The Columbia Gateway Urban Renewal Agency voted to deny a request from The Dalles Mint LLC to reimburse previously incurred renovation expenses, concluding the project costs were incurred before any executed agreement and are ineligible under current incentive program guidelines.
Staff told the board the incentive program explicitly disallows reimbursement for costs incurred before an executed agreement. The applicant asked for $250,000 in reimbursement for work it says totals roughly $430,000 to $540,000 in claimed costs; staff said available documentation did not verify eligibility for the prior expenses.
Tim Schectel, a downtown business owner representing the applicant, described the timing pressures that led the owners to proceed. “We had to move forward ... we had no real choice to go forward at that time,” Schectel said, adding the work included code compliance and fire separation work and that the owners had committed substantial funds and loans.
Investor Rich Stevens said the applicants would not seek additional incentive program awards if the agency granted the reimbursement. “We would not go back and ask for another $250,000,” Stevens said.
Staff recommended denial and noted the city attorney had confirmed the agency cannot reimburse expenses under the incentive program but retains authority to enter a separate development funding agreement to address unique cases. The board voted to deny the reimbursement request.
After approving denial, several board members asked staff and legal counsel to explore whether the agency can offer pre-funding or conditional disbursements under the program’s existing language. City legal counsel read program language that permits, at the agency's discretion, up-front disbursements covering up to one-half of required funds if the recipient provides executed agreements with contractors and appropriate security (for example, trust deeds or liens). Staff said they will work with counsel and the applicant to determine whether a prefunding arrangement can be structured within program guardrails and return to the board.
The denial preserves the program guideline that pre-agreement costs are ineligible; staff will pursue an off-cycle process with legal review to determine whether limited prefunding with security documents can help the project finish construction.