Clark County seeks council direction to pursue $200,000 CDBG grant and federal earmark requests for 701 E. Main (Sea Mar) building

Clark County staff on March 26 asked the county council for direction on a county-owned building at 701 East Main Street in Battle Ground that houses programs operated by Sea Mar Community Health Centers, and received council direction to move ahead with a short-term Community Development Block Grant (CDBG) application and to pursue congressional directed spending for larger repairs.

Michelle Shister, director of Internal Services, told the council the county purchased the property in 1993 with CDBG funds and currently leases it to Sea Mar on a month-to-month basis. She said the county’s 2019 MENG facilities analysis estimated about $1,700,000 in repairs and maintenance would be needed between 2019 and 2029. Shister said the building serves 1,200 to 1,300 clients per month through WIC and maternity-support services.

On the grant question, Rebecca Royce, program coordinator in community services, explained HUD guidance: the county may, in limited circumstances, execute a special sale and transfer a CDBG-funded property to a nonprofit for $1, provided the buyer agrees to a covenant that the facility will serve low-income residents for a specified period. Royce said HUD indicated a five-year covenant is required as a minimum; money from any sale would return to the CDBG program and could not be retained by the county.

Shister described a separate, short-term funding prospect: county staff applied for up to $400,000 in CDBG funding and were told the project could be recommended for up to $200,000; that award is not final and would be subject to a 30-day public-comment period. Councilors asked whether $200,000 could address immediate priority repairs; staff said the roof would be the priority and estimated the roof at about $200,000.

Jordan Bogie, senior policy analyst, reported that staff had also discussed the building with congressional staff about pursuing congressionally directed spending (earmark) for a larger package of work. Bogie said Senator Patty Murray’s staff indicated the Sea Mar building would be a competitive candidate and that congressional directed spending requests typically fund projects in the $1 million to $2 million range — compatible with the $1.7 million estimate for the building. He cautioned that the federal budget process is uncertain and any earmark could be a year or longer away.

Council discussion and staff direction: Several councilors said they want to preserve the service in downtown Battle Ground and avoid disrupting Sea Mar’s operations. After discussion of the grant timeline, HUD restrictions and the potential for earmarks, the council gave staff direction to proceed with the CDBG application process (the recommended $200,000), to continue pursuing congressional directed spending requests with federal offices, and to keep exploring sale or transfer options — including the $1 special-sale option — while protecting continuity of service.

Staff cautioned about program timeliness and administrative impacts. Rebecca Royce told the council that if the county accepts CDBG funds and later changes course (for example, by selling the property rather than completing the improvements), the county would need to process a substantial amendment to its CDBG annual action plan and restart public comment procedures; that could lengthen timelines and affect the county’s CDBG timeliness metrics. Royce said program income from a fair-market sale would return to the CDBG program and could affect the county’s timeliness and cash-on-hand calculations used by HUD.

Other details in the record: the building has required maintenance tasks — roof, parking lot repairs, flooring, windows and doors, siding, gutters, lighting, bathroom repairs and future HVAC replacement. Current utilities collected from Sea Mar are nominal ($850–$900 per month), and the county spends approximately $5,000 per year on mandated maintenance items. Sea Mar has another location in Battle Ground but the downtown site is heavily used. Staff said Sea Mar is still considering whether it would accept a special $1 sale if offered.

Outcome and next steps: Councilors signaled majority support for pursuing the $200,000 CDBG recommendation and for moving ahead with congressional directed spending requests; staff will proceed with the CDBG public-comment timeline and keep the council informed. Staff will also follow up with Sea Mar and the City of Battle Ground about possible redevelopment interests and whether a longer covenant than five years could be negotiated.

Ending note: Councilors emphasized minimizing service disruption for Sea Mar clients while exploring funding and disposition options; staff will return to council as options and deadlines unfold.