The South Hermiston Industrial Park (SHIP) is being paid for 50% by a grant from the US EDA, 42% by adjacent property owners through a Local Improvement District, 6% by the City of Hermiston, and 2% by Umatilla County.

The structure of EDA grant funding requires the City to make payments to our contractors, and then seek reimbursement.  Additionally, the structure of Local Improvement Districts requires the City to fully complete all of the improvements, and do a final accounting to assign accurate costs to all property owners before getting reimbursed by the property owners.

This short-term borrowing will allow the City the flexibility to complete the projects without committing too much of our own cash.  The terms of the LID #322 allow the cost of the short-term borrowing to be covered by the benefitting property owners as part of the project costs.

The amount of this credit line will be $1,750,000.

The carrying costs associated with this borrowing will be passed on directly to the benefitting property owners, with no administrative overhead added.

1. Approve Resolution 2196 as presented

2. Do not approve Resolution 2196 as presented.