People's Community Center CDBG Allocation

At a glance

Based on auto-generated captions; names, figures and details may be misheard.

What: staff recommend withdrawing a previously approved $40,000 federal CDBG allocation for the People's Community Center workforce-development renovation (converting the former bowling alley) and redirecting the money through the 2027 annual action plan. The center disputes the staff findings.
Where it stands: the Parks, Recreation and Community Enhancement committee voted on the staff recommendation on 2026-10-13: three yes, three no, one abstention, one recusal, so the motion failed and there is no committee recommendation. The funds remain on hold.
Next: Councilwoman Hall's committee asked the center to report back on the contractor; shelter replacement options are on the October 27 committee agenda.

Community Development Manager Debbie O'Brien said the center missed a final report deadline and used federal rather than city procurement rules, and raised new concerns that the contractor (MFI Construction Services) appears unlicensed and unregistered with a disconnected phone.
She also cited the center's public statement that it will not seek conditional use approval for the overnight shelter, which will not run this winter unless an agreement is reached. The city has invested $283,338 in overnight sheltering; this grant is for workforce space, not the shelter.

Coordinator Sue Harris said the final report was handed in the night of the meeting, the center followed federal rules on the advice of the city's previous community development manager, and the church spent well over the required match (including a $1.1 million HVAC project).
She said about $40,000 is owed against lead abatement and demolition costs, and that the overnight shelter is a separate, reluctant effort she would resume only under a city agreement.

Yes (follow staff): Boggerty, Lewis, Neil (concerns about what the site attracts, citing police and EMT reports).
No: Anderson, Arndt (leaning toward giving grace), Hall (torn, concerned about the money but citing heavy city investment).
Abstain: Pillsbury. Recused: Rocha.
Mayor Christiansen asked staff whether anyone influenced the recommendation; staff said no. Neil described a proposal by Councilman Sudler to use the closed Morris Correctional facility for winter shelter.

About 63 minutes across 1 meeting (from transcript timestamps; approximate).

Meeting	Minutes
2026-10-13 - Council Committee of the Whole	63

2026-10-13 - 2026-10-13 - Council Committee of the Whole: O'Brien and Harris presentations, council and public comment; roll call on staff recommendation failed 3-3-1 (Rocha recused). An earlier presentation was made at the September 29 committee meeting (not yet processed).
2026-09-29 - 2026-09-29 - Council Committee of the Whole: O'Brien recommended withdrawing the $40,000; applicant disputed it; Rocha recused and the committee lost its voting quorum, so the item was deferred.