Royal Theater renovation: council gets detailed funding update; members press for clearer accounting

City staff and the Royal Theater project team presented an extensive financial and schedule update on May 13, telling the Guadalupe City Council that a revised, one‑story design with a set of removable alternates could make the project fundable without tapping the city general fund.

Tom Bradbury, the project manager, apologized to council and attendees for prior document errors and walked through five recent construction estimates and funding sources. Bradbury and staff said the city currently has roughly $5.5–$5.6 million in non‑general‑fund sources available for the project (including a $5 million award that staff said has been placed in hand by a state arts funding channel), plus other capital set‑asides. Staff presented a construction base estimate near $10.7 million, soft costs of roughly $2.93 million, and a total project cost in one estimate at about $13.6 million. Staff also presented five alternates (mechanical/technical systems, rear building interior, audio/visual systems, and other items) that could be deferred until additional funds are raised.

The project team said the approach — issue a base bid for the work that can be completed immediately and treat the alternates as add‑ons if/when money is raised — would allow the city to award a contract and begin construction while pursuing historic tax credits, federal funds and private foundation grants to close the remaining gap.

Several council members, however, questioned the accounting behind the soft costs and asked for a clearer line‑item accounting of amounts spent to date and funds remaining. Council member Furness (as identified in the meeting transcript) said at several points she did not trust the provided spreadsheet and asked staff to produce a full, consolidated accounting from the city finance office. Council members and members of the Royal Theater capital campaign said they had asked repeatedly for the same information and had not received it in a useable form; volunteers said they could not solicit donations until a fiscal agent MOU and clear accounting were in place.

Capital campaign volunteers in the audience urged the council to finalize an MOU with the Guadalupe Community Action Committee (GCAC) to allow the campaign to act as a fiscal conduit and start raising private funds; staff said the MOU and related gift‑policy work were scheduled for a future council meeting and would be brought back. Melanie and other volunteers said the campaign had stalled because they lacked the numbers needed for donors.

During the public exchange, Bradbury reiterated that several funding routes remain open — federal historic tax credits, EDA grant flexibility, foundation interest and an existing RDA set‑aside of approximately $600,000 — but acknowledged those sources would not cover all alternates. He also said one previously received contractor bid for a larger three‑story design had been far higher than anticipated and that reducing the scope to a one‑story layout had been necessary to make the project feasible under current funding.

After more than two hours of discussion and public comment, the council asked staff to provide a complete, city‑verified accounting of expenditures to date and projected soft costs, and to return with a clear list of the EDA requirements that must be satisfied before construction can start. Council members and staff also discussed stages and timelines for a capital campaign and the possibility of phasing alternates into later construction or post‑opening work.

What happens next: Staff committed to provide a consolidated financial accounting from the city finance office, to bring the MOU with GCAC back to council for review and to produce a checklist of EDA and other funding requirements required before a construction contract is issued. Community volunteers said they will remain ready to resume private fundraising once the city provides the requested documentation and MOU.