Council authorizes assistant city manager to present draft loan (up to $256,000) to Philomath Frolic & Rodeo board

The Philomath City Council on July 14 authorized the assistant city manager to present a draft loan agreement for up to $256,000 to the Philomath Frolic & Rodeo board and, if the Frolic accepts the draft without material changes, to execute the agreement on behalf of the city.

Staff said the loan is intended to cover remaining costs tied to bleachers, lighting, ADA accommodations and related project close-out. The city originally sought $1.9 million in state support after the Frolic pledged $500,000 in local matching; subsequent fundraising and scope changes left an outstanding gap. The draft repayment agreement allows the Frolic to repay the city from event proceeds and contains remedies for default, including termination of the Frolic’s lease as a remedy rather than a traditional property security interest because the Frolic does not own the land.

Council discussed potential appearance issues because staff members serve on the Frolic board and whether another staff member should finalize negotiation or sign the agreement; legal counsel suggested the appearance question could be managed and recommended simultaneous or closely timed execution of city financing and Frolic repayment documents. Council also asked staff to review and, where appropriate, renegotiate lease terms that currently allocate certain improvements to the tenant.

Mayor McMorn moved and Councilor Salsa seconded the motion to authorize the assistant city manager to present the draft loan agreement up to $256,000; the motion passed unanimously. Staff will refine the final draw amount as final invoices are reconciled and then present the final loan documents for signature if the Frolic accepts them.