Erie Redevelopment Authority accepts 2024 audit, approves condemnation and new real-estate contract

The Erie Redevelopment Authority voted to accept its 2024 audited financial statements and single-audit — both with unmodified opinions — and approved several property and operational actions at a regularly scheduled June meeting.

The action followed a presentation by auditor George Jarsevich of Zelenkowski Absalon, who said the audit produced an unmodified opinion, meaning the firm found the authority’s financial statements to be materially correct. He also told the board the single-audit testing of major federal programs (including the American Rescue Plan Act and a lead-hazard grant) produced an unmodified compliance opinion and “we have no internal control deficiencies to report.”

Why it matters: The audit reflects a year of elevated activity tied to ARPA funding and the recognition of previously unspent ARPA amounts. Board members said the results — including larger revenue and net-position increases than the prior year — will factor into upcoming grant applications and budget planning as ARPA-funded programs wind down.

Financial highlights and near-term next steps

Staff reported year-to-date and month-end operating detail for the authority. April (finance staff) told the board total grant revenue from January through May exceeded $700,000 and that May grant receipts were about $287,000, including an ARPA Healthy Homes draw of about $167,000 and roughly $75,000 in ARPA administration. Service revenue for the period shown about $324,000, including roughly $131,500 in May. April said the authority’s general fund balance at the end of May was just under $297,000 and that total assets were reported as roughly $11.6 million.

Auditor Jarsevich summarized broader audit figures: total net position was about $3.4 million (an increase of roughly $3.1 million from the prior year), and total revenues were approximately $7.6 million (an increase of about $4.5 million), changes he attributed in part to ARPA funding and the recognition of previously unspent awards. Total federal expenditures for the year were reported at about $3.7 million.

Board action on the audit and related deliberations

The board discussed timing and review. One member requested that board member Ethan (absent from the meeting) be given a final chance to review the audit; the board voted to accept the single audit and the financial statements as presented while allowing Ethan to review and concur afterward. The motion carried.

Property and real-estate actions

The authority approved a condemnation acquisition of 917 Ash Street to add to authority-held lots tied to the East Bayfront Greenway Trail plan prepared by Michael Baker International. Solicitor Sundberg told the board the property now exists as a vacant lot following emergency demolition and that using the lot for the planned community asset satisfied the blight/urban redevelopment-law criteria cited in the condemnation presentation. The motion to acquire 917 Ash Street by condemnation carried.

The board also authorized a one-year real-estate services contract with Agresti (a local listing/broker proposal was selected over a second proposal). Staff said the Agresti proposal would use a flat 5% commission for developer-market listings and that the authority will keep a separate realtor under contract for the land bank to avoid vendor- and billing-confusion. A board member requested a 3- to 6-month check-in from the vendor as a quality-assurance measure; the motion to contract with Agresti carried.

Committee appointments and other governance decisions

The authority formed a governance committee (broadly described to cover bylaws and governance matters) and a finance/audit committee. The board formally appointed Jeremy to lead the governance committee. Members discussed that additional committee work and candidate interviews for a land-bank board appointment would be scheduled before the next authority meeting; the land-bank appointment itself was deferred so the two nominees could be interviewed.

Program updates: housing rehab, childcare, software rollout

Housing rehabilitation staff reported program progress: the Lead Hazard Reduction Demonstration (LHRD 2020) program reached its benchmark of 110 completed jobs and staff expect to squeeze in at least one more job under the award. Staff also said the authority has begun intake and inspections for a new county-funded in‑home childcare rehabilitation program; of 16 approved applicants, 12 were already scheduled for inspections.

Staff told the board the Neighborly software implementation is scheduled to go live June 16, with applications to the authority opening the following week. Executive staff and board members emphasized the need to plan for the end of ARPA-funded programming and consider revenue-producing or lower-cost operational approaches going forward.

Scholarship and community items

The authority announced two scholarship recipients selected this year on the basis of volunteerism, community engagement and likelihood of follow-through. Staff said scholarship payments will be sent to the recipients’ institutions’ financial-aid offices rather than directly to individuals.

Votes at a glance

- Approve consent agenda (minutes from May 12 and a June study session): motion approved. - Accept interim financial reports (through May 31): motion approved; second recorded by Jeremy. - Accept single audit and audited financial statements (2024), allowing absent board member Ethan to review and concur: motion approved. - Approve condemnation acquisition of 917 Ash Street (to support East Bayfront Greenway Trail): motion approved; second recorded by Andy. - Enter one-year real-estate services contract with Agresti (flat 5% listing commission for developer listings): motion approved. - Establish governance committee and finance/audit committee; appoint Jeremy to lead the governance committee: motion approved.

Discussion, not final action

Board members discussed appointing an authority member to the Erie Land Bank; interviews of two self‑nominated candidates were scheduled ahead of a future appointment vote. The authority also scheduled a reconvening meeting with the county redevelopment authority to review and potentially renegotiate an existing deal; the boards agreed to meet in person June 30 at 3:30 p.m.

Sources and attribution

Quotes and attributed remarks in this report come from speakers who appeared in the authority’s meeting transcript, including auditor George Jarsevich (Zelenkowski Absalon), Solicitor Sundberg, Executive Director Aaron (last name not specified in the transcript), April (finance staff), Jeremy (board member), Andy (board member), Miss Cook (housing rehabilitation staff), and Miss Davis (scholarship coordinator). Other remarks are summarized from the meeting record.

Ending: Next steps

Staff will file the audit with the city clerk’s office to support upcoming CDBG applications, continue Neighborly rollout and finalize the Agresti contract. The board left the record open for the absent member’s concurrence on the audit and scheduled follow-up interviews and reports on land‑bank appointments and the new realtor arrangement.