The Columbia Gateway Urban Renewal Agency Board Tuesday night approved one of the largest public investments in the history of The Dalles, providing crucial support to Basalt Commons, a ground-breaking vertical housing project aimed at increasing housing supply and revitalizing the downtown area.
“This multi-million-dollar transformative project will not only help address the urgent need for family-wage-level housing but also contribute significantly to the local economy,” said Joshua Chandler, Urban Renewal Agency manager.
The project will be located on the former Griffith Motors auto sales lot at 523 East Third Street, which the private developer purchased in 2017. The existing building will be demolished. Basalt Commons will comprise 108 apartments in a mix of studio, one-bedroom and two-bedroom units. The five-story building will have ground floor commercial space.
Urban Renewal will be contributing as much as $1.73 million to the project. This includes direct payments (not to exceed $1 million) to the City of The Dalles and Northern Wasco Parks and Recreation toward System Development Charges specific to the multi-unit residential aspect of the project; this is administered through an Urban Renewal incentive program that encourages upper-story residential projects. These payments go toward costs that would otherwise be borne by the developer for services such as parks maintenance, water and septic. A separate direct contribution of $730,000 will offset construction costs. In addition, Basalt Commons is eligible for Vertical Housing Zone tax credits, providing a 10-year tax abatement of up to 80 percent for the property. (This incentive promotes vertical housing development and significantly enhances project financial feasibility by helping mitigate investment risk, especially in communities with no recent history of comparable projects.) The property is fully taxable after 10 years, when it is expected to generate more than $350,000 annually. Taxes generated over the initial 10 years are estimated at $700,000.
Urban Renewal anticipates recouping its investment in just 13 years, underscoring the project’s long-term financial viability. This is on par with many other vertical housing developments throughout Oregon, Chandler indicated.
“Last night was a big milestone, but we recognize that we all have a lot of work to bring the project to fruition,” he noted. “We look forward to continuing our great partnership with the Basalt Commons team.”
One of the key benefits of Basalt Commons lies in its potential economic impact, as 108 (or more) new residents contribute to downtown vitality, invigorating existing and incoming businesses.
Recognizing the significance of convenient parking in urban settings, Basalt Commons incorporates both onsite and shared-use parking solutions. This strategic inclusion is to help alleviate any parking concerns for the downtown area.
“The City recognizes the significance of this economic boost and its positive implications for local businesses, job creation, and community growth. We’ve been working for many years to encourage downtown vertical housing development,” said Matthew Klebes, city manager. “By increasing the housing supply and attracting residents who will contribute to the local economy, Basalt Commons aligns with the City’s vision of creating a thriving downtown district and improving the overall quality of life for its residents.”
The 18-month construction period is anticipated to begin as early as Summer 2024.
“Our team is grateful for the city’s support and the actions of the Urban Renewal Agency,” said The Dalles resident Mary Hanlon, principal of the Basalt Commons development company, Hanlon Development. “The URA funding is a critical part of making the financial package work,” she added.
Hanlon brings decades of private development experience to the community, including similar projects in Canby and Portland. “This type of mixed-use project is very difficult to build during good market conditions, but extremely high construction costs and rapidly rising interest rates make this even more challenging,” she continued. “That said, we are committed to doing everything we can, in close coordination with the Agency and city, to make Basalt Commons a reality. The Dalles has a severe need for additional housing, and has for many years. Our goal is to expand housing stock to families and individuals alike — all of those who make The Dalles a vibrant, growing community.”
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