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Phoenix halts cash flow to urban renewal agency Council cites concerns over having enough money for community hall Comment By Tony Boom for the Mail Tribune MailTribune.com By Tony Boom for the Mail Tribune Posted Feb. 19, 2016 at 11:24 AM Updated Feb 19, 2016 at 11:25 AM By Tony Boom for the Mail Tribune Posted Feb. 19, 2016 at 11:24 AM Updated Feb 19, 2016 at 11:25 AM » Social News Phoenix City Council has put a hold on money transfers to the Phoenix Urban Renewal Agency over concerns there won't be enough money left to build a community hall. The council voted 4-1 Tuesday to place a hold on money transfers while it seeks information about agency finances and what's been spent so far on the downtown center project. “This is a short-term thing,” said Mayor Jeff Bellah, who stressed the council was not concerned the agency had overspent or misused funds. “As we have seen costs go up all over the valley, we want to get a current estimate. It’s not a freeze of funds as much as a, ‘Stop, let’s take a look at where we are.' ” Bellah said he hoped to have the issue resolved in about a week. A planned joint session between the council and urban renewal board set for Thursday evening was canceled Wednesday. “Unless they tell us otherwise, it looks like they have enough to pay their bills,” Bellah said. About $1.9 million has been transferred to the agency already. Cost of the community center has been estimated at $1.2 million. Councilman Terry Helfrich, who is also on the PHURA board of directors and voted against Tuesday's action, expressed surprise that the non-agenda item was raised at 9 p.m. during the meeting. “They’ve got about $500,000 in their bank account. I don’t think that is enough to operate on currently,” Helfrich said. Only conceptual drawings for the hall have been created, making cost estimates hard to pin down, he said. Major work continues on the downtown center, located on 31 acres that also will include spaces for residential and commercial development and a wetland park. Phoenix issued $3.5 million in bonds to finance the project because PHURA would not have been able to do that, said city Finance Director Steve Webber. Urban renewal will transfer tax revenues it receives to the city to repay the bonds. The motion directed City Manager Steve Dahl to notify PHURA’s board by letter that a hold on transfers was put in place until the council receives reports on liabilities and revenues for the remainder of the fiscal year. The motion requested the information be submitted by March 7. Helfrich compared the action to that of a parent who co-signs for a child’s car loan, but then the kid doesn’t get to drive it because the parent is always driving the car. PHURA board member Chuck Reiling said he was surprised by the development. “I know there was some concern about seeing a detailed budget,” said Reiling. He said overall relations between the board and the council have been positive. Before having budget discussions, Reiling said he would like to wait until proposals for commercial development of six lots in the project are received in March. “I have no comment. It’s strictly city business,” said Al Muelhoefer, PHURA chairman. In addition to Helfrich, councilors Stan Bartell and Chris Luz sit on the seven-member board. In January, Bellah proposed enlarging the board to include all six City Council members, but backed away from the idea when he did not get support from the public and board members. Movement of the community hall from its proposed location on Second Street east of Main Street to a site adjacent to Main is also a possibility, Bellah said. The former site might be attractive to a developer, he said. Tony Boom is an Ashland freelance writer. Reach him at [email protected]. By Tony Boom for the Mail Tribune MailTribune.com By Tony Boom for the Mail Tribune Posted Feb. 19, 2016 at 11:24 AM Updated Feb 19, 2016 at 11:25 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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