Biggest expense, biggest revenue

Published 9:07 pm Wednesday, May 12, 2010

The health and human services building is the biggest expected expense for the Economic Development Authority in the upcoming fiscal year, but it is also the biggest revenue source.

The authority adopted its budget at a meeting Wednesday. The appointed group is not required to have a budget, but creates one each year because it has been requested by the authority’s members, said Economic Development director Kevin Hughes.

“Essentially, the EDA is not required to have a budget,” Hughes said. “We just think it’s a good thing.”

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The authority owns the health and human services building, and expects to collect roughly $1.54 million in lease revenue from the Department of Social Services and Health Department in fiscal year 2011. The authority expects to spend about $1.2 million on the building, including repairs, maintenance contracts, electric bills and more.

Other line items in the budget include $12,000 for special events, $15,000 for marketing and $50,000 for the faade grant program. The faade grants are given to qualifying business owners in certain areas of the city to assist them in upgrading the appearance of their buildings.

One of those faade grants also was voted on during the meeting. Members approved $20,000 for two buildings at 326 and 328 E. Washington St., which is the East Point Plaza project. Owner Tom Powell rehabilitated the aging structures into new office and residential developments.