Oct. 4—Payments from an improvement district that generates about $150,000 annually earmarked for Beautiful Downtown Lewiston are being withheld until BDL provides the city with financial reports and other information.

The Lewiston City Council made the decision Monday at a work session after a presentation from Community Development Director Laura Von Tersch.

What impact the unanimous vote has on BDL, a not-for-profit group, is not clear. Brenda Morgan, who has been BDL's executive director for about a year, attended Monday's meeting. She left immediately after the council vote.

BDL promotes downtown Lewiston with events such Sound Downtown, a summer outdoor concert series; Downtown Artwalk, happening Friday and Saturday; and Pumpkin Palooza, scheduled for later this month.

The city of Lewiston has a contract with BDL to administer a Business Improvement District that generates about $150,000 each year from businesses in a certain area, Von Tersch said.

The district covers downtown Lewiston and a northern section of Normal Hill, including St. Joseph Regional Medical Center, she said.

Of the $150,000, $7,000 goes to the city to collect and disburse the revenue and as much as $45,000 can be paid to BDL and volunteers to manage projects, according to a written report Von Tersch provided the council.

The remainder of the money pays for projects such as street furnishings and paid marketing for events, according to the written report.

Those funds are one of the largest sources of money for BDL.

Last year was the first year BDL received the annual revenue from the district. It was created by a council vote in 2020 and sunsets after collecting revenue for six years.

The city doesn't yet have an annual independent financial review completed by a certified accountant for 2021, as required by the administration agreement for the district between the city and BDL, Von Tersch said.

Of the almost $250,000 that BDL has received through the district at this stage, Von Tersch said she only has a "very sketchy sense" of where $100,000 of that amount has gone.

"That is not a place I want to be," she said, and added the money could be sitting in a bank account.

"I'm not saying that there is anything nefarious," Von Tersch said.

City employees have communicated expectations and tried to describe to BDL how to meet the requirements, but have seen no improvement in the situation, she said.

"Staff can not truthfully say to ratepayers that everything is being handled correctly and their money is being put to good use," according to Von Tersch's written report. "Because we do not know if that is the case."

In addition to receiving the annual independent financial review, Von Tersch said she would like to see other checks and balances.

In the future, the Business Improvement District advisory board should meet monthly to approve any invoice paid for with funds from the district, she said.

BDL should make a Dec. 1 presentation to City Council about how it has used district revenue so far this calendar year and a second one Dec. 31 that covers the entire year, Von Tersch said.

Plus, BDL should present a budget for 2023 that is approved by the Business Improvement District advisory board and the council, she said.

Hopefully BDL will get everything done in November and December so the city and BDL can move forward, Von Tersch said.

The decision Monday has no effect on $30,000 in the city of Lewiston's fiscal year 2023 budget allocated to BDL. That money was approved separately Sept. 26.

In another matter, Monday was the first day for Lewiston's new police chief, Jason Kuzik, who attended Monday's city council meeting. Kuzik was a patrol captain in the Henderson Police Department in southern Nevada just before taking the Lewiston job.

He replaces Budd Hurd, who retired in July.

Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.