The City of Waterloo City Council convened on June 2, 2025, to discuss critical infrastructure funding and improvements, particularly focusing on the proposed $30 million project aimed at enhancing the Fifth and Sixth Street Corridor and reconstructing Dry Run Arch.

City officials reported that previous attempts to secure federal funding for the project were unsuccessful, as the specific grant program they applied to has been discontinued. In light of this, the council is now considering applying for funding through the "Safe Streets for All" initiative, which requires the approval of a complete streets action plan. This plan had been previously approved but needs amendments due to changes in project scope and timelines.

The proposed project not only aims to improve road conditions but also to enhance pedestrian safety and overall aesthetics in the downtown area, which has seen significant business investment. However, the council faces challenges in securing the necessary funding, particularly for Dry Run Arch, which is in urgent need of reconstruction due to its age and structural concerns.

During the meeting, some council members expressed hesitation about moving forward with the project, citing the potential high costs and uncertainty surrounding grant approvals. They questioned whether the city could approve the project now and later withdraw if funding does not materialize. City officials clarified that any funding agreement would return to the council for final approval, ensuring that the city would not be locked into costs without securing grant support.

The council emphasized the importance of addressing the infrastructure needs within the next five years to avoid further deterioration of the roads and structures. The discussion highlighted the balance between immediate action and financial prudence as the city navigates its funding options for this significant investment in public safety and urban development.