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Centralia council approves $1.5 million transfer to finish United Learning Center building

2959302 · April 9, 2025
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Summary

After public testimony for and against, the Centralia City Council voted 6–0 (with one recusal) to transfer $1.5 million from the general fund to United Way of Lewis County to complete the United Learning Center building under construction downtown.

The Centralia City Council on Tuesday authorized a $1,500,000 transfer from the city general fund to the United Way of Lewis County to address a short-term cash‑flow gap and complete the United Learning Center (ULC) building currently under construction.

City Manager Mike Thomas told the council the transfer would “alleviat[e] a short term cash flow shortage” and is intended to replace a previously intended use of real‑estate excise tax (REIT) dollars that the city attorney and the Attorney General’s office had concluded could not be used for the project’s immediate needs. “This is a project for everyone in the community,” Thomas said during the presentation.

The ULC project combines an early learning center, a children’s museum, space for a future permanent Boys & Girls Club and other tenant services. Thomas said a national nonprofit partner has committed to fund tuition‑free preschool slots for up to 80 children, age 3–5, for a minimum of about 10 years; that partner requires occupancy by winter to proceed with its commitment and to avoid higher construction costs from a prolonged ramp‑up.

Why it matters: supporters said the center will expand early‑learning access, after‑school programs and downtown foot traffic; opponents urged caution given the city’s budget pressures and asked for more public notice about the transfer. The council received 28 written letters about the item and heard about a dozen people speak during a lengthy public comment period.

Proponents from the ULC and project partners described broad volunteer effort and private fundraising behind the project. Shannon Glenn, board president of United Way of Lewis County, said, “This request is not an additional amount of money. It is essentially a reclassification of money that was already allocated.” Multiple speakers from the Discover Children’s Museum, United Way and the Boys & Girls Club described community demand for early‑learning and youth services and urged council support.

Several residents expressed concern about the timing and scale of using general fund money while the city faces a multi‑hundred‑thousand‑dollar shortfall in the operating forecast. One commenter said funds previously requested for public sports‑field parking and other capital needs had not been awarded and asked why the city was shifting general fund resources to the ULC.

Conflict of interest and vote: Councilor Norm Althauser announced a conflict and recused himself from the vote because he serves as executive director of the Boys & Girls Club of Lewis County. Deputy Mayor Kelly Brewer moved to approve Resolution 2820 authorizing the transfer; the motion passed 6–0 with Althauser recused. The yes votes were Mayor Kelly Smith Johnston, Deputy Mayor Kelly Brewer, Councilors Vogt, Chapman, Wesley and Garibay.

City staff and the ULC partners said the transfer is not an addition of municipal funds to what had already been committed; rather, staff explained the transfer would allow the city to conserve REIT funds (real‑estate excise tax proceeds) for other capital projects because state rules and an Attorney General opinion limited the immediate use of those REIT dollars for the current construction phase. Staff also said NEPA and HUD funding processes were moving faster than initially expected, creating an opportunity to keep the private and federal commitments aligned with construction timelines.

Next steps: the city manager was authorized to execute the transfer to the United Way of Lewis County so construction can resume; United Way then will continue administration of private fundraising and tenant agreements. The council discussion included requests that project partners provide monthly financial and project‑management reports to the council while the city is funding completion, and that staff consider closer project oversight given the city will take ownership of the finished building upon completion.

The council’s action came after roughly two hours of public testimony and a staff presentation explaining alternatives, risks of delay and how the transfer would interact with previously allocated REIT funds.