Pendleton considers fines for landlords who keep buildings empty

Published 6:00 am Thursday, July 24, 2025

PENDLETON — Pendleton city leaders are considering fines for absentee landlords who leave buildings vacant despite interest from potential tenants.

At a city council work session Tuesday, July 22, councilors directed city staff to create an ordinance that could include a registration process for commercial buildings left vacant. It also could include fines for failing to register or comply with future city rules.

City officials said those rules could require property owners who don’t live locally to have a local property manager, list properties at market rates, respond to rental inquiries, accept reasonable rent offers and maintain property aesthetics.

City attorney Nancy Kerns said the fines for noncompliance would need to be substantial — around $500 a day — to get the owners of vacant buildings to comply.

“Small fines aren’t going to get an owner’s attention if they can afford to own a building and do nothing with it,” Kerns said. “It’s going to have to be a rather significant fine.”

The work session came after months of council discussions about persistent vacancies in Pendleton’s downtown. City officials said while downtown occupancy rates are relatively high at around 88%, a small number of buildings remain empty despite interest from potential tenants. Officials said those vacancies contribute to reduced foot traffic, a less inviting downtown atmosphere and frustration among business owners trying to attract customers.

While city officials noted the city has a nuisance ordinance with fines for properties that attract frequent criminal behavior — such as trespassing — they said it does not apply to buildings that are vacant or serve as de facto storage units.

Councilors generally agreed some form of regulation on vacant buildings is necessary for absentee landlords who have declined to lease and maintain commercial buildings. Many councilors, though, emphasized any potential ordinance would not punish landlords who are trying to rent out their space.

We want to “isolate and focus on the people who are … deliberately causing problems,” City Councilor Addison Schulberg said.

City staff are expected to return to the council with a draft ordinance. Pendleton Urban Renewal Associate Director Charles Denight said drafting the ordinance will take about a month.

Denight said the council could implement the ordinance in about two months, at the earliest. If the council decides to move forward with voting on the future ordinance, there will be public comment.