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City commits $500,000 for community center Wednesday Aug 23, 2017 at 4:19 PM Aug 23, 2017 at 5:51 PM Tony Boom for the Mail Tribune The Phoenix City Council voted Monday to borrow up to $500,000 to assist with construction of a community center. The council also approved a contract with Eric Swanson, who will become city manager Sept. 18. Swanson was most recently manager in Gladstone, and before that he was fired as city manager in Medford. On the community center project, the Phoenix Urban Renewal Agency in early August requested that the city kick in $700,000 to build the 6,500-square-foot center on Main Street. An agency report showed a need for $2.8 million, and $2.3 million in assets if a bank loan is secured. City financial commitment was one of two major pieces that needed to be in place by Sept. 25, when a request for proposals to build the center by Adroit Construction will expire. A $1 million loan from Umpqua Bank to the agency has not been finalized. “I think we have an opportunity here to work on a project that has been in the works for a long time,” said Councilor Sarah Westover. “The longer we sit on the project, the more expensive it becomes. It’s going to spur business downtown.” Councilors Cindy Cameron, Terry Baker, Michael Shunk, Stuart Warren and Westover voted for the support. Council President Jim Snyder, presiding officer in the absence of Mayor Chris Luz, did not vote. Councilors rejected a utility bill surcharge to fund the request and went for the loan rather than taking money out of contingency funds. A more detailed cost analysis will be sought from PHURA, and tapping the contingency funds might be considered if more than $500,000 is needed. A community center is a key feature of urban renewal’s efforts to enhance downtown on a 31-acre site. The agency has lots for sale in the area, with a total asking price of $469,000, but is short on cash to start the project. “Marketing of the PHURA properties is very difficult to do without a black-and-white or concrete commitment by the city of Phoenix saying the community center will happen,” said resident Paul Kay during public testimony. “Then it will become a magnet for offers.” Several options for city funding of the request were presented by Interim City Manager Dave Kanner, including the rejected utility bill surcharge. Contingency in the general fund is at $280,000, the maximum 15 percent allowed, said Kanner. He said $200,000 could safely be transferred, leaving the contingency at 4 percent. In addition, the water fund contingency could be tapped for $50,000 of its $100,000. Kanner also suggested allocating cannabis sales taxes to support the project through a supplemental budget later in the fiscal year. Tax revenues in the first quarter exceeded the amount projected for the entire year, Kanner told the council. Kanner proposed that the city give the money to PHURA under a contact for mutual donations. The agency would give back the same amount of money plus interest at a later date. Kanner said the arrangement would be less complicated than a loan. Financially the city is in a good position to borrow money, said Kanner. Umpqua Bank has approved a $1 million loan to the agency, but counsel involved in issuing bonds to repay the debt has questions about past PHURA financial performance. PHURA board Chairman Al Muelhoefer said agency Financial Director Steve Weber was scheduled to meet with bond counsel this week. Concern was expressed over the 2 percent contingency in the agency project sheet. Public Works Director Ray DePasquale said he’d never seen a project with a 2 percent contingency. “I’ve never gone into a capital project with just a few percent contingency,” said Kanner. In other action, the council: • Adopted a Parks Master Plan into the recreational element of the city’s comprehensive plan after deleting an erroneous section regarding wetland mitigation banking in Roseburg. • Appointed Cindy Cameron to a vacant council position. — Tony Boom is an Ashland freelance writer. Reach him at [email protected].