Chehalis council accepts $4 million TIB grant for downtown rejuvenation

The Chehalis City Council on Jan. 26 voted to accept a $4,000,000 Transportation Improvement Board (TIB) grant to fund Phase 1 of the Downtown Rejuvenation Project and adopted Resolution No. 26 to authorize grant acceptance and related implementation steps.

The resolution authorizes the city to accept TIB funding for two priority intersections in the downtown core and to proceed with contract documents to begin engineering work. Project staff told the council the total streets‑and‑sidewalks scope for Phase 1 is currently estimated at about $8,000,000, with TIB covering up to $4,000,000 and the city providing the local match from Transportation Benefit District (TBD) funds and other capital accounts for ineligible items.

"Downtown Chehalis is the heartbeat of our community," Anna Lee said during public comment, urging the council to demonstrate readiness to TIB and to move the project forward to protect businesses and public safety. Larry, a local business supporter, said private investment along the corridor totals about $730,000 and argued timing and rising construction costs make accepting the grant urgent.

City engineering staff described the allocation and schedule: the TIB award covers roughly half of eligible Phase 1 costs in this offer; engineering work is expected through 2026 and construction is planned for 2027, with the city aiming to substantially complete both the north and south intersections by late 2027. Staff identified phase‑1 engineering costs of approximately $1,066,500 and construction management costs around $740,000. Staff also said the city may replace short sections of water or sewer lines discovered during excavation, with a preliminary estimate for one water‑line replacement at about $200,000.

Sheena, a city staffer, explained the funding model and the proposed match: the TBD has an ending cash balance the staff estimated at about $8,700,000 and the staff proposed using approximately $4,000,109.06 from TBD funds to show the local match for this TIB award. Sheena also noted that TBD funds are voter‑approved and dedicated to transportation projects; water and sewer work would be funded from respective capital funds, not TBD.

Several councilors asked for clearer budget breakdowns in the resolution before authorizing spending from specific accounts and sought confirmation that TBD funds were legally eligible for particular stormwater elements. Staff responded that some stormwater work can be covered by TBD dollars and that the city will bring subsequent, itemized resolutions and engineering cost approvals back to council as specific expenses are identified.

After procedural motions to allow first‑and‑final reading, Councilor Bob moved to adopt Resolution No. 26 on first and final reading and the council voted to approve the resolution. The clerk read the resolution authorizing acceptance of the TIB grant and related actions; the motion passed and staff will proceed to finalize procurement for engineering and return to council with contract recommendations.

The next steps described by staff are selecting an engineering firm (a recommendation will be brought to council), completing design and detailed cost estimates during 2026, and moving to construction in 2027, subject to final design and funding refinements.

Resolution 26 records the council's authorization to accept the TIB grant and directs city staff to execute related contract and grant documents. The city will present engineering contracts, final cost breakdowns and any required appropriation requests to the council for approval before incurring non‑transportation capital expenses.