The City of Shawano found itself in a unique situation in 2019. The Department of Administration (DOA) had just come to agreement with the Department of Housing and Urban Development (HUD) to liquidate Wisconsin’s CDBG-Economic Development (ED) Revolving Loan Funds (RLF) Program. At the same time, the American Census Survey data shifted the majority of Shawano’s populace into a category of “Low-Moderate-Income” (LMI) households. These two major shifts created an intriguing opportunity that the City could capitalize on.

The City of Shawano had been administering a CDBG-ED revolving loan fund that was granted to the City by the DOA after 1992. Due to the Substantial Amendment No. 3 created by the DOA, the City was forced to devise a plan of liquidation for that RLF.

The MSA funding team consulted with the City on various uses for the fund and ways that they would be able to potentially complete projects that had already been in the conceptual stage. One such project was the design of an open-air plaza as part of a broader revitalization of downtown Shawano. The City’s 2018 Downtown Master Plan had identified a priority to increase foot traffic and to broaden the appeal of the overall downtown shopping experience, an area that had long been known for loyal patronage and the ability to attract tourists. However, the effect of constructing much needed community “super stores,” compounded with the aging infrastructure of the downtown district, was beginning to take a toll on patron use. The Downtown Master Plan identified that an open-air plaza could create a more pleasing atmosphere and reinvigorate the “Downtown Experience.”

The CDBG-PF and CDBG-CLOSE program was identified as the mechanism that could make this project possible with little or no cost to the residents of Shawano. The City’s CDBG-RLF account liquidation opened the door to financing the project. MSA worked to create a modern, accommodating conceptual design for the plaza. The plan would allow for the removal of two condemned, unsafe, previous business buildings and create a connection between the newly constructed Franklin Public Park and the downtown. The plaza design incorporates a variety of user amenities, shaded areas, display and performance areas — and most of all — an inviting environment that will allow the users to relax and enjoy their surroundings.

There were other options to finance the project, but the most appealing was an approach that MSA found successful in other communities. The City would dedicate the new CDBG-CLOSE grant opportunity of slightly more than $500,000 toward the project and also complete a 2020 CDBG-PF grant application. The idea being that the CDBG-PF grant could provide a grant of up to $1,000,000. The CDBG-PF grant would require a 1/3 match amount of approximately $500,000, which would be covered by the City’s CDBG-CLOSE account that had to be liquidated. The end result? The City was able to find the potential funding for 100% of the project’s anticipated cost, saving the residents, users and overall tax base a substantial investment.

The City also benefited by the services MSA was providing to Shawano County by successfully requesting a portion of the Shawano County CDBG-ED Revolving Funds, which also had to be liquidated. Shawano County was in a situation where they had to liquidate almost $800,000 due to the CDBG-CLOSE program. MSA assisted the County in finding CDBG-eligible uses for the CLOSE (RLF) funds. MSA identified CDBG eligible projects in the Village of Gresham, the Village of Tigerton, and future projects within the City of Shawano. MSA then assisted the County in the creation of a resolution that would allocate their CDBG-CLOSE funds to these communities and also retain $75,000 for planning opportunities in Shawano County municipalities whose LMIs exceeded 51%.

The cooperative agreement involving the City of Shawano and Shawano County allowed the City to assist the County by paying off the County’s liability portion of their CDBG-CLOSE account. In return, the City was allocated $400,000 to be applied as grant for an upcoming CDBG-eligible project. MSA then worked with the County to allocate the remaining CDBG-CLOSE funds to the Village of Gresham and the Village of Tigerton. Both of these communities will be able to use in excess of $160,000 in County CLOSE funds for the financing of their previously qualified CDBG-PF projects.