Council delays vote on nearly $1 million COVID-era CDBG allocation for Gruich Center HVAC

The Biloxi City Council on July 15 voted to table a resolution authorizing a contract for HVAC work at the Gruich Community Center while staff and federal officials review whether COVID-era Community Development Block Grant (CDBG-CV) money can be redirected to other local needs.

The measure, moved by Council member Marshall for discussion and seconded by Council member Tisdale, would have authorized a procurement for HVAC replacement recommended by HUD officials. After more than an hour of public and council questioning about project eligibility, timing and local priorities, the council voted to table the item until its July 29 meeting.

Council member Marshall said he asked that the city’s CDBG administrator be present to answer detailed questions about prior amendments and deadlines. “I specifically asked if there are any projects in the last 10 years related to COVID, to CDBG, I need a list of them,” Marshall said during the meeting. He told staff the council needed clearer documentation before deciding whether to commit federal funds.

Susan Pickett, a city community development official, told the council the funding is federal CDBG-CV money tied to pandemic relief and that HUD had recommended the Gruich Center HVAC as an eligible use. She said the remaining CDBG-CV award must be spent and closed out by mid‑2026 and that the program had been amended several times since 2019. “We received 272,000. We proposed and we started a program to do rental assistance... HUD held the program up for 9 months,” Pickett said, describing earlier shifts in program strategy.

Council members raised several alternative proposals during the discussion: targeted housing rehabilitation for low‑ and moderate‑income homeowners, emergency repairs for seniors, park repairs and other neighborhood‑level COVID‑related projects. Council member Creel asked whether a portion of the CDBG‑CV balance could be retained for smaller local projects if the larger HVAC contract proceeded; staff said the remaining funds could be considered but that HUD concurrence would be required.

Numbers discussed during the meeting varied in staff and council remarks. Speakers referred to a roughly $925,000–$939,000 total CDBG‑CV allocation under consideration, a contractor bid in the mid‑$600,000 range (DNP/DMP quoted about $624,750 in the discussion) and an approximate remainder of $300,000–$315,000 for other uses. Council members and staff agreed they will provide exact procurement and grant accounting figures before the next meeting.

The council’s formal motion was to table the resolution; Marshall made the motion and Tisdale seconded it. Council President Gavin called the question and the motion to table carried. The item was rescheduled for the July 29 council meeting for further consideration and a staff update to HUD and Jackson regional offices.

Council members and staff emphasized that tabling was intended to preserve the city’s options and to allow staff to consult HUD about whether housing rehabilitation or other neighborhood repairs could be substituted for the HVAC project and still meet federal CDBG‑CV rules and deadlines.

The council did not approve the HVAC contract at the July 15 meeting; no contract award was executed. Staff said they would return with clearer itemized documentation of past CDBG amendments, the exact federal deadline, and a written set of alternative proposals for HUD review.