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CRA approves $2.75 million midyear transfers for policing, tenant improvements and historic preservation work
Summary
The CRA approved Resolution 25-23F to transfer $2,748,601 from reserves to cover midyear needs including policing expenses, an arbitrage payment, up to $1 million for tenant-improvement/brokerage needs at 415 Clematis, and $750,000 as a first payment toward the Hibiscus House preservation project at 213 S. Rosemary Avenue.
The Community Redevelopment Agency on April 14 approved a midyear budget adjustment (Resolution 25-23F) transferring $2,748,601 from reserves to cover additional expenses and planned commitments in fiscal year 2025.
Jade Green, deputy director of the CRA, reviewed recommended transfers for Fund 105 and Fund 107. For Fund 105 she requested $2,290,000 in transfers to address several items: increased administrative expenses tied to policing (including bike-unit officers), an arbitrage rebate payment, and up to $1,000,000 earmarked for 415 Clematis tenant improvements and brokerage/marketing fees (Green said the amount is an allotment and would be used as needed when lease terms are negotiated). Green said the 415 Clematis tenant-improvement allotment is expected to be recouped over time through approved lease agreements once tenants are in place.
Green also asked the board to allocate $750,000 as an initial payment in fiscal year 2025 toward the Hibiscus House preservation project at 213 South Rosemary Avenue, in partnership with Related; Green described the larger preservation project as an estimated $10,000,000-plus effort and said the $750,000 is the first half-payment for this fiscal year with additional budgeting to follow.
For Fund 107, Green said the CRA had already closed a purchase at 5701 Broadway that carried a previously unbudgeted line-of-credit; staff proposed transferring $458,182 to reserves to clear that accounting. After the transfers, Green said Fund 105 reserves would remain higher than originally anticipated due to prior carryforward and TIF payments.
Board members asked process questions and staff clarified that brokerage and tenant-improvement costs for 415 Clematis will be recovered through subsequent lease agreements and that formal lease agreements will return to the board for approval. The resolution passed unanimously.
Action: Resolution 25-23F transfers $2,748,601 from reserves for the purposes described and directs staff to proceed with the accounting and contract work described in the presentation.
