The Talent Urban Renewal Agency on Monday authorized its executive director to commit $500,000 from agency funds to a proposed Gateway Business Incubator and to prepare a supplemental budget to make the money available.

Staff presented the request at the start of the meeting, saying the agency could move up to $1,250,000 of a regional peer award (about $4,700,000 total) to the incubator and that $500,000 represented the "upper limit" of remaining URA funds staff considered available. "I'm requesting that the [agency] board commit $500,000 from the [agency] budget," staff said. The staff presentation said a commercial-viability study by Leland is posted on the city website and that a feasibility study led by the Talent Business Alliance and co-funded by the Port Family Foundation should be substantively complete by year end.

Board members asked how state/federal funding rules would apply and whether the funds could be reverted to the Gateway infrastructure project if no viable incubator operator were selected. Staff said OHCS had indicated funds could move back to infrastructure if needed and that the agency would seek an award letter and then negotiate a grant amendment once feasibility was clearer.

Several board members urged additional community engagement before final expenditures. "I'm hearing from the community that they don't feel like we're being transparent enough," Member Medina said, calling for a listening session so residents can weigh in. Other members emphasized the long history of public outreach and local planning that has repeatedly identified business incubation as a community priority.

Two board members disclosed potential conflicts of interest because they are employed by the Talent Business Alliance, which proposed the incubation concept and may respond to the city's request for interest. "I do need to declare a potential conflict with this agenda item, and that's because I'm a paid employee with the Talent Business Alliance," one member said. Another made a similar disclosure and described it as "potential" because TBA had not yet responded to the city’s solicitation.

After deliberation, the board voted on the motion to authorize the executive director to commit $500,000 and prepare a supplemental budget. The roll-call vote recorded: Councilor Coley — Yes; Councilor Penemra — Yes; Councilor Medina — No; Councilor Pastizo — Yes; Councilor Byers — Yes; Councilor Parra Miller — Yes. The motion carried.

What happens next: staff said it will continue work on environmental review, bring an infrastructure design contract to the next meeting, and refine performance measures with OHCS as the agency moves toward a grant amendment and any expenditure of funds. If feasibility or procurement considerations dictate otherwise, staff said the funds could be reallocated back into the broader Gateway infrastructure project.

Funding and timeline details discussed in the meeting included the $1,250,000 potential reallocation of peer award funds, the $375,000 previously dedicated by the agency to the Gateway Project, and the OHTF/federal grant closeout deadline of February 2029; staff said OHCS staff want a clearer plan for the funds by the end of the calendar year.

The board's action authorizes the agency to proceed with committing the funds and preparing the supplemental budget; it does not authorize immediate spending pending further feasibility analysis and implementation steps described by staff.