Council tables MOU on Chicago Street pit area after debate over cost and timing

City staff presented a memorandum of understanding (MOU) proposing to convey about 10 acres of land at the “pit” on Chicago Street (21109 Chicago Street) to allow expansion of police and fire training facilities. Rob (public works) said the parcel had been purchased by the Water Department in 1990 and that the street department had used it for materials. The proposal identified roughly 10 acres to be relinquished and listed a total price of about $500,000 to be split between the police and fire departments.

Finance director Rayland explained that police would likely fund their portion with impact fees as part of capital improvements, while fire would use its capital fund; he said the actual payment timing would likely appear in the fiscal 2026 budget because neither department had budgeted the amount in FY2025.

Councilors raised concerns about moving money between funds, the fairness of charging internal departments for property the street department had used for years, and the timing relative to an upcoming tight budget cycle. Councilor Williams asked whether the price was negotiable; staff said council could provide direction to negotiate. Other councilors suggested exploring leasing the parcel at a nominal fee (for example, $1 per year) so ARPA-funded facility work could proceed without immediate capital transfers.

After discussion, Councilor Williams moved to table the MOU indefinitely to allow legal and financial review and to determine whether a lease or other arrangement would permit the departments to proceed with planned improvements. The motion, seconded by Councilor Doty, passed by voice vote. Staff said the item can return to the council agenda when additional information is available.