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Delray DDA warns city: restore promised funding or Old School Square operations may be returned
Summary
At a July 13 meeting, Delray Beach’s Downtown Development Authority warned that cuts to city funding have strained Old School Square operations and discussed using a contract escape clause if the city does not provide a multi-year funding plan; a feasibility report for the campus is due to the city in August.
The Downtown Development Authority (DDA) on July 13 pressed the city to restore earlier funding levels for Old School Square, saying recent budget reductions have left the DDA operating with a shrinking runway and rising risk that the cultural campus could be returned to the city.
Board members told staff they have already spent a large share of their FY resources and urged the city to provide a reliable multi-year commitment or accept notice that the DDA may cease operating the campus. "When we originally negotiated to take over the Old School Square Campus, the DDA was asked in our agreement that we create and make this the cultural center of the downtown. The city promised us $1,400,000 as the first budget year, which they cut arbitrarily to $1,000,000," a board member said during the meeting.
Staff reported May financials showing DDA revenue close to projections and that the city’s second installment has been received. Still, Old School Square-specific figures alarmed directors: several members said the campus had used roughly 80% of its operating funds by the end of May and that continued cuts leave limited ability to program the summer and plan for the coming year.
Assistant City Manager Jeff Horace told the DDA the city’s consultant is finalizing a feasibility study and plans to present findings to the city commission in August. "Right now, the governance of it is not what he's focused on. He's actually focused on what is it supposed to be, where is it going," Horace said, describing the consultant’s current scope.
Board members debated whether to issue the DDA’s contractual exit notice. One director urged giving the city a 365‑day notice to ensure an orderly transition, while others urged continued negotiation so the cultural campus does not go dark. "We don't want it to be dark," a member said, calling for a feasible multi‑year funding solution that would allow staffing and programming to continue.
The DDA did not take a formal vote to end operations at the meeting; rather, members asked staff to continue talks with the city and to monitor the consultant study and the city manager’s budget recommendation, which officials said will clarify available capital improvement funding.
Next steps: the consultant’s feasibility study is expected to be presented to the city commission in August; DDA members said they will continue to press for clearer multi‑year commitments and asked staff to report back with updated budget projections and transition options at the next DDA meeting.
