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Council keeps proceeds from Stillwater property sales earmarked for development, approves $550,000 transfer to advance design work
Summary
Council authorized transfers to advance the Stillwater Business Park while preserving property-sale proceeds for future development needs: $550,000 in transportation impact fees will fund design, right-of-way and environmental work; council also kept $2.8 million in property-sales proceeds earmarked for Stillwater rather than moving it into uncommitted general fund balance.
City council approved a budget action to move property-sales revenue from the city’s capital projects account and to advance immediate work at the Stillwater Business Park. Staff said the item had two parts: a recommended transfer of $550,000 from the city’s transportation impact fee fund to fund right-of-way acquisition along Fig Tree Lane, design and engineering amendments, environmental work and staff time so work can continue while the city awaits an Economic Development Administration (EDA) grant; and a separate transfer of $2.8 million of property-sales revenue (proceeds from two recent Stillwater sales) into the general fund for tracking and future use.
During the discussion council members questioned whether the $2.8 million would remain available for Stillwater projects. Staff said current practice deposits property-sale proceeds into the general capital projects fund so that staff must return to council for authorization before spending, even though council policy states proceeds should formally be general fund revenue. Several council members recommended leaving the proceeds earmarked in the capital projects fund to preserve the ability to use the money for Stillwater matching funds; council voted to keep the funds in capital for that purpose.
Council also approved transferring $550,000 from transportation impact fees into a fund to pay for preliminary work on the Fig Tree Lane extension and related permitting and design updates so the city can keep the project moving while waiting for the EDA decision. Staff told council the EDA grant would be $10 million and that the anticipated local match could be 20 percent (approximately $2 million) under emergency designation, down from a previously expected 50 percent match.
Council adopted the motion to keep the property-sale proceeds earmarked for Stillwater and to transfer the $550,000 to advance project design and right-of-way work. Staff said future appropriation or reallocation would return to council if circumstances change.
