Pendleton council to consider annexation of 5 acres

Published 5:00 am Tuesday, August 5, 2025

PENDLETON — The Pendleton City Council holds public hearings Tuesday,  Aug. 5, on two annexations that would add a little more than 5 acres to the city.

The council will meet for its regular session starting at 7 p.m. at Pendleton City Hall, 500 SW Dorion Ave. During the meeting, the council will consider annexing two properties within the city’s urban growth boundary, which would bring a combined 5.14 acres into city limits — one for a residential rebuild and the other to construct a fiber-optics communications building.

One of the properties is a small 0.14-acre lot at 404 NE O’Brien Place, owned by Brian and Kerri Arnzen. After a fire destroyed their home in 2024, they petitioned in March to bring the land into the city limits so they could rebuild. The lot already gets city water and sewer and is zoned for medium-density housing.

According to the staff report, the estimated cost to rebuild the home will have a value of $481,400, a significant increase from the assessed land value of $105,980. The change also would transfer oversight of building permits and inspections from the state to the city.

If approved, Resolution No. 2972 would finalize the annexation, shifting the property from Umatilla County to Pendleton’s jurisdiction.

The second proposed annexation involves a 5-acre parcel at 1927 NW 76th Court, owned by Level 3 Communications. The company submitted a petition in May to annex the property in preparation for constructing a new fiber optics communications building, according to the staff report.

Although the site does not have city water or sewer service, it is expected to fall within Pendleton’s utility service area as the industrial business park and surrounding land are developed.

The property, zoned for light industrial use, became contiguous with city limits in 2009 and meets the terms of a 2000 utility contract that requires annexation once the land abuts the city. Resolution No. 2973 would bring the land under city governance and transfer permitting responsibility from the state to Pendleton. The site is assessed at $8,000 for land only, but building permits indicate a $400,000 facility is planned.

The city stands to get more tax revenue by annexing property into its limits, according to the staff report. Once a city grows to its urban growth boundary, those boundaries can potentially expand. Plus, bringing property into the city means building permits and fees get handled by the Pendleton Building Official instead of the state.

FEMA grant project site and Pendleton Theater Co.

After the public hearing, the city council will shift to new business and consider a proposal to accept ESA Engineers’ recommendation to enter into a development agreement for a habitat restoration project.

The project is part of a larger effort funded by a $1.2 million grant the city received in February from the Federal Emergency Management Agency. The funding will go toward designing two restoration projects for improving habitat along McKay Creek and reducing flood risk.

According to the staff report, Community Park is the primary restoration site, and ESA Engineers selected the McKenna property as the second site. City staff have been working closely with ESA to meet the one-year design deadline.

Council approval of the McKenna site is needed to move the agreement forward.

The city council also will discuss a request from the Elgin Opera House to amend its memorandum of understanding regarding the sale of the Christian Science Building.

The city previously approved the sale of the property to the Opera House for $10,000, with the understanding the city would cover the cost of making the building’s primary entryway wheelchair accessible, which was outlined in the original agreement.

At the time of the agreement, the cost of the improvements was estimated to be as high as $70,000. Since then, a lower-cost solution has been identified. The most affordable option is estimated at $7,000, with a second, slightly higher-cost option still coming in below the original projection.

Karen Taylor, president of the Pendleton Theater Co. Committee, submitted a letter requesting the amendment at the July 15 council meeting, on behalf of the Elgin Opera House.

The full meeting agenda is available on the city’s website.