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Council okays $1.05M ARPA interest transfers to fund demolition and nonprofit grants; one abstention
Summary
The council approved transfers of $1,050,000 in interest earned on federal ARPA funds: $550,000 for a 'Fight Blight' demolition initiative and $500,000 for Forward Together grants to 18 nonprofits. One council member abstained; public speakers sought more transparency about grant recipients.
The Evansville Common Council on March 31 voted to appropriate $1,050,000 of interest earned on the city’s ARPA (American Rescue Plan Act) award and transfer those funds to the general fund for two initiatives: $550,000 for a “Fight Blight” demolition program and $500,000 for Forward Together grants to 18 nonprofits.
Controller Robert Gunter told council the request is an amendment to the 2025 budget seeking to appropriate interest earned on the city’s ARPA account and transfer the funds to support the two initiatives. Mayor Stephanie Terry described Fight Blight as a targeted effort to remove vacant and deteriorating properties; she said $550,000 could triple the number of blighted structures scheduled for demolition in 2025 and prepare at least 150 properties for demolition by year’s end, noting contractor availability could limit immediate progress.
Terry said the $500,000 Forward Together grants will be distributed to 18 nonprofit organizations that provide services including housing, transportation, mental health, youth development and homeless services. She said the city received 79 applications requesting more than $2.5 million and prioritized projects with demonstrable sustainability and community impact; grant recipients were announced in January and grant agreements have been prepared.
A council member announced an abstention on the vote, saying their development officer’s organization had an awarded application. At the roll call the ordinance passed with eight ayes and one abstention.
Members of the public questioned the list of grant recipients and asked how the funds are being used. Mayor Terry and staff pointed out the recipient list is posted on the city website (evansville.in.gov). City staff clarified these are interest earnings on the ARPA funds and not the ARPA corpus itself; staff said there are no federal restrictions on spending the interest in this way. The council did not change the request and declared the ordinance adopted.
