Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Projects topic
No spam. Unsubscribe anytime.
Federal earmark uncertainty forces city to lean more on USDA, other lenders for Tar Canyon Mill project
Summary
City staff said a likely delay or loss of a $5 million federal earmark will shift more reliance to USDA loans and other state funding sources for a rail/river stabilization project; council discussed alternative funding options including the water resources board and CIB.
City officials reported that a previously anticipated $5 million federal appropriation for the Tar Canyon Mill (rail) project is likely to be delayed to next year or may not materialize, and said staff will pursue additional support from USDA and state funding programs.
A city official said he met with Representative Owens’ office and was told that earmarks are unlikely to move forward this year; the city subsequently contacted USDA, which indicated a willingness to consider increasing its loan or grant participation to keep the project moving.
City staff cautioned that if the $5 million earmark is lost or delayed, the USDA package may include a larger loan share and a smaller grant component than the city had hoped. Staff said the state Water Resources Board remains a potential funding source but has been underfunded in recent years; the Community Impact Board (CIB) was also described as a possible lender, particularly if the city can demonstrate it has pursued other funding options.
Staff said they will continue conversations with USDA and will place other funding sources (Water Resources Board, CIB) in reserve should the earmark not be available. The city manager asked for an executive session to discuss related real estate matters and to keep federal contacts on the phone for updates.
No final funding decision was made during the meeting; staff recommended continued pursuit of USDA and state options and flagged the risk that any replacement package could increase debt on the project.
