Cedar Rapids council has plenty of dreams for $21 million in FEMA funds from flood-damaged Sinclair and Quality Chef plants

CEDAR RAPIDS - The City Council has plenty of ideas about how to spend a pot of about $21 million of federal disaster funds that are available for “alternate” projects because the city-owned, flood-damaged, former Sinclair and Quality Chef plants aren't going to be reused.

In fact, the council has trimmed a list of dozens of potential uses for the Federal Emergency Management Agency funds down to about 14 city projects and about $49 million of spending. Each of the 14 projects needs other funding in addition to FEMA dollars.

On Monday, though, the council's effort to prioritize the projects did not succeed, and the five of nine council members on hand decided to simply submit the current list of projects to FEMA and Iowa Homeland Security and Emergency Management and have those two oversight agencies determine if the projects qualify for funding.

Mayor Ron Corbett singled out one of the projects, a new $15-million parking ramp near the new federal courthouse. Corbett suggested that the federal government's General Services Administration may provide up to $9 million for the ramp, and he suggested that the city could sell revenue bonds, which are paid off from parking revenues, to pay for the rest of the project. As a result, maybe it doesn't need to be on the list for FEMA alternate-project funding, the mayor said.

Council member Chuck Swore argued for using $5 million of the FEMA funds to help create the city's new Medical District between the two hospitals along 10th Street SE. Both Swore and Corbett noted that the City Council had made a commitment to creating the district.

However, council members Chuck Wieneke and Tom Podzimek noted that the city must complete projects with the FEMA funds within four years, and they said too many questions remained about exactly what the city's future costs would be in the district to worry about using the FEMA dollars.

According to the city staff, the city could be facing costs of up to $20 million in costs over five to 10 years in the Medical District to make infrastructure changes and improvements. Council member Don Karr, one of four council members who has said he favors the closing of Second Avenue SE between 10th and 12th streets SE for a new medical clinic, said some of the FEMA dollars might be needed if the Second Avenue street change is needed.

Also on the city list for now: $2.5 million for a downtown trail loop; $500,000 for an upgrade to the city's parking operations; $2.5 million for the Time Check Greenway along the river and an open-air riverfront amphitheater in the downtown; $10 million toward a $60 million-$80 million “Multigenerational” community center and rec center at Ellis Park; $3 million for six new neighborhood resource centers; $3 million for a year-round city market; $2.5 million for trails; $3 million for a new west-side fire station; $8 million for new facilities at public works/fleet maintenance; and $3 million for a new animal care and control facility.

Greg Eyerly, the city's flood-recovery director, said Monday that the council also has another possible $50 million in FEMA funds to use for “improved” projects to replace damaged facilities with facilities with a similar function.

Most of the money is tied to damaged sewers and will be used for sewers. The city does not intend to repair its flood-damaged, hydroelectric dam at the 5-in-1 bridge, and $13 million in FEMA funds attached to the dam likely will be used for wind turbines at the city's northwest water treatment plant and a heat-recovery system at the Water Pollution Control facility.

Money from the flood-damaged First Street SE parkade also will directed to the city's parking operations.

For now, none of the FEMA funds will be used for the refurbishment of the Crowne Plaza Five Seasons Hotel should the city succeed in its effort to purchase the downtown hotel. It's currently owned by its creditors. Corbett on Monday said the city first must own the hotel before it can use FEMA dollars to fix it up.

For that reason, it does not look like FEMA “alternate-project” funds can be steered to the CSPS renovation in New Bohemia or the construction of the Cedar Rapids Area Chamber of Commerce's new Economic Commerce Center.