The Yuma City Council answered several questions raised to them at the regular meeting held Wednesday. Phil Clark spoke for over 30 minutes to the council, asking about where certain funds are in connection with the North Side Redevelopment area – including the Hilton Garden Inn and the Pivot Point Center.
There is a question as to why certain funds were not paid quarterly by the developer – who has since defaulted on the promissory note with the bank holding the loan.
There is a one-percent surcharge that the city is to hold in a special account in order to use for replacing furniture and fixtures. The city owns the property, but the city was having problems securing a construction company to build the structure.
Charles Flynn, the executive director of the Yuma Crossing National Heritage Area explained to the council how the one-percent surcharge worked.
The customer of the hotel pays the one-percent charge. Every three months, the hotel then pays the city, which then resubmits the check back to the hotel for maintenance issues.
Deputy Mayor Leslie McClendon asked Flynn if the hotel is using the money properly. Then Mayor Alan Kreiger asked Flynn if there were proper procedures in place to track the money.
City Administrator Greg Wilkinson did point out that any money given back to the city would not be properly tracked until after the first ten years of the agreement between the city and the Hotel and Conference Center owners. Other reasons given as to where there is some confusion as to where some of the money was due to computer software changeovers.
Clark concluded that there were no mechanisms in place to be sure that money is not being tracked properly for the Yuma Crossing Historic Area.