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Council approves interfund loan to buy 921 South Buxton Road, sets 10-year repayment
Summary
The council voted to authorize an interfund loan of $1.5 million to the general fund to acquire 921 South Buxton Road (former Troutdale Community Church) and budget for initial renovation work, with repayment to Parks SDC fund over 10 years.
The Troutdale City Council approved a resolution authorizing an interfund loan of $1,500,000 to fund the purchase of 921 South Buxton Road, the property formerly occupied by the Troutdale Community Church, and provided for a supplemental budget for fiscal year 2025-26.
Lede context: Finance staff explained the loan will be drawn from the Parks System Development Charge (SDC) fund and repaid by the general fund over 10 years, in accordance with local budget law provisions for capital interfund loans.
What the council approved - The resolution implements a purchase authorized earlier by council (the transcript references a prior July 8 resolution authorizing acquisition). Staff said the $1,500,000 loan reflects a $1,100,000 purchase price plus an early renovation estimate and other costs. The loan will be structured as a 10-year capital loan, with annual repayments from the general fund back to the Parks SDC fund. - Staff noted the Parks SDC fund will be largely depleted of liquid assets after the transfer but that the fund retains other assets and outstanding loans. The resolution was placed on the regular agenda and a public hearing was opened as required under local budget law because it amends the adopted budget.
Key financial and project details - Loan amount: $1,500,000 (staff explanation in meeting). - Purchase price reported in staff remarks: $1,100,000. - Early renovation estimate cited by staff: $100,000; staff cautioned that renovation costs may rise once interior work and specifications are developed and allowed for a contingency (staff mentioned a contingency figure of about $40,000—6,000 in discussion). - Repayment term: up to 10 years (per local budget law limit for capital asset loans). - Intended initial work: immediate roofing work within the next few weeks, followed by space planning and electrical upgrades; substantial interior work likely to begin after the new year.
Why it matters: The purchase converts a privately owned building to city property for municipal uses while preserving the Parks SDC fund's role by repaying the loan over time; however, staff warned the SDC fund's liquid balance will be reduced in the near term.
Public hearing and vote - A public hearing was opened and no public testimony was received on the loan. A council member moved approval of the resolution and the motion passed per the meeting record.
Ending - Staff will proceed with early repairs (roof work) and complete space planning and specifications for electrical and interior work. Council was told detailed renovation costs and schedules will become clearer as the projects move into design and procurement.
