City won’t get $600,000 grant for downtown project
Some of the wind has been taken out of city government sails when it comes to moving forward with phase two of the Downtown Economic Revitalization Project.
According to city administrator David Rutherford, the city won’t be getting a $600,000 grant from the Appalachian Regional Commission (ARC) because it can’t meet the requirements. The biggest requirement for the grant is the number of projected jobs created once phase two is complete.
‘It may be that we can’t very easily show job creation with infrastructure like sidewalks, roads, water and sewer lines,’ said Rutherford. ‘I don’t know how many new jobs you can show without new buildings or refurbishing anything.’
If awarded, the match might be a bit much. ARC requires a 50/50 match. For $250,000 the city would have to put $250,000 with it.
How the funds are awarded has been changed. The funds are marked as ‘money of last resort.’ An example by Rutherford explains it best:
‘Let’s say the city asked for and receives $200,000 and matches it with $200,000. If the first estimate for the job is $1.2 million and the final cost comes in at $1 million, there will be no ARC funds given because the amount saved matched what was awarded. The funds will be taken back by ARC.’
Although he is leaving the final decision up to aldermen, Rutherford believes the grant will not be awarded even if the city applies given the requirements. He did suggest the city could use the funds it currently has, slightly over $1 million, and get as much done as possible.
Applied for is a $250,000 Community Enhancement Grant from the state. When the application was made, Rutherford warned the money probably wouldn’t be awarded. If it is, that money could be used to extend the project. No word has been received on that grant.
Phase two construction is tentatively set to begin after July 4, 2008 and be finished before Dec. 1, 2008. This will allow the city to hold its downtown Fourth of July and Christmas parade celebrations without interruption.