By Olin Ericksen
Staff Writer

February 7 -- In an effort to bridge a $3 million funding gap, the City Council Tuesday approved federal grants to complete what is now an $8 million facelift of Downtown streets flanking the popular Third Street Promenade.

The improvements -- which include new trees and lighting on eight blocks -- are part of an ongoing effort to entice pedestrians on the popular strip to turn the corner and stroll 2nd and 4th streets.

But since the first Federal grant was awarded in 1999, “construction costs have increased dramatically," said Craig Perkins, the City's Environmental and Public Works manager.

While the current cost of the project is $7,661,639, only $4,591,578 was budgeted, leaving a shortfall of $3,070,061, according to the City officials.

To close the gap, the council voted 6 to 1 to approve $2,308,061 in Community Development Block Grant Funds.

The dissenting vote was cast by Council Member Kevin McKeown, who was concerned about the removal of trees.

"Why would we be cutting down healthy, robust trees that I was told had another 40 years?" he said.

Perkins said that the plan calls for "15 trees to be removed, 19 removed and located and 132 trees replanted."

Submitted to Caltrans, the next phase to design the streets near Santa Monica Place is "currently under review" and is scheduled to be completed by February 9.

To retain other grant money, the council must hire a construction company to do the work by August 13, 2007, officials said.