Columbia Gateway Urban Renewal budget committee recommends 2025-26 spending plan, commits funds to First Street and Basalt Commons

The Columbia Gateway Urban Renewal Agency budget committee on Wednesday recommended the agency’s proposed 2025–26 budget after a review of a redesigned budget packet and discussion of major downtown projects.

Joshua Chandler, the city’s community development director and manager of the Columbia Gateway Urban Renewal Agency, presented the budget and said the urban renewal district “is set to sunset in 2029,” and described a recent substantial amendment that increased the district’s maximum indebtedness by $6,100,000. Chandler walked the committee through two agency funds — the capital projects fund (the urban renewal budget) and the debt services fund — and highlighted key line items and planned commitments for the coming fiscal year.

The committee’s recommendation matters because the budget directs tax-increment financing and other agency resources toward projects downtown during the district’s final years and establishes amounts available for unanticipated redevelopment opportunities. Chandler told the committee the agency’s focus in 2025–26 is “impactful strategic investments” including completion of the First Street project, oversight of the Basalt Commons housing development, continued property rehabilitation incentives and a parking-lot redevelopment agreement.

Most immediately, the packet shows an estimated beginning fund balance for the capital projects fund of a little more than $6.2 million (page 16), and combined urban renewal revenues from property taxes and interest of about $1.8 million for 2025–26. The budget includes the following major commitments:

- First Street streetscape: The project is currently estimated at about $7 million. The packet shows $3.8 million already in the city’s Fund 18 and a $3.2 million transfer/commitment from the agency to Fund 18 for construction. Chandler said $60,000 remains for final design and $3.2 million is earmarked for construction.

- Basalt Commons: A 116-unit apartment project at the former Griffith Motor site. The agency has $1,730,000 committed to the project: up to $1,000,000 through the incentive/property rehabilitation program and $730,000 through a development funding agreement.

- Incentive/property rehabilitation program: Budgeted at $1,400,000 for 2025–26 after a clerical correction (the packet previously showed $1,600,000 in one location). Chandler explained the incentive program is the umbrella for smaller development funding agreements and grants; about $315,000 has been expended from the program since 2022, and the agency has committed roughly $1.3 million through the program to date.

- Parking-lot redevelopment: The agency’s share is budgeted at $484,658 as its half of a joint intergovernmental redevelopment project across from Basalt Commons.

On the debt side, Chandler said total outstanding debt obligations as of July 1 are approximately $2,840,000, the remaining balance of a bond issued in February 2009 that is scheduled to be paid in full on June 30, 2029. The debt services fund is budgeted to ensure next year’s debt payment is available before property tax revenues are received.

Committee members asked for clarifications on several items. Sandy Hagerl questioned higher-than-expected auditing costs; Chandler and City Manager Matthew Cleaves said the rise in audit charges reflects market pressures and a limited local auditor supply, and that switching auditors this year also increased workload. Committee members also pressed for clarity on large differences between budgeted figures and 2025 actuals on page 16; staff said the agency budgets to make funds available when projects are ready to spend them, and actuals will reflect spending only as projects move forward.

Chandler and staff described delays on First Street largely tied to archaeological work at the project site: earlier testing found far more deposits than anticipated, extending the documentation and permitting timeline. Staff said engineering is essentially complete and that easement acquisitions and railroad coordination remain to be finalized, but they expressed a goal of beginning construction this year.

The packet and the budget presentation also contained several clerical edits the committee agreed to make: remove a standalone title page for the debt services fund (page 21), correct the incentive program number to $1,400,000 on page 7, and change an instance of “adopted” to “proposed” on page 5 to reflect that this is a recommended budget being forwarded for final approval.

Votes at a glance: - Approve agenda: Moved by Scott Hagee; seconded by Mike Courtney. Committee voice vote: all in favor; motion passed. - Elect secretary for this meeting (Tim McLaughlin): Volunteered and approved by voice vote. - Elect chair for this meeting (Darcy Long): Nominated and approved by voice vote. - Approve minutes from 04/16/2024: Moved by Donna Lawrence; seconded by Ben Ring. Committee approved the minutes with abstentions from Walter, Kristen Lillovic and Jennifer Jacquard (those members were not present at the earlier meeting). - Recommend approval of the Columbia Gateway Urban Renewal Agency proposed budget for fiscal year 2025–26: Moved by Donna Lawrence; seconded by Mike Courtney. Committee voice vote: all in favor; motion passed. Committee also approved the minor clerical edits described above.

The committee did not record a roll-call vote for the budget recommendation; staff and members confirmed the motion passed by unanimous voice vote and that the packet will be revised to reflect the agreed edits before forwarding the proposal to the next review step.

Chandler reminded the committee the December 2024 substantial amendment increased the district’s maximum indebtedness by $6.1 million and that those additional capacity dollars will be available over multiple years rather than as a single lump sum. He said the agency will continue to prioritize projects that produce new taxable value before the district sunsets in 2029.

The committee completed its review and recommended the proposed budget and adjourned.