Pendleton’s Airport Hill site for test blast this week | REGION, A3
TUESDAY, MAY 24, 2022
146th Year, No. 67
PORT OF MORROW
MARIGOLD’S MAKEOVER
Looking the
other way: Part 2
By ALEX BAUMHARDT,
COLE SINANIAN AND
JAEL CALLOWAY
Oregon Capital Chronicle
Editor’s note: This is part
two of a series that follows
the article “Don’t Drink the
Water,” which ran in the
May 10 East Oregonian.
The conclusion runs in a
subsequent edition in the EO
this week.
A new deal
By 2017, the Port of
Morrow had been operating
on its expired permit for 11
years.
Duane Smith and other
Oregon Department of Envi-
ronmental Quality authorities
fi nally acted to renew it, trig-
gering another review of port
records that detected still more
pollution.
Smith was a DEQ water
quality specialist assigned
to Eastern Oregon when
he discovered the Port of
Morrow violated its permit
42 times from 2007 through
2009, resulting in thousands
of pounds of excess nitro-
gen being spread over fi elds
on three farms. Agency offi -
cials didn’t impose penalties
as allowed under the law, but
instead negotiated a “mutual
order and agreement” with
the port.
According to Oregon law,
“If DEQ determines that a
permittee is in non-compli-
ance with the terms of its
permit, submitted false infor-
mation in the application or
other required documentation,
or is in violation of any appli-
cable law, the director may
revoke the permit.”
But no DEQ director has
ever revoked, suspended or
chosen not to renew a water
permit, according to Harry
Esteve, communications
manager at the department.
And the records show that
DEQ leaders never ordered
the port to stop or suspend
operations to cease the fl ow
of excessive nitrogen onto
surrounding lands.
Instead, they settled for one
more mutual order and agree-
ment from the port in 2017 that
let the Boardman operation
off the hook for any fi nes and
kept its factories churning out
contaminated water.
Under the new deal signed
in the fall of 2017, DEQ
expected the port to build a
new storage pond and limit
where it would spread its
wastewater in winter. It also
stipulated that the water could
only be applied to crops that
could pull nitrogen from deep
in the soil so it wouldn’t get
into the groundwater.
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“So if you grew a crop, and
it didn’t remove the nitrogen
loads, like garlic or some of
those shallow-rooted crops,
that wasn’t eligible,” Smith
said.
The effect of that crop
selection would reduce the
possibility of nitrate leaching
into the groundwater.
DEQ offi cials hoped these
restrictions would compel the
port to invest in water stor-
age and treatment that would
remove nitrogen before the
wastewater left port opera-
tions, DEQ records show.
The port agreed to invest in
anaerobic digesters — equip-
ment costing tens of millions
of dollars that could store
water and remove some nitro-
gen before it was piped out of
the Boardman complex.
The new 17-page agree-
ment also stiff ened possible
penalties, boosting the daily
fi ne per violation from $250
to $1,200.
Neal signed off for the port
and Sarah Wheeler, acting
manager of DEQ’s Offi ce of
Compliance and Enforcement,
signed for the agency.
Smith said port officials
resisted the state regula-
tors, arguing that the excess
nitrogen wasn’t reaching the
groundwater, and that DEQ
analysts were too conservative
in calculating how much nitro-
gen the crops could absorb.
“They hired different
consultants to refute our infor-
mation. Battles would go back
and forth,” he said.
The agency had been
requiring that the port and its
consultants test wells down-
stream from fi elds where the
wastewater was applied.
Smith said such testing
showed “elevated nitrate
levels that have gotten worse
since they started applying.”
The backdrop
of a critical
groundwater area
Through it all, records
reveal, there seemed little
sense of urgency among DEQ
officials to stop the port’s
pollution.
In 1989, the Legislature
mandated DEQ to team up
with state and local agencies
to better protect groundwater
across the state.
Studies in the early 1990s
found that water in one-fourth
of the 200-plus wells tested by
DEQ in the Lower Umatilla
Groundwater Basin contained
enough nitrate to violate
federal safe drinking water
standards and trigger state
action. That research traced
most of the contamination to
See Water, Page A9
Pendleton’s Marigold gets $500K grant for remodel
By JOHN TILLMAN
East Oregonian
ENDLETON — The troubled
Marigold Hotel in downtown
Pendleton is getting big help
from urban renewal funds.
The Pendleton Development
Commission during its public
meeting Friday, May 20, approved a
$500,000 grant to remake The Mari-
gold Hotel, 105 S.E. Court Ave., into
the new Pendleton Hotel.
The successful applicant, True
Holdings LLC, of Clackamas, plans to
redevelop the premises into extended
stay lodgings. The project cost to
True Holdings is approximately $3.7
million to $4 million, with purchase
price of $1.5 million, remodeling
expense of $2.2 million and the costs
of furnishings, according to a report
to the commission from Charles
Denight, Pendleton urban renewal
associate director.
Denight recommended the
commissioners approve the rejuve-
nation grant. Given the history of
police calls to The Marigold, he said,
“We should all be rejoicing (over True
Holdings’ application).”
Resident Neal Berlin and City
Councilor Carole Innes both
expressed concern during the meeting
about security for the underground
parking garage, a scene of criminal
activity. Sydney True, owner of True
Holdings, promised to secure access
to the garage for vehicles and foot traf-
fi c.
As with all PDC grants, the proj-
ect owner receives reimbursement in
three payments, when each third of
the project cost is reached. That could
take until the third quarter of 2023,
according to Denight’s report.
Denight also reported the devel-
opment commission does not have
sufficient remaining funding for
this grant, given its commitment to
15 ongoing building projects, plus
several street reconstructions for
summer and fall of 2022. However,
Banner Bank is working to amend
PDC’s existing line of credit for
$10 million, with a proposal to add
$500,000 to allow this grant, bring-
P
Pendleton Development Commission/Contributed Images
Top and above: Portland-based architecture and design studio West by West
reimagines The Marigold Hotel in downtown Pendleton in this concept for
the new Pendleton Hotel, which could start serving guests in 2023.
ing the line of credit to $10.5 million.
According to Denight, True
wanted to buy The Marigold Hotel,
rebrand it with a new name and look
and sell lodging to a market inter-
ested in extended stays. Longer
term occupancy has been a success-
ful business model in the otherwise
depressed lodging industry during
the pandemic, according to an article
from Hotel Management magazine
attached to the staff report.
The commission also received
conceptual designs for the remodel
of the former hotel. Final designs
are to be submitted as part of the
grant application process, with other
components required for the PDC’s
grants. These are a scope of work
description, a business plan, a budget
with two bids or estimates from two
contractors, proof of insurance on the
building and a signed contract for the
grant funding.
The hotel plans call for a modern
property in design and function, a
restaurant and even a small corner
market for hotel guests and city resi-
dents.
According to Denight’s report,
True intends to operate The Mari-
gold through the 2022 visitor season
while beginning some work on the
facade, including signage with the
new name. Then in the fall through
the winter, his contractor can make
room renovations. In the spring, the
rooms may receive new furnishings
to make them ready for the 2023 visi-
tor season.
“Given the cost of purchasing the
property and restoring and furnishing
it, he does not feel he could complete
the project without the urban renewal
grant,” Denight reported to the
commission.
Due to the timing of his arrange-
ment with the current owner, True
sought a commitment on the grant by
May 23. He has an option contract,
but must make an off er for a purchase
agreement by that deadline.
True has developed other proper-
ties, including Klamath Cascade, the
Canyonville Inn and other projects,
according to Denight’s report. The
redeveloped Klamath Cascade Apart-
ments, previously a historic Klamath
Falls hotel, has become a desirable
place to live, with 48 low-income
housing units. Another development
was a 100-unit blighted apartment
complex in Klamath Falls with a 22%
vacancy rate. True redeveloped the
apartments, adding new amenities
and fi lling the units.
Denight also reported True has
retained a manager for the new hotel,
a woman with a masters degree in
hospitality and 27 years of hospital-
ity experience. She is to live on-site
with her husband. They intend to
move to Pendleton as soon as True
takes possession.
Commission approves
demolition grant
The PDC also approved an appli-
cation for a demolition grant for the
building at the future site of the Farm
II project, along Southwest 18th Street
near Fallen Field.
See Marigold, Page A9
BLUE MOUNTAIN COMMUNITY COLLEGE
Administration, faculty fail to reach agreement
By JOHN TILLMAN
East Oregonian
PENDLETON — Budget
negotiations at Blue Mountain
Community College broke
down Thursday, May 20,
between the faculty association
and administration, and each
side is blaming the other.
BMCC President Mark
Browning is proposing a
budget that cuts a number
of faculty positions and
programs, while the faculty
association contends there are
other ways to meet the bottom
line.
“We came very close to
reaching an agreement, but the
college was unwilling to budge
on a minimum of two layoff s,” I was willing to keep going in
Pete Hernberg, Blue Mountain the spirit of getting something
Faculty Association president, done. Then it took a wild turn,
said in a statement. “When we (as) they physically pushed
asked the college to consider back from the table and said
giving up some of its
they were done.”
Hernberg stated
budget increases to
the association off ered
preserve educational
off erings, they refused
a proposal to meet
to consider or discuss
the budget without
the matter.”
laying off members,
Browning said it
but the administra-
was the faculty union
tion insisted on at
that walked away from
Browning
least two layoff s.
An administra-
the negotiating table.
“I was quite surprised and tion team met the morning of
disappointed,” he said. “We May 21 to go through every-
were close. Very close. And thing and look at it yet again,
while what was being consid- Browning reported, and
ered did not pencil out as decided to take a couple of the
robustly as the union claimed, faculty union ideas to see what
it could do with them. The team
plans to present its proposal to
the full budget committee at
its meeting May 25 at 5 p.m., a
week before the college’s board
of education meets.
Before the meeting, Brown-
ing said the administration was
open to counteroff ers from the
faculty association in ongoing
negotiations over cutting staff
positions.
“I’ve been on record for
some time as open to look-
ing at alternatives,” he said.
(The administration) has
been meeting with the faculty
association and working on
possible changes. We’ll
consider any proposal other
than ‘just don’t do it.’ We have
to fi ll that (budget) gap.”
Hernberg said the faculty
association met repeatedly
with the administration and
made a proposal that would
have preserved the college’s
educational offerings while
providing signifi cant savings
to the budget.
Getting into the
numbers
The association’s proposal
included a faculty salary
freeze for the coming year,
despite inflation running
over 8%, according to Hern-
berg’s statement. It also off ered
giving up paid faculty profes-
See BMCC, Page A9