North Liberty to put remaining ARPA funds toward community center, economic development

NORTH LIBERTY — The North Liberty City Council has decided to use its remaining roughly $300,000 of American Rescue Plan Act funds for community center projects, to establish an economic development program with Greater Iowa City Inc., and a donation to United Action For Youth.

The city had planned to use the money to renovate the community center’s indoor pool locker rooms, but the project estimate came in three times higher than the remaining funds, prompting the city to look for alternative options.

Local governments have until Dec. 31 to decide how to spend the money, authorized by Congress in the wake of the pandemic. Any project funded with ARPA funds must be completed by 2026. If ARPA funds are left over at the end of 2026, they must be returned to the U.S. Treasury Department.

While the city council has given direction on how to use the funds, the city still needs to get the projects under contract for the funds to have been officially allocated. The city received a total of $2.9 million in ARPA funds.

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More than $200K goes to community center projects

While the city has decided to allocate the majority of its remaining ARPA funds to the community center, exactly what the funds will be used for still is up in the air.

Last month, city staff recommended the council use the remaining funds on for Phase 1 of the community center parking project, which includes resurfacing the parking lot on the west side of the building, adding an access road on the east side and potentially adding a walkway to a nearby trail.

The work is estimated to cost $360,000 and also would include sidewalk repairs and stormwater drain replacements.

The city also is considering investments in the indoor pool, after some council members suggested that’s where they’d like to see the money go.

The estimated $183,000 worth of work would include replacing the indoor pool’s valves, pumps, acoustic wall panels and air dispersion system. Additionally, some of that money would replace air units in one of the gyms.

“I think it's probably best to not look at it as which projects do we like and how would we allocate this money? It's the city's money, and it's going to have some impact on what we ultimately borrow to complete these projects, or how we cash flow it,” Mayor Chris Hoffman said at a Tuesday meeting.

City Administrator Ryan Heiar said he would work with the parks and recreation department to see what projects the city can get under contract by the end of the calendar year.

In the event that the city can’t get any community center projects finalized by the end of the year, the $200,000 will be put toward the Centennial Park project, which already is under contract.

Greater Iowa City Inc. receives $100K for economic development

Another part of the remaining funds will go to Greater Iowa City Inc. to develop an economic development program for the city in partnership with city council and staff.

The program could take a variety of forms such as a workforce attraction program, incentive grants to locate in a certain area, or it could be grants to small businesses in North Liberty. The money could also be put toward the county’s child care wage enhancement program.

“We don't have a robust or really much of anything as far as incentives or economic development for small businesses here, and I think with this one time funding, it gives us that opportunity that we've not had and may not have again for a while,” said council member Brent Smith.

City staff will work with Greater Iowa City Inc., under council’s direction, to develop a program proposal that would be brought to the council for approval.

Donation to United Action for Youth

City staff recommended the council approve a $5,000 donation to United Action For Youth, even though the organization requested $100,000 after it failed to secure another grant.

Staff cautioned council that as pandemic relief funds dry up, it will be difficult to continue to fund these types of requests. In the past, the city council has given to organizations asking for funding, including more than $250,000 to the North Liberty Community Pantry.

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