LOCK HAVEN — With Lock Haven City Council’s decision this week not to move forward with the proposed construction of a police building, it must return $1.5 million secured in grant funding.

But what does that mean for the city moving forward?

Following council’s 3-4 vote, which led to a failure to accept bids for the project that has been in the works since 2023, The Express contacted City Planner/Interim Manager Abbey Roberts to see how the return of grant funding can affect future applications.

Roberts noted $1,000,000 of this funding was a federal USDA grant, a result of the Congressional Directed Spending process, commonly known as appropriations, through former Senator Bob Casey’s office. Returning this funding, she said, will impact the city two-fold.

“(The) USDA and the Senate Appropriations Committee will note how we did not use the funds,” she said. “This can hurt the city in future funding opportunities as grants are considered not only on the scope of the project, but the ability to spend the funding in a timely manner.”

She added the Appropriations Committee tracks the awards each round and the amount each grantee spent for the history of the program.

“By noting the City of Lock Haven received a $1,000,000 award and did not spend it, we could be negatively impacted in future rounds of Congressional Directed Spending from any Legislator for any project,” she said.

She noted the city was recently awarded an $825,000 grant from Senator John Fetterman for upgrading its water lines in Castanea Township and often applies for Congressional Directed Spending for large infrastructure projects.

On a state level, the city also must return the $500,000 Local Share Account Program grant because it was based on the scope of a new constructed facility for the police department, Roberts said.

“This program is under the wing of the PA Department of Community and Economic Development who administers many grant opportunities that the city often utilizes. Turning back these funds will set the city behind when competing for grants as the evaluators will not only need to question the project, but also if the city will actually use the funds if awarded,” she said. “Further, they will consider if they could provide funding to another community that has a proven track record of effectively using funds.”

Roberts emphasized these grant funds, whether state or federal, can often be considered “free money” by some, but it’s the return of taxpayer money into the city.

“A total of $1,500,000 in grant funding that was awarded, or returned, to the taxpayers of the City of Lock Haven, will be turned back to the federal and state programs,” she said.

With council’s decision to instead look into ways to renovate city hall, Roberts said staff will investigate if these funds can be changed. However, she said it’s unlikely.

“City staff will investigate every option with these funding opportunities to ensure the best option permitted by the programs, with a very small chance the funds can be revised to fund renovations,” she said.

Staff will also work with council for the research and planning into renovating City Hall.

“The next steps in the process will be a meeting between Council’s Building Committee, Buchart Horn Architects and staff to formulate a design for renovations that address concerns with the police department, staff and the building as a whole,” she said. “We look forward to the possibilities ahead and providing a quality building fit for all city employees and city residents.”