The final home in King's Green Phase III was completed and purchased in July 2010. The Community Development Division has $39,043 of HOME left over from the completion of infrastructure development in Phase III. In order to get Phase IV started in July 2011, staff would like to reallocate the left over funds to this final phase of the project. The funds would be used for preliminary engineering costs and to facilitate the request for proposals (RFP) process so that construction can begin soon after July 1, 2011. Upon the completion of the infrastructure of Phase IV, staff will begin securing a developer for the construction of the final 10 homes in this phase via a Request for Proposals process. The Community Development Board reviewed and approved the funding reallocation on Tuesday, March 1, 2011.

Council may:

• Reallocate the $39,043 left over from Phase III of the King’s Green project to Phase IV, which would allow staff to start the beginning stages of this last phase; or
• Not reallocate the $39,043 from Phase III of the King’s Green project to Phase IV, delaying the start of the project by several months.

The HOME funds were already allocated to the King’s Green project.  Reallocating the $39,043 from Phase III to Phase IV will allow staff to begin the ground work for Phase IV on schedule.

Staff recommends that the City Council approve reallocating $39,043 from Phase III of the King’s Green infrastructure development to Phase IV of the King’s Green project. Funds will be used to begin design engineering and the developer RFP process.