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Allegan council approves application for $2.5M CDBG to repair Rossman Park water system
Summary
City council held a public hearing and voted to authorize staff to apply for up to $2.5 million in Michigan CDBG funds to replace failing water and sanitary infrastructure in Rossman Park, coupling the work with nearby street and sewer repairs and committing to a later local funding plan.
The Allegan City Council voted Monday to authorize the city to apply for a Michigan Economic Development Corporation Community Development Block Grant of up to $2,500,000 to address failing water infrastructure in the Rossman Park neighborhood. City Manager Joel Dye presented photos and maps showing 80-year-old sanitary pipes with large crevices and outlined a proposal to couple water, sewer and road work in the neighborhood.
The grant application requires an initial public hearing; Dye told council the grant application is due May 30, the city will know award status by June 20, and, if awarded, the project must be completed by Dec. 31, 2027. He said the total neighborhood project — water, sewer and street work — is estimated at about $9.53 million and that the city recently received $721,000 in community stabilization funds that can cover road work.
Council members asked how the project would be financed if the grant is not awarded. Dye said the current proposed FY2027 budget does not include the project, but staff would bring a budget adjustment if the grant is awarded; water and sewer rate planning would support bonding for the utility portions. A council member asked whether road work would be paid in cash; staff replied roads would be paid with cash while water and sewer work would be bonded.
The council voted to adopt Resolution 25.16, which authorizes submission of the CDBG application and designates Joel Dye as the certifying official for required environmental review documents. The vote was by voice; no named nay votes were recorded in the transcript.
Next steps: staff will submit the application, monitor award notifications around June 20, and — if funded — present financing and a first budget adjustment to council for follow-up approval.
