By Vivian Cole
An informational meeting was held on Tuesday, Aug. 22, by the South Haven City Council to present their proposed program budget for the wastewater treatment facility.
Dick Grabko, Director of Community Development with Short Elliot Hendrickson Inc.(SEH), explained the loans and grants programs available to the city. Those include the Rural Development, Rural Utilities Services, Water and Waste Disposal Loans and Grants, Department of Trade and Economic Development, Small Cities Development Program, Public Facilities Authority, and the Wastewater Infrastructure Fund.
The purpose of the meeting was to listen to reasons for and against applying for a grant from the Small Cities Development Program.
The city council will meet on Tuesday, Sept. 5, to decide whether or not to submit an application for a grant.
The application must be submitted by Oct. 1. South Haven is competing with 100 other communities for the funds available.
If the council decides to proceed, the application would be for $881,473, which breaks down to $246,173 for wastewater collection/treatment; $540,000 for single family housing rehab; $60,300 for residential rehab; and $35,000 for general administration.
Because South Haven met income guidelines, the grant would cover up to 90 sewer connections and other related costs for residents and businesses. Notification of the awarding of the grant would be received by March of next year and funding would be made in June. The city could re-apply if it were not funded this year.
The council has been working for a number of years to obtain grant monies for a wastewater treatment and collection facility. The Small Cities funding would be separate from Rural Development funding the city has already qualified for.
The $246,173 covers 90 hookups, with every business and home connected to the proposed sewer system at no cost to the owner, regardless of income. The only cost to owners would be the monthly or bi-monthly fees.
The $540,000 would go to income-eligible homeowners (approximately 25) for home improvements including roofs, heating, plumbing, windows, and insulation. Individual loans/grants would be approximately $18,000 per eligible homeowner. Provided the homeowner does not sell his home for a period of seven years after the home improvements have been made, the loan/grant is forgiven. If the homeowner sells his/her home before the seven years is up, the homeowner would be obligated to repay a portion of the money.
It would be the homeowner’s responsibility to get bids for the work to be done. The homeowner must get at least two bids, and must accept the lowest bid or pay the difference themselves.
The Wright County Community Action (WCCA) will oversee the bids, providing uniform bid sheets. The WCCA will disburse the funds to the contractor.
The $60,300 would be the same as the single family housing rehab but used for residential rental housing.
The $35,000 would be for auditing, billing and general maintenance of the facility.
Any monies left over or repaid to the city would go to the City of South Haven to be used for other city improvements.
After the presentation by Grabko, he took questions from the audience.
A citizen asked, “Will the vacant buildings be hooked up to the sewer system? Is money going to be spent on them?”
Grabko responded, “Yes, we anticipate 90 hookups. We’d have to have the city address that as a policy issue.”
Larry Anderson added, “If the funds are available, we’d have to hook up the vacant buildings or lose the funds.”
Another question asked was “What happens if you die before the seven years is passed?”
“A lien would be filed against your estate,” Grabko said.
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