WEST HAVEN — With just months left until the federal government will take back any unspent funds from the 2021 American Rescue Plan Act, local officials have little time to determine if a plan for a new library meets federal guidelines.
Officials from the West Haven Public Library and the Village Improvement Association, the third-party nonprofit that manages the library, are sounding the alarm that $1 million in earmarked federal funds may not be appropriated by an appointed city committee before those funds expire.
For six years, West Haven's Allingtown neighborhood has been without a branch library after its building was sold to a private developer.
Multiple efforts to find suitable locations for a new library in the ensuing years had been fruitless because of issues with location, economics, utilities or the overall viability of the project.
Now that the VIA has identified a viable property on the Boston Post Road, the city's ARPA Committee is recommending a portion of that $1 million be allocated to paving instead.
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"The VIA has been working diligently over the last six years to find a space and utilize that funding,” West Haven Public Library Director Colleen Bailie said Thursday.
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When the ARPA funds were released by the federal government, West Haven received a $29 million allocation intended for recovery from the COVID-19 pandemic.
Per federal regulations, funds needed to be obligated to specific projects by the end of 2024 and expended by the end of 2026.
Before the end of 2024, an agreement was signed stipulating that $1 million in ARPA funds be spent on renovating two floors of the Blake building on Ogden Street into the long-awaited Allingtown branch library. However, after a year of stalled negotiations over an agreement to either lease or purchase the building, the building sold near the end of 2025 to a different entity.
In August of this year, the VIA believed it found a solution just in time to maximize that $1 million, signing a letter of intent to purchase 703 Boston Post Road.
Then the organization heard the city's ARPA Committee determined the $1 million would be clawed back by the U.S. Department of the Treasury for falling outside of government guidelines the purchase of the site were approved.
Lawyers for both the VIA and the ARPA Committee are now expected to talk through the issue at a special City Council meeting noticed for Oct. 6.
West Haven ARPA Committee Chairman Ken Carney said Thursday that one of the most important rules under federal guidelines is that projects can be amended after the Dec. 31, 2024 deadline, but only if they're "substantially the same scope and substantially the same purpose."
"If you break the rule, you break the money," he said.
According to Carney, the federal guideline around the scope of work is why the committee can recommend the use of ARPA funds for paving projects instead of purchasing a new property, as the city has already approved using a portion of the federal money for paving.
The U.S. Department of the Treasury did not respond to an emailed request for comment Thursday.
Carney said the original agreement stipulated the renovation of an existing structure. The library's current proposal is for the procurement of a property and demolition of the existing structures, which he said is a critical difference.
Yet supporters of the library believe the ARPA Committee is prioritizing other projects over a new city library in Allingtown.
"We think he's playing fast and loose with federal guidelines," said Bill Heffernan, a state representative for West Haven and a former president of the VIA, of Carney.
Heffernan said the ARPA Committee has raised concerns about the financial viability of the library project, but VIA officials believe it's no concern if they are able to procure the Boston Post Road property.
"There's plenty of grants and bond money available, that’s what I do in Hartford,” he said. "But I can't do a capital campaign if we don’t own the property."
Bailie said it's the library's position that the approval of ARPA funds is outside of the scope of work for the ARPA Committee, and it's the City Council that holds the purse strings. Carney agreed that his committee does not have any say in how the funds are spent, but his committee is in place to maximize the city's use of federal funds by guaranteeing the federal government does not demand money back.
Carney added that he believes the council does not have the full facts about the financial impact of the project, especially if the $1 million is not an acceptable use of federal funds as he believes.
Current VIA President Leonard Adams declined to comment for this story.
In addition to plans for a branch library, the VIA purchased a van to be used as a bookmobile. Bailie said the vehicle was purchased in July with endowment funds and arrived in August, but the ARPA Committee has yet to recommend the reimbursement with federal funds for that vehicle. Bailie said the VIA purchased the vehicle with an expectation it would be eligible for that reimbursement.
Carney said he sees the bookmobile as a potential workaround for a branch library, as renovating the vehicle to serve as a mobile library branch could fit within the acceptable scope of work under federal guidelines.
Mayor Dorinda Borer said Friday that she believes the renovation of the bookmobile is likely to be the best allowable use of the ARPA funds.
"The intention of that mobile unit is to serve the neighborhood," she said. "I don't see any challenges with the ARPA Committee providing funding for that."
However, Borer said she would defer to the expertise of lawyers who will review and interpret the federal guidelines at the City Council's special meeting next month.
Heffernan said the VIA, after being told the Boston Post Road site cannot be purchased with the aid of the $1 million in ARPA funds, was approached about renovating West River Hall on Orlando Street, which is owned by an LLC controlled by Carney.
"It's not conducive for a library,” he said. "It's at the very end of the district, it's not really centrally located and it's not quite big enough."
Bailie said the property is a vendor hall, outfitted with kitchens and a bar, when what the VIA wants is a library.
Carney denied that he had any role in proposing West River Hall to the VIA, and it was the work of a realtor who contacted the board. Carney said he listed the property on the market two years after the VIA signed the agreement to renovate the Blake building, and if the VIA had considered West River Hall that he'd have left the room during the ARPA Committee discussion as it would be a conflict of interest.
Before the council resolved to call that special meeting at a Sept. 14 meeting, Councilwoman Anne Heffernan, D-1, who is the state representative's wife and the council's liaison to the library, spoke in support of granting the $1 million to the library. She said that, while she supports paving and infrastructure, the Allingtown neighborhood has badly needed a library for years.
Councilwoman Dawn Callahan, D-5, agreed at that meeting that the need for library services in Allingtown is severe.
"There are people that desperately need this library," she said. "They don’t have a computer, they don’t have other means. It's desperately needed to find jobs, to have access, to have availability.”