Economic development staff asked the council to authorize a revolving loan fund to support small developers and conversions to increase housing supply. Staff described the fund as a tool to involve smaller local builders and to address the city’s estimated shortfall in housing units.

Staff explained the proposed source for the initial $900,000 appropriation would be returned loan balances from prior downtown/destination redevelopment programs and vision-related funds. Councilors asked how much of the pot remains, whether earlier commitments to downtown redevelopment would be circumvented and whether the city would still have capacity to finance ongoing downtown conversion loans.

Staff said the redirected funds are program income from previously issued loans and that they can be redeployed by policy. They agreed to provide a clearer accounting of current balances, outstanding commitments to downtown conversions and the anticipated amortization period for new loans so the council could judge the long-run effect on DDRF (downtown redevelopment loan fund) capacity.

What’s next: Staff planned to return with a detailed budget itemization and loan-management timeline and to reconcile how the proposed loan program would interact with the downtown redevelopment pipeline.

Why it matters: The city’s ability to finance small developers affects housing production and affordability; how the city treats returned loan proceeds affects both transparency and voter expectations about earlier redevelopment programs.

Attribution: Presentation and Q&A were on the record Nov. 5 with economic development and finance staff.