Ground was broken Wednesday to extend paved roads, water lines, sewer pipes, and upgraded electrical power to the South Hermiston Industrial Park (SHIP).
The construction project includes:
- Paving and installing water and sewer lines to S.E. 10th Street between U.S. Highway 395 and E. Penney Avenue
- Paving and installing water and sewer lines to a new road spur from S.E. 10th Street into Port of Umatilla property within the SHIP
- Completing paving on S.E. Campbell Drive to E. Penney Avenue
- Installing new underground power through Port of Umatilla property to loop with existing power along U.S. Highway 395
The SHIP is located off of Highway 395 near the Walmart Distribution Center and is made up of parcels ranging in size from 1.5-20 acres.
The area is part of Local Improvement District (LID) #322 formed last year to help pay for the project. Property owners in the LID will pay about 40 percent of the total cost estimated to be around $2.3 million. Part of that cost estimate includes budgeting for potential material cost increases. The other 60 percent will come from a $1.46 million U.S. Economic Development Administration grant, $250,000 from the city of Hermiston and $50,000 from Umatilla County.
In May, the Hermiston city Council awarded a contract for $1,614,161 to Tapani, Inc., to do the work.
The utilities project is expected to be completed in four months and create about 16 shovel-ready parcels.
The existing supply of parcels five acres or smaller in the SHIP has been experiencing development of about one parcel every two or three years and is now approximately 80 percent full.
The target market for the new parcels is similar to what exists in that area already. Those are primarily small manufacturers, building trades warehousing, and other employers with less than 50 employees.
Work will coincide with the construction of the Meyer Distributing warehouse, a privately developed 179,000 square-foot auto parts distribution center in the SHIP. That facility is slated to open in the fall with approximately 70 full-time employees.
