Lawrence Redevelopment Authority financials reviewed; council seeks invoices and clarity on $2.5M ARPA allocation

Members of the Budget & Finance committee and the Lawrence Redevelopment Authority (LRA) met April 28 to review LRA financial statements and discuss how city funds previously allocated to the authority are being used.

Ernie Sintron of EM Business Solutions, the LRA’s accountant, summarized the authority’s 2024 management report: income around $1,000,082.60 for the year; total expenses of $986,254.19; and net income including interest of $123,612.06. The report lists line items including demolition and remodeling, consultant fees, architectural and legal costs, and a variety of operating expenses.

Councilors repeatedly asked the LRA to provide supporting invoices and documentation for those line items and for any expenditures linked specifically to the $2.5 million the council transferred from free cash/ARPA to the LRA. Council President Giovanni Rodriguez and several councilors said they wanted a clear separation between routine LRA operating costs and the money the council specifically designated for urban renewal projects.

“I want to make sure like, I want to see what we actually, the current vote that we took,” Council President Giovanni Rodriguez said, requesting the original council vote authorizing the $2.5 million and a mapping of expenditures to that allocation. Senior LRA staff acknowledged the transfer and said the LRA has not yet expended the full $2.5 million and that many line items in the 2024 report came from operating activity prior to that transfer.

Councilors also raised several procedural concerns: two payments shown in advertising/marketing were returned, bank statements from closed accounts were still outstanding, and several members asked that the authority’s treasurer and additional staff be present at a future meeting to answer questions. LRA counsel and the executive director explained that the authority has engaged consultants and contractors—procured through city procurement processes for some items—and that some legal matters remain unresolved.

During the discussion the LRA executive director said the authority has sought outside legal guidance and that, if a definitive legal interpretation is required, the LRA may pursue a declaratory judgment to resolve an impasse over legal authority on specific transactions. “I would say that we're looking for a declaratory judgment,” the executive director said when asked whether the LRA might seek court clarification.

Committee members asked the LRA to provide the missing invoices, a list of consultants and the scope of their work, job descriptions for paid LRA staff members, and an updated management report that separates operating expenses from expenditures tied to the council’s $2.5 million allocation. The committee voted to table further LRA discussion until those materials are provided and requested that the treasurer and other LRA staff attend the next meeting.

No formal change in funding was made at the April 28 meeting; the committee emphasized transparency and requested documentation so councilors could respond to constituent questions about use of public funds.