Council approves $1.3 million state grant for Third Street Greenway; members ask why contract preceded funding

The Springfield City Council voted to accept a $1,300,000 grant from the Illinois Department of Commerce and Economic Opportunity for preliminary and design engineering work on the Third Street Greenway, approving a supplemental appropriation and passing the ordinance 8-0 with one member recorded as present.

The ordinance authorizes acceptance and execution of grant number 25203392 and appropriates $1.3 million for preliminary and design engineering services, work that City staff said supports planned redevelopment along Third Street and adjacent areas.

Alderwoman Notriano asked why the city had signed a supplemental agreement with Hansen Professional Services last October before the grant was formally in place and whether the firm would have to front costs and then be reimbursed. Director Fuchs and Budget Director Metzger explained that the grant reimburses expenses and that preliminary engineering is customarily started before a formal award; Metzger cited prior TIGER grant work that began with engineering in 2013 and did not have a signed agreement until 2015.

Metzger also said the grant is reimbursable and that funds must be spent by the end of the grant period. Staff clarified the project’s multiple funding sources and that the $1.3 million would cover engineering services.

Councilors supporting the item said the engineering is necessary for progress on the Third Street Greenway and related redevelopment on Nineteenth Street. Alderman Gregory said he had his questions answered by Hansen and is "comfortable voting" on the item. After discussion the council voted to place the ordinance on final passage and it passed with eight voting yes and one voting present.

Speakers who took part in the discussion included Alderwoman Notriano, Director Fuchs (Public Works), Budget Director Metzger, Alderman Gregory, Alderman Hanauer and multiple council sponsors of the project. Hansen Professional Services was referenced repeatedly but no Hansen representative appears on the meeting roster.

The ordinance authorizes a supplemental appropriation tied to grant number 25203392 and directs funds to preliminary and design engineering for the Third Street Greenway. City staff said the grant period requires expenditure of funds by June 30 of the grant year.

Clarifying details raised in the discussion: the city had previously signed a $250,000 agreement with Hansen for earlier preliminary engineering paid from motor fuel tax; the new supplemental appropriation covers additional engineering costs; the grant is reimbursable so the city must expend funds and seek reimbursement from the state. The vote on final passage was recorded as eight yes, one present.

The council directed staff to continue coordinating with Hansen and to notify councilors when grant awards and contractor notices are anticipated.