Urban Renewal grants 2nd extension for $1.73 M as developer is hopeful of breaking ground on 116- unit apt. building in downtown TD

Renderings show the Basalt Commons on the former Griffith Motors site looking east in downtown The Dalles. The project recieved a second extension for urban renewal funds on Tuesday, Feb. 17.

The Dalles, Ore., Feb. 17, 2026 — The Dalles Urban Renewal Agency on Tuesday night extended its funding agreements with TD3rd LLC for the Basalt Commons development, preserving up to $1.73 million in urban renewal support for the $31 million mixed-use housing and commercial project planned at 523 E. Third St.

The decision, made during the agency’s regular Feb. 17 meeting, moves the expiration date of the agreements to Aug. 19, 2026. The extension gives developer Mary Hanlon additional time to finalize financing, secure permits and begin construction on the five-story building, which is planned to include 116 apartments, ground-floor commercial space and structured parking.

The project would replace the former Griffith Motors site with one of the largest private residential developments planned in downtown The Dalles in decades.

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.

Hanlon remained hopeful of getting the project underway in her letter to the agency.

Mary Hanlon speaks to Urban Renewal on Tuesday, Feb. 17.

“Within three months, we should hear from several third-party entities whose approval we need to proceed,” Hanlon wrote. “Within three months after that, all necessary paperwork, contracts and permits should have been achieved. With this, we could start construction.”

Urban renewal participation includes two major funding components previously approved by the agency: up to $1 million to cover system development charges for the housing units and a separate $730,000 direct equity contribution designed to help close a financing gap caused by rising interest rates, inflation and construction cost increases.

The system development charge funding is paid directly to public agencies on behalf of the project, while the $730,000 contribution provides gap financing intended to make the project financially feasible.

The extension approved Tuesday represents the latest in a series of amendments to the original urban renewal agreement, which was first approved to support redevelopment of the long-vacant downtown parcel. The amendments have primarily focused on extending deadlines and maintaining funding commitments while the developer worked through rising construction costs, financing challenges and third-party approval requirements that have affected multifamily housing projects nationwide.

Wasco County may also play a critical role in advancing the project. The County Commission is currently considering Basalt Commons property and financing but has not yet taken formal action. If approved, county participation could inject several million additional dollars into the project to help close remaining funding gaps, with the expectation that public investment would be repaid over time as the development becomes operational.

Hanlon also emphasized the importance of urban renewal participation in making the project possible.

“We sincerely appreciate your partnership in this essential new construction project in downtown The Dalles,” she wrote. “The project is not viable without the URA participation. We believe that your patience will be rewarded as we are confident that this project will fully perform as anticipated and provide much needed vibrancy and energy to the historic downtown.”

Urban renewal officials said the extension does not increase the previously approved funding amounts but preserves the agency’s commitment while the project moves through its final financing and approval stages.

The Columbia Gateway (The Dalles) Urban Renewal Agency uses tax increment financing to support redevelopment projects intended to stimulate private investment, increase housing supply and revitalize downtown.