Public and council split after $500,000 moved from Rail Trail to Westside indoor sports complex

A mid‑project reallocation of city bonding proceeds has prompted sharp public criticism and conflicting statements by council members and administration staff, who differ over whether both the downtown Rail Trail and the Ken Sanchez Indoor Sports Complex remain fully funded.

Multiple members of the public and local advocates used the City Council’s general‑public‑comment period to urge the council to restore $500,000 that they said had been moved from the Rail Trail project. "I register some disappointment in the council's recent decision to appropriate funds away from the rail trail in favor of the Westside Youth Sports Complex," said Andrew Kelleher, a public speaker. Bike and neighborhood advocates argued the funding shift undercuts safety and downtown revitalization efforts.

City budgeting staff described how the reallocation happened. "In the last, cleanup bill that we had, we've moved, some interest, within a GRT bond ... we moved a half a million from the rail trail to Ken Sanchez Indoor Sports Complex," said Mr. Motsko, a city budget staff member. He added that interest earnings provided approximately another $600,000 that allowed staff to place an additional half‑million into the Ken Sanchez project so "Ken Sanchez Indoor Sports Complex is fully funded, and the rail trail, which is a multi phased, multiyear project, is also funded for, several phases."

Some council members disputed that both projects are fully funded. "No, we don't agree that they are fully funded," the chief administrative officer told the council when asked whether the Rail Trail retained sufficient funds after the transfer. The CAO said project‑cost escalation and ongoing negotiations make the financial status uncertain.

Why it matters: the Rail Trail is a multi‑phase downtown project that council and residents say will improve bicycle and pedestrian safety and support downtown revitalization; the Westside indoor complex is a capital project many councilors said would quickly put shovels in the ground in their district. The contested reallocation drew speakers from neighborhood associations, Bike ABQ and residents who live near the Rail Trail alignment.

Public commenters raised procedural and trust concerns. "Anytime you start moving, funds around, especially after projects have initiated, the cost of these funds are it cost these projects increase and the time timelines for completion extend," said William Indelicato of Strong Towns Albuquerque. Bike ABQ asked the council to restore the $500,000 to signal a continuing commitment to pedestrian and bicycle safety.

Councilors defended the decision differently. Councilor Sanchez said the indoor complex "is going to support many schools in the city of Albuquerque" and that the move gets construction started quickly. Councilor Lewis noted that council set‑aside and cross‑district funding reallocations occur commonly: "This is how we get multiple projects done." Councilor Baca said her council set‑aside previously funded an unfunded portion of the Rail Trail.

Administration and staff urged clarity about the funding source. City staff described the reallocation as a re‑use of gross‑receipts‑tax (GRT) bond capacity and interest earned on those bonds. The CAO reiterated that no state funds were moved for the Westside project.

After extensive public comment, several councilors said they will work with staff and each other to try to resolve outstanding gaps and to preserve both projects' momentum.

No new ordinance or formal vote to reverse the transfer took place during the meeting. Several speakers asked the council to reconsider the allocation and to restore the funds to the downtown Rail Trail project.