Progress: Umatilla/Morrow County Growth & Development 2025

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Eastern Oregon Progress

Umatilla/Morrow County Growth & Development

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Eastern Oregon

Umatilla/Morrow County Growth & Development

On the cover:

Data centers in Umatilla and Morrow counties are expanding their presence in terms of economic

Amazon Web Services/Contributed Photo

Hydrogen Hub plans move forward across Pacific Northwest

Morrow County’s location still in first phase, jobs will pick up in phase three

Clean energy projects across the Pacific Northwest are moving forward despite a tepid — or worse — attitude toward the idea from the federal government.

In Morrow County, one such project is the Pacific Northwest Hydrogen Hub, which was one of seven billion-dollar projects funded nationally by the Bipartisan Infrastructure Law passed in 2021 during former President Joe Biden’s administration. The hub will establish multiple nodes, including one in Boardman, to help produce hydrogen to use for energy storage as well as fuel.

The Boardman node will use a process called electrolysis, which uses electricity to isolate hydrogen molecules for energy production and storage uses. If the input of electricity uses energy from renewable sources, such as wind or solar power, the output is called “green hydrogen,” as it uses no carbon to produce the hydrogen.

Producing green hydrogen

According to Janine Benner, director of the Oregon Department of Energy and board chair of PNWH2 — the organization overseeing the hub’s development — hydrogen is a “ key greenhouse gas reduction decarbonization strategy” for the state. Historically, she said, it’s been produced using fossil fuels, but with electrolysis, the process can use clean energy instead.

“You get the electricity when renewable energy is plentiful, so when the sun is shining and the wind is blowing right, and then you use that electricity to create the hydrogen,” she said, “which you can then store and use to generate electricity when renewables are not available.”

The hydrogen is stable enough to store energy long term, as compared to other storage options. Green hydrogen storage can thus be useful in regions, including Eastern Oregon, where there may be surges of electricity needs.

Green hydrogen production and use

“The Northwest is anticipating skyrocketing electricity demand,” said Benner. “With the data centers that are coming and increased electrification, we know we’re going to need a lot more electricity generation and we’re going to need it to be there at all times.”

However, producing hydrogen through electrolysis does take a lot of energy. The Pacific Northwest Hydrogen Association said using renewable energy as the input for electrolysis makes the up-front energy requirements less taxing, as the region’s renewable energy capacity is expanding.

“We expect that the growth in hydrogen production and use will be accompanied by growth in new renewable capacity and transmission systems across the region,” the association said. “Our projects are working closely with renewable electricity project developers to ensure a stable, growing supply of clean energy is available to meet hydrogen production needs.”

Economic impact

For the project, the first phase of four is still underway, with about $27.5 million given to the hub to start developing a plan. Benner said the board recently applied to move on to phase two, which would consist of community outreach and design finalization.

The U.S. Department of Energy continues to work with the hub, but it’s possible due to changes in priority at the federal level, the project will stall.

“I’m pretty optimistic that the new administration is gonna find a lot to like about the hydrogen hubs program and the Pacific Northwest Hub, specifically,” said Benner, “because we approach it in Oregon as a decarbonization strategy, but there’s so many other great things that hydrogen can do that I think

may be more appealing to the current administration.”

Benner said hydrogen production helps with energy security, resilience and independence at the same time as bringing foreign investment money into the United States. Because of the bipartisan support for the seven hubs, which are located in both Democraticand Republican-leaning states, Benner said she is hopeful that the administration will support the project. Plus, the Pacific Northwest hub expects to create 10,000 jobs over the course of the regional project.

In Boardman, specifically, the project is expected to create more than 18 months of construction work, including a variety of trades, general construction, project management and support roles, according to the Pacific

Northwest Hydrogen Association. Ongoing operations would include plant management and maintenance jobs.

Benner said “if and when” phase two begins, the hydrogen association will be engaging with the community to discuss “community benefits” and specific jobs that will be available. The association also plans to work with colleges and universities to develop apprenticeships and other programs that would prepare people for employment at one of the hub locations.

Jobs building the hub in Boardman will really pick up in about two to four years, during phase three, said Benner.

“The project is particularly exciting from an energy perspective,” she said. “We’ve identified the need to be filling some of the future electricity needs with low carbon fuels, which hydrogen is.”

The Pacific Northwest Hydrogen Association

PNWH2 is a multi-state nonprofit organization made up of public and private partners dedicated to establishing the Pacific Northwest as a leader in global energy innovation. We’re focused on revitalizing domestic manufacturing jobs and reducing reliance on foreign energy and goods through successful low-carbon intensity and economically viable hydrogen production.

The PNWH2 Hub expects to consist of eight project locations across Washington, Oregon and Montana. In partnership with labor, Tribal Nations, and public and private sector partners, the Hub will accelerate the deployment of hydrogen infrastructure to attract greater foreign and private investment and promote high-quality jobs throughout the region.

PNEH2’s vision is to create a hydrogen ecosystem across the Pacific Northwest that promotes job growth and improves the lives of people throughout the region.

Source: pnwh2.com

The Pacific Northwest Hydrogen Hub will have six nodes across the region focused on hydrogen production, storage and transportation. The hub is currently in its first phase of development. | PNWH2/Contributed Photo

Going nuclear Growth spurs push for use of small modular reactor

AA bill designed to clear the way for a small nuclear reactor in Umatilla County triggered controversy, but the idea won’t go anywhere unless local voters approve it.

Oregon House Bill 2410 would allow the state Energy Facility Siting Council to grant a site certificate for a small modular nuclear reactor demonstration project in the county. A small modular reactor is a scaled-down version of a nuclear reactor that can be assembled and then transported to a specific location. It generates less power than a traditional nuclear power plant.

The bill traces its roots to a growing need by area officials to find an environmentally-friendly power source to fuel the county’s growing industry – such as data centers – while also furnishing electricity for more traditional uses like agriculture.

“I’m in full support of it. We need more power in the county, and we need clean power, and it doesn’t get any cleaner than nuclear power,” said Umatilla County Board of Commissioners Chair John Shafer.

HB 2410 also calls for a series of other steps, including a requirement by the Energy Facility Siting Council to coordinate with Indian tribes regarding the feasibility of the project. The bill also directs the state Department of Energy and other state agencies to craft a report regarding rules and laws pertinent to small modular reactors.

The state Energy Facility Siting Council is the department responsible for reviewing and accepting the installation of large energy projects in Oregon. The legislation refers the bill “to the people of Umatilla County for their approval or rejection at the next regular general election.” The bill’s main sponsors are Rep. Bobby Levy, R-Echo, Rep. Ed Diehl, R-Scio, and Sen. David Brock Smith, R-Port Orford.

The bill now sits in the Legislature’s Joint Committee on Ways and Means after it cleared the House Climate, Energy and Environment Committee. A public hearing on the bill by the House Climate, Energy and Environment Committee in February produced testimony from more than 125 people, with many of them opposed to the proposed legislation.

Another piece of legislation tied to nuclear energy — Senate Bill 635 — is before the Senate Energy and Environment Committee. That bill tasks Oregon State University to craft

a feasibility study regarding the possibility of opening more nuclear power generation in Oregon.

In 1980, Oregon voters passed Ballot Measure 7, which stipulated that before any new nuclear facility was built in the state there must be a certified, stable facility to dispose of radioactive waste. The measure also required that any new nuclear plant be approved through a statewide vote. Nuclear power “is the way to go,” Levy said.

“I firmly believe new, small modular reactors are safe,” she said.

A nuclear reactor controls nuclear fission reaction to produce steam to drive turbines linked to generators to create electricity. The U.S. Nuclear Regulatory Commission Nuclear oversees power plants — big and small.

“I’m in full support of it. We need more power in the county, and we need clean power, and it doesn’t get any cleaner than nuclear power.”

Umatilla County Board of Commissioners Chair John Shafer

Supporters of nuclear power cite its environmentally clean footprint — nuclear power produces no greenhouse gas emissions — and that it is safer than fossil fuels in terms of health.

Critics cite the vulnerability of nuclear power plants to accidents — such as a meltdown of the reactor core — which can contaminate the environment with radiation.

Opponents to nuclear power also point to the production of radioactive waste as a problem and the potential of a nuclear power plant disrupting vulnerable ecosystems. According to the U.S. Department of Energy, small modular reactors are safer, cheaper to build and, because of their size, ideal for “small electrical markets, isolated areas, smaller grids, sites with limited water and acreage, or unique industrial applications.”

Oregon House Bill 2410: would allow the state Energy Facility Siting Council to grant a site certificate for a small modular nuclear reactor demonstration project in the county. A small modular reactor is a scaled-down version of a nuclear reactor that can be assembled and then transported to a specific location. It generates less power than a traditional nuclear power plant.

Dan Dorran Umatilla County commissioner
John Shafer, Umatilla County Board of Commissioners chair
State Rep. Bobby Levy, R - Echo

Education remains key goal

Levy said a great deal of fear is attached to nuclear power. She said she believes her job now is to educate residents on its benefits.

“I want people to have a say and to listen to facts, not just fearmongering. I want everyone informed with the truth, not fear,” she said.

Dan Dorran, Umatilla County commissioner, said a small modular reactor is the first step toward solving a potential problem regarding the electrical needs of existing and new industry in the region. He said officials began to search for alternatives and clean sources of energy nearly two years ago. That’s because, he said, the area continues to grow, not only in terms of industry but also in terms of new residents.

“We looked at everything, from natural gas, which has its own challenges in Oregon, to hydrogen. I attended several hydrogen conferences but, again, it is an electrical generation that uses carbon,” he said.

Dorran said Umatilla County traditionally adopted a proactive approach to securing sources of electricity.

“I thought it was incumbent on us to make sure we were participating in the discovery of solutions. Energy is a need Umatilla County will have deep into the future. So, we started on a journey trying to find a path to both carbon

zero and true, foundational baseload energy,” he said.

Dorran said other forms of renewable energy — such as solar — are a “tough path forward because they are intermittent.”

Dorran said the journey “took us to the small modular reactors.”

“We visited with folks in the Tri-Cities, visited with folks from the DOE (Department of Energy) from Washington, D.C. The journey led us to the most reasonable path forward,” he said.

Dorran said the small modular nuclear reactor concept is one that will take time.

“You are looking at a long-term path, anywhere from five to 10 years with the permitting and regulatory process,” he said.

Shafer said a small modular reactor could potentially be a safeguard for power generation as more industry, including data centers, move into the county.

“That is one of the concerns of the data centers, that they are using so much power and they have to upgrade the system and that will cause electricity rates to rise,” he said.

Data centers locally mean Amazon. The massive, Seattle-based company announced last fall it plans to link up with Energy Northwest, a confederation of utility firms from Washington state, to study a proposal for small modular reactors in the Richland area. The purpose of

the reactors will be to power Amazon’s seven current data centers in Umatilla and Morrow counties. Amazon also aims to construct new data centers near Arlington.

Dorran said the county’s idea for a small modular reactor isn’t connected to Amazon’s efforts.

“Amazon is an industrial user (of power) in Umatilla County but so are a lot of others. We have a lot of highenergy load users,” said Dorran. Dorran said Amazon “has truly had no influence on this at all.”

“We are helping Umatilla County. Amazon is a partner with us just like Lamb Weston or the Casino,” he said.

Dorran also said more power will be needed for major distribution centers — such as FedEx and United Parcel Service – already in the county.

Dorran said officials also reviewed Ballot Measure 7.

“There was a lot of misconception about that proposal. It wasn’t a constitutional change, it was a statutory change. So, after looking at it we thought there might be a path, albeit narrow, to begin looking at small modular nuclear reactors to help generate power in Umatilla County,” he said.

Dorran said the county does not plan to operate or own a small modular nuclear reactor if one is built. Instead, he said it would be privately owned.

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Nuclear power

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“Umatilla County’s place is we identify property, we identify roads, and the normal infrastructure steps a county does for economic development,” he said.

Dorran also said the county already has the type of workforce needed to operate a modular reactor.

“All of the workforce from Hanford is very much transferable to Umatilla County,” he said.

Hot-button issue

The legislation triggered plenty of feedback during the House Climate, Energy and Environment Committee hearing in February.

Testimony clearly drew a demarcation line between those who support the legislation and those who do not.

Dorran said officials have had “a lot of conversations with individual and largescale opposition groups.”

“We are not shying away from having conversations with the opposition. That is how we are able to sharpen our story and present our technology,” he said.

He said, for example, some who oppose the small modular reactor idea compare it to nuclear technology used at Hanford.

The comparison isn’t accurate because they are “two very different technologies and usage,” Dorran said.

“But we are having good conversations. That is the important part of this, to be able to have legit conversations,” he said.

One key player in any discussion about a small modular nuclear reactor in the county is the Confederated Tribes of the Umatilla Indian Reservation near Pendleton. As of now, the tribes are opposed to the idea.

Lisa Ganuelas, CTUIR legislative coordinator, submitted testimony at the House Climate, Energy and Environment Committee hearing. She wrote the tribes “have significant concerns regarding House Bill 2410.”

Ganuelas wrote CTUIR remained in the shadow of the Hanford Nuclear Facility clean-up efforts.

“Hanford was sited in our territory without concern for our treaty reserved rights and, as an ‘affected tribe’ CTUIR has been involved in the clean-up at Hanford for decades,” she wrote.

The Handford Nuclear Reservation remains an active clean-up site managed by the Department of Energy.

Ganuelas wrote that House Bill 2410 “does not provide a long-term solution regarding any nuclear waste generated and shifts the burden for temporary storage of

spent nuclear fuel or radioactive by-products generated by the demonstration project to an unknown Nuclear Regulatory Czommission License.”

Ganuelas wrote the Confederated Tribes may support studies of a small modular nuclear reactor’s feasibility so long “as those studies include tribal consultation and allow for robust input from Tribal governments, so we can identify potential impacts to our homeland, resources and rights and so long as the studies require explicit consideration for long-term disposal of wastes generated.”

“We’ve had several and continuing conversations with the tribe. The tribes are very deliberate in their research and the information they gather,” Dorran said.

Levy said the tribes are a crucial part of the discussion regarding a small modular nuclear reactor.

“In no way, shape or form will we do something that they don’t have a say in, especially when it comes to nuclear energy. They are a vital part of our community and our economy,” Levy said.

Ultimately, the bill stipulates the final word on the proposal would come from county voters. That’s how it should be, said Shafer.

“I always think voters should have a say. I honestly didn’t think it would get this far. It is a hot button issue and our Legislature kind of steers away from those,” he said.

Oregon Capitol House Bill 2410 in the Oregon Legislature would allow the state Energy Facility Siting Council to grant a site certificate for a small modular nuclear reactor demonstration project in Umatilla County. | East Oregonian, File Photo

Car dealership in Pendleton sparks rapid sales growth

Legacy of La Grande expands, selling cars faster than they can be replaced

Before September 2024, Pendleton didn’t have a car dealership, but that changed when Greg Colozzi, owner of Legacy of La Grande, expanded his business into the city. Since then, cars have been selling faster than they can be replaced.

“The biggest thing for me right now is keeping enough cars on the lot,” said Justin Fratzke, sales manager at Legacy of Pendleton. “I know it doesn’t look like we have a ton of inventory — we’re definitely below the number I’d like to have. That’s because we get them in, and they sell right away.”

Fratzke said the dealership has filled a niche for Pendleton residents who can shop for vehicles without leaving the city limits, and because Legacy is the only dealership in town, those are the customers it has been consistently serving.

They want to keep the growth going and maintain 30 cars on-site at all times, he said.

When the dealership opened, Legacy of Pendleton General Manager Chris Huxoll said everything moved quickly. Colozzi signed the lease for the former Pendleton Tire Factory on Sept. 6, 2024, brought in a paint crew, and rolled in with a fleet of preowned vehicles by Sept. 10 — to get business rolling just in time for the annual Pendleton Round-Up.

Since then, the demand has exceeded expectations, forcing the dealership to continually adapt to keep up with the community’s enthusiasm for new vehicles.

“I feel like the Pendleton community has really embraced us,” Fratzke said. “Every time I go somewhere and tell people what I do and what we’re doing here, I get a warm response. I hear a lot of word-of-mouth from folks who’ve talked to friends that bought cars here. I’m getting a lot of referral business.”

The lot offers a full range of brands, makes and models, including Chevrolet Tahoes, Ford Explorers, Dodge Rams and more.

If a customer is looking for a vehicle that isn’t on the lot, the dealership can access more than 100 vehicles from its inventory in La Grande. Huxoll said a company driver is available to deliver vehicles to Pendleton within 45 minutes at no charge.

The dealership also offers full-service financing, with 50 lenders available to provide financial options for

customers with credit scores ranging from subprime to 800-plus.

Fratzke said the dealership primarily focuses on stocking vehicles in the $15,000 to $30,000 range, which he has found sell well in the local market. He noted that while they would like to offer higher-end vehicles for ranchers and farmers, such as $60,000 trucks, that hasn’t happened yet.

“There hasn’t been much demand for really highend vehicles so far,” he added.

Fratzke said the area is growing, and they want to grow with it. He described the east end of town off Highway 11 as long neglected but now poised for revitalization, with roadwork underway and residential expansion planned on a nearby hill.

He said he believes the dealership can help bring new life to the area, which he feels is already headed in the right direction.

The company plans to open a service department,

Fratzke said, noting he receives calls daily for oil changes, parts and general maintenance. Although there is space on the other side of the building, he said they currently don’t have staff to handle the demand.

The dealership primarily focuses on stocking vehicles in the $15,000 to $30,000 range, which he has found sell well in the local market.

“That’s the goal for next year,” Fratzke said. Legacy of Pendleton is open Monday though Sunday. Customers can go to www.legacyford.net to stay informed on the latest vehicle inventory and business hours.

Legacy of Pendleton opened in September 2024. It is the city’s only car dealership. Sales manager Justin Fratzke talks about the community’s response, car sales and plans for a service expansion. | Yasser Marte/East Oregonian

Local leaders praise data centers as they look toward future

Amazon’s role in Umatilla and Morrow counties has grown during the decade and a half since the company started constructing data centers in the area

When Amazon came to town about 15 years ago, many people didn’t know what to expect from the large company setting up new buildings to serve as “data centers.”

Today, many still don’t know exactly what a data center is, but for communities in Morrow and Umatilla counties, their presence has made a difference. In Morrow County, for example, even with three of five data centers still in a tax-exempt status, Amazon Web Services pays more than $19 million in property taxes — that’s more than the next 16 largest taxpayers in the county combined.

“They’re paying in for economic development, schools, all these things,” said David Sykes, Morrow County Commissioner. “The government entities have more money to spend on services to the people. The health district gets more money, the county gets more money. It’s all increased.”

Plus, Sykes said, having jobs through Amazon, in addition to other technology and industry positions, creates opportunities for young people and others in the workforce, which he said “contribute to us having a vibrant community in Morrow County.”

The growth and development of data centers — and thus the impact of Amazon on progress in Morrow and Umatilla counties — is directly tied to the communities in which they’re located. One local Amazon Web Services employee, David Tanner, director of infrastructure operations, said he’s seen the growth firsthand. The partnerships between Amazon and local schools and organizations have created opportunities for building in-demand skills, he said.

Morrow County ‘going in a good direction’

Torrie Griggs, CEO of the Boardman Chamber of Commerce, said Amazon’s investments are helping drive the regional economy.

“In Morrow County, their presence means good-paying local jobs, reliable tax revenue and funding that directly impacts our schools, emergency services and infrastructure,” she said. “These are real impacts that make a difference for the people who live and work here.”

According to Mike Gorman, Morrow County assessor and tax collector, Amazon represents close to half of the county’s taxable property value and its taxes account for about a third of the total levied in the county. In that way, he said, “it’s been very favorable” to have data centers in the county.

Additionally, Gorman said, Amazon has agreements to pay money to enterprise zone sponsors in lieu of certain taxes, helping support community development projects, schools, housing and more across the five communities in Morrow County.

“Things are definitely going in a good direction,” said Gorman. “We’re not stagnant, like maybe some of our neighboring counties to the south.”

He added that continuing to build sites in this area will keep local contractors and other businesses busy. However, technology changes quickly and the company’s needs may shift, too. Since the first data centers popped up, storage capacity and energy requirements have changed, Gorman pointed out, and there’s no way for him to predict the local impact of future technology trends.

Umatilla County looks forward

Meanwhile, Umatilla County Commissioner Dan Dorran said he believes in the decades to come, Umatilla County will be seen as “a strong place to participate” in the industry. Dorran said the “thirst and hunger” has not diminished in the 15 years since Amazon started paying taxes in Umatilla County.

“It’s a driven industry and unless we all say, ‘Okay, I don’t want to know any more than what I already know,’ that industry’s not going to slow down,” said Dorran.

In Umatilla County, too, Amazon has a Strategic Investment Program agreement and several Long Term Rural Enterprise agreements in lieu of taxes, county assessor Rachael Reynolds confirmed.

Additionally, the data centers have created about 7,400 full-time equivalent jobs regionally, and Dorran said they have added about $9 billion to the gross domestic product in Eastern Oregon. Data centers also have a positive impact on another main industry in the area: agriculture.

Using GPS in agriculture is becoming more common, and that data comes from centers like — if not actually — the ones in Eastern Oregon, Dorran said.

“That’s how much we should be proud of Umatilla and Morrow counties, how much they’re contributing to our progress,” he said. “ It’s just hard to find and recruit industries that have done what Amazon and the data centers have done for Umatilla and Morrow counties.”

Dorran specifically mentioned Amazon’s philanthropic contributions, such as supporting local events or contributing financially to buildings or community services. Some of these things, he said, wouldn’t have even started or survived without Amazon’s support, “and now they’re thriving on their own.”

The company also, from his perspective, pays it forward with projects they need for their centers but that will also be used by others, like roads or energy substations. Dorran said he knows there are detractors, but hopes that people see the benefits the region has gained because of the data centers built here. Looking to the future, Dorran said he sees a strong continued partnership with the tech giant.

Data center: A physical facility where organizations house their critical applications and data. It is a central hub for storing, processing, and delivering information. Data centers are crucial for powering everything from online gaming communities to high-volume e-commerce transactions.

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Housing developments abound

From subdivisions to new apartments, housing is key component of regions’s growth

As the population in Umatilla and Morrow counties continues to grow, so, too, are the challenges of finding housing.

The availability of housing depends on several factors — primarily where one is looking and how much an individual or family can afford. In Hermiston, new subdivisions are offering homes in a range of sizes and prices.

Hermiston Assistant City Manager Mark Morgan anticipates new development this year and during the next several years.

“In terms of larger scale imminent development, I think we will see rapid single-family home development taking place this calendar year in the 270-home Upland Meadows subdivision on East Theater Lane behind Loma Vista Elementary School,” Morgan said.

“I fully expect that to be completely built out within four or five years. Additionally, this year we should see some rapid home building in the Henry K’s Place subdivision just east of Blue Mountain Community College off 10th street.”

Morgan said the Diamond Run development between Diagonal and Elm continues to build out “at a good pace.” He said Diamond Run was originally intended to be a 150 single-family home subdivision but now will be 300-plus duplexes and townhomes.

The Santiago Estates development on Diagonal near O So Kleen has 180-unit capacity for development.

“I anticipate that we will continue to see 20-30 manufactured homes placed in there each year for the next five to 10 years,” Morgan said.

Mike Boylan, principal broker and owner of Boylan Realty in Hermiston, said homebuyers have plenty of

choices in Hermiston.

“We are fortunate in our area to have a good mix of existing homes and new construction homes for sale,” Boylan said. “There is a good selection with a variety of price points, even for first-time homebuyers.”

According to Morgan, Hermiston’s biggest housing is market-rate apartment units.

“I always think of the 22-year-old recent graduate who gets hired as a teacher,” he said. “Since they’ll be making $50,000 a year as a single person, that does not qualify them as low income, so they don’t qualify for any available rental housing. But they’re also in debt up to their eyeballs and frankly may not want to commit to buying a house just yet.”

People in that situation then rent an apartment in Kennewick and commute every day to work in Umatilla County and export their income to the Tri-Cities.

Rees-Goad Project Crews work on May 22, 2025, as part of the Rees-Goad Project and the Highway 11/30 Connector Road project in Pendleton. The new roadway and water line infrastructure will connect Oregon highways 11 and 30, opening 250 acres of undeveloped land near Interstate 84 for future development. | Yasser Marte/East Oregonian
“In terms of larger scale imminent development, I think we will see rapid single-family home development taking place this calendar year in the 270-home Upland Meadows subdivision.” — Hermiston Assistant City Manager Mark Morgan

“We need to offer an onramp into the community,” he said, “so that people who are coming here to work have the ability to grow their lives here so we can maximize the economic return of the jobs they’re working, rather than just exporting it to Tri-Cities.”

Boylan agreed with Morgan.

“While there’s always been a need for rentals in our area, I have seen the need grow greatly in the past five years as more jobs come to our area,” he said.

Umatilla City Manager David Stockdale said the city has been experiencing a surge in new housing during the past seven years. Prior to 2018, the city averaged about 10 new homes per year.

“Since then, there has been at least 60 new homes built each year, with the most being last year at 109 housing units,” he said.

Despite that, Stockdale said housing is not keeping up with growth. He said new industrial development from Amazon Web Services and other businesses, coupled with some new commercial businesses and temporary construction jobs, have created an “overwhelming demand and need for housing in Umatilla.”

In fact, the city’s Building Lands Assessment indicated the city is approximately 1,200 housing units short of what Umatilla needed at that time to keep up with the demand.

“And, though there has been nearly 600 housing units built in Umatilla since 2018, the continued increases in demand for housing is still outpacing our recordbreaking development pace,” he said.

Stockdale said the city needs housing at every economic level.

“We are working hard to find ways to bring in developers to construct more multi-family housing and more affordable housing,” he said. “These types of developments often require incentives or subsidies in order to make it financially viable to any developer. For affordable housing, that often means having shovelready land available for developers, or land that has all utilities already available to connect to.”

Pendleton’s challenges

Pendleton finds itself in a similar situation to Umatilla. City Manager Robb Corbett said Pendleton does not have enough housing to keep up with growth.

“We are lacking in all categories,” he said.

Several apartment complexes have been built in the last several years, and Corbett said few units stay vacant for long.

“A developer built a 202-unit marketrate apartment complex across from the prison and they filled up surprisingly fast,” he said.

Corbett said the city did a housing study in 2011 and updated it in 2016. The study prompted Pendleton to place new housing as a high priority. And the city council in May reviewed the city’s latest housing needs analysis.

“I feel in some ways that we’ve had great success, but still have a way to go,” he said.

Corbett said the city created a revolving loan fund to help pay the cost of infrastructure, which the developer typically pays.

“This was done to lower the cost of development in the city,” he said. “We pay for the infrastructure and as they build new houses, they pay us back.”

The first phase of the infrastructure upgrade is happening in the south end of the city, and Corbett said he is confident it will attract housing development.

“It’s a really critical piece of our housing plans,” he said.

Jef Farley, owner and principal broker for the Coldwell Banker Farley Co. in Pendleton, said the city is experiencing a seller’s market. He said Pendleton has 2.65 months of inventory. According to the National Association of Realtors, a balanced market is about five months’ worth of inventory.

“I am very bullish on our local markets and that includes most of Eastern Oregon,” Farley said. “People are wanting to move here, and the lack of inventory is a real problem.”

Boardman

In Boardman, housing development is not keeping up with the population growth, City Manager Brandon Hammond said.

In early 2024, city officials met with a broad range of stakeholders on the topic of housing and what is needed to keep up with demand. Those stakeholders included Threemile Canyon Farms, Boardman Foods, the Port of Morrow and the school district.

“We came to the conclusion that Boardman was about 250 housing units short — minimum,” Hammond said. According to the city, about 60% of Boardman’s workforce lives outside the city.

“That spurred us to create a Housing Committee, and we set up a $1 million rotating fund to help developers who may need some help with development costs. We would loan a developer money to help pay for the development and the developer pays us back as homes sell.”

Like many cities in the region, Boardman lacks enough market-rate apartment complexes. And, Hammond said what is available comes with a high rental cost. The average studio apartment in Boardman costs $1,045 per month. A two-bedroom unit averages $1,350 and a three-bedroom apartment averages $2,000 per month.

Stanfield City Manager Darla Linker said new housing developments are keeping pace with growth, but they sell quickly.

“New development does not stay on the market long at all,” Linker said.

According to Linker, there is a 99-unit apartment complex in the construction phase as is a 14-lot development. Linker said another 16- to 20-lot development is currently in the planning stages.

Linker said Stanfield’s low tax rate and low utility fees serve as an incentive for new development.

Pendleton looks at housing needs

The city of Pendleton is working on plans for its growth and development over the next 20 years. The consultant group Winterbrook Planning conducted a housing needs analysis for the city and determined Pendleton does not need to expand its urban growth boundary to accommodate its anticipated housing need in the next two decades.

Pendleton can expect growth of around 1,250 people between 2024 and 2044, which is a slower growth rate than Umatilla County more broadly. Based on the population numbers as well as analysis of housing use, value and costs, Winterbrook predicts Pendleton will need 516 units, split between singlefamily detached homes, townhomes, multifamily units and mobile homes.

Around 60 to 90 acres will be needed for building units to accommodate the city’s needs for housing units and infrastructure for public facilities, the report says, meaning Pendleton’s 1,200 acres of available land within its urban growth boundary is plenty to support the city’s anticipated growth.

Snack food company a tasty Weston treasure

J&J Snack Foods has invested in numerous ways to keep local plant tip-top

When you last finished up a shopping trip at Costco and bought a foil-wrapped chicken bake at the food court, the sandwich probably came from Weston-based J&J Snack Foods.

Not a lot of folks know that, said plant manager Michael Watts.

“We supply eight out of every nine Costcos nationally,” Watts said, noting last fall the local plant began producing Walmart’s version of Hot Pockets, filled with cheese and cured meat.

With that contract came a need to add another shift rotation, putting the plant at capacity for production, Watts said.

The nationwide snack food company bought the former ConAgra plant in Weston in 2011. The facility was originally built in the 1970s for Lamb Weston’s needs, starting with frozen onion rings, he said.

In the past year or so the parent company has invested in 18 more ways to keep the Weston plant at its best, from new machinery to facility improvements, according to Watts.

That’s helped his dedicated, loyal crew of people produce some 40 million pounds of finished goods, “probably the best year J&J’s had since taking over in 2011,” he said.

Plans call for next installing imaging equipment on the plant’s pipe that pushes filling into dough.

“We run a lot of chicken here, and bone is always an inherent risk in poultry. The X-ray reduces physical hazards, those are serious for consumers. I’m excited about it,” Watts said, noting the plant already scans everything for metal fragments.

Like other food manufacturers J&J takes every precaution to protect its brand, most especially in the area of food safety. That’s especially true in plants

processing raw meat, as in Weston, he said.

In addition to iconic products such as Dippin’ Dots, Slush Puppie and The Funnel Cake Factory, J&J Snack Foods has stayed true to its roots with its line of original frozen pretzels, producing about 95% of those sold in supermarkets everywhere, Watts said.

In 1971 founder Gerald Schreiber purchased the failing J&J Pretzel Company at a court auction, setting in motion events that would yield a publicly-traded snack food empire, according to the company’s website.

What started with one facility and eight employees has grown into locations across the country, products in supermarkets everywhere produced by 4,200 employees.

Some 200 of those work in Weston, most arriving for their shift from Walla Walla, Athena and MiltonFreewater, Watts said.

The company has a tradition of supporting workers, ranging from promoting a fun culture and work-life balance to offering generous retirement and education packages.

“We

supply eight out of every nine Costcos nationally. Last fall the local plant began producing Walmart’s version of Hot Pockets, filled with cheese and cured meat.” — J&J Snack Foods plant manager Michael Watts

J&J Snack Foods in Weston sends 40 million pounds of frozen food product into grocery stores every year. Plant manager Michael Watts credits the national company with creating a nurturing work culture and his employees for having a strong work ethic. | Michael Watts/J&J Snack Foods

He knows firsthand the help the education part can play, Watts pointed out.

Schreiber had established the Nathan Schreiber scholarship in his father’s name and when Watts started as a line worker 12 years ago, he took advantage of it, going to college for a business degree.

“It changed my life,” he said.

His “backbone” employees are very much part of that life, Watts emphasized.

“The culture here is hard working, it’s a work family. A basic requirement here is to have respect and compassion for everyone — from people who have worked here 30 years to the person who started today,” he said.

Last fall J&J underscored its original beginning with the roll-out of a Bavarian-style frozen pretzel that incorporates rye, onion and garlic. Soon the Weston facility will add frozen empanadas that go into store deli cases.

Watts encourages people to consider J&J Snack Foods as a lifetime job.

“It’s a really good company to work for. I’m always looking for my next best employee,” he said.

Pretzels are among the many products the J&J Snack Foods plant in Weston produces. | Michael Watts/J&J Snack Foods

On the cutting edge

Hill Meat Co. in Pendleton invests $18 million to expand business

Information from Business Oregon, the state’s economic development agency, shows manufacturing makes up the biggest slice of Northeastern Oregon’s economy.

Inside those numbers, food manufacturing claims a whopping 80%, followed by wood products at 11%. See the information online at shorturl.at/WjOQI.

Making food products that are distributed nationally and globally comprises the largest workforce in the region, with established brands such as Hill Meat Co., Business Oregon has reported.

The Pendleton-based premium meat company is set to take an even bigger bite when it completes an $18 million expansion that doubles the facility’s smokehouse capability by 30,000 square feet.

Last year, CEO Jim Cheney told the East Oregonian expanding the scale of the smokehouse gives the company the opportunity to add a curing department, a new pass-through oven, a couple more bacon lines and a dedicated room for the sausage stuffer.

The project is predicted to be done in early fall, Cheney said in April 2025.

Bacon really does bring home the bacon for this business established in 1947 by Sam Hill and that Cheney took ownership of in 1992.

“It’s our top product, and we have the different types of smoke,” Cheney recently said, listing pepper, applewood, cherrywood and hardwood.

That’s followed by several kinds of sausage, including smoked, chorizo and fresh.

“Expanding the scale of the smokehouse gives the company the opportunity to add a curing department.”
— Jim Cheney, CEO of Hill Meat Co.
Construction is underway adding 30,000 square feet at Hill Meat Co. in Pendleton. The $18 million expansion project includes state-of-the-art equipment. | Yasser Marte/East Oregonian, File

Near and far

The products ship to the Far East and to some 4,000 grocery stores in 20 western states.

“We are probably the largest independent business in Eastern Oregon,” the CEO said.

Staying that way requires innovation, investment and “a really good management team,” Cheney explained, using “incredible” several times to describe the employees of Hill Meat, including his three daughters.

With the expansion comes new and state-of-the-art processing equipment totaling close to $30 million from Germany and Switzerland, two countries that know about producing cured meats.

Such growth demands up-to-theminute packaging equipment, as well as the labels and graphics done in-house.

“We recognize people buy with their eyes so it has to look good. And we have to have efficiencies, so you need the latest in packing equipment,” Cheney said.

He leans hard on staying on the edge of new technology. The company’s newest smoke generators are made by Fessman, a German company.

The machinery ensures a smoky aroma and coloration for Hill Meat’s pork line. Each generator stands 8 feet wide and 10 feet long.

Cheney said representatives from Fessman flew from Germany a year and a half ago to Pendleton. Fessman imparted advice on the state of its equipment, which inspired Cheney and his family to purchase a state-of-the-art steam system and a new boiler for the new facility.

Meeting demand

These business decisions are based on the company’s healthy, comfortable and continuous growth that puts a million pounds of product a week into grocery stores and restaurants.

“We have to be able to supply our customer base as it grows,” he pointed out.

What’s not in Hill Meat products is equally important as what is.

“I’m pretty proud of what we do here, we are very concerned with producing a wholesome product. We don’t use any known allergens like soy extenders, milk or wheat flour,” Cheney said, noting those ingredients are usually used for types of meats that would not

meet his company’s standards.

“And we have very stringent standards that are actually higher than the USDA’s … Our sanitation is impeccable. We have to have a dedicated, quality-assurance product,” he said.

Cheney passes his expectation of excellence and energy for achievement on to the staff.

There should be no question in the minds of the 150-something employees of the company’s commitment to future success, the CEO emphasized.

“It comes from the top. It’s my responsibility to make sure of that,” he said.

— East Oregonian reporter Yasser Marte contributed to this feature.

Jim Cheney, CEO of Hill Meat Co., talks about the future production and expansion of his company in Pendleton. — Yasser Marte/East Oregonian, File

RV industry rolling into future

Solar power systems, tankless water heaters a boon for customers

Two regional recreational vehicle dealers say that while there has been recent innovation in the industry, they find what their customers are really looking for is service.

Carolyn Thompson, of Thompson RV in Pendleton, has watched the industry evolve and change for decades, but proper service protocols and routines remain most important to her customers, she said.

Not only do local dealers build relationships with buyers, they are physically accessible and can offer personalized solutions, Thompson pointed out.

wPaul Comrie, owner of Comrie RV in Hermiston, agrees, noting his family has been in RV sales since the 1960s.

But the business of “moving people on wheels” began almost 100 years ago with an auto repair business in the Comrie family, Paul Comrie said.

Numbers heading up

According to data from the Recreational Vehicle Industry Association, 2021 brought a historic sales high with more than 600,000 RVs shipped from manufacturing plants in the United States.

After those first summers of the pandemic, this market dropped — it seemed nearly anyone who was going to buy one had done so.

The trend is climbing back up, however, and nearly

98,000 of the homes on wheels have shipped nationwide so far this year, RVIA’s report shows.

Ready to meet improved demand are the innovations that have come on board in recent years, said Bill Taylor, president of Oregon RV Camper Association, formerly part of the Good Sams network of members around the country.

Bill and his wife, Barbara Taylor, camp around the state most weekends of the year with people from the nonprofit’s various chapters, including those from Eastern Oregon.

Indeed, coming to the Pendleton Round-Up to camp and celebrate the “premier” rodeo has been on Bill Taylor’s wish list for a long time, he said.

Recreational vehicles are ready for buyers May 22, 2025, at Thompson RV, a family-owned and operated recreational vehicle dealer on Southgate in Pendleton. The business first opened its doors in 1953 as a Nash Rambler dealership in downtown Pendleton. | Yasser Marte/East Oregonian

The industry that was once synonymous with “roughing it” has continued to escalate with more and more features to make life more comfortable. Starting with onboard computers that produce information about every built-in system to full-side slide-outs to extra bathrooms with barn doors, RVs evolve every year to be more “home away from home” than ever, Taylor explained.

“You can’t hardly buy an RV that doesn’t come with automatic leveling jacks that work with the push of a button. And now most have more than one AC unit, you stay plenty cool. The bathrooms, the manufacturers realized, needed to be enlarged and made much more comfortable, they’re bigger and better,” he said.

Although Taylor’s not sure why folks would choose a patio porch on the back of their RV, those have been popular options, as have the size and features of kitchen appliances available now.

“We have residential refrigerators now. We have the same size as my brother has in his home,” Taylor said, laughing.

RV manufacturers have, essentially, created a situation where nothing is impossible, he added.

“We’ve

Points for more power

Paul Comrie in Hermiston has found his customers are happy to see more and better solar power systems on the new models. This improvement has made perhaps the biggest change of recent times, relieving owners of the need to use shoreline power and allowing them to charge lithium batteries, he said.

The threat of running out of hot water in the RV shower has virtually been eliminated, as well.

“You know how you’d have to turn off the water while you shampooed your hair to conserve water. Now we’ve gone to tankless water heaters. Those heat up fast and you can take as long of a shower as you want. It’s nice,” Comrie said.

Carolyn Thomson in Pendleton believes many of the new features in RVs have come about through moreinformed buyers.

Not only do today’s customers want mobile Wi-Fi already in place, they know how to monitor the rig’s lithium batteries by phone. They expect the brighter, “almost forever” LED lighting — in traditional warm lighting hues, no longer the cold blue of days past, Thompson pointed out.

“That’s the main thing people are getting wowed by,” she said.

always sold local products. People don’t want to purchase from a ‘box store’ of RVs,” local service people have an understanding of the local road and weather conditions affecting the rigs after purchase.” — Carolyn Thompson, of Thompson RV

Bill and Barbara Taylor of the Oregon RV Camping Association camp around the state most weekends of the year with people from the nonprofit’s various chapters, including those from Eastern Oregon. The couple say recent manufacturing innovations in the recreational vehicle industry are broadening the appeal of RV life.

Barbara Taylor/Oregon RV Camping Association

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Good Shepherd expands into Boardman

Hospital and Health Care System growing strong and healthy

Good Shepherd Health Care System in Hermiston for about the past year has been on a growth spurt.

The hospital and medical system on May 5 reported its latest development — buying 61 acres on Main Street in downtown Boardman for a facility providing outpatient services for the residents of Boardman and surrounding communities in Morrow County.

“This development is a testament to our ongoing mission to provide compassionate and exceptional care, close to home, meeting the needs of our growing

community,” Good Shepherd CEO Art Mathisen said in the statement. “Purchasing this land in Boardman positions us well to expand services for our Morrow County patients, ensuring they have access to the most essential health care services, right in their own community.”

He also said Good Shepherd plans to collaborate and seek input from the city of Boardman, residents, leaders, businesses and community groups throughout the facility’s planning and development process.

Columbia River Health Clinic operates in Boardman. Columbia River CEO Sheila Corpus praised Good Shepherd’s move.

“Purchasing this land in Boardman positions us to expand services for Morrow County patients, ensuring they have essential health care services, in their own community.”

— Good Shepherd CEO Art Mathisen

Good Shepherd Health Care System on Feb. 18, 2025, announced two surgeons joined its orthopedics department at 1122 W. Elm Ave. in Hermiston. | Contributed Photo, File
“The Hermiston medical center dialysis treatment facility is a great leap forward for kidney care in the region. We are able to provide uninterrupted dialysis care for the patients who need it, helping them to stay near their loved ones while being cared for.” — Good Shepherd Health Care System nephrologist Dr. Fadi Akoum

“We view this as a wonderful opportunity to work more closely with Good Shepherd,” she said in a statement May 19. “They have always been dedicated to helping us meet the needs of our patients. Having them as ‘neighbors’ will be a game changer not only for our patients but for the entire community!’

Columbia River Health has collaborated and partnered with Good Shepherd Health Care System for years. The addition of this new property, according to Columbia River Health, means the organizations are poised to strengthen that collaboration and meet the demands of a growing population.

Meeting the demands of growth has been a constant for Good Shepherd, which in February relocated its burgeoning orthopedics department to a larger location at 1122 W. Elm Ave. in Hermiston.

At more than 13,000 square feet, the new site more than doubles the exam room, procedure room and on-site radiology capacity. The new space also provides the added convenience of closer parking and main floor accessibility for patients. Good Shepherd reported it bought the building in July 2024 and gave it an extensive overhaul to enhance the patient experience and provide state-of-the-art care.

Mathisen at the time said the new space allows the health care system to expand its team of surgeons and specialists to — again — meet the growing needs of the region.

Seven physicians at Good Shepherd Orthopedics provide a variety of the most advanced orthopedic treatments, according to a press release, including Mako robotic surgical intervention, joint replacements, sports medicine and arthroscopy.

Good Shepherd Health Care System has more than 1,200 employees and also plays a significant role in community charity. The Good Shepherd Community Health Foundation operates the annual Festival of Trees with the Hermiston Kiwanis.

Amanda Carnine, vice president of the foundation, highlighted the foundation’s accomplishments and contributions at the annual Community Meeting in November.

The Festival of Trees raised about $85,000, of which more than $30,000 was allocated to the foundation to invest back into the community. The annual Scramble for Scholarships raised more than $50,000 for medical scholarships.

The foundation has two grant cycles each year — in spring and fall. The foundation in 2024 provided 25 grants for a total of $175,625.

Good Shepherd has the designation of being a Critical Access Hospital serving a rural community. That designation affects how a hospital is reimbursed. A Critical Access Hospital for Medicare patients is reimbursed at about 99 cents to the dollar. Hospitals without the designation are reimbursed by 30 cents to the dollar. Mathisen said having a Critical Access Hospital designation allows hospitals “to keep the doors open and pay their bills and pay their staff.”

Mathisen said Good Shepherd had 24,909 emergency room visits in the past year.

“For most Critical Access Hospitals, that number is 12,000 to 13,000,” he said. “We’re double that. This is as busy as most hospitals that have 100 beds.”

Good Shepherd in 2024 also extended the hours at its Urgent Care, operating 7 a.m. to 7 p.m. seven days a

week. In January that year, Dr. Fadi H. Akoum joined Good Shepherd Health Care System’s new nephrology clinic, coming from Kadlec Regional Medical Center in Richland, Washington. Two months later, the Hermiston medical center made dialysis treatment available to patients and providers in the region at its Nephrology Clinic, 600 NW 11th St., Suite E-10, in Hermiston. The Hermiston hospital reported it equipped its Critical Care Unit and Emergency Department to provide dialysis treatment, and has plans for future expansion.

Inpatient dialysis is a critical and life-saving treatment that historically has not been available in this area. Local hospitals often transfer patients long distances to facilities providing inpatient dialysis, which can be a significant hardship for patients and families to travel.

“This is a great leap forward for kidney care in our region,” nephrologist Dr. Fadi Akoum said in a press release. “We will be able to provide uninterrupted dialysis care for the patients who need it, helping them to stay near their loved ones while being cared for.”

For more information about Good Shepherd, visit gshealth.org

Good Shepherd President and CEO Art Mathisen began his new role on July 17, 2023. . | Northeast Oregon Now, File
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