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Board seeks clarity on Venice Theatre grant; withdraws $1M from stalled ECOS affordable-housing award
Summary
Commissioners asked staff to reengage Venice Theatre over scope and timing for a $2M CDBG-DR award and set a March 31 update; they also voted to withdraw $1,000,000 from an ECOS/Arbor Park proposal after repeated negotiation and documentation issues.
Sarasota County's Resilient SRQ program returned to the board on March 3 with updates on several HUD CDBG-DR-funded projects; two items drew particular attention: a scope-and-schedule change at Venice Theatre and protracted negotiation issues on a McDowell Housing Partners/ECOS affordable-housing project.
Steve Hyde, division manager for the Office of Financial Management, told commissioners that Venice Theatre's Raymond Center project — originally proposed as a roughly $10 million project and awarded $2 million by the board in 2024 — has narrowed its scope and delayed construction. The subrecipient reported donor funds were reassigned and the project's completion date slid to 2028; because the required federal environmental review and a subrecipient agreement had not been completed, staff had not executed the funding agreement. The board unanimously directed staff to reengage Venice Theatre, request a formal update and compliance documentation, and return with an update no later than March 31, 2026.
Resilient SRQ staff also reported negotiations and required legal agreements were outstanding for ECOS at Arbor Park II, a multifamily affordable-housing project that previously sought federal assistance. Staff noted that the property purchase had closed and construction started without an executed funding agreement or land-use restriction agreements in place, creating compliance and duplication-of-benefits risks under CDBG-DR rules. After lengthy commissioner comment and concern about the project's readiness and the appropriate use of grant dollars, the board voted to withdraw the $1,000,000 award and directed staff to reallocate those funds.
Chris Shear of McDowell Housing Partners told the commission he believed the developer had closed in good faith and that withdrawing the award could jeopardize project feasibility; commissioners said the county must protect federal funds and ensure executed legal agreements and compliance before releasing CDBG-DR dollars.
The board's direction preserves the ability to reallocate funds to other eligible projects if the developer cannot resolve outstanding compliance items. Staff will continue negotiating and report back with options on use of the funds and next steps for affected applicants.
