Council approves loan pass-through to fund road connecting International AgriCenter to Turner Drive

The Tulare City Council on Jan. 21 approved a package of documents that allows the city to serve as a conduit for a three-year, no‑interest loan from the Tulare County Association of Governments (TCAG) to the International AgriCenter. The loan will supply the AgriCenter's $2.5 million share toward construction of a four‑lane extension that will connect the new interchange/International AgriCenter Way to Turner Drive and improve regional circulation.

City staff described the arrangement as a pass-through: TCAG would loan funds to the city, the city would temporarily pass funds to the AgriCenter, and the AgriCenter's deed of trust on its property would secure the city's repayment obligations to TCAG. "It's relatively straightforward," said city counsel during the presentation, noting the loan is secured by a single parcel. Council approved the loan agreement, promissory note, security agreement and short form deed of trust and assignment of rents by a 5-0 roll-call vote.

City staff said the overall project is funded from several sources: a $4 million federal earmark secured through the city's legislative delegation, $2.5 million previously appropriated from the city's budgeted funds, and $2.5 million each from the AgriCenter and an identified private landowner, with TCAG providing short-term financing to help the nonprofit and private owner meet near-term cashflow needs. The road is intended to be shovel-ready as the new interchange opens, improving access to the AgriCenter and undeveloped parcels west of Mooney Boulevard.

Council members asked whether TCAG could loan directly to the AgriCenter; staff said TCAG's offered vehicle requires a governmental borrower and the city's participation provides clarity and security while minimizing risk to the city. The formal vote recorded the five council members present as voting aye.