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Pendleton council approves Heritage Hub economic development area, pledges TIF revenues
Summary
The Town Council voted to establish the 12-acre Heritage Hub Economic Development Area, approving a developer-backed TIF structure that yields 100% TIF to the town on three northern lots and a 70/30 split for two hotel lots, along with $367,000 in trail improvements and enhanced design commitments.
The Pendleton Town Council on a voice vote approved Resolution 26-05 to establish the Heritage Hub Economic Development Area, a developer-backed financing plan for a roughly 12-acre site west of town that the council and staff say is intended to spur retail, office and hotel development.
Planning staff told the council the proposal envisions five lots: three northern lots for general retail, medical office and restaurants (for which the town would receive 100 percent of TIF revenues under the final term sheet) and two southern lots anticipated for hotels (the developer and town agreed to a 70/30 split of TIF revenues in favor of the developer for those parcels). Staff said the developer also committed $367,000 toward trail and walkability improvements and agreed to architectural design standards that exceed minimum local requirements to complement the town’s historic fabric.
Why it matters: staff and the redevelopment commission told the council the financial analysis meets the state’s required ‘‘but-for’’ test for a developer-backed financing tool and includes a minimum-taxpayer guarantee so the town would receive a baseline payment even if actual tax receipts fall short. The project is intended to generate new commercial activity and public amenities while limiting the town’s direct debt exposure because the bond would be developer-backed.
Planning director Denise said the proposal has moved through multiple required reviews: a declaratory resolution by the redevelopment commission, plan commission review (which considered compatibility with the Unified Development Ordinance and the town’s recently updated comprehensive plan), and additional upcoming reviews by the economic development commission before bond introduction and final adoption. "We do feel that we are at this point that this proposal is ready to be presented to your board," Denise told council members during the presentation.
Council members asked about site constraints, including an 80-foot high-pressure gas line along the site’s west edge that staff said complicated development and factored into the financial tests. Staff also noted a minimum-taxpayer agreement that requires the developer to make up shortfalls if the project does not generate the expected tax receipts.
Next steps: staff said the economic development commission will review details on July 6, the council will be asked to introduce the bond July 9, and final adoption is scheduled for the council meeting in August if all confirmatory steps and statutory notices proceed as planned.
The council’s action tonight establishes the development area; it does not yet issue debt or obligate the town to pay bond principal from general revenues. Further approvals and confirmatory resolutions are required before bond issuance.
