Three businesses receive UR loans
Published 1:46 pm Friday, July 8, 2016
Impassioned pleas helped sway at least one member of La Grande’s Urban Renewal Agency Wednesday night.
Locked in a 3-all deadlock, the requests were all it took.
The URA gathered to consider approval for the first wave of Business Development Assistance Program applications. The program assists new or expanding businesses with loans if the application meets numerous criteria. A committee reviewed applications and recommended funding for three: Dara Sitthideth and Thai Fresh ($27,967 recommended), an expansion of an existing business currently in Pendleton to the Market Place Underground; Jenny Bartell and Community Merchants ($32,235), for a relocation from its current location to 1210 Adams Ave., and an expansion to add a food stand serving gelato ice cream and specialty teas; and Spring Roberts and Le Bebe Cakes ($20,500), for a funding request to aid a second phase of expansion to purchase equipment for the opening of the Grande Lumiere Cafe and Tea House in the Market Place Underground.
The three businesses will have to meet conditions throughout a loan term — 10 years for Thai Fresh and Le Bebe Cakes, 15 for Community Merchants. While all agency members — minus John Lackey, who abstained from voting due to conflicts of interest — passed the motions, they could not agree on the principal forgiveness options at the halfway point.
The first option from the committee was to give 100 percent forgiveness of remaining principal, and the second option was to forgive 50 percent of remaining principal, with the remaining balance refinanced at 5 percent interest for the balance of the term.
Mayor Steve Clements felt that giving too much forgiveness would deplete the program’s funds in the long run. The difference between the two options was calculated to be about $23,000, and Agency Member John Bozarth said the money gained did not outweigh the businesses’ impact.
“These people are creating jobs, (they’re) going to contribute to our community,” Bozarth said. “Let’s take a hard look at this, guys.”
The agency passed motions voting on the options, but each time they ended in a 3-all stalemate. Bob Kavanaugh, a member of the recommendation committee, questioned whether UR was designed to make money or disperse funds to who needs it.
“This fund was not designed to be sustainable. It was designed to distribute to the community to enhance our community,” Kavanaugh said.
Market Place developer Al Adelsberger delivered similar comments, after which the agency conducted a new vote that passed, 4-2.
“I always reserve the right to change my mind,” Clements said. “I believe that the fund should be sustainable, that we should be able to come back and get that money out again and again. But I also think that at some point, it’s better to take a step forward than dig my heels in.”
The second action the agency took was approving $40,300 for Side A Brewing, a project to put a brewery into the building where the Eastern Oregon Fire Museum is. Rescue Hose Company No. 1 provides use of the space for the museum, but has been struggling to find tenants, which depletes funds necessary to operate the museum.
The agency approved the $40,300 Side A requested, with a portion of that — $25,620 — left over from the Call for Projects fund.