City receives $650K state grant for downtown revitalization

By Zach Hagadone
Reader Staff

As the city of Sandpoint proceeds with Phase 3 of its yearslong downtown revitalization project, which is currently in its public engagement stage, officials announced April 28 that the work will be supported by a $650,000 grant awarded by the state.

The Community Development Block Grant will go toward street lighting and streetscape amenities, extending the work of previous downtown improvements in Phases 1 and 2. Phase 3 will focus on First Avenue from Church to Lake streets, while prior phases concentrated on Cedar Street and First to Church.

“Downtown revitalization has been a longstanding priority for the city,” Sandpoint Public Works Director Holly Ellis told the Reader in an email. “For over two decades, we’ve been working to address aging infrastructure, improve pedestrian access and support the local economy.” 

Working in conjunction with the Sandpoint Urban Renewal Agency, which was created to help fund public infrastructure that encourages private investment, Ellis added that the current work is part of the transition from downtown streets controlled by the Idaho Transportation Department to a system run by the city.

“As regional traffic was redirected, the city made a deliberate shift to redesign this corridor to better serve local businesses, residents and visitors,” Ellis said.

The block grant is administered by the Idaho Department of Commerce and still requires approval by the agency of an environmental review, as well as an accounting of financial management information and compliance with the federal Build America, Buy America Act, which requires that all construction materials used in the project — including iron, steel and manufactured products — be produced in the U.S.

Once the funding agreement has been fully executed, those dollars will specifically go toward pedestrian lighting, benches, trash and recycling receptacles, and bike racks, Ellis stated. 

“These are the amenities that make the corridor usable, complete and improve safety,” she added. 

“[T]his funding allows us to build on that momentum.”

Preliminary design on the project is currently underway, with advertisement and award of the construction bid expected from mid-July through August. The city’s project schedule indicates construction will begin after Labor Day and continue through October before being put on pause for the spring and summer of 2027.

A public meeting on the project is planned for later in May, followed by an update to the City Council in early June, with more details to come.

For more info, including conceptual drawings and project history, go to sandpointidaho.gov and find “Downtown Revitalization” under the “Departments” page for Public Works & Utilities.