City of Hollister officials are expecting an infusion of nearly
$1.4 million this summer from the Fremont School property sale for
the new courthouse, but they are unsure whether the money will be
restricted for use by the redevelopment agency or discretionary in
the general fund.
HOLLISTER
City of Hollister officials are expecting an infusion of nearly $1.4 million this summer from the Fremont School property sale for the new courthouse, but they are unsure whether the money will be restricted for use by the redevelopment agency or discretionary in the general fund.
Hollister officials in December agreed to sell the former school property across from Fourth and Monterey streets to the county, which is selling it to the state. The site for the new 41,500-square-foot courthouse, for which the state has allocated $32 million, is scheduled for completion in 2012.
The Hollister Redevelopment Agency – intended to curtail blight – had owned the Fremont School property before its sale.
The final transfer to the state is expected to occur in June or July after an approval from the state public works board, City Manager Clint Quilter said. Once escrow closes, Hollister will get the $1.37 million.
Councilman Doug Emerson noted the cash infusion at Monday’s meeting while members had been debating over reinstatement of downtown parking fines. Referring to the city’s plans to buy a Jeep Wrangler for the parking enforcement – and uncertainty over the potential local impact with the state’s deficit – Emerson contended that receiving the $1.37 million would ease potential cash-flow burdens for the general fund in the short term.
He acknowledged he has some concerns about a one-time expenditure – the vehicle at $28,000 – but noted how the transaction with the state and county would offset it.
“In terms of cash flow, it’s going to make that ending balance look healthy,” Emerson said at the meeting.
Now, however, city leaders are unsure whether they can place those dollars in the general fund – which would allow them to spend it on anything – or if they must be used for an RDA benefit.
Asked Thursday if there the funds are restricted, RDA Director Bill Chow said he had to examine the agreement to find out. City Manager Clint Quilter today also told the Free Lance an RDA spending restriction “is a possibility.”
“RDA laws are kind of complicated, so we’re going through all of that,” Quilter said.
