HERMISTON — The Hermiston City Council at its meeting Monday, April 14, gave City Manager Byron Smith authorization to make a $2.1 million offer to purchase 140.06 acres of that includes a portion of the Hermiston Airport’s Runway Protection Zone.
The Federal Aviation Administration has agreed to pay $1,890,000 of the purchase price. The FAA has been funding various environmental and design reviews for a number of years, and has funding included in its current year budget to pay for 90% of the real market value of the purchase.
The city is seeking to acquire the land to realign Ott Road out of the airport’s RPZ.
In a staff report, Assistant City Manager Mark Morgan said the offer price of $2.1 million was established through an appraisal process and verified by an independent third-party appraisal review.
The city has been pursuing the property since at least 2017 with city consultants working with the property owners.
The realignment project will cost around $4 million. The bulk of that figure — $3,650,000 — comes in the form of an FAA grant, with the city kicking in $255,000.
Morgan said the city will lease the ground for agricultural production to recoup its $255,000 over time. Based on preliminary market data, Morgan said the city should earn back its portion of the investment within three to five years.