By Mia Simpson, staff writer

AUSTIN &8212; A $439,000 federal grant awarded to the Main Street Project for storefront exteriors and residential capacity is a very welcome third funding stream for the downtown revitalization effort, according to Austin city administrator Jim Hurm, who added that coordinators must nonetheless proceed slowly to ensure proper allocation of funds.

&8220;We need to step back and review things before we take any further steps,&8221; he said, referring to requirements often concurrent with federal funding.

Using national community development block grant funds, the Minnesota Department of Employment and Economic Development Commissioner Dan McElroy approved the city&8217;s application last week to expand downtown revitalization efforts. In his letter to Austin Mayor Tom Stiehm, McElroy commended the city for &8220;developing a creative approach that will effectively address identified community development needs.&8221;

Main Street Project coordinator Sarah Douty had said the application outlined six storefronts for exterior improvements and four potential second-story residential units, though no related projects have been made public yet. Douty could not be reached for further comment.

Hurm said these renovations remain the intention, though the city must review its grant obligations before administering funding, which will be appropriated on a project-by-project basis.

&8220;The intent here is to accomplish work with renovations to the exterior, and to begin work on that upstairs story, most of which is vacant, to make it available for use,&8221; Hurm said. &8220;It&8217;s sort of turning a page.&8221;

He added that the Port Authority, which has voting authority over easements and funding for Main Street projects, will likely postpone its March 26 meeting to avoid making determinations on at least three Main Street projects before its acquainted with federal funding guidelines.

Currently three revitalization projects are queued for approval &8212; Main Street locations Flaherty Paint, Hasting Shoe Repair and Healing Palms Massage and Spa, as well as a second-story remodel of property owned by the Masonic Temple.

&8220;We would do the types of things we&8217;re doing, but more of it,&8221; Hurm said.

Right now, the Main Street Project receives annual funding from the Hormel Foundation and the City of Austin.

&8220;What we&8217;re looking at here is a new partnership to extend our funds even farther,&8221; Hurm said.

A downtown revitalization effort, the Main Street Project provides renovation assistance, easements and forgivable loans to downtown business owners, who are only obliged to help create a cohesive image to the downtown area.

So far, B&J Bar, South Central Athlete, Granle&8217;s Custom Framing and Art Gallery and several more Fourth Avenue Northeast businesses have undergone makeovers, with others slated for completion and even more prospects to recruit.

&8220;We still have a lot of work to do,&8221; Hurm said.

The Main Street Project, seeking to ultimately develop a total of 15 to 20 square blocks, must also reconsider its overall approach in the coming months, according to coordinators, because of county plans to buy one First Street Northeast block, known as the Robbins block, for the jail and justice center now under development.