Scappoose council endorses application for up to $400,000 Main Street grant to buy downtown property

Scappoose — The City Council on Feb. 3 unanimously approved Resolution 25-01 authorizing the city to apply for an Oregon Main Street revitalization grant of up to $400,000 to support acquisition of a downtown property for a community development center office.

City planner and staff lead N.J. Johnson told the council the grant would cover up to $400,000 and requires a 30 percent match. "It's a $400,000 max award," Johnson said, adding the match requirement would be about $120,000 on a purchase of that scale. Johnson said the city has been negotiating with the property owner and realtor on price and that the grant application is limited to advancing the grant opportunity rather than committing the city to any particular sales terms.

Why it matters: The city framed the application as an opportunity to reduce the final loan balance for a purchase intended to bring offices and activity into downtown. Johnson said Business Oregon representatives had indicated availability of a 4 percent, 30-year loan option available to cities to help cover remaining costs. She also said staff had applied separately for a $10,000 landscaping grant to accompany the project.

What council approved: The resolution in the council packet (25-01) authorizes the city to submit the Main Street grant application by expressing municipal endorsement of the project; Johnson emphasized the resolution "is not an agreement to any sales terms or anything like that. It's just required for the city to move forward with the $400,000 grant." The council voted in favor on a voice vote; the motion was seconded by Councilor Jacobs and the mayor or a council member moved the resolution as recorded in the meeting minutes.

Grant details and timeline: Johnson said the Main Street award maximum is $400,000 and the program typically requires a 30 percent local match. Depending on the final sales price and improvements, Johnson estimated the grant could cover roughly one-third to one-half of project costs. The grant application deadline the city staff cited is March 13; Johnson said applicants should expect a mid-May notice date on awards. Staff also told the council they had been in contact with the grant coordinator and believe the proposed purchase "absolutely qualified" as a downtown revitalization project.

Council comment and next steps: Councilors voiced support for pursuing the grant. Councilors asked staff how the project would proceed if the city did not receive the Main Street award; Johnson said the city could still proceed but the loan balance and financing arrangement would be different. Staff will proceed with the application and return with further details if the grant is awarded or if substantive sales terms are negotiated.

Provenance: Meeting discussion introducing the grant begins when staff presented the item (council packet item: Resolution 25-01) and ends with the recorded vote and council comments on the item.