Redding council approves EDA grant application, airport loan from risk fund, affordable housing deal and several policy updates

Redding’s City Council approved a package of funding applications, loans and policy changes at the meeting, authorizing staff to pursue federal and state funding and approving several local financing and program actions.

Votes at a glance: the council recorded formal roll-call approvals on several items and gave staff direction or consensus on others. Highlights include:

- EDA grant application for Stillwater infrastructure: Council authorized staff to apply for the U.S. Economic Development Administration Public Works and Economic Adjustment Assistance Program for up to $5,000,000 to help construct infrastructure for the Stillwater Business Park Phase 2. Staff said the project would need local match (from future Stillwater property sales and capital projects funds) and that the grant request may be scaled to match available local funds. The motion passed on a unanimous roll-call vote (Council member Audette — yes; Council member Danuka — yes; Council member Resner — yes; Vice Mayor Lata — yes; Mayor Muns — yes).

- Airport main parking lot loan from the risk management reserve: Council approved moving forward with a loan from the city’s risk fund to finance reconstruction of the Redding Regional Airport main parking lot. Airport staff said the airport does not have sufficient reserves to fund the work and intends to repay the loan over 10 years from parking revenues; staff also plans to add license-plate-recognition technology to improve revenue collection. Council approved the loan request on a roll-call vote (unanimous yes).

- Faith Works disposition and financing agreement (affordable housing): Council approved a disposition-and-financing agreement enabling Faith Works Community Coalition to develop a mixed-use project on three city-owned parcels (815 and 825 Parkview Avenue and 2520 Leland Avenue). Staff described a draft project of 14 units (10 one-bedrooms and 4 studios) combined with administrative and case-management offices. Proposed city support includes a $153,000 seller carryback loan (55 years, 1% interest, residual receipts) for the parcels and a $1,600,000 development loan (55 years, 1% interest, residual receipts); staff proposes using state and local grant sources including encampment funds and other identified grants. Faith Works has also been awarded four project-based VASH vouchers (veterans’ housing) pending housing authority approval. The council approved the staff recommendation on a roll-call vote (unanimous yes).

- Entertainment zone: Staff briefed council on state Senate Bill 969, which enables cities to create designated entertainment zones allowing open-container alcohol consumption within specified right-of-way boundaries. Council provided consensus direction to continue working with public safety, property owners and stakeholders to draft ordinance language and proposed boundaries (staff noted draft boundaries would likely align with the downtown core). No formal ordinance vote was taken; council asked staff to return with an ordinance and metrics for biennial review.

- Recreation policy and fee changes (Policy 806): Council approved revisions to City Council Policy 806 to increase program cost recovery and add a 15% administrative recovery charge on recreation programs; non-resident youth rates will increase an additional 10% over resident rates. Staff estimated typical camp-week increases in the range of $20 for residents and higher for nonresidents; staff said scholarship and state alternative payment options remain available. The motion passed by roll call (yes votes recorded on the dais).

- Parks and concessions code amendments: Council authorized an ordinance updating Redding Municipal Code Chapter 2.56 (Community Services) to clarify concessions and distribution rules, require permits for concession activities (including some giveaways), and give the Community Services director authority to approve amplified-sound requests that exceed current decibel/time limits without having to bring each request to council. Council approved the ordinance on a roll-call vote (yes votes recorded on the dais).

- Utility quarterly financial report: Council accepted the electric utility’s quarterly financial and industry update. Staff reported retail sales and wholesale sales above plan for the first nine months and said the utility’s cash position improved after a debt reimbursement in April; the report was accepted unanimously.

- Water infrastructure loan authority: Council approved staff authority to apply for multiple loan programs for the Pump House 1 replacement and related water infrastructure upgrades. Staff asked to expand applications to (a) State Water Resources Control Board financing (increase application up to $50,000,000) and (b) federal WIFIA financing (up to $40,000,000). Staff said the city does not expect to borrow the full amount requested across all programs but is seeking flexibility to secure the best available terms; any loan chosen would be repaid from the water utility’s revenue. Council approved the authority to apply by roll-call vote (yes votes recorded on the dais).

Several of the items approved require follow-up steps: staff will prepare ordinance summaries (where applicable), pursue identified grant and loan applications, finalize loan terms where awarded, and return to the council with formal agreements or budget actions before funds are accepted or spent.

Ending: Council members said they will monitor implementation — particularly parking management downtown, repayment plans for airport and water loans, and the Faith Works project — and directed staff to develop metrics and reports where noted (for example, a biennial review for any entertainment zone and follow-up monitoring of short-term rental impacts).