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LID won’t happen if a federal grant fails

The plan for the South Hermiston Industrial Park from the city of Hermiston.

HERMISTON, Oregon – The city of Hermiston has formally announced its intent to create a local improvement district in the South Hermiston Industrial Park. Assistant City Manager Mark Morgan says establishing an LID will show the federal government that the city is able to provide the required matching funds if SHIP is awarded a grant.

“The council has no intention of forming the LID if it does not receive federal grant funding toward construction of this project,” Morgan told KUMA News Tuesday.

A hearing on the LID is set for August, and Morgan points out that if 60 percent of the property owners oppose establishing the district, it’s dead in the water. Morgan said that since the city won’t know in August if it’s getting the grant, officials will probably continue the hearing another 90 days until October. He added that if the government reacts slower than anticipated, the city council can then choose another 90-day continuance.

The LID would raise $1.1 million for improvements to the industrial park. The biggest property owner impacted would be the Port of Umatilla, which would be paying more than 50 percent of the total cost.

“We would not be moving forward without being in lock-step with the Port of Umatilla on this project,” Morgan said. “That’s mainly because the Port of Umatilla accounts for the lion’s share of the frontage on all of these improvements.”

The city plans to diversify employment by helping address the needs of smaller employers by developing the park. The plan includes extending Southeast 10th Street from Penny Avenue to Highway 395 and create a stub road off that new street.

“These are the electricians’ shops, the construction contractors, the HVAC contractors – those types of folks that really only need one to three acres to have a lay-down yard and some shop space,” Morgan said in an earlier interview.


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