The intersection of Laurel Street and Randolph St. in Gridley, where the city has proposed improvements as part of a planned street extension project to improve access to nearby housing. Photo by MPG Staff

GRIDLEY, CA (MPG) - The City of Gridley has applied for up to $3.3 million in Community Development Block Grant funding to support construction of the Laurel Street extension, a project aimed at improving access to lower-income housing in the Pacific Flyway development area.

“This effort’s directly creating that connectivity between the low-income housing and the rest of town,” City Engineer Dave Harden said.

The application, submitted to the California Department of Housing and Community Development, seeks federal pass-through funding to help offset construction costs for the street extension and related improvements.

City officials advanced the application during a special workshop late last month, where the council held a required public hearing and approved the resolution authorizing submission.

Sherry Morgado, community development manager for Gridley’s contracted firm Housing Tools, presented the funding overview, explaining the program’s federal requirements, including environmental review under the National Environmental Policy Act. Because the project area falls within a mapped 500-year floodplain, the city completed an eight-step federal decision-making process evaluating alternatives, impacts and mitigation measures.

Harden said if the city is successful, award announcements are expected in September, with agreements issued beginning in October. Construction would likely begin in spring 2027 following the city’s bidding process, according to the project engineer.

Plans for the Laurel Street extension would connect Randolph Street to the Pacific Flyway housing development, with a focus on improving pedestrian access. Design elements include new sidewalks, curb ramps and roadway improvements intended to guide foot traffic toward existing routes along Viewpoint Drive and Sycamore Street.

“We really want to try and make it more accessible,” Harden said, describing efforts to improve connectivity while avoiding sidewalk segments that do not link to established pedestrian paths.

The project is designed to support residents in lower-income housing, a requirement for eligibility under the grant program.

During the workshop, council members asked about potential impacts to nearby properties and whether right-of-way acquisition would be necessary. Staff said the work is planned within existing right-of-way, though nearby residents would be notified ahead of construction.

Concerns were also raised about the condition of Laurel Street between Randolph and Idaho streets. While full reconstruction of that stretch is not included in the project, he said improvements to the intersection are under consideration and broader repairs could be addressed through the city’s pavement management program.

“There’s just not enough funding to build a new road and repair the old one,” Harden said.

The council also reviewed a right-of-way acquisition strategy tied to the project. An irrevocable offer of dedication has been secured from a property owner, allowing the city to accept the land once environmental clearance and funding are in place.

The application now enters a competitive statewide review process, with the project’s future dependent on whether funding is awarded later this year.