CANNON BEACH — The city intends to secure a loan to redevelop the former elementary school into a tourist destination honoring local tribal history.

The City Council authorized the city to borrow $4.6 million for the project, which is expected to cost $5.5 million. Lodging taxes will be used to pay the loan.

To prevent overborrowing, City Manager Bruce St. Denis said the city will split the borrowing into two issuances. The second one could be made as part of the financing for a new City Hall and police station.

The city-owned property on Beaver Street — formerly Cannon Beach Elementary School — is about 1.6 acres. St. Denis said the goal is to create a destination that honors the Clatsop-Nehalem Confederated Tribes, since the site was home to the tribes’ ancestors.

“In a lot of ways, we’re trying to emulate what the tribe did there for a long time, which is bringing people together,” he said.

The city issued a request for proposals from design firms late last year. The City Council expects to select a firm by March.

There are two buildings on the property that need to be renovated. One is a 7,500-square-foot gym and the other is a 5,000-square-foot one-story building with four classrooms and office space.

The buildings have not been used for several years, according to the city, and have had limited maintenance for more than a decade.

The city envisions creating meeting places, a garden and spaces that showcase tribal agriculture practices. The Cannon Beach Food Pantry will remain. The city also hopes to have walking trails, interpretive signs, displays and planted areas.

When the property is not being used for visitors, St. Denis said the space could be used for community events.

The city manager said the design firm will be expected to meet with stakeholders and understand the goals before starting the design process. The City Council and the public will have the opportunity to engage throughout the process.

Meanwhile, St. Denis expects to issue a request for proposals from architectural firms to build a new City Hall and police station.

He said the city will likely be ready to borrow funds for the project next January. When the city makes that issuance, St. Denis said it will include whatever amount is needed to complete the project at the former elementary school.

Funding for the rebuild will likely come from the prepared food tax approved by voters in November. The 5% tax is estimated to raise about $1.7 million a year and will be split between the city and the Cannon Beach Rural Fire Protection District.

After years of back-and-forth, city councilors agreed last year to rebuild the City Hall and police station at the existing location on E. Gower Street. The new building could cost more than $16 million, and will also function as an emergency operations center.

The new facility will be set back slightly and built over the parking lot, which sits higher. St. Denis said the additional height should protect the building from some tsunamis.

While the site is in the tsunami inundation zone for a Cascadia Subduction Zone earthquake, St. Denis said the new building is not necessarily being built to withstand that disaster.

City leaders had considered the city’s South Wind property as a possible location because it is outside of the inundation zone, but the 55-acre vacant lot has proved tricky and expensive to develop.

“We’re likely to see smaller earthquakes that can do a lot of damage here, but not be Cascadia,” St. Denis said. “So we want to make sure we can respond as best we can if that kind of event occurs.”