The Council has the ability to pull the $313,000, federally-backed grant with a majority vote, Acting City Manager Richard Leins told lohud.com.
If the city does pull the grant, it could then award the money to another nonprofit, according to lohud.com.
Mayor Frank Catalina said the Preservation Co. has not cooperated with the city's investigation into the allegations of wrongdoing, according to lohud.com.
Click here to read the lohud.com report.
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