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Demolition of Los Gallos set to start; council updates on grants, paving and splash pad projects
Summary
Council and staff reported that demolition bids for the Los Gallos building are in and a contractor should begin work in October. Staff also updated council on stormwater, paving grant pre-applications, federal wastewater grants, playground/splash pad planning and other capital projects.
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City staff reported progress on several capital projects and grant applications at the finance and legislation meeting. The most imminent item: demolition of the Los Gallos building downtown.
Los Gallos demolition and downtown parking: The county land bank and city hosted a bid opening and six contractors toured the building. Contractors’ bids were due about two weeks after the walkthrough; staff said demolition could start within weeks and that the site will be graded as a gravel lot until a stormwater line and paving can be completed. Temporary fencing and staging are expected to take parking spaces downtown for the demolition window.
Preservation and salvage: Contractors agreed to attempt to save historic elements where feasible; staff said the Eagle facade will be preserved, and crews will try to salvage the McKinney façade if it can be removed intact. If not, staff said the design team will recreate the historic façade materials for any barrier or lot treatment.
Grants and paving: Staff said an $800,000 federal wastewater grant was proceeding through committees and that the city remains optimistic pending final sign-off. The city is preparing a pre-application for OPWC paving funds for 2026 and intends to request funding for selected street segments (e.g., Crete Street, Lincoln, Grim Heights). Staff also listed several federal and foundation grant applications in process, including ARC and cybersecurity grants, a playground quote in development and a senior van application.
Splash pad and park projects: The planned splash pad’s location was moved to a right-field-adjacent area to avoid conflicts with an existing disc golf hole; Aqua volunteered to donate water-line work and a contractor volunteered excavation services. Installation excavation was scheduled to begin in mid-September; the pad and associated playground equipment remain dependent on finalized quotes and grant award timing.
Streets and stormwater: A minor delay was reported on a concrete/pipe installation at Bob Seine Way; other street projects are expected to begin imminently. The city is coordinating stormwater work before paving to avoid redoing newly paved areas.
Next steps: Staff will proceed with demolition logistics, coordinate temporary parking changes with downtown property owners, finalize grant paperwork and return to council with contractor quotes and grant award confirmations. Council asked staff to work with the county land bank and downtown businesses on staging and parking while demolition is under way.

