Development plans moving forward

It was the second affirmative vote taken by the board on the Gorge Built Hotel Development, LLC, proposal within the past two weeks. The first approval by a 3-2 margin on Jan. 30 was not valid because there were not enough members present to comply with Oregon law.

City Attorney Gene Parker said the nine-member board needed at least five votes in favor of the proposal to make it official.

Linda Miller, a city councilor who was elected chair of the agency board Feb. 20, called for the vote after questioning Michael Leash, principal for GBHD, about the makeup of his investment group.

She recited the names of several different individuals and firms and then said to Leash, “I did not see your name on this at all.”

Leash responded with: “My initials are ‘ML’ so it should be fairly obvious that those (on ML Management Group) belong to me.”

Miller then brought up Leash’s first attempt to site a hotel on the Granada block under the company Rapoza Development. She said the city had purchased three building to facilitate that project that had not come to fruition.

“I’m hearing the same thing,” she said of his current plans.

“Are you trying to marry the two?” asked Leash.

“You’ve moved two blocks down the street and I don’t want to see the agency go through the same thing we went through on the Granada block properties,” she said.

Leash replied: “Neither do we, so we went out and bought another property.”

The Rapoza plan referenced by Miller was taken off the table by the city in 2015.

Leash was denied a request to continue working toward completion of that $24 million project after being unable to meet the conditions of a development agreement signed 29 months earlier.

The new set of plans that Leash unveiled last spring are similar, involving a hotel and conference center complex. He said business will create 100 new jobs and contribute more than $250,000 in property taxes and almost $245,000 in transient room taxes to the economy each year.

Leash is asking for $1 million in contributions from the agency, which would take the form of discounted fees, a parking lot, a grant and other reduced costs.

After responding to Miller’s questions and concerns, Leash said: “Linda, are you looking for a reason to say no” Because I’m getting that?”

“No, I’m just wanting answers,” replied Miller.

“Well, I’ve got every answer for you,” said Leash.

Miller noted that urban renewal had contributed $40,000 from a past deposit paid by Rapoza toward the $75,000 cost of GBHD’s franchise agreement with the hotel chain

Leash disagreed with that assessment. He said the agency had required him to submit a deposit of $50,000 in 2014 for the Granada block plans. Although $40,000 was reimbursed, he said $10,000 had been used to pay back taxes on the Recreation Building and not returned.

“I left $10,000 with the city and walked away,” he said.

Wasco County Commissioner Chair Steve Kramer, a member of the agency board, stopped Miller from going further with her remarks. He said the issues tied to the GBHD proposal would be worked out during negotiations for the development agreement. He said Tuesday’s meeting was only to determine whether staff should begin those conversations.

“I see a simple request here from one of our community members who is willing to step up and provide for the community and I think we ought to move forward,” said Kramer.

Dan Durow, former city planning director who retired as head of the city’s economic development department, told Miller and others, “My only comment is, it costs nothing to negotiate.”

Several business owners and a Blue Zones representative also spoke in support of Leash’s plans.

Dillion Melday, manager of The Dalles Blue Zones Project, described GBHD’s plans as a “front porch” in the downtown blocks that would draw movement and make the town a “healthier place to work, live and play.”

Nikki Lesich spoke in her capacity as former mayor and a former member of the urban renewal agency board. She said development that could spur economic development in town should be pursued.

“I really believe this is a project worth looking at,” she said.

Robin Miles, owner of Farmers Insurance downtown, said the project would draw more enterprises to the downtown blocks.

“We need to brighten it up, we need some change,” she said.

Tom McDonald, owner of Urban Paper, echoed that downtown needed an economic boost.

Local resident Gabe Red Cloud said the agency had essentially given away buildings to the Neon Sign Museum and Tokala to further their projects, so Leash’s proposal should be given equal treatment.

“I think the city should entertain this like they entertain everyone else’s ideas,” he said.

Donna Lawrence, wife of Mayor Steve Lawrence, who was present, picked up on Miller’s line of questioning. She asked Leash whether he had authority to represent GBHD, and if that was written down somewhere, to which he replied, “Yes.”

Miller and John Fredrick, a citizen member of the board, voted against further consideration of GBHD’s plans for the mixed-use building.

The other six board members voted in favor. City Councilor Taner Elliott was not present but was elected as vice-chair of the group that is made up of four elected leaders, a citizen representative, business owner and three special district officials.

City Councilor Darcy Long-Curtiss was the only member of the board to vote against formal development negotiations with Tokola.

She later explained her vote by saying it was “hypocritical” of the agency to support one company that would receive even more help than Leash has asked for, but then be hostile to his company.

In addition, Long-Curtiss said the Tokola project gave away one of the largest city-owned parking lots, which would create a shortage that the city would have to address at more cost to taxpayers.

She also believes the city will end up paying higher archeological investigation costs than anticipated and the apartments constructed by Tokola will be priced too high to meet the affordable housing demands of the city.

“The project is cash flow negative, except for any new spending in town, and the handful of low wage jobs that will be created,” she said. “Tokola’s rents will be used to pay off their out-of-town debt and will not be circulating in our community. Property tax income will be deferred for years.”

Mayor Lawrence spoke on behalf of the agency supporting Tokola, which it did by the 7-1 vote.

Lawrence said the Portland-based company had the experience, vision and financial capabilities to bring their plans to fruition.

“There’s much to do once this DDA (Disposition and Development Agreement) is approved and the time is now,” he said.