The city is moving forward with two highly-competitive grant applications for scattered site acquisitions and other flood mitigation projects.

The first grant, for $879,630 from the State of Minnesota through the Department of Employment and Economic Development (DEED), would be specifically to benefit low income households; alleviate community needs; and prevent or eliminate slum after the 2008 flood.

Potential projects include property acquisition; the East Side Lake berm, which was not eligible for FEMA funding last year; the North Main Lift Station, which must be relocated; and a flood study on the Turtle Creek area.

The city could learn whether or not it will receive the DEED grant as early as June.

The city has submitted a pre-grant application to the Division of Homeland Security & Emergency Management that identified 20 homes and businesses as impacted by flooding. Qualifications include flood elevations, building elevations, history of flooding events and flood insurance claims.

City engineer Jon Erichson said that of the 20 parcels submitted, up to six may qualify for approximately $1 million in funding, 75 percent of which would come from FEMA. The city would be responsible for the remaining 25 percent, which would come from the half-cent local option sales tax; however, the Department of Natural Resources may match 12.5 percent of that amount.

The grant would require a site maintenance agreement, like grass mowing and sidewalk maintenance.

Erichson said he does not know yet which six parcels could benefit if the city wins the FEMA grant. He said they are scattered throughout Austin.

“I would say if we receive this grant we would feel very fortunate,” Erichson said.

The city will not know the outcome of the FEMA grant until at least this fall.