund that they will not have again unless
Congress comes again with another funding. McCarthy responded that is correct.
There are talks with the federal budget, but it would not be exactly the same thing.