News Room

August 25, 2009

Media Contact
Marc Zolton 503-986-0101
Courtney Warner Crowell 503-378-3554

Business Oregon awards $3.5 million in Federal Recovery Grants for community development projects

Six other Oregon communities also will receive Community Development Block Grant awards

SALEM—Business Oregon announced it has awarded $3.56 million in federal recovery dollars to three Oregon communities under the Community Development Block Grant program.

The federal grants, funded from the American Recovery and Reinvestment Act of 2009, from the U.S. Department of Housing and Urban Development (HUD), will help construct a senior citizens center in Silverton, improve the wastewater system in the city of Haines and provide a new drinking water reservoir for the Hebo Water Authority in Tillamook County.

"These stimulus dollars will help create dozens of family wage jobs in Oregon communities when they need them most," said Governor Kulongoski. "Community development block grant funds will help these communities have safe and clean drinking water and community facilities for their citizens."

"These projects are planned, designed and ready to go," said Lynn Schoessler, Executive Director of the Business Oregon's Infrastructure Finance Authority.

The Recovery Act grant of $1.2 million will allow the city of Silverton to construct a 4,000- to 5,000-square-foot senior center with modern and efficient commercial kitchen, larger dining area and offices for center staff. The city, in partnership with Silverton Area Seniors, currently serves the city's senior population in a leased 800-square-foot space located downtown. The existing facility is too small and not conducive for redevelopment.

The city of Haines in northeastern Oregon will use $1.25 million in recovery funds to make mandated improvements to its wastewater system in accordance with Oregon Department of Environmental Quality standards. The improvements include: wastewater treatment and storage improvements, effluent disposal system replacement and irrigation pumping, improved piping and valve repairs, dike repairs, new chlorination system and primary lift station upgrades.

The Hebo Joint Water and Sanitary Improvement Authority, located in Tillamook County, currently has inadequate and unsafe drinking water storage and treatment. Currently, the authority utilizes three, welded steel tanks salvaged from the Mt. Hebo Air Force Base which together provide 133,333 gallons of storage, but are estimated to be over 40 years old. The $1.216 million in recovery grant dollars will fund construction of a new 310,000-gallon reservoir, chemical feed building and replace equipment, a transmission line, pressure reducing valves, as well as water meters.

In addition to the Recovery Act Community Development Block Grant (CDBG) awards, the Infrastructure Finance Authority also announced regular quarterly CDBG awards totaling $2.39 million to six Oregon communities. Business Oregon will hold full and half day CDBG training workshops in Salem on September 15-16 and in Pendleton on September 17-18 for city and county officials and grant administrators as well as CDBG-funded construction contractors.

Since the early 1980's, the Infrastructure Finance Authority, formerly the state's Community Development Division, has administered the state of Oregon's CDBG program with funding from HUD. The program serves non-metropolitan cities and counties of Oregon. The IFA reviews applications for funding under the CDBG program on a quarterly basis or until all funds available for the year have been obligated.

Community Development Block Grants 2nd Quarter 2009 Project Summaries

City of Klamath Falls—$800,000:
The city of Klamath Falls is proposing to assist Klamath Family Head Start acquire the building they currently lease in order to make improvements. Acquisition of the building will lower their monthly operating expenses and allow for further improvements. The city will combine the $800,000 grant with $1,419,500,000 of matching funds to acquire the property.

City of Amity—$1.0 Million:
The city of Amity owns and operates a municipal wastewater treatment which has exceeded the National Pollutant Discharge Elimination System Permit (NPDES) issued by the Oregon Department of Environmental Quality (DEQ). The DEQ approved wastewater facilities plan identifies several improvements needed to comply with the NPDES permit. The city will combine the $1,000,000 grant with $406,160 in matching funds to design and construct these necessary improvements.

City of Glendale—$54,000:
The city of Glendale operates a municipal wastewater treatment and collection, which receives an excess amount of infiltration and inflow which has caused numerous National Pollutant Discharge Elimination System (NPDES) permit violations. The city of Glendale previously applied for and received a $96,000 CDBG grant for the completion of a wastewater facilities plan needed to fulfill a requirement mandated by Oregon DEQ. The city will combine this $54,000 grant increase with $1,000 of locally committed funds to complete the environmental report and geotechnical analysis on the wastewater treatment plant site.

City of Richland—$101,200:
The city owns and operates a municipal non-discharging lagoon and collection system operated under a Water Pollution Control Facilities (WPCF) permit. The original wastewater system was constructed in the 1970's. The pumps are old requiring continual maintenance and the lagoons are near capacity. The city needs a wastewater facilities plan to develop recommendations of upgrading and improving the system. The city will use this award to procure the services of a professional engineering firm to prepare a DEQ approved wastewater facilities plan.

City of Port Orford—$134,309:
The city of Port Orford has a small water impoundment area on the North Fork of Hubbard Creek. This water source is inadequate in meeting the needs of the city residents, especially during the summer months when the creek runs dry and the water level with the impoundment decreases. This project is part of the city's approved water master plan. The city needs to complete the preliminary engineering for a larger impoundment area in the same location. The city will combine the award with $62,591 in matching funds to complete the necessary engineering work.

City of Rogue River—$300,000:
The city has requested the award to fund improvements to their downtown plaza including streets, lighting, curbs, gutters, sidewalks and tree wells. The proposed project will complete improvements identified in the Downtown Conceptual Design in the city's Revitalization Plan prepared by Oregon Downtown Development Association.

For further information about the Community Development Block Grant program or the federal stimulus please visit:

Business Oregon works to create, retain, expand and attract businesses that provide sustainable, living-wage jobs for Oregonians through public-private partnerships, leveraged funding and support of economic opportunities for Oregon companies and entrepreneurs. Visit for more information on doing business in Oregon.