Council reviews $1.4M Grace Building rehab and 40-project FY27 CIP; traffic study timing questioned

Public Works staff presented the proposed FY2027 capital improvement program, describing 40 projects (18 new, 22 rollover) totaling approximately $26.7 million and proposing that 43% of funding come from grants and 13% from developer impact fees.

Robert (Public Works) highlighted three showcase projects. On the Grace Building rehabilitation, he said the $1,400,000 general-fund request would replace HVAC and roof systems, remediate water and mold damage, repair electrical and communications, improve accessibility and do limited interior remodeling.

"The request for this project is 1,400,000 in general fund," Public Works said, and when asked about alternate uses, staff estimated that converting the building for a restaurant would cost about $8,000,000 and that roughly $300,000–$400,000 of the $1.4M could be throwaway interior work if the use changes.

Council members also questioned whether to proceed immediately with a separate citywide traffic analysis or wait for more results from an AI traffic-signal pilot that targets signalized intersections. Public Works said the traffic study will examine citywide circulation, near- and long-term improvements and funding options, but acknowledged the timing could be coordinated so the study can incorporate AI results where practical.

No CIP projects were adopted at the meeting; staff committed to update attachment lists, return corrected CIP materials and be ready to discuss priorities at the May workshop.