The Atlantic City Council, Wednesday, approved entering into a contract with SWIPCO to pay for a portion of the costs necessary for a Downtown Revitalization CDBG (Community Development Block Grant) application, as it pertains to downtown store front (Facade) improvements. The vote to approve was 5-to 1, with Councilman Dick Casady opposed, and Councilperson Kathy Somers absent. The City will now commit $45,000 for the various studies required to develop the application, including: Slum and blight; Historic District and the project architect fee.

Prior to the vote, Casady asked SWIPCO Lead Planner Alexis Fleener, Lead Planner with SWIPCO, if she feels the City should giveaway taxpayer’s money for the project, and why? She said “If you kind think of Chestnut Street as the experience people have in Atlantic…Chestnut Street is a big draw in Atlantic…you can say that in a way, the appearance of buildings and the experience that people have and the draw that people have to Chestnut Street, is a public good.”

She added that it’s been seen to be a good investment as a way to revitalize the area and help other buildings keep up with the pace. Fleener cited Ottumwa as an example, saying they’ve done multiple phases of the project and now they’re moving towards streetscapes and upper story investments with residential properties, etc. “So it’s really been an economic booster.”

Fleener said to date, 17 downtown property downtown building owners are very interested in participating in the facade program, while another eight are somewhat interested. In order to receive a CDBG award managed by the Iowa Economic Development Authority (IEDA), and the State requires 25-percent Sponsor (City) funding ($250,000), as well as 25-percent Property Owner Funding ($250,000), or a total of $500,000. The State would provide matching funds of $500,00, if the CDBG application is approved.

Fleener said with the current level of interest in the program by business owners, it’s certain that the project will have to be done in two phases, with some of the properties improved at the onset, and others as time moves on. She said it takes a year to complete the studies required, and then another one-to two-years before any work can actually begin, assuming the grant is approved.

Working in phases would also give the city some “Breathing room,” for financing, with cash available again in 2023, according to City Administrator John Lund, who said also he’s already adjusted the Local Option Sales Tax (LOST) Progress Fund budget for FY 2019 to reserve the $45,000 needed for the study. And, he’s addressed the City’s grant match of $250,000, by proposing the City use the remaining $140,892 in the Economic Development Revolving fund in FY 2020, and then transfer $77,055 from the LOST progress fund in both FY 2019 and FY 2020 to cover the expenditures related to the project.