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City reports progress and structural surprises on downtown CDBG façade project; costs and scope adjusted

2876474 · April 4, 2025
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Summary

City staff reported the CDBG-funded downtown façade revitalization project is about 73% complete, with $915,000 expended against a $650,000 CDBG grant. Structural issues at several buildings added cost and altered scope; two property owners withdrew due to higher-than-expected costs.

City staff on April 3 updated the Muscatine City Council on the status of a Community Development Block Grant (CDBG)–funded downtown façade revitalization project and outlined recent structural discoveries and cost increases.

Jody Royal, Community Development Director for the City of Muscatine, told the council the project targets the north side of the 200 block of East Second Street and now includes nine properties (addresses listed in the application packet). The project received a $650,000 CDBG grant; the city committed $250,000 in tax-increment financing (TIF) façade funds and property owners committed roughly $420,000 in private investment. Royal said about $915,000 has been expended to date (approximately 75% of total), including roughly 75% of the CDBG funds (just under $490,000).

Nut graf: The project is substantially complete at about 73% progress, but structural repairs discovered during work have increased costs and required additional engineering and change orders; the city is coordinating repairs and preserving historic features where possible.

Work accomplished and outstanding items described by Royal: - Completed: asbestos removal, new windows, new doors and hardware where specified, historical-glass repairs including Vitrolite and leaded glass, painting, carpentry and masonry in many buildings. - In progress / less than 50% complete: structural repairs at some buildings (notably columns and failing masonry at 221–223 and a larger-than-anticipated structural issue at 203), aluminum storefronts, some tile repairs on building entrances and associated exterior electrical work. - Change orders and owner withdrawals: Two property owners (originally included in the application) withdrew after bids returned higher than expected; Royal said change order 3 addressed removal of some buildings from the project, additional Vitrolite work, rotted or bowing wood repairs at the laundromat, temporary shoring and additional light fixtures. Structural shoring has been installed where needed and designs for permanent repairs have been prepared.

Royal said the city worked to preserve historic features where possible and has used the city’s TIF façade fund to leverage the CDBG grant and private investment. Royal also said the required second public hearing under IEDA/CDBG rules had been held and that the project meets the CDBG reporting requirement.

Action: The public hearing on the CDBG downtown revitalization status was opened for comment; hearing no public comment, Councilmember Lewis moved to close the public hearing, seconded by Councilmember Gordon; the motion carried with all ayes.

Ending: Royal said structural repairs will increase costs but staff is coordinating solutions that retain historic character where feasible. The council received the status report and the matter will move forward under CDBG reporting requirements.