Salem, OR – The Columbia Development Authority (CDA), a small agency tasked with repurposing the Umatilla Chemical Depot in eastern Oregon, is facing an uncertain future after the federal government pulled its funding. The abrupt decision, issued by the U.S. Department of Defense, is a direct result of alleged mismanagement and ethical violations surrounding Greg Smith, the CDA’s executive director. The agency could lose nearly $800,000 a year, a significant blow to the local project designed to create jobs, preserve parts of the Oregon Trail, and protect wildlife in the region.
For years, the CDA’s operations were largely funded by the Department of Defense through the Office of Local Defense Community Cooperation. The federal funding was used to transform the former military base near Hermiston into an industrial hub, with portions set aside for environmental preservation and historical conservation. However, the recent loss of funding has raised concerns among local government officials who may be required to cover the gap if the CDA is to survive.
The funding cut comes in the wake of a series of investigations and mismanagement claims against Smith. A federal letter issued last Friday indicated that the Port of Morrow, which acts as the CDA’s fiscal manager, mishandled Smith’s service and grant work. The letter also suggested that one senior Port official may have committed a federal crime in relation to the grant application process. This development has placed both the CDA and the Port of Morrow under intense scrutiny.
The Port of Morrow, a key partner in the CDA, is under pressure to respond to the allegations and take immediate action to either voluntarily relinquish the grant or face further consequences. Failure to comply could jeopardize other federal funding for the Port. Despite the urgent situation, CDA officials remain in the dark about how the Port plans to address the issue. Kim Puzey, the CDA board chair and executive director of the Port of Umatilla, expressed surprise at the gravity of the situation but is expecting a “robust discussion” at the upcoming CDA board meeting on February 25.
At the heart of the controversy is Greg Smith, who has been accused of inflating his pay claims and engaging in double-dipping, collecting salary from both his legislative duties and the CDA simultaneously. According to public records and a recent investigation by The Enterprise, Smith regularly claimed eight hours of work per day for the CDA on days when he was also performing legislative duties. Smith, who was paid $129,000 annually by the CDA, was also collecting per diem payments from the state legislature on those same days.
This dual compensation arrangement was explicitly prohibited when Smith was hired as executive director in 2015. At the time, the Port of Morrow assured federal partners that Smith would not receive CDA pay while serving as a state legislator. However, federal officials found discrepancies between Smith’s timecards and the financial records, which indicated that a significant portion of his pay during 2023 and 2024 was funded through federal grants. Smith has not responded to inquiries about these discrepancies, and the Port of Morrow’s explanation of Smith’s timekeeping was deemed insufficient by federal investigators.
In addition to the pay concerns, Smith’s efforts to increase his salary have raised alarms. In late 2023, Smith proposed a substantial pay raise, suggesting an increase from $129,000 to $304,000 annually. When the board did not approve the raise, Smith’s team submitted a federal funding application with a salary of $195,000, which had not been approved by the CDA board. Despite this, the application falsely stated that the board had authorized the pay increase, a claim that the federal agency later determined to be untrue. This misrepresentation played a significant role in the approval of the grant, and federal officials have cited it as a key reason for their decision to terminate funding.
Smith’s controversial actions have not been limited to his time at the CDA. Prior to his tenure with the agency, he faced backlash in Malheur County, where he resigned from his position as economic development director after a state-funded rail shipping project failed. He was also involved in a public records scandal that cost Malheur County over $68,000. More recently, Smith was removed from his contract to manage a business counseling center at Eastern Oregon University following an internal investigation.
These repeated controversies have made Smith a polarizing figure in Oregon’s public sector. Last year, the Oregon Government Ethics Commission found that Smith had failed to disclose a key client in his private business, violating an ethics law he had previously championed. He has also sought compensation from the CDA, the Port of Morrow, and Umatilla County, claiming that his reputation was damaged by the challenges to his pay raises.
As the situation at the CDA continues to unfold, the loss of federal funding places local governments in a precarious position. The CDA Board, comprised of representatives from the Port of Morrow, the Port of Umatilla, Morrow County, Umatilla County, and the Confederated Tribes of the Umatilla Indian Reservation, may be forced to cover the shortfall. This could result in additional financial burdens for local taxpayers, with assessments potentially reaching $200,000 per agency.
The future of the CDA hangs in the balance as federal officials, local governments, and the Port of Morrow work to address the fallout from the allegations against Greg Smith. The CDA Board is scheduled to meet on February 25, where the next steps in the agency’s struggle for survival will be determined.
