Council authorizes $4 million loan to build pump station serving 400-unit Timber Cove Estates

City staff told the council that the $4 million loan from the Special Public Works Fund through the Oregon Infrastructure Financing Authority will fund construction of sanitary Pump Station 27 and a force main to serve a planned 400-unit housing development at the end of Lindy Lane called Timber Cove Estates. Jennifer (last name not specified in the transcript) said construction bids are being solicited with a June 3 bid deadline and anticipated construction completion in August 2026.

“While the city is actively requesting state funds to fund the pump station, a loan from the Special Public Works Fund through Oregon Infrastructure Financing Authority will serve as a stopgap so that this project can be immediately funded and constructed,” staff said. Staff also told the council that state appropriations are not guaranteed and that the city’s financial consultant recommended basing the fiscal year 2026 budget on a 7.5% sewer-rate increase to allow loan repayment if state funds are not awarded.

Mayor Joe Benedetti and councilors said the loan approval was intended to move a long-standing development project forward. Councilors said the developer committed to minimum buildout conditions: staff reported the developer must build at least 150 homes under the city’s agreement or otherwise be responsible for repayment of the pump-station costs. Council discussion included whether system-development charges (SDCs) might be a future tool to fund infrastructure and staff suggested investigating the process and timeline for SDCs.

The council approved the resolution authorizing the loan (Resolution 25-15) by voice vote. Staff noted construction costs above $4 million will be the developer’s responsibility. No additional financial appropriation beyond the loan authorization was adopted at the meeting; staff will proceed with procurement per the emergency procurement and bid schedule already in process.