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Sandpoint wins $650,000 CDBG award and eyes $1.8M ELTAC funding for downtown Phase 3; federalization raises tradeoffs
Summary
City staff announced a $650,000 CDBG award for downtown Phase 3 streetscape and reported the project ranked high for ELTAC funding (~$1.8M); accepting federal dollars would federalize procurement (NEPA/Buy America/Davis-Bacon), likely delaying construction about a year and increasing costs.
Council members heard a detailed update on the downtown Phase 3 revitalization project and two key grant outcomes during the May 6 Sandpoint City Council meeting. City staff said a $650,000 Community Development Block Grant (CDBG) was awarded for streetscape elements and that the project placed second in ELTAC rankings, signaling likely local highway funding of roughly $1.8 million.
Project manager Eric Bush said the Phase 3 construction scope covers First Avenue from Church Street to Lake Street and potential extensions toward Superior Street, and includes intersection improvements, water main reconstruction, site amenities and street lighting. “We were thrilled — our CDBG application was successful. That was the second-highest point score the Department of Commerce has ever had for a block grant,” Bush told the council.
Why it matters: accepting both federal ELTAC funds and the CDBG would federalize the project. Public Works Director Holly Ellis and Bush explained federalization triggers NEPA and cultural reviews, state historic preservation review, and federal procurement requirements (including Buy America and Davis-Bacon prevailing-wage rules). Those compliance steps typically add six to eight months of review and recordkeeping and can raise project budgeting by roughly 10–30 percent. “With federal funds we have to comply with federal environmental — the NEPA process — and the result is the project being delayed one year,” Ellis said.
Council members weighed the tradeoffs: federal funds could expand the project’s geographic reach (potentially covering First Avenue to Superior Street) and reduce the need to use other local SUR funds, but would increase paperwork, increase contractor costs, and complicate schedule. Staff outlined a middle path of phasing: federalize only dimension-critical elements (for example, the Bridge & First intersection) while leaving other improvements to be contracted separately to limit federalization impacts.
Traffic design work and property impacts: consultants are still modeling operations for proposed roundabouts at two key intersections. Staff said a mini-roundabout at Pine & First faces geometric constraints on the east right-of-way that make it infeasible without major takings. For Superior & First, a refined roundabout footprint would be smaller than previous concepts but would still require property acquisition at each corner and risks removing some mature trees. Bush said traffic modeling by JUB is underway to examine downstream impacts and stacking, with an update expected in June.
Next steps: staff will continue discussions with ITD and ELTAC, complete traffic modeling, refine delivery options and cost-escalation estimates, and return to council in June with recommended procurement and phasing strategies.
Ending: No council action was requested that night; staff directed to report back with refined cost, schedule, and recommended delivery approach at the June meeting.
