City of Madras looks to reclaim business loan
Tyson Beauchemin
MADRAS, Ore. (KTVZ) — The city of Madras is seeking to settle an outstanding loan of approximately $1.2 million from Initiative Brewing.
The city provided the brewery with a combination grant and a loan in 2024 to foster local job creation and business growth. However, the company closed its Madras location in late May 2026.
Tonight, the Madras City Council and the Madras Redevelopment Commission are meeting with Initiative Brewing and other lenders. Their objective is to resolve the financial obligations stemming from the 2024 agreement.
David Clyne, interim city administrator for Madras, elaborated on the complexities of the situation. “It’s challenging that everybody will take a little bit of a haircut to get where they want to get to, lose a little bit in the, in the transactions,” Clyne said. “But I think it’s in everybody’s best interest that they continue their operations in Redmond, hopefully successfully and that ultimately, over time, we get reimbursed as much as we can in that arrangement. But in the meantime, the city of the proposal will be that the city acquire the property back.”
The city currently does not have any specific plans for the property if they reacquire it.
The Madras Redevelopment Commission has a history of providing similar loans, having issued them to 25 other businesses. Of these, seven businesses have fully repaid their loans and 16 are actively making repayments. Initiative Brewing is one of two businesses that were not successful in the loan program.
The city’s proposal to Initiative Brewing and other lenders will include the city acquiring the property back.