CRA revisits 447 Harrison breezeway after developer says $800,000 financing gap

City staff and CRA board members discussed options for 447 Harrison Avenue — the downtown “breezeway” project — after the prospective partner, Virtuous Cycle, said its preferred plan would cost about $1.2 million and leave a financing gap of roughly $800,000. The city previously authorized staff to negotiate with the group, but the new board asked whether the agency still wants to proceed in light of the gap. Brandy Waldron, CRA staff, told the workshop the CRA had funded about 90% of a design that included leasable space, public restrooms and a preserved breezeway. “When we reached about 90% of design we received a letter from the DIB recommending that the CRA forego that project and instead solicit for a developer to come in and partner with the city to do a public‑private partnership,” Waldron said. The Virtuous Cycle proposal initially envisioned purchasing the building at a nominal cost and redeveloping it while maintaining a permanent easement for the breezeway, staff said. In the developer’s current plan, staff said, the build‑out would total about $1.2 million and the developer estimated a gap of approximately $800,000. “If we want them to do what they proposed here ... there is a gap of 800,000,” Waldron said. Mayor Branch and several board members expressed reluctance to provide a direct cash infusion. “I’m not in favor for any cash injection,” Mayor Branch said, adding that he supports a simpler, one‑story approach and that the city has already invested heavily in downtown. Other options discussed included narrowing the required breezeway width to increase leasable area, offering a long‑term lease instead of selling the property, or inviting the Downtown Improvement Board or another local group to assume maintenance or operating responsibility. Board members also suggested reissuing or reopening an RFP and evaluating other respondents from the earlier solicitation. Commissioner Josh Street urged staff to verify the developer’s financial pro forma before moving forward and to consider working with the next RFP respondent or returning the project to a public solicitation if the numbers do not align. No final decision or vote to provide public funds was made during the workshop. Staff will return with more detailed financial information and options; any transfer, sale, or public contribution would require future CRA or city commission approval.