Constructed for early Pendleton entrepreneur Thomas Milarkey, one of the first Catholics to settle in Pendleton, this building served as a place where Mass was often held in his home by visiting priests, and Milarkey was instrumental in helping establish a Catholic church in Pendleton by 1884. Reportedly the first brick building constructed in downtown Pendleton, the 25' by 100' structure has strong Italianate Commercial features on the second-floor façade. In the 1880's it was known as the State Saloon and was a popular watering hole for cowboys and ranch hands. Later it became the Rainbow Café, while the second floor once held a gambling hall and served as a winter residence for early miners and sheepherders. A major restoration in 2006 returned it to its original 1880's façade, including reconstructed first-floor transom windows behind the awning, carefully exposed original brick, and the restored original neon Rainbow sign.