Newton officials discuss phasing, CDBG application for proposed theme-park improvements

The Newton City Commission received an update on a proposed amendment to the interlocal agreement for the Damien Park theme-park project and on a plan to apply for Community Development Block Grant funding that would pay for a portion of initial construction and design work.

City staff said the project will be formally phased so the city and partners can seek a CDBG award for phase 1, which staff said would likely include engineering and design, bathrooms, pickleball courts and basketball courts; lighting remains under discussion for whether it will be included in phase 1 or delayed to a later phase. Daniela, a city staff member working with project partners, said the original project budget was $2,000,000 with $1,800,000 intended to be raised or committed before moving forward.

Why it matters: the Commission must amend the existing interlocal agreement to reflect phased work and funding requirements before a CDBG application can be submitted. A CDBG award would reduce the amount private fundraising must cover but requires the city and its partners to show how the work will be split into phases and how local matching funds will be provided.

Details from the staff update and discussion - Proposed CDBG request: roughly $700,000–$800,000; staff said the application would require a local match of about 20% (approximately $140,000–$200,000). The Riller Foundation (project partner) has been fundraising and has earmarked match funds, according to staff. "So the current proposal, involves applying for a CDBG grant in the range of 700 to $800,000 This requires a match of about a 140 to $200,000, which the Riller Foundation has fundraised and earmarked," Daniela said. - Phase 1 scope under discussion: engineering and design, bathrooms, pickleball courts and basketball courts. Staff and commissioners discussed removing some lighting from phase 1 to limit costs. Ed, the city’s public works director, said, "Other than the lighting, I think there was some discussion about pulling some of the lighting out completely." - Architecture and engineering work: staff said the city would seek to secure an agreement with Shaffer Architecture to produce a preliminary engineering report, updated renderings and an updated engineer's estimate; the engineer’s estimate on file is about a year old and needs updating. Staff said the architecture contract will be based on a percentage of each phase’s cost and that mobilizing in multiple phases can raise overall project cost. - LMI survey requirement: the application will require a low-to-moderate-income (LMI) survey. Daniela said the Riller Foundation engaged Ransom Financial to perform the survey and "I think we landed in about 400 surveys that would need to be taken and qualify for that income range." Staff said the Kansas Department of Commerce required a community-wide survey rather than a targeted survey for this project because the school and park serve users from across the city. - Deadlines and next steps: staff said the application window is moving quickly and noted a November 14 application deadline; if partners agree, the Commission could be asked to approve the amended memorandum of agreement and hold the required public hearing at the Commission’s October 14 meeting (staff repeatedly identified next Commission action as October 14). Daniela said she would bring a draft MOA to the Commission for approval at the next meeting. - Financial exposure if LMI not met: Commissioners asked about the city’s exposure if the city entered into a contract for engineering before LMI results were known. Staff said they planned to run the LMI process and the contract steps in parallel and added a provision that parties will work in good faith to reimburse the city for costs if the grant application does not proceed.

What commissioners and staff said - Daniela (city staff): "So the current proposal, involves applying for a CDBG grant in the range of 700 to $800,000 This requires a match of about a 140 to $200,000, which the Riller Foundation has fundraised and earmarked." She also briefed the Commission on the LMI survey process and the Kansas Department of Commerce decision that a community-wide survey was required. - Ed (Public Works Director): "Other than the lighting, I think there was some discussion about pulling some of the lighting out completely." He explained the architect’s fee structure would be tied to a percentage of phase costs and that phased construction can increase mobilization costs.

Next steps: staff will return with a draft memorandum of agreement and the documents from Shaffer Architecture; if the partners and Commission agree, a public hearing required by CDBG rules will be scheduled and the city will submit the application if the LMI survey supports eligibility. The Commission took no formal action on the MOA at the meeting; staff described the item as an update and asked for questions and direction to return with an action item.