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A14 • HERMISTONHERALD.COM
BUSINESS
Continued from Page A1
a lien on the properties. If
60% of the property owners
opposed, they could block
formation of the district.
In an urban renewal dis-
trict the city would freeze
the tax rate in a certain zone,
then skim off any extra rev-
enue generated by increases
in property value and fun-
nel it into the road project.
In a hypothetical example,
a property might be worth
$50,000 and pay $5,000
(10%) a year in property
taxes. If a restaurant were
built on the property and its
value increased to $200,000,
taxing districts such as the
city and fi re district would
continue to receive $5,000
per year while the additional
$15,000 would be diverted
to the urban renewal district.
The money would take
longer to accumulate than a
local improvement district,
and would depend on prop-
erty values increasing. But
property owners and devel-
opers looking at the property
wouldn’t be charged extra
for the improvements.
“The assumption is that if
we form the (urban renewal)
district and development
occurs, we will say ‘You still
have to pay property taxes,
but those taxes are going
directly to these improve-
ments that you would other-
wise have to pay for,” Mor-
gan said.
While councilors were
interested in the idea of new
roads to boost the attractive-
ness of commercial land,
they said they would need
more information — includ-
ing the cost of the proj-
ect — before making any
decisions.
“Right now I could go
either way,” Kirwan said.
Industrial access
During its regular session,
the city council set in motion
a different local improve-
ment district, located in the
South Hermiston Industrial
Park near Ranch & Home.
If the project is fi nalized,
it would be Hermiston’s fi rst
LID since 2004.
The district would require
neighboring properties along
Campbell and Penney drives
to pay to pave the remainder
of Campbell Drive, install
water and sewer mains in the
area and create what would
essentially be a new road —
called Southeast 10th Street
— connecting East Penney
Avenue to Highway 395
across from Bellingers and
creating access to a piece of
industrial land owned by the
Port of Umatilla.
“It’s important to note that
the right of way for South-
east 10th exists, legally and
on paper, but if you were to
go out there, there’s noth-
ing — not even a goat trail,”
Morgan said.
He said at least 50% of
the project could be paid
for by a federal Economic
Development Administra-
tion grant that the city is eli-
gible for based on large lay-
offs at Hermiston Foods
and Union Pacifi c in recent
years. The city would be
willing to put in 8% of the
matching funds needed
for the grant and Umatilla
County would be willing to
pay 2%, leaving the project’s
neighbors to pay for about
40% of the project instead
of what would normally be
100%.
The council voted Mon-
day night to complete a fea-
sibility study for the LID,
assessing how much money
would need to be raised
and how much each prop-
erty would pay. That study
will be presented during the
council’s July 8 meeting,
after which the council can
decide to abandon the idea
or hold the necessary public
hearings to pursue an LID.
If 12 of the 20 neighboring
property owners oppose the
LID it won’t happen.
“It’s exciting when you
can get a 60% match on your
dollar,” mayor David Drot-
zmann said. “That makes it
much more palatable.”
WEDNESDAY, JUNE 26, 2019
Capitol Press fi le photo
Republican senators were still missing from the Capitol Tuesday, throwing into question whether any more bills will pass
the legislature during the current session.
RENOVATION
Continued from Page A1
Smith said.
There had been some rumors fl oat-
ing around that a walkout by Senate
Republicans might damage their dis-
tricts’ prospects of getting projects
like the jail funded, but Hansell’s dis-
trict ended up with several projects
in the capital construction bills even
though he was still out of state as of
Tuesday afternoon.
Hansell left Thursday, when all
11 GOP senators left to avoid a vote
on House Bill 2020, which would
implement a cap and trade program
meant to fi ght climate change by tax-
ing carbon emissions.
Pendleton had cause for celebra-
tion after the capital construction
committee included roughly $5 mil-
lion to Blue Mountain Community
College for an indoor riding arena
project that will benefi t the college
and Pendleton Round-Up.
Another $1 million was ear-
marked for a surface water-pumping
project in Umatilla County benefi t-
ting agriculture.
Smith said in the past he was
often focused on funding for “roads
and pipes” but this session he was
focused on projects that would help
children and families more directly.
If the capital construction bills
pass, Umatilla Morrow Head Start
will get $1 million to expand access
to early childhood education for
working families in Hermiston and
Morrow County. The Port of Morrow
will also get $1.4 million to expand
its early learning center.
Eastern Oregon University will
see a windfall of $3 million to replace
the grand staircase in Inlow hall and
$14 million for a residence hall.
Smith, who sits on the capital
construction committee of the Joint
Committee of Ways and Means, has
drawn scrutiny during the session
for how his infl uence as a legislator
interacts with his private job as an
economic development consultant.
One of his contracts include running
the Small Business Development
Center at EOU.
As House Bill 5050 and 5005
passed out of committee Tuesday
afternoon, there was still a question
of whether it would get a vote on the
Senate fl oor as Senate Republicans
remained out of state.
Reached at an undisclosed loca-
tion outside of Oregon, Hansell said
on Thursday that Republicans were
prepared to stay away until the con-
stitutionally-mandated end of the
session June 30. On Tuesday morn-
ing, however, Senate President Peter
Courtney said there were no longer
the votes on the Democratic side to
pass the cap and trade bill, prompting
talk of the missing senators returning.
On Tuesday morning Hansell said
Courtney’s pronouncement boded
well for Republicans returning to the
Capitol before the end of the week
to wrap up budget bills and other
important legislation that got stalled
by the walkout.
“We’re moving in the direction of
returning,” he said.
Hansell said even though he and
other caucus members were in dif-
ferent locations they were in con-
tact by phone as caucus leaders dis-
cussed negotiating with Democrats
for a return.
Senate Republican Leader Her-
man Baertschiger, Jr., R-Grants Pass,
released a statement Tuesday after-
noon saying Courtney’s assertion that
House Bill 2020 would not pass was
“good news, however we are still try-
ing to sort out the process.”
“The bill itself has been second
read and a vote will have to take
place,” he said. “Republicans must
be assured that the vote or motion
will guarantee the bills complete
end. We need to have further conver-
sations so that the Republicans feel
comfortable with the process.”
Smith said he hoped to see Senate
Republicans return to pass the capital
construction bills and other import-
ant legislation, particularly budget
bills.
“I’m excited to have my col-
leagues back in the building,” he
said. “They did a good job standing
up on an important issue, but we have
constitutional obligations.”
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