A Times Editorial

Forgoing federal funds is well-calculated risk

© St. Petersburg Times, published July 28, 2000

Dade City's City Hall is hardly a casino, but the City Commission this week gambled a sure thing for a shot at a rich payoff. Don't consider it frivolous. This is a worthwhile wager.

The city is bypassing guaranteed federal dollars, administered by Pasco County, to participate in a state program that could bring significantly more money to Dade City for sewer system expansion and downtown streetscaping.

The bet is $420,000, or three years' worth of federal Community Development Block Grants intended to benefit low- and moderate-income residents. Common uses include paving roads, refurbishing houses, and water and sewer work. In some instances, the money is put toward larger capital projects. New Port Richey, for instance, used so-called CDBG money to build the Claude Pepper Senior Center.

By bowing out of the federal program, Dade City is eligible for the state's Small Cities program and potentially $1.2-million for improvements downtown and to the city sewage system.

Zephyrhills used the same strategy successfully in 1997 to obtain $600,000 for its downtown streetscaping. Additionally, the city is awaiting word on a second $600,000 grant for downtown and a separate $600,000 economic development appropriation for infrastructure improvements tied to the construction of a Wal-Mart supercenter on the city's north side.

A concern raised during the Dade City debate is the need to improve recreational opportunities. Community Development Block Grant funding could finance construction of a recreation center to be leased to the YMCA for its programs. But taking a hiatus from the CDBG program does not preclude the city from seeking other state-administered recreation grants for such things as an outdoor swimming pool.

Likewise, it would be easy to question the wisdom of putting downtown interests ahead of poor neighborhoods in this decision. But more imperative than downtown aesthetics is the expected $3.5-million worth of sewer system improvements. The city is under a state consent order to do the work, but also needs to complete the improvements if it wants a realistic chance to expand its tax base.

"There's no reason to push for economic development if we don't have the infrastructure to handle it," City Manager Doug Drymon said.

And this gambit carries a safety net, albeit one with a price tag. If the city wants to hedge its bet, it can buy back into the housing rehabilitation program by paying a cost equal to 25 percent of the money loaned by the county to property owners.

Commissioner William Dennis cast the only dissenting vote against the strategy, worrying the city had budgeted no money for the buyback, estimated to run about $60,000.

Dennis' reluctance is understandable. Dade City has a significant population that could benefit from the housing program. But the potential long-term benefits, the successful track record of Zephyrhills and the ability to rejoin the housing effort in the future make this a bet worth placing.

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