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City of Lincoln
Lincoln looks to state grants for former Oasis building demolition,
Downtown improvements
[July 16, 2026]
All members of the Lincoln City
Council were present Tuesday evening as the Committee of the Whole
spent much of its meeting discussing a plan to pursue state grant
funding that could transform a prominent downtown corner while
continuing efforts to revitalize the city's historic business
district.
The council's primary focus centered on pursuing Community
Development Block Grant (CDBG) funding through the Illinois
Department of Commerce and Economic Opportunity to demolish the
former Oasis Senior Center building at 501 Pulaski St. and continue
downtown streetscape improvements. The proposal, outlined by Mayor
Tracy Welch and several economic development professionals, would
allow the city to seek up to $250,000 for demolition of the
deteriorating structure while also positioning Lincoln for future
downtown improvements.
Welch introduced a team of advisors who have been working with the
city, including representatives from Lincoln Economic Advancement
and Development (LEAD), engineering consultants and grant-writing
specialists. It was explained that two potential projects had been
identified as strong candidates for funding: demolition of the Oasis
building and extending downtown streetscape improvements beyond the
completed Pulaski Street project.
LEAD representative Uriah Kilgallin said rehabilitation of the
former Oasis building would be ideal from a historic preservation
standpoint, but after evaluating the structure, he believes
restoration is no longer financially realistic.
Kilgallin estimated renovation
costs between approximately $920,000 and $2.1 million, noting that
historic preservation requirements would only increase those
expenses. Without an experienced developer already committed to the
project, he said demolition represented the city's most practical
option.
The proposed demolition grant would provide up to $250,000 toward
removing the building. Under current program guidelines, the
property could not be redeveloped for at least five years after
demolition. During that period, city officials discussed converting
the site into public green space that could serve as a gathering
place for residents and visitors.
Kilgallin noted that Lincoln's existing downtown redevelopment
strategy specifically recommends creating additional open public
spaces downtown, making the property a logical fit if the grant is
awarded.
Former Illinois Department of Commerce and Economic Opportunity
Director Warren Ribley, cautioned members that the funding
opportunity would be highly competitive. Although approximately $13
million has been allocated statewide for community revitalization
grants, applications are accepted on a rolling basis, meaning
funding could be exhausted before the end of the year.
Grant writer Greg Sutton echoed those concerns, explaining that
Community Development Block Grant applications are among the most
complicated grants municipalities pursue because of extensive
federal documentation, public hearing requirements, historic
preservation reviews and environmental considerations.
Several aldermen questioned whether the city could realistically
complete an application before available funding runs out.
Alderman Tim Becke repeatedly asked about the timeline and
requirements attached to the demolition grant, particularly what the
state considered acceptable "green space" during the required
five-year holding period.
Sutton explained that the city would define the intended final use
within its application, ranging from a simple maintained lawn to a
landscaped public gathering area with benches and lighting. The
state would primarily expect the property to remain an attractive,
publicly accessible open space rather than being redeveloped for
commercial use.
City Attorney John Hoblit raised concerns regarding the city's
ability to secure ownership of the property in time for the
application.
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The city recently
authorized participation in an upcoming tax sale auction for the
property, but Hoblit explained that receiving the deed could
take several months after a successful bid. Grant
representatives responded that previous applications have
successfully moved forward while property acquisitions were
still being finalized, provided sufficient documentation
demonstrated the municipality intended to complete the purchase.
After considerable discussion, council
members reached a consensus to move forward only with the demolition
grant initially rather than simultaneously pursuing funding for
streetscape improvements.
Sutton advised that submitting two applications from the same
community could unintentionally cause Lincoln to compete against
itself for a limited statewide funding pool. Council members
generally agreed demolition should remain the city's first priority.
The council also agreed to place a proposed $9,500 agreement with
Sutton for grant-writing services on next week's regular meeting
agenda. The agreement would cover preparation of the demolition
grant application, with travel expenses billed separately as needed.
Earlier in the meeting, council members heard from Tammy Bunner, who
requested approval for the third annual Touch-a-Truck event
scheduled for Sept. 12 at Scully Park.
The free family event will again feature emergency vehicles,
construction equipment, semi-trucks, farm machinery, and other heavy
equipment for children to explore. Bunner requested the same street
closures approved in previous years, allowing the event to operate
from 9 a.m. to 1 p.m., with streets closed from 7 a.m. until 2 p.m.
for setup and cleanup. The request was recommended for placement on
the consent agenda.
Council members also recommended approval of a request from Copper &
Oak to temporarily close Delavan Street during Third Friday
festivities on July 17.
While supporting the request, several aldermen reminded organizers
that future applications should be submitted earlier to provide
adequate review time before meetings. Financial matters occupied the
remainder of the meeting.
City Treasurer Chuck Conzo reviewed
Amendment No. 2 to the current fiscal year's appropriation
ordinance, explaining that several transfers were necessary because
of higher than anticipated utility costs following the city's
acquisition of an additional municipal building.
Other amendments reflected revenue received through a Route 66
tourism grant, improvements made to the city's new Route 66 museum,
mural funding and proceeds generated from the sale of surplus street
department equipment.
Conzo also presented the proposed Fiscal Year 2026-2027
appropriation ordinance, reminding council members that the city's
budget serves as a spending plan while the appropriation ordinance
establishes the maximum legal spending authority if funds become
available. He noted the city spent below both its budgeted and
appropriated amounts in most departments during the previous fiscal
year, demonstrating continued fiscal restraint.
The Committee of the Whole took no final action Tuesday evening.
Recommendations discussed during the meeting, including the
grant-writing agreement, appropriation ordinances and permit
requests, are expected to come before the City Council for formal
consideration at its regular meeting on July 20.
[Sophia Larimore]
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