Council asks for third-party review of an industrial district agreement after members flag missing revenue

Councilmembers used a three-signature item during Tuesday's meeting to raise questions about changes to a recent industrial district agreement (IDA 110 a/b) and the potential loss of millions in expected revenue.

Councilwoman Sylvia Campos said the amended agreement appeared to change payment timing and remove a business personal property provision that had been expected to provide substantial revenue under the original deal. Campos asked who should be held accountable for the omitted language and whether the city could revise the IDA to recover funds.

Staff said the issue had been referred to Weaver (the city's external auditor) to perform a targeted performance audit beginning in August; staff and Weaver will analyze the original agreement, the amendment, invoicing records and compliance with deliverables. City staff said they have already issued at least one invoice for $100,000 that was paid and acknowledged that some collections and invoicing follow-up remain under review.

The city manager and department staff said they will bring a firm timetable for the audit and a staff presentation to council after the third-party review is under way. Council discussion also yielded procedural reminders about the three-signature memo mechanism and a request that council and staff coordinate on timing so departments can prepare a briefing when possible.

No final policy action was taken Tuesday; council directed staff to coordinate the Weaver review and return with the findings and a recommended path forward.