Wasco County authorizes land purchase, lease to secure Basalt Commons downtown housing project

Wasco County commissioners approved Order No. 26-016 on April 1 to permit the county to purchase a downtown parcel and lease it back to a private developer to facilitate construction of Basalt Commons, a mixed-use development planned to deliver 116 residential units and ground-floor retail in The Dalles.

Developer Mary Hanlon told the board the team has secured Urban Renewal Agency support, bank financing and full participation in the Vertical Housing Tax Zone program, and has finalized city land-use permits. The county action clears the financing step that project leaders said was the remaining impediment to breaking ground this spring.

County documents and the purchase-and-sale agreement structure the transaction so the county acquires the property and immediately leases it to the developer under a long-term ground lease. The lease includes an option allowing the developer to repurchase the land during the early years; under the agreement any buildings remain ownerless until title transfers or the lease expires. The Board framed the arrangement as a limited, risk-managed use of public funds to secure long-term tax and housing benefits.

Commissioner Jeffrey Justesen moved to approve Order No. 26-016, authorizing the purchase, lease and option for the project; the motion passed unanimously. Nate Stice, speaking as Chair of the Columbia Gorge Community College board, described the project as a catalyst, telling commissioners the planned housing would be "catalytic" for downtown businesses and that adding new units would support local employers’ ability to recruit staff.

County leaders said the project is expected to expand the local tax base, create construction jobs and activate Third Street with new residents. The developer aims to begin work this summer if construction financing and final contractor bids align with the current schedule.