City committee reverses itself, votes to give money to Racine homeless shelter, literacy council

HALO in Racine

HALO and the Racine Literacy Council will receive federal money from the city this year after changes a committee's vote last week.

Racine's Community Development Committee voted Jan. 7 to reverse its own decision to exclude the homeless shelter and literacy council from Community Development Block Grant dollars.

The committee freed up a portion of the $2.1 million it received from the federal government by removing $50,000 it had set aside for the Flat Iron Mall on Douglas Avenue, $20,000 for the Foundation of Life nonprofit and $15,000 for Project New Life's Project Nehemiah.

The city divvied up the $85,000 for a variety of uses. Along with HALO and the literacy council, the city also gave an extra $435 to the Racine County Economic Development Corp. for commercial corridor staffing, an extra $15,000 for planting trees, $5,000 more dollars for a plaque to mark the Underground Railroad in Racine, and $30,000 more for crosswalk ramps in the city.

Click here for a list of projects city officials recommended for CDBG money. The City Council is scheduled to vote on the proposal next week.

The committee's changes came after it collected public input on its preliminary recommendations on how to spend the block grants. HALO and the literacy council both pushed for funding after getting shut out of the initial recommendations. HALO's exclusion was somewhat surprising because the homeless shelter had received at least $50,000 the last three years.

The shelter's actions were mildly successful. HALO had requested $76,000 in CDBG money, but will receive less than a third of its request.

The Racine Literacy Council will receive $15,000 for its English as a second language program tutoring program.

The big loser in the committee's vote was the Flat Iron Mall, which stood to gain $50,000 to renovate the aging building. The committee narrowly voted to defund the project, with Mayor John Dickert casting the deciding vote against the project.

Opponents pointed out the city's own plans questioned the Flat Iron Mall's long-term viability on Douglas Avenue. Supporters said the mall served as an incubator for small businesses and needed a facelift.

HALO, shut out of city funding, may get another chance at CDBG money

The city's Community Development Block Grant committee will reconsider its decision to deny money to Racine's primary homeless shelter.

The Community Development Committee voted on Oct. 8 to deny HALO's entire request. The shelter had received at least $50,000 in CDBG funding the last three years.

Alderman Greg Helding, who sits on the committee, said Friday he wanted to take another look at HALO's $76,194 request to run its shelters. Helding voted against money for the homeless shelter, but he's since reconsidered his decision.

CDBG money is given out by the federal government to help communities pay for local projects and programs. Helding said the money should be given out based on community priorities, and based on that criteria, HALO was a worthy recipient.

Others on the committee argued the Community Development Committee should consider new programs this year instead of acting out of habit. Ken Lumpkin, who sits on the committee, said all organizations should be eligible for the money.

"There shouldn't be any sacred cows," Lumpkin said. "No organization should be automatic."

The decision on HALO came, in part, because the city received $1.4 million in requests for about $315,000 in CDBG money. Lumpkin said deciding among projects is near impossible because most organizations who apply are doing important work in the community.

"Homelessness is an issue, but joblessness is an issue. So are youths being steered away from gangs," Lumpkin said.

The committee's decision on HALO was surprising because the organization received $50,400 in CDBG funding in 2007, $55,000 in 2008 and $50,000 in 2009. The shelter requested $76,194 for 2010.

The decision drew a strong rebuke from Neal Nottleson, who sits on the shelter's board of directors. Nottleson wrote to community members:

... I could translate the decision to exclude the decision to exclude HALO from ANY CDBG funding for 2010 (after being the recipient of $50,000 this year) as, in effect saying "... we've now resolved the homeless issue; let's move on to other things...". Obviously, nothing could be further from the truth and I don't really believe you think that to be the case, but that's how it could appear.

Nottleson urged the committee to reconsider its decision, and he'll likely get his wish. Helding said the committee's recommendations at the Oct. 8 meeting were preliminary and that he'll ask to reconsider the HALO decision.

The committee's next meeting is Oct. 21.

Committee approves $350,000 for LED street lights; Stimulus money could help city balance budget

It was a good night for Family Services of Racine Executive Director Katie Oatsvall.
She secured $50,000 in stimulus money to make her organization's building handicap accessible.

The city hopes to turn $350,000 in federal stimulus money into $700,000 in savings by replacing street lights with LED fixtures.

The seemingly mundane approval could have a big effect on the city’s bottom line. LED street lights are 45-49 percent more efficient than the We Energies fixtures throughout the city. The $350,000, plus another $300,000 in stimulus money from another source, is expected to replace about 1,300 street lights throughout the city.

The energy savings will come at a critical time. Racine is facing massive cuts in state shared revenue and unexpected bills from the state, according to city officials. In all, the city could be looking at a $1.5 million budget gap next year – a huge amount to overcome.

LED lights should help. The Community Development Committee voted to spend the $350,000 on the new lights Thursday night. The amount was actually cut by $50,000 to give Family Services of Racine money to create a handicap accessible entrance to their building.

In both cases, committee members were swayed by the direct impact the spending would have on the local economy. The LED lights would employ local electricians for several months and help the city’s bottom line in the end. The Family Services project would employ local contractors for two months and help the nonprofit serve its clients better in the future.

Claudius Adebayo, executive director of OIC of Racine County, couldn't convince the committee to give his organization $10,000 to study moving into a new building.

The committee also approved spending $72,500 to join the county’s Green Summer Jobs grant and $7,500 to the Urban League of Racine and Kenosha to help local residents seeking jobs to brush up on math skills to pass employment tests.

The green jobs programs will train 200 14- to 24-year-olds for jobs like community gardening, distributing high-energy light bulbs and replacing windows in homes. The Workforce Development Center put up $450,000 for the program, which will run June 22 to Aug. 14.

The committee’s votes Thursday came after lengthy consideration of eight proposals for use of $534,800 in stimulus money given to the city. The city’s two requests – for LED lights and the green jobs program - took up the bulk of the money. Committee members actually amended the city’s request to include the Urban League and Family Services requests.

Alderman Sandy Weidner also made a motion to give $4,000 to the Racine Literacy Council to work with people at the Workforce Development Center. Her proposal was voted down 8-3.

Weidner's proposal to give $7,500 to the Urban League passed 8-3. Yolanda Adams, president and CEO of the organization, said dozens of potential workers need a math refresher course to pass employment tests. "So many people can do the work, they just need to pass this test," she said.

Alderman David Maack proposed giving the $50,000 to Family Services. It was slightly less than the $55,000 requested by the organization, but Family Services Executive Director Katie Oatsvall said the small gap wouldn't be a problem.

In summary, the committee recommended spending $350,000 on LED streetlights, $72,500 on the green jobs program, $50,000 on Family Services handicap accessibility project and $7,500 on the Urban League's math refresher program. The CDBG money also allows for 10 percent of the funds ($53,480) to go toward program administration such as making copies, filling out paperwork.

Other proposals by Project New Life, the YMCA, Southgate Lodge No. 6 and OIC of Racine County were not given money.

The YMCA’s proposal was hurt because the written plan never made it to city staff. CEO Jeff Collen laid out a $30,500 plan to conserve energy at the building, but the proposal didn’t get much reaction from the committee. (Right: Joe Heck and Jeff Collen talk about what happened to the YMCA's request for the money.)

Collen did share the YMCA is hoping to sell its Racine building, move into another Downtown space and build a new building west of the city. When asked when the Y would like to sell its building, Collen replied: “Now, if we could.”

Debate on the CDBG stimulus money got a little heated. Alderman Aron Wisneski questioned why the city’s two proposals happened to exactly total the amount of the grant. He wanted community organizations to have a chance at the money.

Alderman Greg Helding spoke against the Family Services proposal, noting that giving $50,000 to the group cost the city $100,000 in energy savings. But when it came time to vote, Helding supported the Family Services request, which passed 8-3.

The final proposal passed the committee unanimously. It now goes to the full City Council on Tuesday. Joe Heck, assistant director of development for the city, has to get the proposal sent to the federal government by June 5.