A column extolling the virtues of the Pendleton Urban Renewal District suggested by the mayor and written by City Councilor Kevin Martin, chairman of the Pendleton Development Commission, recently appeared in the East Oregonian.

Successful projects mentioned in that article included new facades on some of our historic downtown buildings and additional apartments intended to meet the demand for additional housing. These projects achieved the goals of increasing the tax base on which property taxes are computed and ultimately should increase available revenue to the city and pay for the program.

Residents were elated to see the city finally addressing the deplorable condition of our streets. Most of those are in the URD. Unlike streets on the North Hill and other parts of town that are being repaired using gas tax and utility fee revenue, streets in the URD are funded with bank loans and must be totally rebuilt to qualify for PDC funding. Navigating a new street through these neighborhoods gives you the opportunity to switch your attention from dodging potholes to the urban blight that continues to be a problem. Southwest Eighth Street is a prime example and reflects directly on city management’s failure to act responsibly to protect neighborhood property values.

According to the city officials, the URD program is self-supporting, and repayment of the loans for projects will be through property tax increases resulting from a larger tax base. That is not exactly the case. A rather large detail that has a major impact on every property owner, a detail that city officials conveniently are reluctant to admit in plain English, is that a portion of every property tax payment that would normally go to the city’s general fund to maintain city infrastructure is diverted to fund the PDC budget, and a major portion of that tax revenue in the near future will be needed to cover overhead and repayment of those loans plus interest. Once those payments commence in 2024, don’t be surprised to hear those calls once again from city hall to raise the utility tax, water rates, and establish a gas tax as repayment of those loans begins. City officials will once again complain of a shortfall in revenue to support expanded city operations.

Rick Rhode

Pendleton