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This seems atypical anymore with these cities and the political nutcases elected to run them. No common sense and no intelligence at the helm.
Jason's plan is to submit a proposal and see where that goes. If it is not accepted then they will begin the process of refunding the money. Not giving up quite yet.
It is possible that the local group will not get enough interest (and financing) to perform any substantial restoration work. If that occurs, then Jason S's proposal would have a very good chance.