CDBG grant withdrawn from City

SIDNEY -- About four years ago, the City of Sidney was awarded a grant of more than $400,000 to assist the Sidney Elks Lodge in needed renovations. In the Sidney City Council meeting Tuesday, May 9, City Manager David Scott said the State of Nebraska has withdrawn the grant.

The grant was to be used for improvements on the Elks building including ADA accessibility and the HVAC system. 

Scott said the City tried to bid out the project. Initially, the City did not have a contractor who was interested in the project. Then the pandemic occurred and prices skyrocketed, he said.

Scott reached out to the grant administrator. The City was allowed to be its own contractor for the sake of the project. In that time, the scope and cost of the project ballooned to more than $2 million. 

Former Sidney Mayor Roger Gallaway suggested the City buys the Elks building and lease it back to the club. 

"We just never could get that agreement to happen," Scott said.

According to Scott, presently there is no way to do the project.

A letter was sent to Elks membership April 26 regarding the building and efforts to work with the City. The letter states that upon receiving a proposed purchase and lease agreement from the City, "a group of Elks sat down to make some revisions and propose negotiations on the purchase agreement as well as the lease contract."

The letter says the Elks' attorney's response to the City was returned with the City ceasing negotiations. Their next step in renovating the building will include grant writing, according to the letter.