Dixon seeks $2M for housing

Dixon seeks $2M for housing
By Melissa Murphy/ MMurphy@TheReporter.com
Posted: 08/10/2009 02:30:38 AM PDT

Dixon is looking for more than $2 million to help with building affordable housing in the city.

City staffers are looking to the City Council for direction in applying for a 2009 Rental Project Grant through the state Department of Housing and Community Development.

The application of up to $2 million is to help with the development of the affordable-housing component of the Jackson Square project near the southeast corner of Jackson and West D streets.

The Jackson Square development has endured several obstacles.

In 2007, planning commissioners voted in favor of recommending the council conditionally approve the tentative map and the development plan; however, later that year, the council voted to deny the plan and map.

Some of the issues for denial, according to a staff report, was the project's orientation toward commuters rather than families and the site's proximity to railroad tracks and an operating grain silo.

It also lacked commercial space that could cater to future users of the transportation center, nearby residents or employees working in the downtown area.

The project has surfaced again because the need for affordable family rental housing is increasing due to the still-struggling economy.

"This proposed project would allow the city to work with a development company capable of attracting federal funding," Economic Development Director Mark Heckey wrote in a staff report.

According to the report, the developer has identified several funding sources to finance the project. Money from the state's HOME Investment Partnership Program are made directly to jurisdictions which apply on behalf of the project developer.

City staff is recommending that the council authorize submission of an application for $2.1 million in HOME funds for the purpose of providing an affordable family housing project at the Jackson Square property.

In other action, the council will be asked to amend the city's annual budget for the Dixon Redevelopment Agency, to reflect the impact of the state's taking of $767,665 to help balance California's budget.

City Manager Nancy Huston notes in a staff report that the money is not a loan and the money will never be returned to the city.

She explained that the funds are being sent to school districts to reduce the amount of money the state's general fund needs to pay the schools.

Huston also adds that council could accept or reject the budget amendments, but the state will confiscate the money regardless of council action.

The Dixon City Council meets at 7 p.m. in the City Council Chamber, 600 East A St.