Urban Renewal: $31 M Basalt Commons intends to break ground within 6 months, needs $1.7 M grant extension

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Jul 14

Renderings show the Basalt Commons on the former Griffith Motors site looking east in downtown The Dalles. The project looks to get underway by the end of the year.

By Tom Peterson

The Dalles, Ore., July 14, 2025 — The Columbia Gateway Urban Renewal Agency Board will meet Tuesday evening to consider key actions that could reshape downtown The Dalles, including approving grant amendments tied to a $31 million, 116-unit apartment complex — the largest residential construction in the city in more than a century.

The meeting begins at 5:30 p.m. July 15 at City Hall, 313 Court St., and will open with an executive session under ORS 192.660(2)(e) for real property negotiations. The board is expected to reconvene in open session by about 6:15 p.m. The meeting is open to the public in person and via Zoom .

At the top of the agenda is an amendment to the $1.73 million incentive grant agreement with TD3rd, LLC, which is assisting in the developmentof Basalt Commons at 523 E. Third St. The five-story, 116-unit development is estimated at $31 million and intended to address the city’s housing shortage.

Basalt Commons will be located on the half acre formally owned by Griffith Motors. The building will be raised in preparation for the new commercial building with 116 apartments.

Basalt Commons Developer Mary Hanlon is asking for an extension of urban renewal grants for:

A $730,000 direct equity contribution to support project feasibility. The contribution was intended to help address a financing gap caused by elevated interest rates, construction inflation, and general risk associated with a major infill project in the downtown core and;
Up to $1,000,000 to pay residential System Development Charges. The funds will be paid directly to the City of The Dalles and the Northern Wasco County Parks and Recreation District upon issuance of building permits.

In a letter to the board, Hanlon wrote that she has secured a term sheet from a lender “with financing terms suitable for the Project” — but the term sheet requires a signed agreement by July 15.

Hanlon backed up the statment with a verifcaiton from the bank. An official with the bank stated they expected to accept the terms of the financing to be accepted in the immediate future.

Hanlon also noted that final negotiations with private investors to close the remaining equity gap are underway and expected to wrap up by the end of July.

“We are in the final stretch of seeing shovels in the dirt to start construction,” she said, pointing out that if no major complications occur the project will start by the end of this year.

Mary Hanlon speaking to The Dalles Planning Commission last year.

“The project has been a long time in the making, but we are now at the critical moment to lock in the financing and move forward,” Hanlon wrote. “We cannot overstate how vital this is for downtown livability and affordability.”

Other business Tuesday includes:

A resolution formalizing a land dedication agreement with the city for the Federal Street Plaza, a pedestrian-oriented public space between East First and East Second streets, clearing the way for construction of planned green space, water features and public seating.
Endorsement of a $200,000 Transportation Growth Management grant application to support the city’s Westside Master Plan, which will guide development west of Cherry Heights Road.
An amendment increasing the grant for Phase II of the American Legion Hall redevelopment at 201 E. Second St. by $7,644.28, bringing the total to $49,620.
A request from The Dalles Mint LLC for up to $250,000 in reimbursement for work already completed at the historic Mint Building. Staff has recommended limiting funding to future eligible expenses under current program rules and suggested pursuing a separate Development Funding Agreement for any retroactive payments to avoid creating a problematic precedent.