Evanston council backs EDA grant applications for wetlands trail and downtown business incubator amid concern over city match

Evanston’s City Council on Jan. 18 voted to submit two Economic Development Administration (EDA) grant applications, approving a wetlands-and-trails project for the Bear River Greenway and a larger proposal to convert the vacant Hotel Evanston into a business incubator.

Staff and a city planner outlined the Bear River Greenway project as a roughly 10-acre wetlands improvement that would repair and expand existing trail loop, add a boardwalk and bird blind, install interpretive signage and edge plantings, and create more low-cost outdoor recreation in a low-income census tract north of I-80. The project’s estimated price tag is about $1.7 million; the EDA requires a 20% local match, which staff said would equal roughly $330,000, and a partner (BRRRR) has pledged $30,000 toward that match. The application is due Feb. 1, with awards expected in spring; if funded, project completion could be as early as the end of next year.

On the larger application, staff described a plan to renovate the Hotel Evanston on Front Street into an Impact 307 business incubator with co-working, office, technology and laboratory space. The total estimated cost to renovate all three floors is about $7.2 million; staff said the EDA typically asks for a 20% match and the city’s proposed match package would include cash, the value of the building (estimated at $100,000–$300,000) and prior work valued at roughly $750,000–$1 million. Staff said the city’s cash obligation, as presented, would be a fraction of the full 20% and that they were exploring in-kind contributions to lower cash needs.

Several council members pressed staff on the financial risks of the incubator proposal. One council member said the project is a “hail Mary” and urged caution given the building’s long vacancy and the large sum required for full renovation. Another council member questioned whether Urban Renewal or the Urban Renewal Agency would benefit and whether the aging hotel is a suitable structure for a $7.2 million renovation. Staff responded that the city would make deeding the building contingent on a successful grant award and that additional state funding (for example, through the Wyoming Business Council) could be pursued if the EDA award did not cover the full cost.

Council members also discussed the likelihood of success: staff said the recreation/tourism grant (Bear River Greenway) likely has a better chance of award than the incubator, but stressed that submitting an application is the only way to be considered. The council voted to submit both applications; the incubator resolution passed with one recorded nay.

Why it matters: the Bear River project promises improved public access and recreational amenities in a lower-income area, while the incubator aims to activate a long-vacant downtown building and support small-business formation — if the city can secure grants and assemble the required matching funds. Next steps: both applications are due Feb. 1; the city expects notifications in spring and will re-evaluate obligations, funding sources and any deeds or transfers contingent on awards.

Quotes: “The cost is about $1,700,000 and we do have to have a 20% match with us,” staff said when describing the Bear River proposal. On the incubator, staff said the $7.2 million total would require a 20% match and that prior work and building value could count toward that match. A council member cautioned, “That building is just not, in my view, designed for that,” expressing concern about sinking large sums into the existing structure.

Votes at a glance: Resolution 22-09 (Bear River Greenway EDA application) — approved by voice vote. Resolution 22-10 (Impact 307 business incubator EDA application) — approved by voice vote with one nay recorded.

The council will await EDA notifications in the spring before committing match funds or deeding property; staff said they would pursue other matching sources if necessary.