(VANCOUVER, WA.) -- The Vancouver City Council meeting on Mar. 2 was largely a contentious debate over key financial and governance issues.
Photo Credit: Clark/Vancouver Television
“While several workshops were held and routine consent agenda items were passed, the main topic drew significant public comment and council deliberation,” OpGov.news reports.
The approval of a Small Business Revolving Loan Fund (item #6) proceeded despite serious public concerns regarding its constitutionality and transparency.
Paul Burgess addressed the council virtually, speaking in support of consent item #6, the Revolving Loan Fund, and the selection of Business Impact Northwest for CDFI.
Photo Credit: Clark/Vancouver Television
“The Fourth Plain corridor is one of the most economically active in culturally diverse parts of Vancouver. It's also an area where many small businesses operate outside of our side of traditional financing pathways,” Burgess said.
Burgess went on to highlight that many small businesses in this economically active and culturally diverse area struggle with traditional financing, facing barriers to expansion and managing cash flow. He explained that CDFIs are designed to lend in these conditions, providing an ongoing source of financing.
Natasha Romers spoke against the program, arguing that using general taxpayer dollars to loan or gift is unconstitutional in Washington State, putting the city at risk.
“I want to speak against the Revolving loan program. And I will start by saying that I actually love the idea of having the Revolving loan program. We've been working on it for about 10 years. The issue here is the funding source that is utilized for that program is pure general fund. There's no federal funding in it whatsoever,” Romers said.
Photo Credit: Clark/Vancouver Television
Romers warned that if the state auditor or attorney general finds the program unconstitutional, the city would have to void loans and reclaim funds, causing significant repercussions. She urged the council to pause the program and seek independent legal advice or guidance from the attorney general's office.
Councilor Sarah Fox asks for more information after hearing public comments.
Photo Credit: Clark/Vancouver Television
“So, there's quite a lot of different provisions we have for providing additional housing assistance or other types of, you know, charity purposes. So, I'm wondering if that is perhaps part of the reason we're allowed to move forward with this type of loan program, but I'd like to hear more,” Fox said.
Vancouver City Attorney Nena Cook provided the council with more information.
Photo Credit: Clark/Vancouver Television
“This program was thoroughly vetted internally with our office. It was thoroughly vetted with outside council. We've also been in touch with the state city of Tacoma who has a similar program. So, I'm confident in the city's legal position,” Cook said.
Ultimately, the Small Business Revolving Loan Fund was approved, authorizing its establishment and an agreement with Business Impact Northwest.
If you would like to comment or add to this report, please email me at rory.h@lead4earth.org or comment below.
Comments