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Mesquite council tables $15.7 million RDA loan to general fund; requests bids and specifics before February deadline

2846229 · January 21, 2025
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Summary

At a Jan. 21 tech-review meeting, Mesquite councilmembers discussed a proposed $15,700,000 loan from the Redevelopment District to the general fund to cover parks, public safety and civic projects, and voted to postpone action until the last council meeting in February so staff can provide bids and further detail.

City of Mesquite councilmembers at a tech-review meeting on Jan. 21 discussed but postponed action on Resolution R205-003, a proposed loan of $15,700,000 from the Mesquite Redevelopment District (RDA) to the city general fund to pay for several planned projects.

The resolution listed projects to be funded by the loan, including commitments for Heritage Park tied to a development agreement; fencing improvements at the Jimmy U's campus (SCC fencing); remodeling and construction related to the existing animal shelter; design and construction of Fire Station No. 2; construction manager costs for the Mesquite Justice Center project; and various park improvements across the city. City staff said the loan is intended to ensure remaining redevelopment funds could be used for city projects rather than being returned to other taxing agencies when the RDA terminates at the end of February.

The loan amount — $15,700,000 — was presented as a single sum to be loaned to the general fund to cover the enumerated projects as they come in. Council members pressed staff for clearer dollar allocations, asked whether remaining funds could be earmarked for business-development requests that arrive before the deadline, and emphasized the need for firm bid numbers before final approval. Council members repeatedly noted that if funds are not encumbered by the end of the RDA period in February, the funds could be lost to other taxing entities.

City staff (Nikki) said some projects already have cost estimates from architects and that specific bids were expected for items such as the animal shelter and Fire Station No. 2. Councilmembers asked staff to prepare formal bid packages and to return with exact figures. Several members suggested setting a finite per-project dollar limit for any “business development” set-aside, and others recommended adding any agreed projects to an RDA meeting record so the allocations would be authorized properly.

After extended discussion about timing, bidding and whether any portion of the $15.7 million could be reserved for incoming business requests, a councilmember moved to postpone the item and move it to the last council meeting in February so staff could compile bids and final figures. The motion passed.

Discussion-only items included whether the loan would appear on the consent agenda, whether the loan technically transfers into the general fund or operates as a loan to the general fund, and whether estimated costs were sufficient in lieu of final bids. Staff said some cost estimates exist but that formal bids would be needed for exact amounts. The council directed staff to prepare the additional research and bid documentation and to place the item on the council meeting agenda for final action at the end of February.

Next steps: staff will obtain bids for projects identified in the resolution, clarify the exact mechanics of the loan, and return the item to the council at the last meeting in February for final action or encumbrance. The council warned that funds not properly encumbered by the RDA deadline may be unavailable for these projects.