The Pendleton Development Commission considers a $2.6 million budget during its meeting at June 17, 2025, at Pendleton City Hall, aiming to boost downtown revitalization for fiscal year 2025-26. (Yasser Marte/East Oregonian)

PENDLETON — The Pendleton Development Commission at its meeting Tuesday, June 17, considers approving a $2.6 million budget for urban renewal.

The commission meeting is at 6 p.m. at city hall, 500 SW Dorion Ave.

Commissioners will discuss the budget for fiscal year 2025-26 under new business, outlining spending priorities, authorizing tax increment financing and supporting the city’s efforts to revitalize its downtown district.

“PDC has made huge steps toward the improvement of the downtown area of Pendleton,” the staff report stated. “This budget continues to improve the PDC district with dollars to increase the value of the area, improve livability and enhance the district.”

The development commission will vote on Resolution No. 25-004, which the budget committee approved May 20. The total budget amounts to $2,634,500, including reserves. Of that, the commission plans to appropriate $2,409,730 for specific uses within the urban renewal district.

According to the proposed budget report, the Pendleton Urban Renewal Commission identified four key goals to guide investment and revitalization efforts through 2025:

• rebuilding streets in the urban renewal district through targeted reconstruction.
• upgrading amenities and access to improve downtown parking.
• restoring underused upper floors in buildings for use.
• planning a downtown riverfront gathering space to serve as a central community hub.

Urban Renewal budget divides between debt service and operating funds

The development commission’s $2.6 million budget splits into two main parts: the Debt service fund, which repays past loans using tax revenues, and the operating fund, which supports ongoing and future redevelopment projects.

The debt service fund will start the year with about $779,500 in reserves. The city of Pendleton projects it will generate nearly $1.16 million in property tax revenue — a 3% increase over the previous year — plus an additional $10,000 from interest and other sources. That brings the fund’s total available resources to $1.95 million.

Since its creation in 2003, the Pendleton Development Commission has overseen the Downtown/Riverfront Urban Renewal District. The district relies on tax increment financing, collecting property tax revenue above its 2003–04 baseline to pay off debt and fund improvements.

The operating fund, which supports projects within the district, operates on a tighter budget in FY2026. Most of its projected $670,000 in revenue comes from the remaining credit line loan proceeds with no new borrowing expected.

The commission allocated funds to continue key initiatives, including rejuvenation grants, facade restoration and support for the Pendleton Downtown Association.

The 2025-26 budget focuses on fulfilling commitments made in prior years rather than launching new initiatives, according to the proposed budget report.

The new budget goes into effect July 1, pending the PDC’s approval.