Urban Renewal Agency decides not to move forward with agency-initiated project at this time

Isabella Crowley, The Observer, La Grande, Ore.
·3 min read

Apr. 5—LA GRANDE — The Urban Renewal Agency decided not to move forward with funding an agency-initiated project at this time.

The current fiscal budget for the URA designates $500,000 for an agency-initiated project. During the annual retreat in January, agency members wanted to learn more information about two projects under consideration for the funding — the historic former fire station and the Bohnenkamp building. The agency held work sessions in March and April to learn more but ultimately decided not to commit the funds to either project.

"We have a better understanding on what the agency is looking for before committing funds," City Manager Robert Strope said.

The Bohnenkamp building

Part of the urgency about the agency making a decision came from the timeline of one of the projects, Strope said. URA was considering entering into a public-private partnership with the owner of the Bohnenkamp building, Mavis Hartz, to develop the upper floors of 1301 Adams Ave. into apartments.

Hartz needed a decision on whether the agency would move forward with the project, Strope said, in order to inform the contractor that the scope of work was changing.

The Bohnenkamp building received $75,000 from the Urban Renewal Agency's call for projects and $200,000 from Oregon Main Street for the first phase of renovations. There has also been about $2 million in private investment.

During the annual retreat, URA members expressed interest in potentially using the funds toward the installation of an elevator in the Bohnenkamp building. This would help further the development of the upper floors into housing units and also make the space accessible. However, the agency members ultimately decided this was not the time to commit the funds to the project.

"When we talked about this during the retreat, we were hoping that it was at that point where we could come in with that last $500,000 and the elevators, get all four floors done. That's not where they are right now," Strope said.

Strope added that this decision does not preclude the agency from investing in the Bohnenkamp building in the future.

Entrepreneurial space at the historic fire house

The other project URA was considering utilizing the funds for was developing the second floor of the historic firehouse, 1219 Washington Ave., as the potential new home of the Ignite Center. The center serves as a one-stop shop to support local entrepreneurs in partnership with Eastern Oregon University's Rural Economic Vitality Center.

The city owns the historic firehouse and has a long-term lease with the Eastern Oregon Fire Museum, which itself has a long-term lease with Side A Brewing. The proposed project would create a multipurpose space in an unused portion of the building that could be the Ignite Center's new home.

The total cost of the project is estimated to be over $2 million and the city would also need to apply for grant opportunities. The proposed idea would be to set aside the funds for an agency-initiated project as a local match, which is often required when applying for grants.

However, agency members were not comfortable committing $500,000 as dedicated match funding without first seeing data and information about the need for this kind of space in La Grande.

"I see this half a million dollars as a big chunk of money that we set aside for some years to have this available for a project that's meaningful or large or where we have a great demand in the city," URA member David Glabe said.

City staff will work to gather the information, Strope said, but the URA is unlikely to continue the conversation about an agency-initiated project until late spring or early summer. The upcoming budget cycle and the URA's call for projects will be the priority for the next few months.

Isabella Crowley is a reporter for The Observer. Contact her at 541-624-6014 or icrowley@lagrandeobserver.com.