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Estacada urban renewal agency authorizes staff to negotiate $300,000 loan for Amp Farm cafe
Summary
The Estacada Urban Renewal Agency voted to authorize staff to negotiate a $300,000 loan agreement with Amp Farm at 3.1% interest, a 10-year amortization and a five-year maturity (balloon) after a staff presentation on terms and local repayment timing.
The Estacada Urban Renewal Agency on Wednesday authorized staff to negotiate a $300,000 loan agreement with Amp Farm for the operator’s planned cafe and bakery, setting a 3.1% interest rate, a 10-year amortization schedule and a five-year maturity date that will require a balloon payment or refinancing.
The action followed a presentation from an Amp Farm representative and discussion among agency directors about interest-rate calculations, lien position and the project timeline. A director moved to authorize staff to negotiate the loan; Board member Charity seconded the motion and the agency conducted a roll-call (“robo”) vote in which all present voted yes.
Agency staff explained the 3.1% rate as a proportional calculation tied to current prime: “the current prime right now is 7.75…so proportionally that would be 3.1,” the presenter said, and staff included that rate in the amortization schedule in the board packet. The loan is structured with interest-only payments followed by principal-plus-interest amortization over a 10-year schedule, with a maturity (balloon) due after five years. Staff estimated the approximate balloon payment at about $162,000 if the borrower follows the proposed schedule.
Board members pressed for details on lien position and other encumbrances; the presenter confirmed the agency would take first position on the loan and that there are no other liens on the property. The presenter also said there are no prepayment penalties on the proposed terms.
Agency staff and the entrepreneur discussed the Urban Renewal District (URD) timeline: staff said the agency will be unable to authorize new projects after June 2027, and that property-tax inflows after that date would go to pay down outstanding loans as the URD winds down. The presenter noted other agency loans (to Main Street/Broadway projects and to a business called Yo Treats) are expected to mature in the 2028–2029 timeframe; those payoffs would align with the URD close-out timeline.
The Amp Farm representative provided additional loan-support materials requested at a previous meeting: a clearer statement of the cafe’s activities and finances distinct from the larger organizational finances, a second contractor quote (Kingdom Builders) for construction work, and flyers for a related construction-training program. The presenter said the cafe aims to open by the end of 2025, with a preference for a summer opening, and that construction work the organization would do on the project would be charged at cost with no profit markup.
The motion approved by the agency directs staff to negotiate a loan agreement for $300,000 at 3.1% interest with a five-year maturity and a 10-year amortization schedule and to return the finalized agreement for execution under the agency’s procedures.
Board members offered supportive remarks about the project’s community value. Board member Charity said she had “enjoyed the cafe in Sandy” and said she expected the Estacada project to be similarly beneficial for local youth and the broader community. Chair Drinkwine closed the urban renewal portion of the meeting after the vote.
