The Dalles: City approves $750,000 loan to fire department from SIP agreement funds

The SIP agreement also includes a community service fee (CSF) of 25% of taxes saved. The loan to MCFR comes in advance of funds they expect to get from their portion of the CSF, which will be distributed after the first data center is constructed. The loan will support MCFR’s services during the construction phase of the first data center.

The money will be used to bring on six additional employees, two per shift, in order to move the department toward meeting National Fire Protection Association standards, Wasco County Chief Administrator Tyler Stone said.

According to Matthew Klebes, administrative services director for Washington County and one of the enterprise zone managers, the loan is needed because, though the CSF is only generated once the project is completed, MCFR still has to provide service during the construction, before additional resources are available.

Councilor Scott Richardson, the only councilor to vote against granting the loan, requested more information on what the $750,000 would be used for.

“I don’t feel that I’m ready to vote on this, having not seen the details or the memo spelled out,” Richardson said. “Personally, I want to see the memo from the fire district and have some time to cogitate on it … It’s not something I’m opposed to, just something I haven’t really had time to learn about or think about.”

Councilor Darcy Long said she believed they didn’t need to know exactly how MCFR would spend the money because each district would be able to do what they wanted with the CSF money, which is what this loan would essentially be.

“The request for the loan is just so they can get their portion of the money early before the construction is completed … they need that money now to provide the fire service.”

Long also clarified earlier in the meeting that the $750,000 was not in addition to MCFR’s CSF. When MCFR receives their CSF, after construction is completed, they are expected to use the CSF to pay the city back for the loan.

The loan to MCFR will ultimately be contingent upon how the city and county ultimately decide to distribute CSF funds.

The city council reached a consensus that full distribution of the fee should be distributed directly to the taxing districts for the first data center project, with a decision on the second project to be undertaken in the future, as to whether the money should go fully to the districts or be split between the districts and “greater good” projects.

In considering the same question, Wasco County commissioners arrived at a different answer, suggesting the fee for each project be split between the districts and the greater good.

Commissioners preferred an even split between the districts and the “greater good” for both projects, if they do in fact come to fruition.

“We don’t have those funds yet, we don’t know that is going to happen,” Commissioner Steve Kramer pointed out during the Jan. 19 meeting of the board. “We can’t spend money we don’t have yet. “

Kramer also pointed out that taxing districts would be receiving 50% of taxes owed as soon as the project was up and running, in addition to the CSF fee. He suggested a 50/50 split between the projects, with the first project fee going to districts, and the second project going to the greater good.

Commissioner Scott Hege said he also preferred the 50/50 split, but preferred the split to begin with the first project.

Following discussion, the board reached a consensus to seek a 50/50 split beginning with the first project.