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Mount Vernon approves application for $650,000 CDBG façade grant, commits local match
Summary
Mount Vernon City Council approved a federal CDBG application requesting $650,000 for downtown commercial façade improvements, designated a portion of the central business district as slum/blighted to meet program requirements, and committed up to $260,000 in local match funding.
The Mount Vernon City Council on July 20 approved a Community Development Block Grant (CDBG) application seeking $650,000 to rehabilitate storefronts in the downtown 100 blocks of 1st Street.
Tom Gruis, senior planner with the East Central Intergovernmental Association (ECICOG), told the council a building survey found 66.7% of properties in the targeted area rated “fair” or “poor,” a condition that supports the CDBG slum-and-blight national objective. The council adopted Resolution #7-20-2026B designating the targeted portion of the central business district as slum/blighted, a required step before submitting the application.
The project budget was presented as approximately $1,182,844.00. The application requests $650,000 in federal CDBG funds, proposes a City local match (committed via Resolution #7-20-2026C) of up to $260,000—likely funded from TIF—and anticipates participating property owners will cover the remaining estimated $302,844.00.
Gruis said the application will be submitted to the Iowa Department of Economic Development for receipt by August 17, 2026, and noted that typically only building fronts and readily visible sides qualify for façade work under the program. He also explained that because no property acquisition or permanent loss of use is proposed, the project does not anticipate permanent displacement; temporary residential relocations could be required for some buildings, and a housing stipend would be provided if relocation is not waived.
Council unanimously approved Resolution #7-20-2026D adopting the findings required for the CDBG application and moving the application forward. City officials said Phase I could open opportunities for a future Phase II to include property owners not covered in the initial project.
