Lewes Mayor and City Council allocated the last of its funds from the American Rescue Plan Act at a Dec. 13 meeting.

The special meeting began with an unexpected announcement that Milford Housing Development Corp. has re-entered the Dutchman’s Harvest affordable housing project on Savannah Road. That news directly affected the amount council had to dole out before the Tuesday, Dec. 31 deadline.

The panel decided to keep the city’s $200,000 ARPA investment in Dutchman’s Harvest, rather than make it available. That money is part of the $1.2 million in ARPA funds the city, Sussex County and state awarded to the project.

“What threw a monkey wrench in this was Milford Housing’s tenuous commitment, and then thinking of backing out because they weren’t sure they could manage all of this, but now they’re back in,” said Deputy Mayor Khalil Saliba.

David Moore, president and CEO of Milford Housing, told mayor and city council in November that rising interest rates, HOA fees, taxes and insurance had made the units unaffordable.

Preston Schell, developer of Dutchman’s Harvest, told council Dec. 2 that Milford Housing was pulling out. But, Moore sent a letter to the city Dec. 12, reversing that decision.

Saliba said Milford Housing will now sell 14 units at deeply discounted prices: $100,000 for one-bedroom units, $150,000 for two-bedroom units and $200,000 for three-bedroom units.

According to Saliba, this is the current breakdown of Dutchman’s Harvest:

• 140 total units

• 98 units sold at discounted prices

• 42 units further discounted

• 28 units to be leased by a Delaware State Housing Authority program, as outlined by Schell at the Dec. 2 meeting

• 14 units to be sold by Milford Housing at a deep discount.

The first residents of Dutchman’s Harvest are expected to move in next spring.

Council’s decision left $151,000 in available ARPA funds.

They voted unanimously to make the following allocations:

• $50,000 to the Lewes Board of Public Works toward the new water tower to built near Cape Henlopen High School

• $41,000 for health and safety at the discretion of the city manager. That could include money for a water bottle-filling station pilot project

• $25,000 for Code Purple’s Tharros tent city on Coastal Highway. Of that, $21,000 is earmarked for a chain link fence and $4,000 will go to hook up utilities for potable water and showers

• $15,000 for the Community Resource Center in Rehoboth Beach to allow extended winter and summer programs for the homeless.

Mayor and city council allocated the remaining balance, about $20,000, toward a ground-contamination assessment study at the former Army Reserve Center on Savannah Road.

The Army is required to do a study of the actual building, but not the ground. The Army has asked the city for a decision by Friday, Dec. 20, on whether it wants to demolish the building. Council agreed it wants the results of the study before it decides whether to tear down or repurpose the facility.

The city has not yet taken possession of the property.

“I would rather have a safer building so we can have options,” said Councilwoman Amy Marasco. “I would rather have a clean building, so even if we have to tear it down, at least we have something that has been abated.”

Saliba said the Army is slated to begin lead abatement at the facility Monday, Jan. 6, instead of waiting until the spring.

“I heard they accelerated it because they would really like to get this off their books,” Saliba said.