City of Gonzales
CITY MANAGER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 22, 2022
FROM: Rene Mendez, City Manager
SUBJECT: Financial Update on the Community Center Complex Project
RECOMMENDATION
Staff recommends the City Council receive the Financial Update on the Community Center Complex Project and provide direction accordingly.
BACKGROUND
This is an informational item, and it is intended to keep the Council abreast of the work underway to put together the funding for the Community Center Complex project, and also to obtain direction as and if needed.
REVIEW AND ANALYSIS
As presented in the attached power point presentation, there is still work to do to come up with the funding for the Base Project at $34.8 million and the complete project with the standalone gymnasium at $42.5 million.
To date the City has secured through Senator Caballero $5 million for the Teen Innovation Center, and also has $810,000 available in CDBG funds. In addition, another key component of piecing together the funding, will be to secure a loan that would be repaid with Measure X funds that was already brought forward to your Council for consideration by the Measure X Advisory Subcommittee, through the Measure K Advisory Committee. As it stands today, the total estimated amount that would be supported by Measure X revenues through its sunset date of 2044 is $8 million; which when combined with the other already secured funding, would leave a gap of $20 to $28 million depending on the final project approved.
In order to close the gap, as identified in the attached presentation, staff is pursuing several grant opportunities (some of which are identified and others that will come online shortly), and also working AGENDA
ITEM
15 with Armanasco Public Relations, has initiated the $10 million capital campaign (more information coming shortly). However, while all these efforts are very positive and will result in additional funds, it is important to identify and bring more certainty to the funding.
As modeled in the presentation, one of the ways to maximize local revenues to secure additional funds would be to:
1. At a minimum extend the life of Measure X and K beyond 2044 to the year 2064 to align it with and provide the flexibility to pursue 40-year financing; and/or
2. Consider putting in front of the voters a new ½ cent Transaction Use Tax (TUT).
As a result, staff is requesting direction to bring back to your Council at the March 7th meeting a full discussion on extending the sunset life of both tax measures and consider adding a new ½ cent TUT.
Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: This is an informational item only but is necessary to keep your Council updated on the work underway to put the funding together for this very important community project that will support and further the Vision for the Community.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: Please see Vision.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.
Explain: Please see Vision.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing Yes No X N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: Please see Vision.
ALTERNATIVES
This is an informational item being presented to keep your Council updated on the efforts to put together the funding for the Community Center Complex Project, and to ask for direction accordingly.
BUDGET IMPACT
There is no budget impact as a result of this item. However, depending on future Council direction, the cost for the Community Center Complex Project will range from $34.8 – $42.8 million.
CONCLUSION
Staff recommends the City Council receive the Financial Update on the Community Center Complex Project and provide direction accordingly.
Attachments:
1. Presentation