TD Council approves $3.4M Federal Street Plaza contract after debate over splash pad costs

The Dalles City Councilor Timothy McGlothlin signifies his vote in favor of awarding the $3.4 million contract to build the Federal Street Plaza to Ajax Northwest LLC on Monday, April 13.

By Tom Peterson

The Dalles, Ore., April 14, 2026 — The Dalles City Council voted 4-1 Monday night to approve a $3.398 million construction contract for the long-planned Federal Street Plaza, advancing a signature downtown project after extended debate over the cost and long-term maintenance of its splash pad feature.

Architectural rendering of the Federal Street Plaza from Walker-Macy.

The plaza will create a central gathering site in the downtown core, creating one of the city’s most visible downtown investments in years — a project aimed at supporting livability,  business activity and tourism — while also locking in ongoing maintenance responsibilities that remain uncertain.

The plaza is located in the vacated portion of Federal Street between Second and First streets, across from Lilo’s Hawaiian BBQ.

Council awarded the contract to build the plaza to Ajax Northwest LLC, the lowest bidder, with Mayor Rich Mays and Councilors Dan Richardson, Timothy McGlothlin, Scott Randall and Rod Runyon voting in favor. Councilor Ben Wring cast the lone dissenting vote.

At the center of the discussion was the plaza’s splash pad, which city officials said accounts for roughly $925,000 of the project cost. The design plan was created by Walker Macy Architecture of Portland and principal Mike Zilis presented the plan to councilors at the meeting.

Mays pressed Zilis on the cost of the water feature and whether it could be removed, but was told doing so would require a major redesign and rebidding process — exposing the project to delays and rising construction costs.

Councilors also dug into how the splash pad would function day-to-day.

Architectural rendering of the Federal Street Plaza with splash pad from Walker-Macy.

McGlothlin raised concerns about water use and chemical treatment, asking whether the system would recirculate water and how it would be maintained.

He was told the system does recirculate water and requires daily chemical treatment, with equipment designed to be durable and vandalism resistant with water jets and pipes under grates within the concrete, inaccessible to the public.

Runyon focused on the location of that system inside the Columbia Gorge Veteran’s Museum within the Transportation Building, questioning whether chemical storage could create odors or safety concerns.

City Manager Matthew Klebes said the building would be properly ventilated and space taken up in the building would be minimal, providing little impact to the Veteran’ Museum.

For Wring, the biggest issue was cost beyond construction.

“Significant concerns about the cost of maintenance prevent me from voting yes,” Wring said prior to the vote, adding that the council needed a clearer understanding of long-term expenses tied to the splash pad and plaza operations.

He also pointed out that the roughly $1 million tied to the water feature could be used for other city priorities, such as street improvements.

Despite those concerns, other councilors framed the project as a long-term investment.

Richardson called the plaza a “rare opportunity” for the community, saying it represented a “50 to 100-year decision - it will outlive all of us. You have to spend money to get value.”

Public testimony reinforced that perspective.

Jim Wilcox, representing the Lions Club Charitable Trust, urged council to keep the splash pad in the design, arguing it would make the space usable during hot summer months.

“Without the waterpark, it’s a big slab, nobody goes to,” Wilcox said, adding that downtown can become inhospitable when temperatures climb above 90 degrees.

Ad Hoc Federal Street Plaza Committee Member Steve Light told council he was proud to be part of the group that brought the project to fruition. It will be a “welcome place for all community members for decades to come,” he said, pointing out that he looks forward to giggling kids and the sound of water falling.

Using a mantra that is building steam in the community, he said, “The Dalles most certainly deserves this.”

City Manager Matthew Klebes emphasized that the project is supported by outside funding, including approximately $520,000 in grants from partners — the Lions Club, Northern Wasco County Parks and Recreation, Google, T-Mobile and the Columbia Gateway Urban Renewal Agency.

Looking ahead, Klebes discussed one of the biggest unanswered questions — who will manage and maintain the plaza once it opens.

The city is exploring options that could include partnerships with organizations such as The Dalles Main Street or another nonprofit to help with day-to-day upkeep — like setting up tables and chairs, monitoring the space and equipment — while also acknowledging the possibility that the city may need to eventually add an employee to handle growing responsibilities tied to First Street, downtown trees and the new plaza.

“That’s still yet to be determined,” Klebes said.

With the vote finalized, the project is expected to move forward immediately, marking a significant step in the city’s broader effort to reshape and reinvest in its downtown core.

Money and Timeline

The city budgeted $4,915,899 for the overall project, including design, construction and related costs, however the Ajax bid came way in under engineering estimated cost.

Of that budgeted amount, about $4.02 million is currently needed to cover construction and design contracts, with additional expenses such as furnishings and contingency planned through reserve funds.

Funding is layered across multiple sources, including $520,000 in grants, $2.67 million in special enterprise zone funding, $390,000 in transportation and ADA program funds, and $437,000 from the city’s General Fund capital improvement dollars.

The Ajax contract took effect on Tuesday, April 14, with construction scheduled to be completed by Oct. 2, 2026.