State discontinues CDBG loan fund programs in towns, including York

YORK – The state has discontinued Community Development Block Grant programs, like the one in York where grant money was given to start the program here.

The program in York started years ago, as the city received funds from the Nebraska Department of Economic Development. The funds were loaned to local businesses who qualified, to do projects that resulted in expansions and subsequent increases in jobs. The money was paid back to the CDBG fund and loaned out again and again as qualifying projects came forward.

This week, a representative of the Southeast Nebraska Development District (SENDD) told the city council, “with your CDBG program, you have been able to make very successful loans. Unfortunately, other communities in the state haven’t been as successful so the state is asking that it ends. Then, the funds that are remaining in the existing funds will go back to a state fund.”

The council was asked to formally discontinue the CDBG loan program.

Cyclonaire was the last company to access the CDBG program in York and it was paid off last year.

“And it’s important to know no property taxes went into this program, at all,” said Mayor Barry Redfern.

“Yes,” the SENDD representative said. “All the money used for this program was a grant from the state which the city loaned out and companies paid back.”

Mayor Redfern said about $97,000 is in the local CDBG account and he noted the request from the state to return the existing money “is a firm request.”

Everyone voted in favor of discontinuing the local CDBG program.

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