The Lester Park Redevelopment Area was established in 1986 and encompasses 76 acres. The Area was formed to undertake projects that would help to upgrade and support the predominant residential character of the neighborhood, yet at the same time improve the quality of the existing commercial and other nonresidential land uses. The redevelopment of vacant/under-utilized land, especially at block centers, is a key aspect of this revitalization effort. Improvements to public facilities and rehabilitation of existing buildings are also primary elements of the plan for this Area.

As part of this effort, the Kier Corporation's renovation of the Fontanelle Apartments on Monroe Boulevard began shortly after the Area was formed. To assist Kier's efforts in renovating this vacant, seriously deteriorated building, the City (through the RDA) loaned Kier $80,000 of CDBG funds to assist with the purchase of the property.

Of this amount, $45,000 was a loan on which Kier makes regular monthly payments. The other $35,000 was a grant, to be repaid from tax increment. The City loaned the RDA the $35,000 at the inter-fund rate. With this loan, the City also assessed the RDA administrative costs of $3,000, to be paid from tax increment. Other smaller amounts of debt have been incurred in this Area in the demolition of buildings and related costs of maintaining RDA-owned property.

It should also be mentioned that, as part of this redevelopment activity, the RDA has used CDBG funds to acquire considerable land on the block bounded by Madison, Monroe, 23rd, and 24th Streets (see attached map). The intent is to put this land in private hands for redevelopment as new owner-occupied homes. Up to this point the land acquisition has not been treated as debt of the Redevelopment Area. This would most likely occur when the land is conveyed to the private developer.

***CDBG provided 100 percent of the financing for this District.