Work session: Avondale Estates staff seek IGA to move SPLAS funds to DDA for Washington Street extension; commissioners press for transparency

City staff briefed the Board of Mayor and Commissioners in a work session April 15 on a proposed intergovernmental agreement (IGA) that would transfer SPLAS-proceeds to the Downtown Development Authority (DDA) so the DDA can disburse funds to a development entity for public infrastructure.

Staff described a public–private package in which the developer (identified in the transcript as Avala Hedgewood) proposes to build a new Washington Street extension, a stormwater detention amenity and other on-site public infrastructure. The city and the DDA would together contribute up to $7.2 million toward the public infrastructure: the DDA would provide $5 million from TAD collections and the city would transfer approximately $1.42 million from SPLAS 2 proceeds (the transcript describes a netting arrangement tied to a previously contemplated $780,000 DDA commitment). Staff said the DDA approved the IGA concept unanimously at its meeting the night before.

Staff explained why the DDA is the disbursing entity: DDA law permits the authority to contract directly with the developer (avoiding the city's public works bidding requirements), enabling the developer to reimburse costs on a milestone basis after neutral third-party verification. Staff emphasized the city retains design review and permit authority and will require inspection and milestone certification before reimbursements.

Multiple commissioners pressed staff about oversight and transparency. One commissioner asked that reporting and reimbursement milestones be explicit in the IGA and in the subsequent DDA–developer contract; staff said those expectations would be incorporated into the development agreement and that reimbursements would be made on a reimbursement-basis tied to third‑party verification. Another commissioner requested an additional work session before a vote; staff recommended moving directly to a vote at the April 22 meeting to meet timeline constraints, but agreed to provide comprehensive financial option materials at an upcoming strategic session.

Staff said the developer estimates roughly $21 million of public infrastructure value across projects (developer contribution approx. $14 million; public contribution approx. $7 million) and that utilities and stormwater aspects are included in the scope. Staff also noted that bonding covenants tied to SPLAS proceeds require expenditure of a target percentage of proceeds by October 2027 and that the proposed transfer helps meet that timetable.

What happens next: the board will consider the IGA and related documents at its April 22 meeting. Commissioners requested clear reporting language and milestone-based reimbursement provisions be visible in the final IGA and DDA–developer contract prior to approval.