$136.1 million state leverage further ensures affordable housing, infrastructure improvements, and new quality jobs and investments
LINCOLN, NEB. – March 16, 2011 – (RealEstateRama) –The recently-released 2006-2010 CDBG Investments and Impacts brochure contains eye-opening statistics related to Nebraska’s strategic use of Community Development Block Grant (CDBG).
The state first made use of the funding in 1982 when the Nebraska Department of Economic Development created a state CDBG program to provide citizens with safe, affordable housing and infrastructure, as well as quality jobs and investments through financial assistance to new and expanding businesses. The yearly allocation comes from the U.S. Department of Housing and Urban Development. The cities of Lincoln, Omaha, and, most recently, Bellevue maintain their own allocations.
There were a total 555,855 beneficiaries of the funding from 2006-2010; beneficiaries being the individuals within the service area of the cities, villages, counties and non-profit housing and community development organizations that receive CDBG funds.
Of the total beneficiaries, 285,594 are low- and moderate-income individuals. Additionally, the 1,003 direct jobs created as a result of these projects further spun off into 2,443 primary and secondary jobs.
Projects in the Community Development CDBG funding category breaks down as follows: 37 water/wastewater infrastructure improvement; 12 acquisition of new fire safety trucks and equipment, or fire hall construction/expansion; five architectural barrier removal; two library construction/expansion; 31 street improvement; seven community center expansion/construction; four senior center expansion/construction; and one health clinic expansion/construction.
To see a further breakdown of the statistics by district and/or funded categories, go to: http://www.neded.org/content/view/42/82/
York, Neb. company expands for economic growth
Since 1946, the locally-owned and operated York Cold Storage Co., stored frozen foods, packaged pet foods, and other goods. By 2008, the local owners were ready to retire. The company was also facing several critical issues, including the need to continue strong leadership in the area of accessing global markets if the company was to survive; badly needed facility upgrades; and a potential 40 job loss to the city and surrounding area if the company was forced to close.
While looking to the City for guidance and possible assistance, General manager Adam Broughton contacted the Nebraska Department of Economic Development (DED) about a Community Development Block Grant (CDBG)-funded purchase and expansion.
This project involved many entities working together, including leaders of York Cold Storage Co., city officials and managing directors of Great West-Teeuwissen, LLC, a potential buyer. The $4 million project included $329,000 in new CDBG funds from DED, $171,000 from the City of York’s revolving loan fund, and $3.5 million from private lenders.
The local community really came together to support this project. The City’s revolving loan fund had been identified as a local source of funds early in the process; however, the size and scope of the buyout needed a high level of other leveraged funding. Public meetings and a public hearing drew positive feedback about the buyout of this long-standing York corporate citizen and use of CDBG funding.
Since the project started in late 2008, there have been many benefits to York and the surrounding area. York Cold Storage Co. had always provided jobs for people living throughout the area, and this project helped retain 40 jobs. By the end of 2010, the company had recorded growth, employing 53 full-time workers.