Basalt Commons developer wins six-month extension to incentive grant agreement

The Columbia Gateway Urban Renewal Agency authorized the agency manager to enter a first amendment to an incentive program grant agreement with TD Third LLC to extend the deadline for a residential system development charge (SDC) incentive tied to the Basalt Commons multifamily project at 523 East Third Street. Joshua Chandler, community development director and agency manager, said the project originally proposed 108 residential units and has since increased to 116–118 units and that project cost estimates rose from about $26–29 million to roughly $31 million. Chandler said the IPGA covers up to $1 million to pay residential SDCs directly to the city and the Northern Wasco County Parks and Recreation District and that the $1 million amount was designed to cover possible SDC rate increases. Mary Hanlon, representing the developer, said the team had pursued more than 150 lenders over 18 months and had secured a lender prepared to issue a term sheet but needed more time to finalize construction financing. “We have worked just sort of tirelessly on this. It's been the hardest process I've worked on, and it's been long, exhaustive ... we're close, but there's still a big gap, but we that's why we need you guys is to get over that last hurdle,” Hanlon said. Chandler told the board the developer has spent roughly $2 million on predevelopment, obtained conditional use approvals and a development permit, submitted a full building permit in May 2025, secured a demolition permit and completed a replat. Staff recommended a roughly six-month extension to Feb. 18 to align with the agency’s regular meeting schedule and asked the developer to provide monthly written updates during the extension. A board motion to authorize the amendment passed by voice vote. Staff said the incentive program fund budget exceeds $3.1 million for fiscal 2025–26 and that there are sufficient funds for the SDC incentive if the project meets required milestones. The amendment preserves the IPGA’s current not-to-exceed amount and adds reporting requirements during the extension so staff can update the board at its next meeting.