WATSONVILLE >> To move two of the city’s biggest park projects closer to completion, the Watsonville City Council approved nearly $12 million in bond funding to finish the construction at Ramsay Park and redesign plans for City Plaza Park at its Tuesday meeting.

The bonds would finance approximately $8.5 million to close the funding gap for construction at Ramsay and $3.5 million to complete the redesign of City Plaza Park. Wing-See Fox, the managing director of the Public Finance Group at municipal advisory firm Urban Futures, said this would amount to approximately $11.375 million in bond funding that would be secured through any legally available general funds under a lease-leaseback structure.

Under this model, the city would lease property such as City Hall, the Gene Hoularis and Waldo Rodriguez Youth Center or the police department to the Watsonville Public Financing Authority, which would lease the property back to the city for semiannual lease payments that would be used to pay debt service on the bonds. These annual debt service payments would amount to approximately $1.45 million in annual payments through 2035.

Approximately $8.5 million would go toward completing the Ramsay Park Renaissance Project, a remodel of Watsonville’s biggest park including a new multiuse athletic field, a dog park, hillside spectator seating for Sotomayor Soccer Field, a concrete amphitheater and an inclusive playground. This project is currently under construction.

The remodel of City Plaza Park is currently in the design phase, and while documents have been submitted, staff are waiting for permits to be sold before going out to bid, per a staff report. The project may consist of repairs to some of the historic park’s aging features, including the gazebo and bandstand, as well as adding new features like art sculptures and new picnic tables and benches.

Fox said the bonds would allow flexibility for the city to borrow for future projects and account for changing market conditions.

“Markets have been very volatile,” she said.

Councilman Jimmy Dutra asked if the bonds would cover everything the city was asking for with the two projects.

“I don’t want change order after change order after change order,” he said.

Nick Calubaquib, parks and community services director, said it would give the city enough funding to complete Ramsay Park and allow staff to determine the base projects to be funded for City Plaza before going out to bid.

“Depending on how pricing comes back, we’ll decide what additional features get included or not included in that project,” he said.

Calubaquib said the high-priority projects would be the gazebo, stage and new electrical infrastructure and lighting, while additional projects may include the game table areas and art sculptures.

Dutra said it was important to relay this information to constituents, especially with current market conditions.

“We don’t know how tariffs are gonna affect us,” he said. “We’re gonna be in an interesting position, but we are as representatives, speaking to the public about what they’re gonna be getting, so when I’m out there talking and saying, ‘You’re gonna be getting a brand new plaza and this is what’s gonna be inside of it,’ and then we find out nine months later we can’t afford it, we need to be equipped with the tools of correct information.”

Councilwoman Ari Parker asked if the city would pull money from the City Plaza if funding comes up short at Ramsay. City Manager Tamara Vides emphasized that this would not be the case and said why she felt it was important for the council to view Ramsay Park’s construction progress, which it did in a tour hosted by the city prior to the meeting.

“You heard today the team’s commitment to deliver a quality product, and I think our hearts and minds are there: We want to deliver a strong Ramsay Park and finish everything,” she said. “Unless something that we don’t anticipate today comes up, we will have a sufficient amount of money to finish Ramsay without borrowing from another project.”

The council voted 6-0 to approve the bonds. Councilman Casey Clark was not present for this item.

Fox said city staff met with S&P Global Ratings last week and are expected to receive a bond rating Friday. The financing team will issue the preliminary official statement to potential bond purchasers around June 3, at which point the bonds would be sold the week of June 9 and distributed to the city the week of June 23.