Key West CRA advisory board readies budget workshop amid 1–10% rollback; diesel plant, community center, pool and transit requests highlighted

The CRA manager told the Redevelopment Advisory Committee that the city is preparing for a state-directed rollback of 1%–10% and asked the board to help prioritize projects under that constraint. The manager said the CRA funds are tight and proposed strategies include staff efficiencies and limiting travel to meet the cut targets; detailed project budgets will be presented at the workshop scheduled for the week of July 20–21.

Manager highlights included a diesel plant RFP with roughly $2,000,000 in carryforward funds, community center phase work with about $140,000 remaining on a prior allocation and an additional million-dollar grant for gym spalling, and an MLK pool request that may seek a $1,000,000 grant. The manager also said transportation has requested $250,000 for FY27 to support services into Bahama Village; she said legal will be asked to advise whether that use of CRA/TIF funds is permissible.

Board members and residents pressed for clarity on specific items. A committee member asked engineering to present a bottom-line estimate for the MLK pool and to explain whether repair or replacement is appropriate; another member objected to using CRA funds for what they characterized as regular city services, noting TIF/TIF-funded CRAs are intended for area improvements, not general municipal operations. The manager said $60,000 has been set aside for bus shelters, with some money expected from a grant, and that staff will bring detailed breakdowns to the workshop.

Why it matters: The workshop will shape which CRA projects move forward while the city faces a mandated budget reduction. Project choices—carryforward allocations for the diesel plant, community center finishing work, pool repairs, and whether to subsidize transit services into Bahama Village—affect how TIF/CRA dollars are spent and which local improvements are prioritized.

Clarifying details provided at the meeting: the CRA manager said the diesel plant RFP carries roughly $2,000,000 in carryforward funds; the community center has approximately $140,000 remaining from prior allocations and a separate $1,000,000 grant supports gym work; homeownership grants totaled $400,000 and had benefited 20 families; the manager reported roughly seven rental units at the lofts were open or about to open and that there are 2- and 3-bedroom units at 60%, 80% and 120% AMI. The board requested engineering cost estimates and scheduling for the MLK pool and asked transportation to provide a list of departments being asked to contribute if the $250,000 request proceeds.

Next steps: the manager will share workshop materials and the CRA will invite engineering and transportation to produce line-item schedules and options for the workshop; legal will weigh in on permitted uses of CRA funds for transit assistance.