The Dalles Planning Commission on Nov. 7 unanimously recommended that the City Council consider a substantial amendment to the Columbia Gateway downtown urban renewal plan that would increase the district's maximum indebtedness by about $6.1 million.

The commission's action was a recommendation to council, not final approval; the City Council is scheduled to hold a public hearing on Dec. 9. If council adopts the ordinance the amendment would take effect 30 days after adoption, staff said.

Why it matters: the amendment would expand the urban renewal agency's spending capacity for capital projects downtown, including an estimated $3.2 million shortfall on the long-running First Street reconstruction, a Federal Street Plaza local match, and continued incentives for downtown property rehabilitation. Staff told commissioners that urban renewal uses tax increment financing (TIF) and does not raise tax rates: instead, taxes on the increment of value within the urban renewal area are directed to the agency rather than to other taxing districts until the district terminates.

In a staff presentation, Community Development staff said the agency's current authorized spending authority is roughly $29,000,000 with about $2,200,000 uncommitted; the proposed amendment would increase maximum indebtedness by approximately $6,100,000 to cover planned project allocations.

"We're bringing in front of you a discussion here that would actually allow for the increase of $6,100,000 of this spending authority," Community Development staff said during the meeting.

Consultant Elaine Howard, who led the technical portion of the presentation, summarized how urban renewal finances work in Oregon and stressed statutory limits on uses of TIF. "Blight by statute is restricted to capital improvements only," she said, adding that the funds may be used for streets, utilities and building rehabilitation but not for social services.

Public commenters urged more local engagement and transparency. Claire Graeper said residents feel poorly informed and urged a town-hall style outreach before major investments: "I would love to see us do a town hall, ask people what's going right, what's going wrong," she said. Rick Wolf asked for clearer project drawings and questioned the process of funding concept work before bids, saying, "I may be wrong, but my understanding is that we paid $1,500,000 for the engineering of 4 blocks for street." Staff acknowledged past design expenditures and described the First Street project as a multi-year effort with prior phasing and cost escalations.

The planning commission's recommendation follows the urban renewal agency's prior vote to send the amendment forward and a 45-day notice period to taxing districts that began when the agency transmitted the materials in late October. Staff said the report used for the analysis was dated Oct. 10, 2024, and that materials and an interactive map will be posted on the city's website; property owners in the city received mailed notices of the Dec. 9 hearing.

Next steps: the commission recommended adoption of resolution PC624-24 to forward the substantial amendment and accompanying report to City Council for its public hearing and final decision on Dec. 9. If council approves the ordinance it will go into effect 30 days after adoption, at which point any uncommitted TIF revenues would continue to be allocated according to the amended plan until the district terminates as scheduled in 2029.