Sutherlin agency, city approve purchase and draft loan for 311 East Central as future city hall

The Sutherlin Urban Renewal Agency voted to purchase 311 East Central Avenue and the Sutherlin City Council approved matching intergovernmental and draft loan agreements to finance renovation of the building as the city’s future City Hall.

Christy Gilbert, community development staff, told the agency that the board had negotiated a $1,200,000 purchase price with $300,000 of that amount earmarked for property improvements. Agency members asked clarifying questions about why the urban renewal agency would hold the property initially and how the deed transfer to the city would be handled; staff said the agency is an interim vehicle to complete the purchase and the property will later be deeded to the city.

Tammy Trowbridge, the city’s finance director, explained both the intergovernmental agreement (IGA) and a loan agreement included in the packet are drafts because final amortization figures from the bank remain pending. She said the attorney recommended approving the draft documents so both agencies could move forward with the financing process once bank terms are finalized.

Board and council members moved and seconded the motions. The agency vote to approve the purchase-and-sale agreement passed with board members present voting aye. Later, the city council voted to approve the attached draft IGA and loan agreement as presented; Trowbridge said the loan agreement will be finalized after the city receives final paperwork from Umpqua Bank.

The approvals are procedural steps that authorize staff to complete documentation and proceed with closing once bank amortization and attorney review are finalized. No final loan amortization schedule or exact repayment terms were provided at the meeting.

Next steps: staff will finalize paperwork with the bank and return any finalized documents or debt schedules to the agencies for recordkeeping and implementation.