An additional complication is the question of how $89,000 of the grant money was apparently spent. During the same time that the city was using the CDBG money, they also renovated a concession stand and city break room, which would have violated the rules governing the grant.
Between the coverage of being placed on the noncompliance list and the questions being investigtated regarding potential illegal spending, the city is in damage control mode, trying to stave off rumors that the city is being sanctioned.
As part of their effort to end the rumors, the city is producing a complete chronology of events that transpired and will be putting them on the city’s website.
Until the questions regarding the break room and concession are cleared up, the city will not receive any of the block grant funding.