Dunkirk grant funds on hold (10/26/04)

DUNKIRK — City officials here have learned that until some more homes are built and sold in the Quincy Place subdivision, Dunkirk will no longer be eligible to receive any additional Community Development Block Grant funds from the state.

At Monday night’s city council session, Mayor Sam Hubbard reported the Indiana Department of Commerce Grants Management Office has placed the city in a “findings status,” as a result of the unfinished low-income housing project.

“This status will prevent the city from receiving additional CDBG funds until the beneficiary goal is obtained,” IDOC representative Kelly S. Boe wrote in a letter to the mayor.

Hubbard said the Quincy Place grant project, as initiated in February of 1999, was supposed to have 42 homes built benefiting more than 100 new residents to the city. Currently, there are about 20 people living in the subdivision which has 11 new single-family houses.

The Quincy Place subdivision is located along Highland Avenue on the city’s northeast side.

The city has received more than $480,000 in CDBG funds which have been spent on infrastructure improvements such as streets, curbs and utility improvements. Hubbard said Monday this work has been done according to the grant specifications, but the developer, Ralph Biggs of Ideal Suburban Homes, has just not been able to market and sell the necessary number of homes to satisfy grant administrators.

Hubbard said he has already been in contact with state officials, telling them that despite the efforts and good intentions of the city and developer, “new home sales within Dunkirk have been very slow. One reason for this has been the downturn in the economy over the past three years,” Hubbard said, pointing out that during that time the city lost more than 250 jobs as a result of the down-sizing at Indiana Glass Company.

Hubbard said he is open to suggestions about possible solutions to this dilemma from council members or residents.

In other business Monday night, Hubbard said he has been in contact with Indiana Department of Transportation senior land acquisition specialist Terry W. LeMaster about the progress of acquiring permanent and temporary pieces of right-of-way in connection with the state’s Ind. 167 reconstruction and improvement project. That work is scheduled to begin in 2007.

Hubbard said state officials plan to contact about 65 property owners along both sides of Ind. 167 in Dunkirk. Hubbard said this is the sort of legwork which must be done before the actual construction work can begin.

In other action Monday, council members:

•Discussed the possibility of borrowing money from the city’s sewer fund to help with necessary water department projects. City attorney William Hinkle said that a five-year loan could be made at a very low interest rate.

•Approved spending $22,000 to purchase and have installed a conveyor-style, sludge processing belt with cleats for the wastewater treatment plant from GTC Industries of Indianapolis.

•Agreed to spend $1,800 to replace the clutch on a John Deere tractor for the parks department. This was done by Smith Implements Inc. of Richmond.

•Heard a report from water department superintendent Dace Mumbower about the need to finish flushing hydrants throughout the community on Thursday and Friday, Oct. 28 and 29. He advised residents not to do laundry on those days.

•Received a cautionary message from clerk-treasurer Jane Kesler, calling for city department heads to keep a close watch on spending during the next few weeks, as several departments were nearing their budgetary limits.[[In-content Ad]]