MITCHELL, SD (Mitchell Now) — The Mitchell City Council will move forward with a third round of bids for a proposed tornado shelter at Lake Mitchell Campground as city leaders look for ways to reduce construction costs.

The project would create a tornado shelter that also doubles as a restroom facility at the campground. If built, the structure would hold up to 158 people during severe weather.

City officials say the latest rebid will allow additional construction options, including poured concrete or reinforced block, in hopes of bringing the project closer to available funding. The shelter is supported by a FEMA Hazard Mitigation grant of about $594,769, along with campground funds.

Previous bids came in well above budget. Earlier this month, the City Council rejected a rebid for the project after the lowest bid came in at $968,080, leaving a funding gap of more than $230,000.

Mayor Jordan Hanson said the city hopes the new bid process will generate more affordable options while still meeting FEMA requirements. Officials estimate the rebid process could take about six weeks.