Sutherlin council approves downtown property purchase, authorizes urban renewal financing

The Sutherlin City Council on a voice vote approved Resolution 2024.03 to amend the downtown urban renewal plan and authorize the city manager to enter a purchase-and-sale agreement for the property known as 311 East Central.

City community development staff presented the proposal as a pivot from an earlier plan to remodel the police and fire departments, which had grown to an estimated scope of about $3 million. Instead, staff said, the agency would pursue purchasing an existing downtown building for up to $1,500,000 and use tax-increment financing (TIF) and a seismic grant to relocate city hall into that building and expand police department emergency operations space.

Christy Gilbert, Community Development Director, told the council the intent is to “take advantage of another seismic grant for the police department by expanding the police department in the existing city hall and relocating city hall to the new building.” Staff said the change would better align with earlier budget expectations and reduce the immediate capital scope.

Councilor Kristina made the motion to approve; councilors voted unanimously to adopt the resolution. Council discussion addressed building condition (water, electrical), anticipated lease transitions and an expected payoff horizon for the financing. Staff said moving into temporary space at the chapel side of the new building would begin immediately and that a broader communications plan — including a mailer to residents — would announce the change.

The council did not set a final closing date in the resolution text presented at the meeting; staff said they would proceed under a purchase-and-sale agreement and return any required final documents to the governing body as needed.