City Celebrates Community Investments with CDBG Week

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News Date: 
April 3, 2018
CDBG Celebration event

This year’s CDBG Celebration focused on Economic Development and the City’s Grow Salinas Fund (GSF) partnership with National Development Council (NDC). NDC’s work focuses on HOMES, JOBS and COMMUNITY. NDC has worked for over 50 years fulfilling its mission to increase the flow of capital for investment in low-income communities. NDC directs capital to support the development and preservation of affordable housing, job creation and small business lending to the advancement of livable communities through investment in social infrastructure.

This year’s CDBG Week honorees were presented the David G. Swanson Award. The Award recognizes the contributions in community development in the City of Salinas in recognition of National Community Development and Affordable Housing Week. The City receives an annual approximate allocation of $1,900,000 in CDBG, $550,000 in HOME dollars and $178, 000 in ESG and $872,936 in State ESG.

The City of Salinas and the Grow American Fund (GAF) established and capitalized the Grow Salinas Fund in 2012 as an economic development tool designed to assist small business within the City of Salinas. The Fund goal was $2.2 million in small business lending. The City funded $550,000 toward the GSF. CDBG provided $400,000 and the General Fund covered the remaining $150,000.  The City made $2,719,000 in loans and the City was able to leverage the funds with total loans to six (6) businesses. The City was able to retain and create 73 jobs.

CDBG funding provided the seed money and a $200,000 initial investment was made to one small business, North County Industrial Machine Shop. The GSF provided financing for the site acquisition and purchase of a water jet cutting machine and a high definition plasma cutter to support operations.

April 2nd, the CDBG Week Celebration was held at North County Machine Shop (NCMS). NCMS was established in 2003 and owned by Jose Torres. NCMS has 44 full time employees and $4,200,000 in revenues in 2017. Wages are $11-22/hr and employees receive medical and dental coverage, paid sick leave, 401K benefits and paid holidays and vacations.

The City is also recognizing Food Bank and Central Coast Center for Independent Living, and Central Coast Sign and Design for their contributions in Community Development. Those agencies will be highlighted in a future newsletter.