The Dalles City Council reversed an earlier decision and voted to allow a commercial water hookup for a business that wants to locate outside city limits.
On July 24, the council voted 3-1 to approve commercial water service for Red Hen Industries, a new business to be built at 6140 Mill Creek Road. Red Hen needs water for a marijuana production process, and the vote to approve comes just a month after the council voted 3-2 to reject the request.
Linda Taylor, president of the business, said the facility takes tetrahydrocannabinol (THC) — the chemical responsible for marijuana’s “high” — out of the plant. Taylor said it’s part of a process to help people find ways to reduce chronic pain.
“We process cannabis into oil for the wholesale market. For medicinal orders, we also refine the cannabis by removing the THC,” she explained. “It’s a burgeoning market, and this looks like a safer route than opioids.”
On June 26, members of the city council expressed concern about authorizing water service to the business due to concerns it could potentially limit the amount of water available for customers within city limits. As a result, councilors Russ Brown, Linda Miller, and Taner Elliott voted to reject the water hookup request, while Timothy McGlothlin and Darcy Long-Curtiss voted in favor.
After the June vote, Mayor Steve Lawrence said the council had raised “good questions” about the proposed water hookup and agreed to bring the issue back to the city council, and a second vote was taken during the July 24 meeting.
In the July vote, Miller changed her “No” vote to “Yes,” and Elliott was not present resulting in a 3-1 vote in support of the request.
According to Dave Anderson, director of The Dalles Public Works Department, Taylor’s request was for a 1.5-inch meter and a projected use of 30,000 gallons per month from October through April.
The business plans to take water from Mill Creek during the other six months of the year.
Anderson said providing the company with 30,000 gallons a month would not create any shortage for the city.
“It’s equivalent to one more single-family residence,” he said, adding that the business plans to tap the city’s water system during a time of year when there are relatively few demands.
“The city has the capacity to supply the request,” said Anderson.
During last week’s meeting, he advised the council that they had four options. One, they could authorize the water service. Two, they could authorize the projected 30,000 gallons a month of water with “penalty rates” if the business uses more than 30,000 gallons.
“Maybe charge two times the normal rates as a disincentive to use the extra water,” Anderson suggested.
Three, the council could stipulate that, if the business used water outside the proposed six-month period, the deal could be terminated.
Four, the council could simply reject the proposal to provide water service.
Brown asked what would happen if the city needs to do maintenance on the water line during the months the company wants the service.
“If we’re unable to provide water, what are our liabilities?” he asked.
“Unless there is negligence, there are no worries,” Anderson responded.
“I still have concerns,” Brown said, adding that he is worried about setting a precedent if the city provides water service for businesses outside the city limits. “I’d like that water to benefit The Dalles. My concern is the water resources being available to people here in town.”
However, Anderson pointed out that there are already several commercial water customers located outside the city limits.
“We do have three fruit processing/packing facilities,” Anderson said. “These existing businesses have peak monthly usages of from 200,000 to over 700,000 gallons per month.”
Anderson said the monthly billing for water outside the city limits is 150 percent more than what customers inside the city pay, and estimated that Red Hen’s 30,000 gallons would cost the company about $150 a month.
Besides the extra billing charges, the business would have to pay a one-time water system development fee of $9,268 for a 1.5-inch water meter.
Miller made a motion to authorize water service outside the city limits, with no added restrictions related to the number of gallons used or the time of year the water was taken.
The motion was approved 3-1, with Brown voting in opposition. Miller, McGlothlin and Long-Curtiss voted in favor.
Taylor said she appreciated the council’s support.
“We are delighted that The Dalles City Council has agreed to authorize commercial water service for Red Hen,” Taylor said. “Our goal is to be an asset to the community, and hire from the community. We will start with a small staff of six, but plan to grow quickly. All our employees will be full-time with benefits, and we plan to hire as many local citizens as we can.”
Taylor added that part of her business philosophy calls for helping to boost the community and pointed out she has some specific ideas for ways to do so.
“We wish to demonstrate our desire to be a valuable member of The Dalles community by pledging a portion of our profits to support local school and after-school programs,” she explained.
Taylor said the new business will break ground in September, and expects to begin processing by the end of the year.
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