Hotel project receives extension

The agency has hired Leland Consulting of Portland to review documents provided by Michael Leash, principal for Gorge Built Hotel Development, LLC, and compile a report of its findings.

City attorney Gene Parker said Leash and Leland executives have been trying to work out language for the confidentiality agreement since April, but have yet to agree on terms.

“Leland has not seen a confidentiality agreement with these types of restrictions,” he said.

Leash told the agency board he tried to move things along by providing Leland with paperwork labelled for privacy so the firm would know what needed to be kept out of the public eye.

He said the financial data of investors needed to be protected.

Parker said Leland did not know which of the documents could be incorporated into its review and which could not.

The Dalles City Councilor Darcy Long-Curtiss, an urban renewal board member, said she did not understand what was holding up finalization of the agreement. She said if Leash had sent documents, it stood to reason he meant for Leland to look them over.

“Why would you give them something that they aren’t allowed to use?” she asked.

She then asked Leash if he had disclosed information he didn’t want used in the review. He said Leland was welcome to look over all of the provided documents.

He said the information was provided in “good faith” and he felt confident Leland would not misuse it. Steve Harris, city planning director, said Leland had requested information on Leash’s former proposal to site a hotel and conference center complex in the Granada block.

Leash’s exclusive right to buy the Recreation Building, Blue Building, Granada Theater and Commodore II parking lot from urban renewal expired in 2015 when he was unable to meet the conditions of a contract signed 29 months earlier.

The city denied his request to continue working toward completion of the $24 million project.

Wasco County Commission Chair Steve Kramer, an urban renewal board member, questioned why Leland needed background on a past proposal when Leash was proposing to develop an entirely different property.

“I’m puzzled by talk of a past project — what does that have to do with this project?” asked Kramer.

“It has to do with experience,” said Parker.

Leash’s new proposal involves property his company owns about two blocks away from the former site, although the development plan is similar to the past. He is asking for $1 million in contributions from urban renewal, which would take the form of discounted fees, a parking lot and other reduced costs. In return, Leash said the business would create 100 new jobs and contribute more than $250,000 in property taxes and almost $245,000 in transient room taxes to the local economy each year.

Scott Baker, director of the Northern Wasco County Parks and Recreation District, who is seated on the urban renewal board, asked Leash if he thought most items sought by Leland had been provided. “I believe I did a very good job of getting close,” said Leash.

City Councilor Taner Elliott serves as vice-president of the urban renewal board. He told Leash that Leland needed to have all information in a timely fashion to avoid extensions on the agreement negotiations if possible.

By an agreement urban renewal reached in February, Leash is allowed up to two 120-day extensions.

Attorney Kristen Campbell, who represents Leash, told the council, “Your best position would be to follow the terms that were provided.”

She said the issues raised between Leland and Leash could be resolved with more time.

“I think, with all due respect, we give them time to negotiate things out,” said Kramer. “Some things take a little longer than others, it’s part of the game.”

He made the motion to grant the extension, which was seconded by Long-Curtiss. Voting in favor was Baker, Staci Coburn, Kathleen Schwartz, Chuck Raleigh and Linda Miller, agency president.

Elliott voted against giving Leash more time, as did board member John Fredrick.