Update to Food Bank of Northeast Georgia grant continues plan for expansion
The Athens-Clarke County Commission will be asked Tuesday to approve an update for a grant program that allows for a reimbursement of money used to purchase land for a new distribution facility for the Food Bank of Northeast Georgia.
The matter is a formality, according to Niki Jones, assistant manager for the government.
The agenda item is tied to the $8.8 million that the Food Bank was allocated from the Department of Community Affairs to expand the facility, Jones said.
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The DCA requires that any budget amendment be approved by the mayor or commission and in this case, it was a reallocation of funds for acquisition of land, he said. The Food Bank has already acquired the land and this money is to reimburse the Food Bank for the purchase.
The Food Bank recently announced it will break ground in the near future on the new facility on land across from its current location at 890 Newton Bridge Rd. The Food Bank serves a 14-county area in Northeast Georgia. The Food Bank has a second distribution center in Rabun County.
A date for the groundbreaking has not been set.
The building will encompass 63,000 square feet or a 65% increase over current capacity, according to the Food Bank, which was founded in 1992.
The Food Bank moved from a location near downtown Athens to Newton Bridge Road in 1997.
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According to the city’s agenda item, in March 2020 the Coronavirus Aid, Relief and Economic Security Act (CARES) provided relief money to the Community Development Block Grant program.
On Nov. 19, 2021, the Northeast Georgia Regional Commission submitted a grant application to the DCA on behalf of the Food Bank for $8.8 million. The grant was awarded on Dec. 12, 2021.
On June 22, the Food Bank received a “green light” to begin acquisition of property for a larger distribution center.
The document shows the Food Bank had an original agreement to purchase the property for $220,000, however, there was not a signed contract to maintain this price.
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However, during this time another potential buyer, who was not named, made a bid on the property and the price for the land was subsequently increased to $585,000, according to the document.
The document also states that federal regulations require that federal funds only be used to pay for property at a fair market value as determined by an appraiser. The property was appraised at $490,000, so the federal funds could only be used for that amount.
However, the document shows the Food Bank agreed to cover that additional cost along with additional closing costs estimated at $145,000.
This article originally appeared on Athens Banner-Herald: Grant program through Athens-Clarke County to assist Food Bank purchase
