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The City Council applied for the grant in response to reports that the Department of Military Affairs wants to sell the Old Armory.

"It's a good thing in the long run. It's better to have local ownership and local control," Ferree said.

The council requested a $400,000 grant from DOLA, hoping that sum would be enough to purchase the building, replace the gym floor, lighting, and purchase basketball backboards, Ferree said.

The city made the grant application during DOLA's April grant cycle. DOLA should make a decision on the grant by mid August, said Tim Sarmo of DOLA's regional office.

Under the current ownership system, Moffat County leases the Old Armory from the Department of Military Affairs (DOMA) and has the right of first refusal if DOMA decides to sell the building.

The county in turn subleases the building to the city, which has agreed to let the Boys and Girls Club set up shop there.

If City Council receives the full amount requested in the grant, an assessor would have to decide on he building's value before DOMA sells it.

For now, no one knows how much the building is worth.

However, similar DOMA facilities have sold for $300,000, Ferree said.

If the city doesn't own the Old Armory, it might affect the success of future grant applications, Ferree said.

Organizations could be hesitant to invest in a project that the city doesn't own, he said.

But Sarmo insisted the issue wasn't whether the city owned or leased the building.

Local control is the most important factor.

"We can only fund public projects. A local entity has to be involved," Sarmo said.

DOLA's concern was that DOMA would sell the building and the money that was invested in renovation projects would be lost, Sarmo said.

City Council applied for a $100,000 grant to renovate the Old Armory during DOLA's last grant cycle, Ferree said.

That grant was withdrawn when city council learned DOMA might sell the Old Armory.

Rob Gebhart can be reached at 824-7031 or by e-mail at rgebhart@craigdailypress.com.