>La Grande Observer | Union and Wallowa Counties' News Leader

The Union County Economic Development Corporation is seeking $2 million in ConnectOregon grant money for an upgrade of the PendletonGrain Growers shipping facility at Alicel.The proposed Pendleton Grain Growers project includes land acquisition, lengthening of a rail spur and upgrade of grain storage facilities. (The Observer/BILL RAUTENSTRAUCH).

•EOU withdraws its $6.7 million request for parking garage and library

Bill Rautenstrauch

The Observer

Competition for ConnectOregon grant money is stiff, but applicants in Region 5 are taking a little comfort in the fact that a major project proposal has been withdrawn.

ConnectOregon is a lottery-backed $100 million statewide initiative to improve air, rail, marine and transit infrastructure.

In all, the program has received 25 applications from the Oregon Department of Transportation's Region 5.

At the close of the application period, total amount of the requests in the region were $48.1 million. Only $15 million is available in the region.

Five entities in the running for the money likely breathed a sigh of relief when they heard that a sixth, Eastern Oregon University, had withdrawn its application.

Eastern sought $6.7 million for a multi-modal transit portal. The portal would have been a two-story parking garage, with a new library constructed over it.

The university, however, is undergoing financial difficulty and feels the project isn't affordable at this time, said Tim Seydel of the Office of University Advancement.

"We withdrew the request primarily because of our current fiscal concerns," Seydel said. "We were concerned about the matching funds."

Under ConnectOregon rules, the applicant is required to put up 20 percent of the project cost.

Seydel said another factor in the decision to withdraw is that it appeared as if the project wouldn't receive a high ranking.

"If it wasn't going to go, we thought we should withdraw and let someone else have a chance," he said.

Primary considerations for approval include whether the project reduces transportation costs for Oregon businesses, and whether it connects two or more modes of transportation.

Also, applicants must show that the project will be a critical link in the statewide or regional transportation system, whether it creates permanent jobs, and whether it is ready for construction.

Julie Rodwell, freight mobility manager with ODOT, said that EOU is the only applicant to withdraw its so far.

With Eastern out of the picture, the biggest local project on the Region 5 list originates with the Union County Economic Development Corporation.

The UCEDC is seeking $2 million for an upgrade of the Pendleton Grain Growers shipping facility at Alicel.

The project includes land acquisition, lengthening of a rail spur, and upgrade of grain storage facilities.

Still another grant hopeful is Community Connection of Northeast Oregon, which hopes to add multi-modal features to its bus transit program. The application is for $894,000.

Also, Island City-based Sky Highway Inc. has applied for $85,000 for a charter aviation service in La Grande.

According to Sky Highway's application, the service would provide air transportation and connections to larger cities in Oregon and elsewhere.

The Wallowa Union Railroad, meanwhile, has applied for $533,000 to replace rail passenger equipment.

And the City of Enterprise is hoping for $60,000 for an All Weather Operating System at the municipal airport.

Enterprise City Recorder Michelle Young said there is a great need for the system in Wallowa County, where up-to-the-minute weather information isn't readily available to pilots.

"As far as weather information goes, this area is known as a black hole," Young said. "The AWOS system is something that's badly needed here."

Young said the Wallowa County Health Care District is a partner in the project, which has a total cost of over $70,000.

Wallowa Memorial Hospital often flies patients out of the county for treatment at other facilities. Air Life of Oregon is a primary provider of that service.

"Air Life pilots would really like to see (AWOS) here," young said.

Elsewhere in the region, big-ticket project proposals include a $7.4 million makeover of the Union Pacific rail yard at Hinkle, a $5 million upland distribution center at the Port of Umatilla, and a $4 million freight transload facility at the Port of Morrow.

The ConnectOregon process got under way last September with public outreach and rule development. The project application period began Dec. 14 and closed Feb. 17.

The state Aviation Board, Freight Advisory Committee, and public transit and rail advisory committees are all involved in the decision making process. Final decisions rest with the Oregon Transportation Commissioner.

On June 28, a public hearing is scheduled in which any interested groups or individuals may provide comment on projects.

Final selections by the OTC will be announced in July.

An update on local project proposals is on the agenda for the Northeast Oregon Area Commission on Transportation's regular meeting May 4.

The meeting takes place at the Oregon Department of Transportation's Region 5 headquarters, 3012 Island Avenue.