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Tarkana Well project cleared biologically; council debates funding routes including CIB application for $5 million
Summary
City staff told the council that biological and cultural surveys are complete for the Tarkana Well corridor, clearing Fish and Wildlife and SHPO concerns; because a previously expected community-project appropriation remains uncertain, staff proposed applying to CIB for a $5 million award and keeping USDA as the lending partner for the remainder.
City staff gave the council an update on the Tarkana Well project on Sept. 3, reporting that the U.S. Fish and Wildlife Service issued a "no impact" finding for listed species and that the State Historic Preservation Office (SHPO) previously cleared cultural resources for the corridor west of town.
The project had been planned around three funding sources: a DFCM award of about $5.5 million that remains available, a $5 million earmark pursued via community-project funding that has not yet been appropriated by the legislature, and USDA financing to cover remaining costs. Staff said the community-project funding bill had not passed; the program later reopened applications and staff resubmitted while awaiting final decisions.
Because the earmark remains uncertain, staff proposed applying to CIB for $5 million as an alternative to fill that funding gap while keeping USDA as a potential lender for the remainder. Staff explained the CIB application cycle — an Oct. 1 deadline for the next trimester and a funding authorization typically effective by February 2026 — and noted that CIB can award a mix of grants and loans based on an application tool that evaluates local resources and bond capacity.
Staff emphasized they will present full project numbers and existing in-kind costs in the CIB application and that the city may be able to reduce project scope (for example by trimming water-right elements) if necessary to match lending capacity. They also said that USDA loan terms could range, with recent estimates discussed in the meeting around 4–6.5 million for different scopes, and that the city should prepare for CIB’s public-hearing requirement early in the application process.
Why it matters: The funding combination will determine the project’s scope and timing. The environmental clearance reduces a major permitting risk; the funding path remains the primary uncertainty. If CIB funds are awarded, the city would still need USDA or other partners to complete the budget for full project scope.
Next steps: Staff said they will prepare application materials for CIB, present public hearing details as required by CIB, and return to the council with specific dollar amounts and recommended mixes of grants/loans for approval.
