Evaluation on the proposal of improvement for the city’s facilities (That is a fine title but this might sound a little better: Evaluation of the proposal to improve the city's facilities)

Introduction

The aim of this report is to evaluate the proposal were made at in the meeting on of March 25th , in terms of benefit to the local economy and benefit to local people, to recommend which the one with has the main (not sure what you mean by "main", perhaps substitute "most" or "largest"?) positive effects on the city in the long run. 

Proposal and their evaluations

1) Build a new sports stadium with state of the art facilities.

This proposal would be a boost for the local economy.  It would create many jobs in the building trade and also would bring many visitors to the town.

On the other hand, we must consider that the town’s infrastructures are not ready and neither could not be developed to support big events.  Moreover the ancient town center would be ruined by the modern stadium.

2) Update the museum of local and national history; use the extra money to set up a special educational center for children.

An updated museum would have almost no effect on the stagnant local economy, but it would increase tourism. It is also an opportunity to grow ("grow" sounds wrong here.  Perhaps substitute "raise" or "rear".) a better educated generation.

3) Move the existing arts center, which is currently 3 kilometers from the town center to a more central location.

Moving the existing arts center would give the opportunity help to requalify the industrial area.  By increasing the value of surrounding estate, the move would create many jobs in the building trade.

My recommendation
To summaries  In summary, I believe that the best idea is to move the arts center, because it gives benefits to the local economy and its community with very little few side effects.