URA approves $50,000 forgivable loan for downtown boutique lodging project

The McMinnville Urban Renewal Agency voted 4-1 to approve a three-year forgivable loan of $50,000 to a downtown lodging and event project known as Hass/Hops Homestead, a redevelopment and new-construction project along Northeast First Street.

Community Development Director Heather Richards presented the project and URA staff's due-diligence findings. The project is a combined rehabilitation and new construction effort (two bungalows plus an ADU and remodeled garage) with a total investment of approximately $1.15 million. The developer indicated about $550,000 remained to complete work; URA staff reported the project would leverage approximately $10 in private investment for every $1 of URA assistance.

MURAC recommended a $50,000 assistance package structured as a three-year forgivable loan with staged forgiveness tied to two performance metrics: (1) $25,000 forgiven at final certificate of occupancy and (2) the remaining $25,000 (plus accrued interest) forgiven after two years of operation. Staff said the URA would require a personal guarantee and that a full payback would be triggered if the property sells within five years.

The URA has approximately $140,000 remaining in the FY2026 property-assistance budget if the board chooses to deploy funds to this project. The board voted to approve the recommendation with one member opposed.

Shannon Quimby, the project lead, was present for questions but none were raised during the board discussion. The URA resolution authorizes the city manager or designee to enter into and manage a development agreement with Hops Homestead LLC under the described terms.