Sandpoint, Idaho Receives $650K State Grant to Fund Downtown Revitalization Phase 3
Sandpoint, Idaho — The city of Sandpoint has been awarded a $650,000 Community Development Block Grant from the state of Idaho to support the third phase of its downtown revitalization project, officials announced April 28. The grant, administered by the Idaho Department of Commerce, will fund street lighting and streetscape amenities along First Avenue from Church to Lake streets, extending improvements made in previous project phases.
The announcement comes as Phase 3 enters its public engagement stage, with the city working alongside the Sandpoint Urban Renewal Agency to rebuild and modernize one of the city’s central commercial corridors. Preliminary design work is currently underway, with construction bids expected to be advertised and awarded between mid-July and August.
Decades of Infrastructure Work Come Into Focus
According to Sandpoint Public Works Director Holly Ellis, the downtown revitalization effort reflects more than 20 years of planning and incremental progress. “Downtown revitalization has been a longstanding priority for the city,” Ellis said in an email provided to the Sandpoint Reader. “For over two decades, we’ve been working to address aging infrastructure, improve pedestrian access and support the local economy.”
Phase 1 and Phase 2 of the project focused on Cedar Street and the First to Church Avenue corridor. Phase 3 shifts the focus to First Avenue between Church and Lake streets — a segment of roadway that is part of a broader transition from state to city control. Previously managed by the Idaho Transportation Department, the corridor is being redesigned to better serve local businesses, residents, and visitors as regional traffic has been redirected.
“As regional traffic was redirected, the city made a deliberate shift to redesign this corridor to better serve local businesses, residents and visitors,” Ellis said.
The Sandpoint Urban Renewal Agency, created specifically to help fund public infrastructure that encourages private investment, has been a key partner throughout the project’s multi-phase lifespan. That public-private infrastructure framework reflects a fiscally responsible approach to city improvement — leveraging state and federal grant dollars to attract and support economic activity in the downtown core.
Grant Dollars Tied to Federal Compliance Requirements
While the $650,000 award represents a significant infusion of support, the funding agreement is not yet fully executed. The Idaho Department of Commerce still requires the city to complete an environmental review, submit financial management documentation, and demonstrate compliance with the federal Build America, Buy America Act — a requirement mandating that all construction materials used in the project, including iron, steel, and other manufactured products, be produced domestically.
Once those conditions are met and the agreement is finalized, grant funds will be directed specifically toward pedestrian lighting, benches, trash and recycling receptacles, and bike racks along the First Avenue corridor.
“These are the amenities that make the corridor usable, complete and improve safety,” Ellis said. “This funding allows us to build on that momentum.”
The project’s construction schedule calls for work to begin after Labor Day and continue through October, with activity paused through the spring and summer of 2027. That timeline aligns with efforts to minimize disruption to downtown Sandpoint businesses during peak visitor seasons — a consideration that reflects the economic stakes involved for local commerce.
Idaho’s small business sector has been tracking consistent growth in recent years, a trend that makes downtown corridor investment particularly relevant for communities like Sandpoint. For more on statewide small business momentum, see the Idaho small business trend report from the Idaho News Network.
What Comes Next
The city has scheduled a public meeting in May to gather community input on the project, followed by a formal update to the Sandpoint City Council in early June. Residents and business owners interested in reviewing conceptual drawings and project history can visit sandpointidaho.gov and navigate to the Public Works & Utilities department page, where the “Downtown Revitalization” project is listed.
For broader context on state-level funding decisions affecting Idaho communities, readers can follow ongoing coverage at Idaho News. Additional public engagement details will be announced as the project schedule advances toward its late-summer construction bid phase.