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A resolution amending Resolution RS2022-1311 to reallocate funds, which appropriated $15,000,000.00 in American Rescue Plan Act Funds to the Metropolitan Development and Housing Authority, to improve infrastructure at Cayce Place.
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WHEREAS, Resolution RS2022-1311 appropriated $15,000,000.00 in American Rescue Plan Act Funds to the Metropolitan Development and Housing Authority to improve infrastructure at Cayce Place to provide more affordable housing units and to increase safety at Cumberland View; and,
WHEREAS, MDHA initially proposed a $13,300,000.00 infrastructure improvement plan at Cayce Place, allocated between two uses: $7.5 million for a sewer separation project and $5.8 million for water, sewer, roads and sidewalk work; and,
WHEREAS, during the design work for infrastructure improvement at Cayce Place, the estimated cost and scale of construction for the sewer separation project significantly exceeded early projections, causing the construction of the project to extend beyond the timeline for which the ARP Funds need to be expended; and,
WHEREAS, MDHA has proposed to reallocate the Cayce Place infrastructure funds so that the $7.5 million sewer separation project be reduced to $1.9 million, and the $5.8 million for water, sewer, roads and sidewalk work be increased to $11.4 million; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that this resolution be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. The Metropolitan Council accepts this resolution as a recommendation of the COVID-19 Financial Oversight Committee.
Section 2. That Exhibit A to Resolution RS2022-1311 is hereby amended by deleting the Cayce Place ARP funding breakdown in its entirety and replacing it with the following:
Cayce Place
• $1.9M for a sewer separation project that will affect more than 800 units at the site
• $11.4M for water, sewer, roads, sidewalk work at Boscobel IV, Boscobel V, Boscobel VI, 5th & Summer, A2 East and Block 23 West that will impact more than 300 units at the site
The remainder of Exhibit A shall remain in full force and effect.
Section 3. That this Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution amends Resolution No. RS2022-1311 to reallocate American Rescue Plan Act (“ARP”) funds to the Metropolitan Development and Housing Agency (“MDHA”) to improve infrastructure at Cayce Place.
RS2022-1311 allocated $15,000,000 in ARP funds to MDHA. Of those funds, $7,500,000 would be allocated for a sewer separation project at Cayce Place. $5,800,000 was also allocated for water, sewer, roads, and sidewalk work at Cayce Place.
During the design work for the sewer separation project, the cost and scale of construction was projected to significantly exceed early estimates. This would cause the construction of the project to extend beyond the December 31, 2026, deadline in which all ARP funds must be expended.
The resolution under consideration would amend Exhibit A to RS2022-1311 to reallocate the $13,300,000 in ARP funds for the Cayce Place improvements. The amendment would allocate $11,400,000 for water, sewer, roads, sidewalk work at Boscobel IV, Boscobel V, Boscobel VI, 5th & Summer, A2 East and Block 23 West that will impact more than 300 units at the site and $1,900,000 for a sewer separation project that will affect more than 800 units at the site.
No other changes to Exhibit A would be made.