June 10, 2009

Winery, First St. projects advance
Construction prices allow street project to go further

     Though most of The Dalles City Council’s meeting Monday was taken up with its decision to expand the scope and the length of the city’s urban renewal agency, councilors had other meaty items on their plate.
     Quenett Winery Loan
     Meeting as the Urban Renewal Agency, councilors approved a $500,000 loan to Discovery Development/Quenett Winery to help develop the former Sunshine Biscuit Mill.
     Quenett has had an option to buy the mill since July 29, 2005. On April 30 this year, the option was converted to a lease to allow the city to use economic stimulus funding from ODOT to realign the Brewery Grade/Second Street intersection.
     That lease contains a provision allowing the leaseholder to do tenant improvements and a provision acknowledging the city’s intent to sell the property to Quenett once improvements are made to the existing roadway.
     The Urban Renewal loan would allow Quenett to use conventional financing to buy the necessary equipment for the startup business on the first floor of the flour mill that will include a co-op winery with bottling of wine.
The loan would be in two phases. First phase would be up to $300,000 for roof repair, HVAC, electrical, plumbing and improvements to entrances and exits.
Phase two would include general repairs and site improvements to the building’s exterior.
     Loan conditions include no interest or principal for the first 18 months, interest-only payments at 4.25 percent from 18 months to 60 months, with total principal and interest due at the end of
60 months.
     Rather than release funds up front, though, Urban Renewal will disburse them to Quenett in payment of invoices showing work accomplished.
     Under a separate program, City Manager Nolan Young said, the Urban Renewal Agency plans to provide $65,000 to demolish the old warehouse building next to the flour mill.
     It things go well, City Attorney Gene Parker said, Quenett’s owner, James Martin, hopes to be in operation by the end of September.

     XXX First Street LID XXX
     Councilors also used part of the meeting to reconvene as a contract review board, and awarded the bid for Phase 1 of the First Street, Terminal Way and Bargeway Road Local Improvement District construction.
     Crestline Construction of The Dalles was awarded the bid at $1.83 million, which included two change orders totaling $221,292.
     “We sent a memo out to the city council proposing two amendments,” said City Manager Nolan Young, “One for $47,935 to fix the unit cost for sewer and storm sewer, and another for $73,357 to do the entire waterline project, which the city is paying for 100 percent, because the unit costs were so low we felt it was a wise time to do it.”
     Even with the additional scope of work, the total bid was comfortably below the engineer’s estimate of $2.275 million.
     Phase 1 will include construction of a storm drain main, manholes, catch basins, a water main and asphalt trail, concrete curb and gutter and pavement reconstruction on West First Street, Terminal Way and Bargeway Road.
     Affected property owners under Phase 1 are Meadow Outdoor Advertising, The Dalles Cherry Growers, the City of The Dalles (for its new public works headquarters) and the Union Pacific Railroad.
     The delay on phase two was at the request of other business owners in the area, who said adding assessments to their properties in the current business climate would be an undue burden.
     Those owners agreed to extend by five years a nonremonstrance agreement that would have expired Jan. 1, 2010.
     In other business, the council:
     • Responded to complaints that the current costs of system development charges (SDCs) for new construction were stifling local development by passing an ordinance and resolution that would delay water and sewer SDCs on new construction of single family homes and duplexes for six months. The city would hold a lien against the property until the charges are paid.
     • Approved a six-month extension of memorandum of understanding with Roseland, City of The Dalles, and Klickitat County for development of a golf course and housing development next to the Columbia Gorge Regional Airport.
     • Clarified that when councilors voted May 11 to add curfew hours to activities at the proposed armory/readiness center at Columbia Gorge Community College they did not mean to include any college activities in the 10 p.m. weekday/11 p.m. weekend curfew.