Talent staff to redesign Gateway project without Wagner Street extension after irrigation district resists sale; remaining occupants given 90‑day notice

City staff told the Talent City Council and the Talent Urban Renewal Agency during a June 4 joint study session that Towne Irrigation District will not sell the right-of-way needed for the preferred Wagner Street extension, and that staff will move forward designing the Gateway redevelopment without that extension.

Alex, city staff, told the council and board that Towne Irrigation District “would not be a willing seller of that right of way,” and that the city attorney’s memo indicates the city does not have a viable eminent‑domain route to acquire it. Alex said a secondary alignment had been studied but would create poorly spaced intersections and would be costly and offer limited benefit, so staff proposes relying on direct access from the rotary, emergency/back access from Gagnon’s Street and a possible limited right‑turn onto South Pacific Highway.

Why it matters: the preferred Wagner Street alignment had been a key element in prior urban‑renewal plans for circulation through the Gateway parcel. Losing that alignment affects project design, potential costs, and options for relocating the Towne Irrigation District (TID) yard out of downtown.

Staff also briefed the council and board on property‑acquisition options. Alex said TID has previously estimated the cost to acquire and reestablish its operations elsewhere at roughly $3.7 million to $4 million several years ago, and that more recent, off‑the‑cuff figures have suggested $4 million to $6 million. The TID site totals “a little under 3 acres,” Alex said, and staff estimated current land values in the area at roughly $400,000–$500,000 per acre, leaving the city — if it bought the full parcel and later sold developable subdivided lots — with a potential net budget hit in the low millions depending on sale prices.

Several board and council members backed pursuing a limited property swap of adjacent parcels to preserve the possibility of future alignment while keeping the peer‑funded Gateway project simpler. Alex said there is “agreement roughly in principle” from an adjacent property owner to a swap and that the Urban Renewal allocation likely has funds sufficient to complete that real‑estate deal; the group generally agreed to move forward on that narrower step.

On environmental due diligence, Alex said staff has requested a Phase I environmental site assessment as a first step for any acquisition, and that TID representatives “have not been responsive about providing a contact or allowing, anybody to even walk the site to start that process.” Alex warned that an additional Phase I for an expanded footprint could cost in the low thousands (staff estimated a rough ballpark of $5,000–$10,000 if done quickly rather than via slower EPA funding streams).

Housing and tenant notices: Alex said the city has sent 90‑day vacancy notices to the roughly dozen households still occupying the Gateway site because demolition is planned. Alex said Oregon Housing and Community Services (OHCS) has set aside contingency funding for relocation and services and has “earmarked approximately a half million dollars to continuing to make sure that nobody is, you know, displaced in a way that’s harmful to them.” Alex said those households will continue to receive housing navigation and rental assistance as needed, and confirmed the school district was notified before letters went out.

Arts panels and public property: The council directed staff to coordinate with the Talent Public Arts Committee (TPAC) about the Gateway murals and panels. Councilor Perry Miller said a coalition (including Talent Maker City and the historical society) is discussing permanent locations and recommended that TPAC receive and forward a formal recommendation to council. Alex said the city will store the panels after a recent yard sale and coordinate refinishing with Talent Maker City if needed.

Funding and OHCS constraints: Alex said he has asked OHCS whether funds saved by not building the Wagner extension could be repurposed toward construction of a Gateway building, and that OHCS “see[s] that as a potential eligible use of funds,” but would require demonstration that building occupants or jobs would primarily benefit low‑ and moderate‑income (LMI) people. Alex cautioned that the OHCS requirement to identify tenants or services up front could be difficult to meet at this stage and that staff will research the exact thresholds and reporting expectations before the council commits to using those funds for building construction.

Conflicts of interest declared: Member Harry Miller declared a potential conflict because he is “a paid staff member of the Talent Business Alliance,” which had brought the Gateway Hub concept to the body. Member Byers likewise declared a potential conflict, saying she “currently have a contract with the TBA as an independent contractor.” Those declarations were recorded at the start of the meeting; no motions were contested based on those disclosures during the discussion.

Next steps and staff direction: The council and board generally concurred with staff recommendations to: - Proceed with design of the Gateway project without the Wagner Street extension assumed as deliverable for this phase; - Move forward with a limited property swap to preserve the alignment possibility where feasible using urban renewal funds; - Continue working toward a long‑term solution to relocate TID out of the downtown core; - Continue housing navigation and relocation assistance planning for Gateway occupants with OHCS support; and - Route proposals on mural panels and permanent locations through TPAC for a formal recommendation to council.

Alex said staff will return later this month with further information on OHCS eligibility questions, any quick Phase I assessment needs, and recommendations for engineering procurement to advance the elements the council wishes to keep in the peer project. The study session adjourned without formal votes on acquisition or demolition actions.