Maple Street project, funding in ‘limbo’

Creston officials are still waiting for an explanation on the value of a grant used to fund a water infrastructure improvement project that is still under funded.

Creston Waterworks had planned to improve water infrastructure in the 100, 200 and portion of 300 blocks of North Maple Street. But about $240,000 less in funding source has stalled the progression. The $730,000 bid project was partially funded by a Community Block Development Grant valued at $500,000.

But no Creston officials have an explanation if the grant can be delayed until additional funding is found. The grant expires May 31, 2023.

“After talking with two representatives at HUD (Housing and Urban Development) who are the authority entity of IEDA (Iowa Economic Development Authority) for the is grant, they said they do not currently have an extension available for the grant,” Creston Mayor Gabe Carroll told council Tuesday. “They expect to. They don’t know when or for how long. We are in limbo.”

The same officials also have said they are not clear if the May 31 deadline means that is when the work is to be complete or can still be working.

Options bring other challenges.

Carroll said the project can’t be scaled back, to just one block, for example, because by the time it would be bid, “It would eat into working period and to close to that May 31 deadline.” he said.

Carroll said IEDA suggested changing the scope of the project, “But without an extension, that wiped that option off the table,” he said.

Creston Waterworks had said they are not interested in scaling back the project. Carroll said Creston Waterworks expects to have more funding in its own budget next fiscal year.

“So we sit on our hands until we hear from HUD and see about extension. If we don’t grant extensions, we just basically won’t do the project,” Carroll said.

Facing a shortfall of $240,584, Creston Water Works agreed last month to table the work until its October meeting to research additional funding.

The work is part of developer’s proposal to refurbish properties in the 100 block.

The entire project is about $870,000. The shortfall reflects 40% more in the water main work and 15% more in the surface work than what was budgeted. One bid each for the water work and street resurfacing were received Aug. 31. The bids totaled $730,990.

The project was initially funded by a $500,000 CBDG grant, $100,000 from Creston Water Works $27,579 from the city of Creston.

Max Smith of Creston was the bid for the water work at $389,610. Hymbaugh Construction of Creston was the bid for the surface work at $341,380. Bids are good for 60 days.

In other council news:

Council approved payment of $62,371 for airport runway reconstruction.

A public hearing will be at 6 p.m., Oct 18, for a tobacco violation at Walmart. Another public hearing will be held during the same meeting for a upper story housing grant application for 209 W. Montgomery.

Members are needed for planning and zoning; historic preservation; airport commission and water works. Contact city hall for more information.