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Council approves transfer of 72 Marietta Street from DEAM to Watershed, moves $16.75 million
Summary
The Finance Executive Committee voted to transfer ownership of 72 Marietta Street from the Department of Enterprise Asset Management to the Department of Watershed Management and authorized a $16.75 million transfer from the Watershed R&E fund to the general fund, citing an appraisal and administrative realignment.
The Finance Executive Committee approved an ordinance transferring 72 Marietta Street from the Department of Enterprise Asset Management (DEAM) to the Department of Watershed Management, and authorized a $16,750,000 payment from the Watershed renewal and extension (R&E) fund to the general fund.
CFO (name provided in the meeting) explained the move as an administrative realignment: Watershed has been leasing 72 Marietta from DEAM at about $2 million per year and the administration proposes transferring the asset so Watershed can control the facility. "We think that it's in the best interest of both the department of the general fund and the Department of Watershed Management for that asset to be transferred completely over to DWM so that DWM could make its own decisions about that facility and its future needs," the CFO said at the meeting.
Councilmembers asked about the valuation and planned use of the funds. A councilmember noted the payment would be a one-time injection into the general fund and asked whether the administration planned additional asset sales. The CFO said the administration is reviewing its asset portfolio and may consider other parcels to better align city-owned property with policy goals, including affordable housing and revenue optimization.
Councilmember Juan asked whether Watershed was the only tenant; the CFO replied Watershed was the only current tenant. Juan also asked if the funds were intended to address the projected budget deficit; the CFO said the transfer was part of the plan to support the budget.
The committee approved the substitute ordinance and the budget amendments on a recorded vote.
The legislation includes attachment of the appraisal that informed the valuation and requires the CFO to amend the FY2025 general fund and FY2025 water and wastewater R&E fund budgets to reflect the transfer. The ordinance also authorizes termination of the existing memorandum of understanding between DEAM and Watershed for the lease of the property.
Councilmembers requested details on other contemplated asset sales and the administration said it would continue to review the city portfolio; no further asset-sale authorizations were made at the meeting.
