Urban Renewal Board Eyes Private Development, Temporary Uses for Tony’s Lot

By Joshuah Albert

The Dalles, Ore., Sept. 16, 2026 — The Columbia Gateway Urban Renewal Agency is moving toward a two-track future for Tony’s Lot in downtown The Dalles: seek a private developer for the valuable property while finding a temporary use that could bring people onto the site as soon as next year.

The direction emerged Tuesday during an extended discussion about the Federal Street Plaza district, where the city is investing about $5 million and construction is already underway. Board members generally favored eventually putting Tony’s Lot back into productive private development, but they also acknowledged that even an ideal project likely would not begin construction until 2028.
That leaves potentially two years in which the agency-owned property could remain a fenced dirt lot immediately beside the new plaza.

“I think that we should be moving to activate the Tony’s lot as soon as possible,” one board member said, adding that private commercial development appeared to be the board’s “plan A.”

Ideas floated for the interim ranged from a synthetic ice skating rink and seasonal businesses to green space, food trucks and bicycle-related activities. Staff was asked to return in roughly two months — targeting the November meeting — with options and costs for temporary uses that could operate for the next year or two.
The discussion was prompted by a 73-page University of Oregon Sustainable City Year report produced through work by three classes examining Federal Street Plaza, Tony’s Lot, the Craig Building and the transportation building as an interconnected downtown district. Agency Manager Jacob Anderson said the goal is to avoid developing the properties in isolation and ending up with uses that compete with each other rather than strengthen the new plaza.

A community survey included in the work showed a nearly even split over Tony’s Lot, with 53% favoring public use and 42% favoring private use. Anderson also told the board that research conducted by an agency intern concluded downtown’s biggest missing piece is entertainment, a finding reflected in student concepts ranging from restaurants and music venues to a roller rink or bowling alley.

But the board’s discussion repeatedly returned to economics.

Anderson said new downtown construction is extremely difficult to finance under current conditions and estimated the agency could potentially have to contribute about $750,000 to make a private development on Tony’s Lot work. He said a developer could also be reluctant to pay much for the land because of construction costs.

He later said the agency could potentially retain ownership of the property for several years, allowing more of its available money to go toward construction rather than requiring a developer to effectively absorb the land value as part of the deal. Anderson compared that concept to the land arrangement contemplated for Basalt Commons.

The unresolved fate of Basalt Commons — the proposed major housing development nearby — is also influencing what the agency wants on Tony’s Lot. Several board members said they want to know whether Basalt Commons moves forward before determining how heavily a future Tony’s Lot development should emphasize housing.

Anderson said he has deliberately held off putting a request for proposals on the street while waiting for more certainty about Basalt Commons.

The Federal Street Plaza itself is not waiting. Contractors were working on reinforcing steel at the site Tuesday, according to the meeting discussion, and the plaza project can proceed regardless of what happens at Tony’s Lot.

Anderson said completion of the plaza should itself increase the value and development potential of the neighboring property. He described the broader area as increasingly becoming the heart of downtown.

That downtown picture is changing elsewhere, too. Anderson told the board the former Discounts Plus building recently changed hands following resolution of an environmental issue through the brownfields program and is slated to become a gym operated by a regional company whose owner grew up in Glenwood. Anderson said the combination of the gym, potential Basalt Commons development, nearby groceries and the new plaza could help create a more walkable downtown neighborhood.

The transportation building adjoining the plaza is also evolving. Anderson said the Veterans Museum is expected to occupy about 75% of the building. Roughly 280 square feet facing the plaza had been envisioned for The Dalles Main Street office, but that space is now available for other possibilities after Main Street stepped back from plans to hire an executive director.

Ideas include an e-bike rental operation, tourism services or a walk-up window selling coffee, ice cream or potentially wine, although Anderson said legal questions remain about how much of the publicly controlled building can be devoted to private commercial activity. He said a local business has already expressed interest in a satellite operation there, but the concept is “not really ready for prime time.”

The Tony’s Lot discussion also carries a deadline beyond development economics. A board member noted the agency stops collecting tax increment financing revenue in 2029. The agency may continue operating afterward while existing money is spent or committed, but its current revenue-producing life is finite.

That helped drive interest in finding an interim use rather than waiting several years for development.

One possibility discussed was leasing Tony’s Lot for short periods to seasonal operators — perhaps a temporary skating rink in winter, a nursery popup in spring and other activities in summer. Such arrangements could allow the agency to activate the property without making improvements so permanent that they prevent later redevelopment.

Board members cautioned that even “temporary” improvements carry costs. Grass, irrigation, paths or recreational equipment would have to be maintained, and the agency would need to determine whether the city, Parks and Recreation District, a private operator or another entity would be responsible.

Staff was asked to include operations and maintenance costs extending at least two to three years when bringing alternatives back.

By the end of the discussion, staff said it had sufficient direction, with the chair describing the emerging approach as a “soft plan A” and possibly a plan B. No formal vote was taken on Tony’s Lot.

Urban renewal grants expanded by property

In separate action, the board unanimously changed its downtown incentive program rules in a way that could significantly expand access to redevelopment money for owners with multiple buildings.

Resolution 26-005 changes the threshold calculation from the cumulative amount received by a property owner to the cumulative amount invested in each property.

Under the revised rules, Anderson can administratively approve grants of up to $50,000 for an individual property. Awards exceeding $50,000 and up to $300,000 require board approval, while projects receiving more than $100,000 continue to require a community benefit statement.

The distinction matters for investors rehabilitating multiple downtown buildings. Under the previous wording, an owner who reached the $50,000 threshold across several properties had to return to the board for additional awards. The revised language essentially puts the investment limit back on individual buildings rather than their owners.

“The money in essence in the project stays with the property, not with the property owner,” Anderson said.

The board approved the change unanimously.

The issue surfaced through a grant for 210 Washington St., where Anderson said an earlier $3,426 matching award had been administratively approved before staff discovered that the owners’ combined grants had exceeded the threshold created by the wording change.

The board unanimously ratified that earlier grant and approved another grant of up to $9,730 toward a $19,460 second phase of improvements.
Anderson said the owners have been purchasing and rehabilitating downtown properties, calling the Washington Street project their third such building and evidence that private investors remain willing to put money into downtown The Dalles.

Dalles Mint gets more time

The board also unanimously reinstated and extended a redevelopment grant agreement for The Dalles Mint through Dec. 16.

The original agreement covered $126,913 in eligible improvements at 710 E. Second St., including a commercial kitchen, second-floor apartment, front patio, HVAC and other work. The agency’s grant share is $63,456.

The agreement had expired March 23 after work stopped for several months because of health problems affecting the owner. The board reinstated the agreement and extended the deadline to Dec. 16. Staff said the money had already been allocated and remains within the agency budget. The owner told the board he had been recovering for about 2½ months following treatment and was confident the project could now be completed.
The project also prompted a broader discussion about fire suppression in downtown buildings. A board member raised concern that the Mint’s residential apartment is not covered by the building’s sprinkler system. The owner said engineers designed the system and that the apartment is separated by a more than two-hour-rated firewall and fire doors; extending sprinklers into the apartment was not required by code.

Later, board members discussed whether urban renewal should contribute more than its customary 50% toward fire-suppression projects when sprinkler costs prevent upper floors or vacant downtown buildings from being redeveloped.

Anderson said another existing tool — a development funding agreement — could potentially allow the agency to cover substantially more. He gave an example in which a property owner could ask the agency to pay 80% of a fire-suppression cost if that expense were preventing a redevelopment project from moving forward.

No change to the fire-suppression incentive was approved Tuesday.

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