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CRA denies Kimley Horn design agreement for 1540 Indian River Drive; council directs revised FCT work plan

City of Sebastian City Council & Community Redevelopment Agency · February 25, 2026
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Summary

The Community Redevelopment Agency voted to deny a Kimley Horn professional services agreement for design and permitting at 1540 Indian River Drive and instructed the city manager to draft an alternate work plan for submission to the FCT grantor; staff will seek demolition cost estimates and request a one-year grant extension.

At its Feb. 23 meeting, the Community Redevelopment Agency voted to deny a proposed professional services agreement with Kimley Horn for design and permitting work at 1540 Indian River Drive and directed the city manager to prepare a revised work plan for submission to the FCT grantor.

Council member Dodd raised concerns that producing architectural and mechanical plans now would be premature because the city is exploring acquisition of adjacent property that could change the project’s scope. He said demolition of the existing, likely unsafe structure should be prioritized and that any design work should wait until the property configuration is settled. “There’s no sense in us spending money to produce drawings, especially MEP drawings, on a building that I would doubt very seriously is going to be anywhere near what’s going to happen on that property once we combine them,” Dodd said during the discussion.

Staff told the CRA that the 1540 Indian River Drive parcel had been purchased with an FCT grant and that grant conditions require an approved work plan before demolition or a change in scope can occur. The grant was noted to expire on Sept. 30, 2026. City staff said they would draft an alternate work plan for submission to FCT, seek cost estimates for demolition, and ask the grantor for a possible one‑year extension to preserve the funding while the city refines its approach.

A motion to deny the Kimley Horn agreement and to direct the city manager to take those steps carried on a roll-call vote (Mr. Dodd, Mayor Jones and Vice Chair McPartland voted yes). The action pauses design expenditures tied to the grant and directs staff to return with a revised work plan or an alternative approach that complies with FCT requirements.

Next steps: the city manager will prepare the revised work plan for FCT review, pursue demolition cost estimates and contact the grantor about extending the award. If an extension is not approved and no alternative is adopted, staff warned the city could forfeit the roughly $100,000 in grant funds identified for the project.