East 12th Street Upgrades Advance at No Cost to Homeowners as $1.7M Housing Project awaits Buyer

Crestline’ Luke Tolle pitches dirt out of a storm water catch basin on East 12th Street on Friday morning as he and partner Laurence Taaffe were preparing to grout the basins. The Crestline workers and the company received many kudos for their conscientious and helpful attitudes during the major infrastructure project between Richmond and Thompson streets.

By Tom Peterson

The Dalles, Ore., Aug. 29, 2025 — Crews continued work Friday on the $1.9-million East 12th Street infrastructure project, a long-anticipated upgrade designed to bring sidewalks, storm drainage and safer access to a neighborhood once the center of controversy over an 80-unit housing development.

The half-mile infrastructure project, awarded to Crestline Construction last fall, stretches from Thompson Street east toward Richmond Street. Funded largely through federal American Rescue Plan dollars - federal COVID Economic Money from 2021 - and city transportation reserves, it represents one of the most significant residential-area infrastructure investments in years.

The map above shows where the improvement are being made on 12th Street between Richmond and Thompson Streets. It also shows the location of the 80-unit subdivision for a 6.92 acre lot that has been approved, but no development has taken action to date. The property is currently for sale for $1.699 million, according to realtor Brian Lauterbach.

The Dalles City Council originally denied the project in 2020, only to have the decision reversed by the Oregon Land Use Board of Appeals (LUBA). City Councilor Darcy Long proved to be prophetic when she stated during the original appeal to council: “Instead of denying… we need to find ways to make this safe... I'm not a lawyer, but I can see the writing on the wall. We really do not have  strong standing on this,” she said. 

For residents like Ben Rivers, 79, who lives on 12th Street and been in The Dalles for three decades, the disruption has been difficult but worthwhile.

Resident Ben Rivers looks west on 12th Street at new curbs and forms for sidewalks to be poured. Rivers is glad for the improvements that will improve drainage and make it safer for walkers and bicyle riders.

"It's been long, but I have to say Crestline has done a remarkable job," Rivers said. "The crew couldn’t try harder to make it pleasant. It can’t be pleasant — it’s just filthy, dirty dust. But they’ve done all they can to make it tolerable. And I think it’s definitely a needed improvement, especially if they develop that property down at the end of the street with all those houses."

Neighbors had pressed city leaders for improvements five years ago when the council approved an 80-unit subdivision without requiring sidewalks on nearby streets. That decision drew an appeal from locals worried about density and traffic safety. The city later prioritized the 12th Street upgrades in its Transportation System Plan and stormwater master plan.

On Friday, resident Les Kipper said crews have been responsive to individual property needs as driveways and approaches were torn up and rebuilt.

"They stop what they’re doing to help if there’s any kind of a problem," Kipper said, noting workers adjusted gravel to keep trailers from dragging while concrete was poured. "It’s been a pain, you have to park on the street sometimes and it’s dusty. But you look at the long game — it’s going to be a really nice project, a lot better than what we had."

The investment also comes without direct assessments to property owners, a departure from past proposals that would have levied thousands of dollars in costs on adjacent homeowners. "They told us flat out we’re not responsible for any payment for the project," Kipper said, though he speculated property values — and taxes — may rise with the improved street.

The project is primarily financed through American Rescue Plan Act (ARPA) funds, which had to be committed by December 31, 2024. Additionally, the City’s Transportation System Reserve Fund (Fund 13) contributed $1,612,482, and Transportation System Development Charge (SDC) funds added $510,761—bringing total available funding to $2,123,243, which more than covered the awarded bid. 

Crestline crews works on a manhole near Thompson Street.

When complete, the project will deliver storm drains to replace inadequate ditches that often flooded driveways, ADA-compliant sidewalks along both sides of the corridor, and curb-and-gutter where none existed before. City officials say work is expected to last through September, though contractors have until November to finish.

Issues over drainage are being addressed in the project as a 12-inch storm drain has been added to the street, with the intent of eliminating runoff into driveways.

And for neighbors still uneasy about growth, the upgrades carry a longer-term reassurance: once finished, the new infrastructure is expected to remove many of the safety concerns raised in objections to the proposed housing development between East 11th and 12th streets on Richmond Street. Should a new developer purchased the 80-unit housing project, residents say the sidewalks, drainage and traffic improvements will make the area better prepared to absorb additional housing.

"It’s going to make it safer for people to walk up and down the street, and it’ll beautify the neighborhood," Rivers said. "Nobody’s happy about that many units going on such a small piece of land, but this makes it better."