The Sac Annex, 105 Fir St., stands tall on June 20, 2025, in downtown La Grande. A project which aims to bring 17 residential units and 14 office spaces back online received the highest score in the 2025 call for projects by the Urban Renewal Agency. (Isabella Crowley/The Observer)

LA GRANDE — Four downtown La Grande businesses will receive help with building renovations thanks to the city’s Urban Renewal Agency and Urban Renewal Advisory Commission’s call for projects.

Sac Annex, Hotel Kasbah, Chill Wellness and Peak Lifestyle Studio collectively received just less than $225,000 through the program, which awarded each applicant the maximum amount of funding their project was eligible to receive.

“I do think these are good projects,” said Timothy Bishop, the city of La Grande’s director of economic development.

The adopted budget for the program allocates $350,000 for projects not within the La Grande Business and Technology Park, which City Manager Robert Strope said means $125,000 will roll into the fund balance.

Bishop said the overall number of applications was down this year. He explained the Main Street Revitalization Grant was open earlier this year, which garnered interest from local applicants.

The grant awards up to $400,000 in support of downtown revitalization efforts whereas the maximum amount a project can receive through urban renewal call for projects is $75,000.

A second contributing factor, Bishop said, revolved around concerns about the pricing of building materials and construction costs.

“I think we also had a number of projects that were in discussion with us about applying for projects in January and February,” he said. “But as we got into March, we had a lot of turbulence and uncertainty.”

As such, there were a number of potential applicants who decided to wait and see what would happen with costs this year.

The projects

The highest-scoring project was the Sac Annex, 105 Fir St. The applicant — Sydney True — is looking to renovate dilapidated parts of the building into new usable spaces.

“This project is probably our largest and most complex project,” Bishop said. “In terms of impact, we’re looking at activating 17 residential apartments and 14 upper floor office spaces.”

The project aims to upgrade outdated electrical and plumbing infrastructure, including upgrading 33 fuse boxes to modern electrical breaker boxes and replacing the four floor main electrical panel.

Other work includes resizing six sewer lines to meet code for residential occupancy and repairing interior walls and ceilings that water has damaged throughout the years to turn those units into leasable spaces.

The building is for sale, but Bishop explained True is the intended buyer and also has the property owner’s permission to apply for the funding. While he is based in Portland, the economic development director said True is “in the community quite frequently and pretty hands-on with the project.”

True does not have any other properties in Union County, Bishop said, but recently completed a renovation in Pendleton and prior to that a substantial housing renovation project in Klamath Falls.

True requested and received $75,000 from the call for project.

Hotel Kasbah was the second highest-scoring project. The applicant — Rod Sands Vishvakarman LLC — is looking to prepare the second floor of 10 Depot St. for future redevelopment into five apartments.

Bishop said this project will take part in two phases, but the application before the Urban Renewal Agency only pertained to the first phase. The focus for phase one is the exterior structure of the building and site work, while the plan for phase two is to build out the actual apartments.

“It’s got some significant structural issues,” Bishop said.

The first phase looks to install new water, sewer and electrical service to the building. It also includes masonry and structural repairs, a new stairwell and landing for second floor access, asbestos and hazardous material abatement and removal, new plumbing and fire-rated flooring, and window replacement.

Hotel Kasbah received $75,000 in funding.

Coming in as the third highest-ranked project was Chill Wellness, 105 Fir St., which seeks to redevelop the corner ground floor retail space of the Sac Annex. New York Richey’s Pizza once operated at the space, but it has been vacant for more than a year.

The applicant — Tina Aster — wants to convert the retail space for a new “24/7 paramedical wellness facility,” which will offer specialized spa and fitness related services.

Bishop said most of the project costs fall into the category of tenant improvements, which is not an eligible use of call for project funding. However, he said, there were some aspects that would be considered building improvements, such as the electrical, fire and safety upgrades.

“We do think it’s a good project,” Bishop said. “We think that it improves a really visible and important corner location to downtown.”

Aster was eligible for and received $16,750 for Chill Wellness.

Peak Lifestyle Studios, 1118 Adams Ave., ranked fourth.

The applicant — Colleen McIntosh — is looking to replace the damaged and leaking roof, repair or replace the existing skylights and repair water damage to the building. McIntosh was eligible for and received $58,240.