Dutchess County Comptroller Dan Eimer Blair told the Poughkeepsie Common Council on July 1 that the county’s Youth Opportunity Union project — often called “the U” — has been repeatedly redesigned, has no practicable construction or operations plan and has used about $4.5 million in federal COVID-19 funds to date.

Blair, who presented a summary of his office’s audit of the project, said the site at 35 Montgomery Street was purchased by the county in 2021 under a contract that included five benchmarks. "The county missed three of the five benchmarks," Blair said, and that failure makes the city eligible to repurchase the property for the costs the county incurred developing the site.

The audit traces the U from an early concept that architects priced at roughly $165 million, to later designs that dropped the total to about $154 million, and then to subsequent iterations that cut the scope roughly in half, removing or downsizing many public amenities. Blair said the physical plans shrank from roughly 104,000 square feet to about 34,000 square feet as the project was redesigned.

Blair provided a line-item summary of expenditures: $4.5 million drawn from county COVID-19 funds; demolition of the former YMCA at about $1.7 million (the City of Poughkeepsie contributed about $240,000 toward demolition); roughly $2.5 million on repeated design iterations; and just over $500,000 in other related costs. He said the temporary community green space promised as part of the initial deal was never built.

The county also received external grants tied to smaller versions of the project. Blair said the county received a $10 million New York Swims grant that is contingent on pool construction, a $1 million grant associated with Congressmember Pat Ryan that he said has not been spent or confirmed as received, and other grants he described as totaling about $11 million for the aquatic iteration. Blair also noted a county microgrant program under the “U Without Walls” brand that has awarded roughly $325,000 to youth programs, with several awards granted to the city.

Blair read contract language that he said ties five benchmarks to the sale condition; among them: appropriation of the $25 million commitment within six months (the county appropriated $8.5 million, of which $4.5 million was used); demolition of the YMCA within a year (completed); and the start of construction within 27 months (did not occur). "I believe the property is in disrepair," Blair said, adding that the contract’s language gives the city a right to repurchase for the county’s development costs.

Council members asked clarifying questions on whether demolition and design fees count toward the repurchase calculation, which exact funds were drawn, whether maintenance was billed, and what funding remains available. Blair said the $4.5 million figure represents county COVID-19 money spent to date and that the Pat Ryan funds were not, to his knowledge, spent. He repeatedly advised that legal recourse and precise contract interpretation would require review by counsel.

The presentation prompted council discussion about whether the city should seek legal advice, press the county for clarity, pursue enforcement under the sale contract, or consider other paths for the property’s future. Mayor Flowers said she had met with the county executive that morning and expected the site to be cleaned up; she also said city staff and the council would continue conversations about next steps.

Blair said his audit did not assess vendor performance or pricing and that his review focused on public expenditures and milestones. He made his slide packet and report available to council members and invited questions by email.

The audit presentation provided the council a consolidated timeline and dollar figures the comptroller said clarify why the long‑promised community center has not been built and what the city’s contractual options may be going forward.