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Council approves fee waivers for YMCA but declines a $1.5 million pledge; Y warns loss of tax credit could delay pool and programs
Summary
Council authorized additional fee waivers for the YMCA project but voted down a proposed $1.5 million city pledge (distributed over four years) that the YMCA said is needed to secure a $5 million tax credit; supporters and opponents voiced fiscal and programmatic arguments.
The Downey City Council approved additional fee waivers to support the YMCA of Metropolitan Los Angeles' planned new Downey facility but rejected a separate motion to pledge an extra $1.5 million over four years.
City staff told council the most recent estimate required an increase in previously authorized fee waivers; staff and council approved additional waivers (staff cited a total waiver need of about $362,150, incorporating the newly identified $66,070 figure). Councilmembers agreed to authorize the fee waivers and instructed staff on the administrative steps to complete the waivers.
During the discussion, YMCA representative Steve Roberson said the organization has raised roughly $21 million toward a $22.5 million project budget, and said losing a $5 million state tax credit if the city does not provide the additional $1.5 million pledge by the end of the month would substantially set back the project. Roberson said the YMCA's timetable and the pool component in particular depend on that tax-credit package: "If we don't come up with the 1,500,000... shame on all of us," he said, arguing the city should help secure the remaining fundraising need.
Councilmembers were divided. Some members said the YMCA is a high-value community asset that benefits youth, seniors and families and argued the city could treat a pledge as an investment; other members expressed concern about committing multi-year funds now when the city must preserve reserves, pay for upcoming capital projects and cover future labor bargaining costs. A separate motion to pledge $1.5 million distributed over four years failed; the clerk recorded the motion as failing with three councilmembers voting no and two voting yes.
The net result: the council approved the additional fee waivers to support construction financing but did not provide the proposed $1.5 million pledge. YMCA representatives said they will continue fundraising and that losing the tax-credit deadline could require the organization to return to larger-scale private fundraising.
