Council gives consensus to reallocate $188,000 in unspent CDBG funds to Fab Avenue improvements; applicants to present on Thursday

City staff asked the Sierra Vista City Council for guidance on applications for the next program year of the federal Community Development Block Grant (CDBG) program and sought council direction on a proposed reallocation of roughly $188,000 in unspent CDBG funds to improvements at the Fab Avenue property on the West End.

Mermatt, a Community Development staff member, told the council staff is preparing applications with an estimated baseline allocation of about a quarter‑million dollars and that HUD had not yet announced the official allocation. He reviewed program rules: CDBG primarily serves low‑to‑moderate income households, staff said, and federal rules cap the portion devoted to public services at 15 percent of the allocation.

Mermatt said the Neighborhood Commission added a step this year by ranking applications; its recommendation favored directing funds to projects that address infrastructure and public facilities in eligible low‑income block groups. The commission ranked the walkways at the tiny‑home project proposed by Catholic Community Services as its No. 1 priority — a request Mermatt said equates to "just under $60,000." Other applicants include Saint Vincent de Paul (parking‑lot rehabilitation), the Cochise Western Model Railroad Organization (curb, gutter and sidewalk at a Ford Avenue property), United Way (emergency crisis fund/rental and utility assistance) and Better Bucks at Sierra Vista (a request to revive the Better Work program that employed people to remove trash from public lands and run community resource events).

Mermatt also described an unspent $186,000 carryover from last year’s Montebello Fire Safety Improvement Project. He proposed using that carryover to augment a planned Fab Avenue right‑of‑way improvement, coordinate drainage fixes and add frontage landscaping or interim parking improvements. Staff said phase‑one work would focus on drainage and curb, gutter and sidewalk to make the property more usable and that additional funds or state grants could be pursued for a future pocket park or plaza.

During the discussion council members asked about prioritization, the scope of each applicant’s request and steps to notify applicants that their project may be better suited to a different funding source (for example, staff said the Cochise Western Model Railroad Organization’s request was a stronger candidate for an FTA transit grant given its proximity to transit stops). Council Member Rodriguez asked staff to ensure applicants feel consulted if staff steers them to alternate grant opportunities.

After discussion the council signaled consensus to proceed with a substantial amendment to the program year 2024 annual action plan to incorporate the $188,000 carryover for Fab Avenue improvements. Council members directed staff to begin the public‑process steps described by Mermatt: prepare the substantial amendment, open a 30‑day public comment period and hold two public hearings required by the CDBG citizen participation plan.

What happens next: Applicants will give short presentations at the council’s Thursday meeting; staff will draft the annual action plan for public review and then submit it to HUD after the public comment and hearing period. Staff also said it will include the cash‑flow and program details on the city website and work with applicants on alternate grant opportunities where appropriate.