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Washington Terrace agency approves $650,000 from 5580 South Adams sale for parks capital improvements

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Summary

The Washington Terrace Redevelopment Agency voted 4-1 to reserve $650,000 from the sale of 5580 South Adams Avenue for parks capital improvements and grant matching. The funds — proceeds of a donated lot tied to library development — will move to the city general fund at substantial completion of the related project and be used as one-time match for capital projects.

The Washington Terrace Redevelopment Agency voted 4-1 on Sept. 16 to approve using $650,000 from the sale of 5580 South Adams Avenue as one-time funding for parks capital improvements and to reserve the money for matching grant opportunities.

Unidentified Speaker 7 moved to "approve the use of the funds from the sale of the 5580 South Adams Avenue property for the parks and capital improvements," and Unidentified Speaker 5 seconded the motion. After brief discussion the board voted to approve the direction to staff.

Why it matters: City staff said the proceeds are not tax-generated revenue but came from a property donation tied to the library’s development. Unidentified Speaker 3 explained that because the funds were private/donation proceeds, they strengthen grant applications when used as local matching funds and therefore can increase the city’s chance of securing external grants such as CDBG.

Board debate focused on two points: urgency and flexibility. Several board members described deteriorating playground equipment at Little Romer Park and Wright Park and argued for one-time capital investment to prevent removal of play structures. "These funds are not actually, funds that that are from a tax base, they are from a donation," Unidentified Speaker 3 said, explaining the origin and intended use for grant matching. Unidentified Speaker 5, speaking from the parks committee perspective, added that non-tax match money "increases the power that we have as a city going into a grant."

Some members urged caution about rigidly earmarking the full amount. Unidentified Speaker 4 expressed concern about committing the entire sum amid limited discretionary capacity, saying, "essentially we're a broke city," and suggested placing the funds in the city’s investment account (PTIF) or leaving them in the general fund so council could reallocate if higher-priority needs arise.

City staff and other board members responded that earmarking the money for parks capital improvements in the general fund would be a planning tool rather than an immutable restriction: funds would be reserved and placed where they could be used for matching grants but could be moved later by council action if other priorities emerged. Staff also said the $650,000 will remain in RDA reserve until substantial completion of the building project, at which time the funds would transfer into the city general fund and be available for appropriation.

The vote and next steps: The motion passed 4-1. The board directed staff to proceed with reserving the proceeds for parks capital improvements and to apply the funds as one-time match where appropriate; staff will follow ordinary budgetary and appropriation procedures to move money into the PTIF or parks capital accounts when grant opportunities arise. The meeting adjourned afterward.

The record does not specify exact line-item allocations or a timeline for specific park projects beyond references to Little Romer Park, Romer Park Phase 4, Victory Park (if CDBG funding is awarded) and Wright Park. Those details will require future budget appropriation or separate council action.