To help make a new $7.3 million senior center a reality, the City of Powell may take ownership of the project.

The entity that operates the center, Powell Senior Citizens A Go-Go, acquired the land for a new building earlier this year, but they still need to raise millions of dollars. And as a private nonprofit organization, the group is ineligible for many government grants.

“We cannot get state or federal funding without having it flow through the city,” the chair of the center’s building committee, Wes Vining, told the Powell City Council at its June 17 meeting.

To clear that “major obstacle,” the nonprofit is proposing a partnership. Under the proposal, Powell Senior Citizens A Go-Go will give the city a 1.69-acre parcel of land on South Fair Street; the organization acquired the property from the VFW in April. In turn, the city will serve as the applicant for government grants and the owner of the new building, leasing the property back to the center.

Vining said most of the state’s senior centers operate under that type of arrangement, and City Administrator Zack Thorington noted the City of Powell has similar relationships with the Powell Chamber of Commerce and Plaza Diane Community Center for the Arts.

Vining emphasized that the city — which will contribute $30,000 to the center over the coming year — is not being asked to chip in any additional funding. 

“We’re only wanting to use the city as a conduit, as a flow for state money,” Vining said, adding that the organization has already set aside funds to reimburse fees the city may incur with the project down the road.

While they still need to approve a formal memorandum of agreement and memorandum of understanding, the council gave the center’s proposal a unanimous blessing on Monday.

“It seems to make a lot of sense if it helps us get a senior center,” said Councilman Steve Lensegrav.

“It absolutely makes complete sense,” agreed Mayor John Wetzel.

Thorington noted that a city-maintained war memorial already occupies about 40% of the Fair Street property, and it borders the city-owned American Legion baseball fields.

“Out of all the properties, that’s probably one of the better properties” for the city to own, Thorington said.

All of the center’s plans are contingent on securing enough funding.

Leaders of the nonprofit believe they’ve got about a third of the total project cost covered with their fundraising efforts, but still need to find sources to cover the other two-thirds — roughly $5 million.

“We’re really hurting,” Vining added, because construction prices have jumped about 18% over the past few years.

Center leaders initially planned to build the facility near Rocky Mountain Manor, but the arrangement fell apart after state officials said they were unable to provide federal American Rescue Plan Act dollars for the project.

Vining told the council that the new senior center will be “a tremendous addition to the community.” Assuming the paperwork goes smoothly, the city could finalize an agreement with the organization at its next meeting.