As of Tuesday, November 4, 2014
DALLAS — The city of Dallas may have to pay an unexpected sum of money to help build the Dallas Area Seniors new senior center, to be constructed on Southwest Church Street, next to the old Carnegie Library.
City Manager Ron Foggin said the Oregon Business Development Department Community Development Block Grant (CDBG) application submitted by the city on behalf of Dallas Area Seniors in September has been reviewed by the state.
“They went through our grant application with a very fine-toothed comb and sent back a number of requests for additional information,” he said Monday during the Dallas City Council meeting.
The state also informed the city that some of the expenses proposed to be paid for with the grant would not be allowed, most notably system development charges (SDCs) associated with the project.
SDCs are fees collected on new construction for infrastructure expansions, such as roads, water and sewer systems.
“We thought part of covering a building permit was covering all the fees, but the CDBG does not cover SDC charges; (they’re) not eligible,” Foggin said.
That leaves the city with the decision whether to cover approximately $46,000 in SDCs for the project to move forward. Foggin said the final decision will be on the council’s agenda for its next meeting on Nov. 20.
“I will remind you that this grant has no match, which makes it really attractive,” Foggin said, noting the grant will amount to between $1.5 million and $2 million.
Councilor Beth Jones asked if the Dallas Area Seniors had volunteered to pay for some of the fees. Foggin said no and that the group has already purchased land and committed to making improvements on a parking lot for the center at the corner of Washington and Church streets.
“I would be reluctant to suggest that this falls to them,” Foggin said.
He noted that after five years, the building will no longer be required to be exclusively used as a senior center. Foggin said given that, he feels it would be appropriate for the city to pay the SDCs.
“After that five years ticks off, we are definitely going to want to program it for some other activities,” Foggin said.
In other business, the council:
• Approved a resolution to lease for 10 years a new fire engine.