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Committee discusses gap financing, MIRL loan program and potential Business Oregon support
Summary
Presenters said each demonstration house needs about $250,000 in gap support; the city approved $5,000 toward a gap fund and staff are working with the state and Business Oregon on loan guarantees; the MIRL program exists but had not yet issued loans.
The financial approach for a cottage-cluster demonstration was a major part of the presentation. Moderator told the committee the project typically requires about $250,000 per house in predevelopment/gap support for innovative technologies and that the development team is seeking blended financing: employer capital, bank loans, philanthropic gap funds and state loan guarantees.
Moderator said the City of Boardman previously approved $5,000 toward such gap financing and that the MIRL (Moderate Income Revolving Loan) program has been authorized but "still not a single loan made out of it yet." Staff said they are working with Business Oregon and the state to explore loan guarantees and other de-risking mechanisms to make bank financing feasible for new builders and technologies.
Committee members asked whether the city’s previously discussed revolving loan and other supports could be routed to a demonstration; staff said work is ongoing with state partners and that the city and consultants will continue to refine a financing plan.
