Casey Seeks $250,000 State Grant to Demolish Old VFW Building

Casey City Council Meeting | July 6, 2026

Article Summary: The Casey City Council unanimously approved a resolution of support for a state community revitalization grant application to demolish the old VFW building downtown, committing a $50,000 local match — but the cleared site must stay open green space for five years.

CDBG Demolition Grant Key Points:

• Resolution #070626B commits the city to a 20 percent local match of $50,000 on the estimated $250,000 demolition project if the grant is awarded.
• The Economic Development Committee raised the match from an initial 10 percent to 20 percent to gain two additional points in the state’s competitive scoring.
• The Illinois DCEO program is the first dedicated state grant funding available for demolishing commercial structures, with about $13 million allocated and roughly 20 awards expected.
• Grant rules require demolished sites to remain open green space for five years — no buildings, parking lots or asphalt.

CASEY — The Casey City Council on Monday, July 6, 2026, unanimously approved Resolution #070626B, a resolution of support for the city’s application to the Illinois Department of Commerce and Economic Opportunity’s new Community Development Block Grant community revitalization program, targeting demolition of the old VFW building at 12 East General Roby Street.

The resolution authorizes the city to seek grant funding for the demolition project, estimated at $250,000, and commits a 20 percent local match of $50,000 if the award comes through. Alderman Marcy Mumford moved approval, Alderman Carlene Richardson seconded, and the roll call passed unanimously.

Economic Development Director Tom Daughhetee told the council the program, discussed at a June 22 Economic Development Committee meeting, fills a long-standing gap. “It was something a lot of communities have been waiting for a long time — finally some dedicated grant funding that could be used to demolish commercial buildings,” he said, noting past public grant funds could be used for residential demolitions but not commercial structures.

The program’s minimum award is $250,000 and its maximum is $2 million, Daughhetee said, with the state estimating it will make about 20 awards from roughly $13 million allocated this year. Applications are scored competitively on a rolling basis until the money runs out. No city match is required, but matches earn scoring points — which drove the committee’s decision to double its initial 10 percent match recommendation. “If 20 percent was going to give us some additional points for the possibility of getting it, we would go to an extra $25,000, because that could be a very big priority project for us,” Mayor Mike Nichols said.

Five-Year Open Space Requirement

Daughhetee attended a state webinar June 23 that clarified a significant string attached: cleared downtown sites must remain open space for five years. “They don’t want anything built on it,” he said, adding the state ruled out asphalt, rock covering and — explicitly — parking lots. Seeded green space with parklike features such as small seating or a walkway is acceptable.

“It’s not what we were hoping to hear,” Daughhetee acknowledged, saying many communities on the webinar had hoped to at least convert cleared lots to parking. Nichols said the restriction is workable. “The five-year wait doesn’t hurt us that bad, because in five years we can set aside enough monies to be able to complete a good project for additional parking down there and not be racing for funds,” he said.

The committee’s discussion had targeted both the old VFW building and the city-owned building just east of it at the corner of Southeast First and General Roby streets; the resolution as adopted names the VFW building. The city’s fiscal year 2027 appropriations ordinance, adopted the same night, includes $2 million in grant capacity and a $500,000 city share line for the program.

Because it is a CDBG program, next steps include completing the application, scheduling a public hearing at which the application will be available for public review, and then submitting. There is no fixed deadline, but with rolling review, Daughhetee and Nichols agreed: sooner is better.