Washington Terrace's $650,000 land sale money is earmarked for parks, but held until a building is done

Washington Terrace's redevelopment agency has voted to put $650,000 from a 2024 land sale toward parks. Agency records say the money is held in reserve until the office building planned for the site is substantially complete. ^[3][4]

The sale and the incentive

On Sept. 3, 2024, the agency board, made up of the mayor and City Council, voted 5-0 on three resolutions: 24-11 declaring the parcel surplus, 24-12 approving its sale, and 24-13 approving a $100,000 incentive. City Manager Tom Hanson described the $650,000 price as fair market value. ^[1]

The minutes say the sale agreement requires completion within two years, with a possible one-year extension, and that the incentive is a separate agreement. The incentive can be requested at project completion or upon a certificate of occupancy and is meant to offset infrastructure costs: underground stormwater detention, a fire hydrant, and curb and gutter. ^[1]

On Aug. 19, 2025, the board voted 5-0 on Resolution 25-17, giving Kanyon Construction, LLC a 30-day extension. The minutes say there was a Sept. 1, 2025 deadline for the project to begin or forfeit the agency's incentive. ^[2]

Held until completion

A staff report for the agency's Oct. 7, 2025 meeting says the funds are held in agency reserve until a substantial portion of the building is complete, after which they can be released for General Fund purposes. It proposed appropriating the $650,000 for park improvements, contingent on the purchase and sale agreement terms being met. ^[3]

At the meeting, Hanson said parks are hard to fund because they have no tax support. He described the proceeds as private donation money that does not come from a tax base. ^[4]

The board voted 4-1 to use the money for parks capital improvements. Board member Zunayid Zishan voted no, saying he was not comfortable putting all of the funds toward parks. Chair Mark Allen said the funds would not be locked into parks improvements. ^[4]

What the budget and audit show

The city's fiscal 2027 final budget lists a $650,000 "Transfer in RDA Fund 70" in its Parks and Open Space capital fund. The agency adopted its own fiscal 2027 budget, Resolution 26-09, 3-0 on June 16, 2026, with two members excused. ^[6][7]

The city's audited balance sheet for June 30, 2025 shows the agency's fund holding $650,000 in restricted cash and an equal $650,000 in unearned revenue, a liability. The audit page reviewed does not identify the source of that amount. ^[5]