Mount Carmel Council approves resolution to apply for $1 million CDBG for Motorrad facility

The Mount Carmel City Council voted to approve a resolution authorizing the city to apply for $1,000,000 in economic development funds through the Illinois Community Development Block Grant (CDBG) Small Cities program to support a proposed Motorrad of America Inc. facility.

Jeff Vaughn, grant writer for the Greater Wabash Regional Planning Commission, told the council the application would seek CDBG funds for fixtures, equipment, working capital, land acquisition and construction of a 30,000-square-foot facility, plus entry improvements off the state highway. “I may go a bit overboard here, but better too much than not enough,” Vaughn said during his presentation.

The CDBG program, created by the Federal Housing and Community Development Act of 1974 and administered nationally by the U.S. Department of Housing and Urban Development, is being administered in Illinois through the Department of Commerce and Economic Opportunity (DCEO). Vaughn said Mount Carmel’s project is expected to meet the program’s national objective of benefiting low- and moderate-income (LMI) persons and the state’s economic development goals.

Key figures presented to the council included a requested CDBG award of $1,000,000; a proposed private investment by Motorrad of America Inc. of $3,900,000; and a proposed facility size of 30,000 square feet. Vaughn said income surveys at Motorrad indicate 60% of the project’s jobs would benefit LMI persons, exceeding the 51% threshold the program requires; he calculated that $600,000 of the requested CDBG would directly benefit LMI residents. Vaughn also told the council there would be no displacement caused by the project.

Vaughn said the city would need to include an activity delivery or administration contract with the entity administering the grant; the maximum administrative amount allowed by CDBG is $35,000, and that cost would be borne by the city rather than included in the grant request. He also noted the city is exploring an Illinois Department of Transportation economic development grant to help pay for the entry improvements.

Vaughn reviewed timing and paperwork: the state’s FY 2024 CDBG allocation was cited as $29,464,578 and preliminary guidebook numbers for program year 2025 estimated roughly $19,500,000 for public infrastructure, $7,000,000 for housing rehabilitation and about $1,980,641 for economic development — though he said final 2025 funding levels depend on congressional budget action. He said the city’s application packet was mostly complete but was waiting on a certificate of publication from the Mount Carmel Register and other required signatures.

The council waived a second reading to move the resolution forward. The mayor moved to approve the resolution; a second was recorded. On roll call, Commissioners Eitmeier, Madder, Meador and Zimmerman voted yes. Commissioners Meads and Leakes were recorded as absent. The motion passed and the resolution was approved.

No written public comments were received at the meeting and no members of the public spoke during the public hearing portion, Vaughan said. Vaughn said the Greater Wabash Regional Planning Commission will keep records of any CDBG grants awarded to Mount Carmel at its Albion office and will provide copies of the completed application to the city and to Motorrad.

Next steps outlined by staff include finalizing the application packet, obtaining the certificate of publication, collecting required signatures and submitting the application to the state DCEO for consideration.