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Urban renewal board approves up to $240,000 for Oaks Hotel rehab after debate over fire suppression
Summary
The Columbia Gateway Urban Renewal Agency authorized a grant agreement of up to $240,000 to support renovation of the historic Oaks Hotel at 200 E. Second Street; the board debated whether to require fire‑suppression systems as a condition of funding.
The Columbia Gateway Urban Renewal Agency on Feb. 18 authorized the agency manager to execute an incentive program grant agreement with property owner Claudia Leach for up to $240,000 to support rehabilitation of the historic Oaks Hotel at 200 East Second Street.
Agency staff said the recommended $240,000 total includes up to $150,000 from the mixed‑use property rehabilitation grant category, $50,000 in a commercial grant and system development charge (SDC) offsets for four upper‑story residential units at up to $10,000 per unit. Staff said the owners have also secured a $200,000 Oregon Main Street grant for façade work and expect to invest roughly $360,000 of private funds in the project.
The board’s discussion centered on life‑safety measures for the proposed second‑floor apartments. Michael Leach, representing owner Claudia Leach, said sprinklers are likely to be required by Wasco County building review and that the project team expects to install them. “It looks like that it will — we will have sprinklers upstairs,” Michael Leach said.
City Attorney Jonathan (on record as city attorney during the meeting) told the board the agency has discretion to attach conditions to grant awards: “the agency may condition any grant award on, among other things, anything that the agency deems necessary or appropriate,” he said, noting that the agency’s incentive program guidelines allow the board to place conditions in individual agreements.
Board members split on whether the agency should require fire suppression beyond code. Board member Walter Denstach pressed for a life‑safety requirement, saying the agency should prioritize saving lives. Other members said they were reluctant to force applicants to pay for improvements not required by code and warned a strict requirement could jeopardize the project’s feasibility.
The applicants estimated a sprinkler installation could add roughly $70,000–$90,000 to project costs; Mary (audience member) and others offered similar ballpark figures from local projects during the public discussion. Staff noted that if the agency wanted to fund added life‑safety work beyond the current $240,000 cap, it could consider a different funding arrangement at a later date.
After debate, the board voted to authorize the agency manager to execute the incentive program grant agreement for up to $240,000 as recommended by staff; the motion passed and an abstention was recorded.
The owners said they expect to start interior work by summer with an estimated construction timeline of six to eight months, contingent on permits. The applicants and staff said permits and building‑code determinations (including final fire‑suppression requirements) remain subject to Wasco County review and will govern final construction requirements.
If the project proceeds as described, staff said the grant will support reestablishing a commercial storefront on the first floor and converting the second floor into four long‑term rental units.
Votes at a glance
• Motion: Authorize agency manager to execute an incentive program grant agreement with Claudia Leach in an amount not to exceed $240,000 (per staff recommendation). Motion moved by Scott Hagee. Outcome: approved (motion passed; one abstention recorded).
