Finance committee approves $78,285 reappropriation for Midtown Redevelopment Agency amid concerns over maintenance needs

The City of Santa Fe Finance Committee on Aug. 25 approved a budget amendment to reappropriate $78,285 from the Midtown Redevelopment Agency’s unused one-time FY25 balance to FY26 for implementation of policies, art installations and events at Midtown.

The vote matters because councilors raised concerns that the modest reappropriation will not address pressing site maintenance and capital-improvement needs at Midtown, and several members said the money should be directed to cleanup and repairs instead of events.

City Manager Scott explained that when the funds were transferred into the MRA budget they were intended for activities described in the agenda item — events and capital work to draw people to Midtown — but that staff had instead used parts of the transfer for operating needs and consultant work. Scott told the committee that $71,000 was spent on consultant Jack Kelly, $14,000 was spent with Davenport Construction, $20,000 was paid to Creative Santa Fe, $10,000 to ND5 for a master-plan application and $20,000 to Optikos Design. He described those as legitimate operating or planning expenditures that used up portions of the original appropriation.

Councilor Lindell — who had pulled the item for discussion — said the item “seems very slushy” and pressed staff to prioritize improvements and maintenance. Lindell noted a separate proposal staff has for $129,000 to take over site maintenance and said the $78,285 would be gone well before spring if used for events. Manager Scott responded, "I can guarantee maintenance," when Lindell asked that the reappropriated funds be used toward maintenance rather than additional events.

The committee moved to approve the reappropriation. The meeting record shows a motion attributed to Councilor Cassatt; a second was noted but the name was not provided on the transcript. The roll call vote recorded Cassatt — yes; Lindell — yes; Lee Garcia — yes; Chair Merleworth — yes. The motion passed.

The discussion highlighted competing priorities for the Midtown site: public-facing activation through events and art versus basic site upkeep and capital repairs. Councilors asked staff to focus on longer-term capital needs and to be cautious about repeatedly relying on small one-time reappropriations for recurring maintenance.

Next steps: staff will implement the reappropriation and update the committee on how the funds are allocated; councilors indicated they expect subsequent requests for additional funding to address remaining maintenance and capital needs.