Council agrees to fund downtown association

Published 6:01 pm Monday, April 16, 2018

Two weeks after its request for public funding failed to elicit a vote, the Pendleton Downtown Association returned to city council chambers and saw their fortunes reversed.

At a meeting Tuesday, the council unanimously voted to cover the nonprofit merchant association’s operational costs for the next two years and paying at least $25,000 in perpetuity.

At the last meeting, some councilors said they wanted more financial support from the downtown business community before they committed public money.

Under a new funding formula, the association will get indirect support from the business community — but it won’t be exclusive to the downtown area.

The city will pay the association’s entire $55,000 operating budget in the first two years of the deal, before the city’s contribution decreases by 10 percent each year in years 3-5. Although funding will come from the urban renewal district to start, each successive year will see more money coming from city business license fees. From year six onward, the city will pay the association $25,000 entirely from business license fee revenue.

When the city council increased business license fees in 2007, it was to cover the salary and operating costs for an economic development director position.

But when Steve Chrisman took on airport manager duties, the city started dispersing some of the revenue elsewhere.

Finance Director Linda Carter said Pendleton generates $150,000 per year from business license fees, the lion’s share of revenue split between the Pendleton Convention Center and the Eastern Oregon Regional Airport.

Although the downtown association’s operational costs are covered for then next two years, it will have to start making up the difference in 2020.

Molly Turner, the executive director of the association, said the nonprofit will generate its own revenue through member dues, corporate sponsorships, fundraising and contract jobs for services like grant writing and its mystery shopper program.

The association’s quest for public funding had the steadfast support of City Manager Robb Corbett, who helped negotiate a new proposal after Mayor John Turner declined to hold a vote on the association’s last proposal due to councilor concerns.

While the agreement commits money to the association in perpetuity, the council has the right to review the deal’s effectiveness between years two and three.

———

Contact Antonio Sierra at asierra@eastoregonian.com or 541-966-0836.