The Escambia Children’s Trust board moved closer to resolving a longstanding CRA funds dispute with the City of Pensacola during discussions at their recent meeting, with the city proposing to use the money for new childcare programs serving children from birth to age five.
Penalties Dropped, Offset Agreement Reached
Board attorney Megan Fry told trustees that the city has agreed to remove all penalties and interest from the disputed Community Redevelopment Agency (CRA) tax payments and will offset any settlement amount by funds the city already receives through its current Parks and Recreation grant with the trust.
“All penalties and interests have been removed, and the city has committed that those will not be due under any proposed interlocal agreement,” Fry reported. “Additionally, there will be a partial set off to any amounts paid under a proposed interlocal agreement for the current grant obligation to Parks and Rec.”
The proposed interlocal agreement closely mirrors the one that the Trust previously negotiated with Escambia County over similar CRA tax issues.
City Eyes Four Childcare Centers
Executive Director Lindsey Cannon said the city is proposing to use the funds for childcare programs specifically targeting children from birth to age 5, with plans for approximately four centers in city buildings.
- “They have buildings, which is a major problem with childcare, but we have the operational type of funds that would be within our scope,” Cannon explained. “So I think they’re looking at that more in a partnership of what they can bring to the table and then what we can do to help fill in those gaps.”
County Commissioner Lumon May pressed for details about the proposed centers, asking whether they would represent new programs or expansions of existing services.
- “New programs,” Cannon confirmed, though she acknowledged the city has not yet provided specific locations for the centers or detailed programmatic proposals.
May raised concerns about the lack of specifics in the city’s proposal, questioning how the city would “expand” childcare services it doesn’t currently operate.
- “I’m just not familiar with any deliverables that they’re doing, and that’s fine, but if they say expand, expand where?” May asked.
Cannon said she expects to receive more detailed proposals by January 15, noting “once I get the proposal, I’ll be able to probably answer some of those questions.”
Grant Offset Calculations Still Being Finalized
Board member Toni Woods questioned how the offset would work with the Trust’s existing Parks and Recreation grant to the city, particularly in light of discussions about prohibiting entities from holding both an interlocal agreement and a direct grant.
Fry explained the offset would be based on funds the city has actually spent and been reimbursed, not simply the amount awarded.
“It’ll be what they’ve actually used and have been reimbursed,” Fry said, adding that her office is working with Trust staff to ensure the calculation accounts for the different fiscal years used by the city and the trust.
Cannon said the city would receive credit for funds they plan to draw down under the current contract: “Whatever they’re going to draw down in this current contract would be recognized and reduced from the TIF payment.”
Next Steps
Trust officials hope to finalize the agreement by February, pending receipt of detailed programmatic proposals from the city. The city attorney forwarded a draft agreement the morning of the meeting, which she is reviewing to confirm the payment calculations align with previous discussions.
- The resolution would end a dispute over whether the Trust owes the CRA tax increment financing dollars, potentially freeing up funds for expanded early childhood services while resolving outstanding taxation questions that have dogged the relationship between the two entities.
