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Parowan examines $6.5M airport-road project after EDA returns questions; 80/20 funding could require local match
Summary
City staff reported a curative information request from the EDA and said the award—if given—would likely be an 80/20 cost-share with the EDA providing up to $5M; under that scenario the city's maximum potential out-of-pocket exposure could be about $736,000 absent in-kind contributions, and staff identified several in-kind options to reduce cash match.
Dan Jesson updated the council on a pending Economic Development Administration (EDA) application for an airport-area road and utilities project (project budget discussed around $6.5M). Jesson said the EDA sent a three-page request for information and indicated that, if awarded, the funding would likely be 80/20 (EDA cash capped at approximately $5M) rather than a more generous 90/10 model. He told the council that under an 80/20 scenario and with the grants and commitments already obtained, "Maximum out of pocket is 736,000." Jesson described several potential in-kind categories—roadway excavation, granular borrow, untreated base, and donated electrical materials—that together could reduce or eliminate required cash match if the city can supply labor, equipment and materials.
Council members asked for time to review and discussed whether to call a special meeting to authorize a formal financial commitment letter to the EDA. Jesson said he would not sign such a commitment without council support, but he also noted the timing pressure: the EDA requested additional information within about a week. Several members signaled general comfort moving forward with staff preparing a commitment letter if in-kind match and favorable bidding prospects hold; others asked for a special meeting if anyone felt uncomfortable.
