Scappoose approves authorization to finalize $2.5M loan agreement for Basalt Well Project
Summary
Council adopted Resolution 26-04 authorizing the Mayor to finalize a loan agreement with Business Oregon's Special Public Works Fund for up to $2.5 million for the Basalt Well Project; interest accrues as disbursements are made and funds are not available until contract execution.
City staff told the Council the City's loan application with Business Oregon's Special Public Works Fund for the Basalt Well Project was approved and that the loan is for $2.5 million at 3.84% interest. Public Works Contract Administrator Matia Malberg explained that interest accrues as each disbursement is made and that funds will not be available to the City until the contractual agreement is executed by both parties. Resolution 26-04 authorizes Mayor Backus to execute the agreement; Council approved adoption and authorization to finalize the loan (motion passed 6-0).
Why it matters: Authorization is a procedural step required by Business Oregon before disbursements occur; the loan will provide capital financing for a significant water infrastructure project. City staff noted the City does not anticipate using the full loan amount.
Next steps: The Mayor will execute the loan agreement after Council adoption; funds will be drawn as needed and according to the contract terms with Business Oregon.
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