Council signals preference for Action Plan Amendment 3, directs staff to prioritize sewer funding and narrow railroad scope

Paradise Town Council on Tuesday reviewed proposed changes to the town's CDBG-DR infrastructure Action Plan (Amendment 3) and gave staff general direction to prepare a formal amendment that prioritizes wastewater funding while narrowing the scope of the largest road project. Councilors said they want the revised amendment returned for formal consideration at the council's April meeting.

The presentation, led by a town staff member identified as Mark, summarized the town's CDBG-DR allocation and the status of major projects. He said the town initially secured about $199 million from the state's HCD-administered CDBG-DR program out of a roughly $317 million statewide allocation, and that matching requirements for projects now total roughly $25.6 million. Mark described four alternatives for reallocating funds and recommended Option 2, which would: (a) adjust the Railroad Extension Phase 1 so it does not connect to Pence (a shorter Phase 1A), (b) preserve $33 million in Local Transportation Climate Adaptation Program (LTCAP) funds for Phase 2, and (c) shift additional CDBG-DR dollars toward the Paradise sewer project to increase construction funding.

Why it matters: Councilors and many public commenters said expanding wastewater capacity is essential to attract businesses and rebuild the town's commercial core, which would in turn improve the town's fiscal health. Several residents, business owners and the Paradise Chamber of Commerce told the council that delivering a sewer system should be a priority because it enables long-term economic recovery. Conversely, other participants stressed that improved evacuation routes and select road connections remain critical public-safety investments identified in the town's long-term recovery and transportation master plans.

Key figures and projects discussed

- CDBG-DR/HCD: The town's original CDBG-DR notice-of-intent package included about 60 projects totaling more than $900 million in estimates; the town was subsequently awarded roughly $199 million. (Town staff presented these figures during the briefing.)

- Paradise Sewer Project: Staff said the town has secured about $30 million in planning funds separate from the $199 million CDBG-DR award; roughly $15 million of the CDBG-DR allocation had earlier been applied toward sewer construction. Staff described pre-construction progress at roughly 33% and said earlier conceptual cost estimates were over $400 million; a final construction target is still to be defined.

- Railroad Extension (Phase 1 and Phase 2): Phase 1 earlier concept estimates were about $66 million; updated consultant estimates range much higher. Staff reported an all-in escalated project cost for Phase 1 in the hundreds of millions (figures presented in the meeting included an escalated estimate of roughly $149 million and other high-level totals in the $143M'$178M range depending on escalation assumptions). Jacobs' estimates showed substantially higher bridge costs than earlier concept work: a previously used bridge estimate of about $12 million was replaced in the updated analysis with a bridge-unit cost on the order of $58.2 million for certain alignment options. Phase 2 has a $33 million LTCAP award and a pending $25 million BUILD grant application to the U.S. Department of Transportation; staff said the town has committed roughly $3.8 million of local funds toward the BUILD match.

- Pentz Road / Skyway / Neal (active-transportation) projects: Staff noted secured active transportation program (ATP) funding for portions of these projects, including about $22.8 million toward the Pentz pathway and roughly $12.9 million for the Neal Road pathway. Staff said some widening and pathway elements are farther advanced than others; in some cases previous cost estimates were reduced after more detailed review (for example, Pentz widening estimates were revised downward in staff materials).

Council direction and next steps

Councilors did not take a formal vote on Amendment 3 during the information-only meeting. After discussion and extended public comment, council members indicated a working preference for Alternative 2: move forward with a reduced Railroad Phase 1 alignment (Phase 1A) that would not extend to Pence Road, preserve competitively awarded LTCAP funds for Phase 2, and increase CDBG-DR allocation to the Paradise sewer project. Council directed staff to prepare the formal Action Plan Amendment 3 consistent with that preference and return it for adoption at the council's April meeting.

Mark summarized staff's requested procedural timeline and asked for direction to proceed: "These are your options, not ours," he said, framing the alternatives as council choices. He asked council members to confirm priorities so staff could finalize the amendment for public review and the council agenda.

Public input and concerns

Public commenters were split in emphasis. Several residents and local business representatives urged prioritizing sewer funding to restore commercial activity and generate long-term tax revenue. The Paradise Chamber of Commerce president told councilors the chamber supports Option 2 because it "incorporates both" sewer and transportation priorities. Other speakers, including long-time residents, pressed the council to retain or accelerate selected evacuation-route and connector projects and to protect neighborhood streets from proposed new alignments.

Several residents raised parcel- and right-of-way concerns where draft maps showed potential alignments crossing private lanes. A limited number of residents asked staff to clarify that no alignment is final and that environmental review and right-of-way processes would follow if an alternative is approved. Staff reiterated that alignments presented in the slide deck were preliminary and that environmental review and public outreach would determine final alignments.

Technical accuracy and cost increases

Multiple council members expressed frustration over the gap between early concept cost estimates and updated consultant estimates. One councilor said the differences were large enough to undermine trust in preliminary estimates; staff acknowledged the disconnect and said the original estimates were rapid, high-level scoping numbers produced under tight timelines, while the updated Jacobs analysis reflects more detailed assumptions about mobilization, drainage, bridge length and unit costs.

Votes and formal actions

No formal motion was introduced for adoption during the meeting. Council provided direction to staff (consensus to prepare Action Plan Amendment 3 consistent with Alternative 2) and requested that the amendment be returned for public hearing and formal adoption at the April council meeting. Staff recorded the direction as the working preference and will present a revised spreadsheet of allocations and a draft amendment for council action.

Ending

Staff said the April agenda item will include a draft amendment for formal action and additional supporting materials; staff also committed to posting presentation materials on the town's website. The council's expressed preference for Alternative 2 will shape the draft presented to the public and returned to the council for adoption.