WALLACE — The Wallace School District will have to revisit its plans for the former Civic Auditorium after narrowly missing out on federal grant funding that would have paid for demolition and site revitalization. 

According to WSD Superintendent Todd Howard, the district fell one point short of securing a Brownfields Grant through the Environmental Protection Agency. 

"The most basic answer to why funding was not awarded would be that our proposal didn’t receive enough points to make the cut," he said. "Our proposal received 170 (out of a possible) 175 points, and the grant with the lowest points to receive funding received 171/175 points. We missed the funding cut by one point. 

The EPA's Brownfields Grant Program provides funding to help communities assess, clean up and redevelop properties where real or suspected environmental contamination has hindered reuse. Grant funding supports activities ranging from environmental testing and planning to site remediation, intending to return underused sites to productive use. 

The auditorium and east academic wing are the last remaining portions of the old Wallace High School, which was partially demolished in 2003 to make way for the current Wallace Jr./Sr. High School. At that time, the district entered into a 20-year lease agreement with local patrons who wanted the auditorium preserved for community use. 

Howard said leaseholders were responsible for maintaining the building during that period. For several years, the auditorium hosted concerts, reunions, boxing matches and other athletic events. By the late 2010s, however, the building began experiencing significant maintenance issues that went unaddressed, leading to severe deterioration and health hazards. 

Black mold, asbestos and structural deterioration have rendered the building unsafe for use, while the district remains liable for the property. 

Last year, the district received approval from the Wallace City Council to demolish the building. Because the structure is listed on the National Register of Historic Places, securing that approval was a necessary step before any plans for the site could move forward. 

Now, district officials have permission to proceed with demolition but no funding to complete the project. 

In 2025, the estimated cost to demolish the auditorium and east academic wing was $900,000. Redeveloping the site after demolition was expected to cost millions more. 

"At the state level there are organizations and departments that address public health concerns," Howard explained. "However, their funding is minimal and generally comes in the form of grant opportunities. In those situations, there is always more need than funds available. Securing the funds necessary for this project is a complex undertaking, and we continue to explore those options." 

Howard said the district faces an additional challenge because the facility is no longer used for educational purposes. As a result, many traditional funding sources available for school facilities cannot be used for the project. 

He said district officials remain concerned that worsening conditions could eventually force immediate action by the district or another agency if the structure becomes a greater public health or safety threat. Howard said he has sought legal guidance and consulted other superintendents but has received little direction. 

"It isn’t clear if there is a definitive point where state or federal authorities will get involved in a situation where we have an unoccupied facility," he said. "If we were still using the facility as a school under similar conditions, there are state/federal authorities that could intervene to provide assistance and funding. We don’t qualify for those support measures because the facility isn’t being used as a school facility." 

Howard said the district's next step is to pursue smaller grant opportunities that could help piece together funding for the project. Officials may also explore the possibility of selling the building.