Daytona Beach CRA adopts $13.25 million budget after public concerns over Blue Road spending

Daytona Beach Community Redevelopment Agency Chair Derek L. Henry on Sept. 3 approved a $13,245,005 budget for the agency’s 2025–26 fiscal year following a public hearing and extended discussion about how redevelopment revenues are allocated across downtown, Beachside, Blue Road and other CRA districts.

The vote came after residents and commissioners pressed staff about apparent mismatches between operating expenditures and money available for projects in smaller districts. "With $5,000,000 to spend, how much of it is going to be spent in the Beachside?" said John Nicholson, a Beachside resident, during the public hearing. Tom Russell, a Blue Road property owner, said he was concerned that "a business could never run like this" when revenue appears to go predominantly to salaries and internal charges rather than visible projects.

The resolution adopting the budget sets estimated net revenue and total expenditures at $13,245,005 for Oct. 1, 2025–Sept. 30, 2026, and passed 6–1. The motion and second were made as part of the meeting record; the transcript does not specify which commissioners made or seconded the motion or which commissioner voted no.

Why it matters: CRA budgets fund redevelopment projects, capital work and grants meant to spur private investment in targeted neighborhoods. Several speakers and commissioners said they want clearer, more public detail on how smaller CRAs—particularly Blue Road—will use both annual revenues and held capital funds.

Most of the meeting’s substantive discussion centered on the Blue Road CRA. Staff said Blue Road’s anticipated tax increment revenue for the upcoming year is $299,000 and that redevelopment services expenditures shown in the operating section total $283,004. Several commissioners and public speakers interpreted those numbers to mean there is little money left for façade or small project grants. Staff clarified that project spending is recorded in the capital projects section of the budget, not in the operating/redevelopment services subtotal shown on the Blue Road operating page.

Officials described capital-project funding already identified for Blue Road. Redevelopment staff said the budget includes more than $750,000 earmarked for land acquisition in the Blue Road area to allow a future intersection/roundabout project to move forward. Staff also said Madison Cove, a project tied to the Blue Road area, has nearly $500,000 committed for infrastructure and sidewalks. Staff said grants have been offered to Blue Road property owners but few have been accepted; one pending facade application from Tom Russell remains incomplete.

Commissioners and staff discussed outreach to encourage small business owners to apply for façade and improvement grants in Blue Road. Redevelopment staff said they have walked the street and spoken to property owners, and they agreed to provide commissioners with a list of offered grants and identified parcels. Commissioner comments requested broader public notice of available grants so that owners such as restaurant and auto-repair businesses are aware of opportunities.

The meeting also covered larger downtown and Beach Street projects. David Waller of Public Works said Beach Street Phase 2 design is at or near 100 percent and is undergoing state review; he gave cost figures in the meeting record, saying design costs are $798,479 and construction is estimated at $7,000,976.42 for parts of the corridor. Waller said the full downtown connection project is roughly a $10 million effort with about $8 million expected from state funding, and that CRA funds will be used to help certain elements of the project.

On North Beach Street and Blue Road sequencing, staff said a reconstruction of North Beach (Fairview to Mason) intended primarily as a utilities and roadway project is planned before certain intersection improvements; a later comprehensive phase would combine drainage, sidewalks and intersection geometry and could include a roundabout if parcels are acquired.

On South Atlantic, Commissioner comments noted that the CRA is projecting roughly $548,000 in revenue while proposed redevelopment expenditures are shown near $475,000, leading to questions about salary allocations. Finance staff explained that personnel costs are allocated across multiple CRA districts on a percentage basis tied to who performs the work; staff said the allocation method was coordinated with the department and HR and is reflected in the budget spreadsheets.

The public hearing record listed two speakers. After discussion, the CRA performed a required public vote to adopt the FY2025–26 CRA budget; the resolution passed 6–1. No other CRA-specific ordinances or contracts were approved at the meeting.

Officials said they would provide commissioners with more detailed listings of past grants and identified acquisition parcels, and commissioners asked staff to conduct more public outreach and provide archival photos showing downtown improvements.

For the record: John Nicholson raised revenue figures for several CRAs during public comment (Downtown $2,900,000; Beachside $7,300,000; South Atlantic about $500,000; Bellevue Road about $300,000; Midtown over $2,000,000). These amounts were read by a public speaker and recorded in the hearing transcript. Staff responses and project funding statements appear in the budget documents and the meeting transcript.