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Salinas committee backs reallocating $595,000 in CDBG funds to Sherwood Recreation Center
Summary
The Housing and Land Use Committee supported a staff recommendation to submit a first substantial amendment to the FY 2023–24 annual action plan to HUD, reallocating $595,000 in CDBG funds to the Sherwood Recreation Center building-improvement project.
The City of Salinas Housing and Land Use Committee on Aug. 19 supported a staff recommendation to submit a first substantial amendment to the fiscal year 2023–24 annual action plan to the U.S. Department of Housing and Urban Development and to reallocate $595,000 in Community Development Block Grant (CDBG) funds to the Sherwood Recreation Center (SRC) Building Improvement Project.
Vincent Montgomery, planning manager with the Community Development Department (CDD) housing division, told the committee the additional funds were needed after the project’s bid opening revealed a $595,000 shortfall for construction and construction management. "We're asking for the additional CDBG funds to be allocated because of the bid opening that helped us identify a $595,000 short fall," Montgomery said.
Montgomery said the SRC project converts a former municipal swimming pool at 920 North Main Street into a youth-focused recreation center. Previous interior phases are complete; the current phase (phase 4) covers exterior upgrades, accessibility, parking, landscaping and additional interior work. Montgomery said the project’s originally allocated total cost was $3,951,796 and the new projected total is $4,546,796. The requested $595,000 would be moved from stalled or not-yet-implemented projects: $550,000 from the Republic Cafe project and $45,000 from the City’s housing referrals and tenant–landlord services category.
Montgomery told the committee the city published a 30-day notice on July 27, 2025 in English and Spanish and posted it via the Monterey Herald, the city website, city hall and libraries; the public comment period runs through Aug. 26, 2025. He said reallocating to a moving project would help the city meet HUD expenditure-ratio requirements for CDBG funds.
Committee members questioned the size of the increase to construction-management costs and placement of contingency funding. One member noted construction management rose from about $297,000 to $587,000 (a roughly 97% increase). Montgomery said the city placed additional contingency funds in the construction-management line to cover possible change orders. Francisco Ambilla, management analyst, explained the Republic Cafe and related lots in Chinatown remain in the design phase; funding would be replaced from the FY 2025–26 allocation when those projects advance and developers secure additional financing.
A motion to support staff’s recommendation was made, seconded and approved by roll call. Councilmember Salazar voted “yes.” Chair Barajas and Councilmember Sandoval voted “yes.” The committee’s support will be forwarded as a recommendation to the City Council to authorize submission of the amendment to HUD and to authorize the city manager or designee to finalize and execute related documents.
The committee’s action was supportive (a recommendation) to the City Council; the committee itself did not adopt the amendment to HUD. The public comment period for the substantial amendment remains open through Aug. 26, 2025.
