Bangor council votes to reallocate some ARPA awards to infrastructure, holds interest earnings until June 30

At a Nov. 25 council workshop, the Bangor City Council voted to reallocate previously obligated American Rescue Plan Act awards for two stalled nonprofit projects to city infrastructure and to hold related interest earnings until a June 30 review. The council’s action followed staff reports that some awarded projects cannot proceed on the original timelines and that the city faces pressing infrastructure needs.

City manager Lori told the council that the city’s ARPA allocation was “just under $20,500,000” and that roughly 80% of those funds were awarded through an open application process aligned to council priorities including childcare, homelessness, housing, job training and mental health. Lori outlined options for reobligating funds if recipients cannot complete projects, saying Treasury rules allow reallocation in limited circumstances and that memoranda of understanding between departments can count as obligations.

Staff flagged several awards as at risk: Wellspring has said it cannot complete its project, and Health Equity Alliance temporarily paused operations, leaving the Heart Center closed and an outstanding fourth-quarter payment that staff recommended reallocating if the organization cannot demonstrate a reopening plan. Together Place Housing and Heart of Maine United Way also continue to seek suitable sites to meet their award conditions.

Council discussion tied those stalled awards to urgent infrastructure needs. Lori said the council previously obligated roughly $2.5 million for housing infrastructure, including an allocation of $2.0 million for development on 10 acres on Grandview Avenue, but that wastewater capacity near the Kmart pump station and Hogan Road limits additional development. She reported a planning estimate, saying “the Kmart pump station is $4,800,000” to upsize piping under the interstate and address capacity constraints.

Councillors debated whether to keep interest earnings available for the original projects or to reallocate the award amounts to infrastructure. Councilor Beck criticized the staff proposal as “basically doing, like, a little bit of a shell game” if the city simultaneously obligates awards elsewhere while holding interest earnings. Councilor Fournier and others argued a limited hold with a firm deadline would be a reasonable compromise to give nonprofits time to firm plans.

A motion (mover and seconder not named in the transcript) to reallocate the awards for Together Place Housing and Heart of Maine United Way to infrastructure and to secure interest earnings until June 30 passed after a roll-call vote. The record in the transcript shows the following responses when the chair called names: Leonard — no; Beck — no; Trumbo — yes; Mallard — no; Haas — no; Frisch — yes; Dean — yes; Poirier — yes. Following the vote, Lori said she would prepare council orders to amend the Heart of Maine United Way, Together Place Housing and HEAL awards and would bring memoranda of understanding to reallocate federal funds to infrastructure and to housing infrastructure at Grandview Avenue.

Council members asked staff to set a review timeline for stalled projects; during debate some councilors suggested updates every six months and a firm deadline if no progress is shown. Council discussion also referenced the option of using interest earnings to hold awards while city staff continue infrastructure planning and to reobligate awarded funds to projects that can be implemented more quickly.

The council did not adopt a final, long-term policy on interest earnings at the meeting; members agreed to return to the topic as staff bring forward council orders and the infrastructure committee receives the planning report on sewer capacity.

Ending: Staff will draft council orders and MOUs reflecting the reallocation and bring detailed documents back to the council and relevant committees for final authorization.