Director flags CDBG reporting errors, rear-Main Street debris problem; council moves to form steering committee

At its Feb. 18 meeting, the Gardner City Council heard a one-month status report from Jason Stevens, the city’s Director of Community Development and Planning, who told the council he had identified reporting errors in the city’s Community Development Block Grant program and structural problems at the Rear Main Street redevelopment site.

Stevens said the city’s CDBG reimbursements were properly allocated and spent but that the department submitted incorrect reports to the state and to Housing and Urban Development, delaying state approval of the FY2025 project and program list. “I want to be clear…all money we have received from CDBG has been properly allocated and spent,” Stevens told the council, but he added that reporting errors must be corrected before the state will approve outstanding reimbursements and the next year’s approvals.

The director said the errors reflect poor management review, gaps in staff training and weak internal policies in his department. He said the city’s process requires submitting quarterly reports to the state and that missing or incorrect reports have blocked reimbursements. Stevens told the council he will prioritize meeting a pre-application deadline later this month and that the mayor has submitted a CDBG ordinance to formalize procedures and a steering committee to govern the program.

Stevens also briefed the council on the Rear Main Street redevelopment, where demolition debris placed as fill after a 2015 demolition is deeper than engineers estimated, creating an unstable subsurface. He said borings that would have revealed the condition were not done during due diligence and that the project budget set aside under 5% for contingency when industry practice calls for 10–20 percent. “A question I had then is why borings were not done as part of the due diligence on this project,” Stevens said. The mayor halted work after the issue was raised and the city, engineers and the city’s purchasing and DPW directors discussed options.

Stevens said the current preferred fix is to place a geotextile fabric covering the area of demolition debris to spread load evenly and reduce shifting under vehicles. He said he will review the original demolition and fill plans to determine how decisions were made and whether they met the specifications at the time.

The council voted to place the director’s one-month update on file and asked Stevens to brief the full council on his results; the motion, made by Councilor Heath and seconded by Councilor Durnalowicz, passed by roll call, 10–0. Later in the meeting, the council voted 10–0 to send an ordinance creating a Community Development Block Grant Steering Committee to first printing.

Why it matters: Errors in CDBG reporting can delay state approvals and reimbursements, which can push projects off schedule or increase costs. Subsurface surprises at redevelopment sites can increase budgets and require redesigns; the director said the mayor and department will keep the council informed as they finalize a path forward.

Next steps: Stevens said his priorities are correcting CDBG reports, meeting the state pre-application deadline later this month, reviewing the Rear Main Street demo documentation, and working with the mayor to keep the council updated. The council will consider the proposed CDBG Steering Committee ordinance at first printing.