featured-projects

Bandon: Face Rock Creamery

The City undertook and completed negotiations with the owners of the newly incorporated Face Rock Creamery, LLC, for leasing a portion of the City’s property to develop the new cheese factory. Under the terms of the lease, Face Rock Creamery was required to utilize their own funds and obtain private financing to construct and operate a new 6,000 square foot cheese factory. The rent includes a flat fee of $40 per month to cover the portion of the land dedicated to non-cheese/non-ice cream retail sales, plus an in-lieu of rent payment of 1% of gross revenues from all sales between $1 million and $2.5 million, plus 2% of gross revenues from all sales over $2.5 million. The initial lease term is 20 years, with options to renew for three subsequent 10 year terms, subject to renegotiating the rent charges. Leasing the property instead of selling it reduced the out-of-pocket expenses for Face Rock Creamery, and allowed the City to retain the asset. For its part, the City agreed to use a portion of its Urban Renewal funds to place the existing overhead utilities underground; relocate and upgrade the adjacent entrance road; install underground drainage, a public parking lot, sidewalks, and a small tourist park; and construct public restrooms. The City amended the boundary of the Coquille Valley Enterprise Zone to include the cheese factory property. This allowed Face Rock Creamery to take advantage of the property tax abatement available through the Enterprise Zone program. The City also allocated to the new cheese factory project the water, sewer, transportation, and drainage system development charge (SDC) credits from the former cheese factory that came with the property purchase. The ownership of those SDC credits remains with the City, but they are essentially being leased to Face Rock Creamery. This reduced the overall out-of-pocket private sector development cost by a significant amount, while still allowing the City to retain ownership of those SDC credits. Although public restrooms had been planned for many years and the capital funds were available through Urban Renewal, a major consideration was finding a long term resource for paying for the restroom operating, maintenance, and cleaning costs. Under the terms of the lease, Face Rock Creamery agreed to be responsible for opening, closing, cleaning, and providing the expendable supplies for the restrooms.

Funding/Leverage

  • $4.5 million total costs
  • $500,000 urban renewal purchase of property
  • $1.5 million from urban renewal for public infrastructure and restrooms
  • Face Rock Creamery secured loans from the Port of Bandon Business Development Fund, Craft3 Bank, and Business Oregon as well as owner’s capital, for a total private investment of $2.5 million.
  • In-kind contributions by Bandon Electric Department for off-site electric system improvements
  • Cooperation for utility undergrounding

Community Benefits

  • 15 full time employees
  • Other additional employment for delivery, transportation, milk truck drivers as well as the temporary employees during construction
  • Tourist attraction that will impact entire community
  • New market for local dairy farmers for their milk

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Hood River: Waterfront

In 2008, the city of Hood River and the Port of Hood River collaborated on the Hood River Waterfront Urban Renewal Area. The area contains the Waterfront Park on the riverside of Portway, Avenue and an industrial area to the south of Portway, Avenue. The industrial area was underdeveloped and lacked adequate infrastructure for significant development to occur. The urban renewal agency entered into an agreement with the Port of Hood River for the port to finance improvements to Portway, Avenue to be repaid in the future with tax increment proceeds. These improvements widened Portway Avenue, installed sidewalks, curbs, gutters, and street trees. The resulting growth in the Area has been dramatic.

Funding/Leverage

  • Two loans between the Agency and the Port of Hood River: $257,949 and $236,592. Loans to be repaid out of tax increment proceeds
  • The addition of 317,000 sf of industrial uses in completed projects for a total investment of $40,371,245
  • $1.2 million investment in Anchor Way and Portway Avenue by the Port of Hood River
  • 380 direct jobs in completed projects
  • an additional 185,000 sf of industrial uses under development for a total investment of $31,300,000
  • 225 jobs projected in projects under development

Community Benefits

  • 380 jobs in completed projects, 225 jobs under development, and another 250 jobs in potential development beginning in 2017
  • new restaurants have been developed at the waterfront servicing the entire community
  • development of a waterfront bike and pedestrian trail and open space along the west edge of Nichols Basin
  • construction of the pedestrian bridge trail and kiosks
  • development of a passive park

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Lake Oswego: Lake View Village

Lake View Village anchors Lake Oswego’s shopping district and works together with the adjacent Millennium Plaza Park to create a strong sense of place and gathering place for the community. The six retail/office buildings on the 2.3 acre downtown block surround a 365 space parking garage. The quality of the design and the attention to detail within the pedestrian realm is what attracts shoppers, restaurant patrons and strollers to this site.

Lake View Village is the result of a public/private partnership between the City of Lake Oswego’s Redevelopment Agency and Gramor Development, Inc. The Redevelopment Agency assembled the land and sold the developable portion to Gramor for retail and office redevelopment. In addition, the Agency provided $4.5 million toward the cost of the public parking structure, which is maintained by Gramor.

The goals for the project called for a development that would be more than just a place to shop. This project was intended to help revitalize downtown, enhance the downtown’s “sense-of-place” and to fit into the existing fabric of the downtown in a manner that would further Lake Oswego’s vision of a pedestrian-oriented, mixed-use urban village.

Funding/Leverage

Funding for this project was provided by the Lake Oswego Redevelopment Agency and Gramor Development.

Total = Approximately $34.8 million

  • LORA: $6,800,000.
    • $4,600,000 for the garage.
  • Gramor Development: Approximately $22,000,000.
  • Tenants: $6,000,000.

Community Benefits

  • Over 300 new jobs created
  • More than $25 million in new retail sales each year
  • Provides the community 20 times the original tax revenue for the property
  • Four restaurants, 14 retail tenants and 10 office tenants
  • 365 parking spaces: 183 full-time public parking spaces and 182 available for public parking during certain times

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Madras: Inn at the Cross Keys

The Madras Redevelopment Commission (MRC) identified the need for an additional hotel in downtown Madras. The MRC sought a developer to construct an aesthetically pleasing 60 + room hotel that included a covered entry way, pool, and public meeting room.

Funding/Leverage

  • $525,000 performance based grant
  • $4,175,000 private investment
  • $4,700,000 Total Investment

Community Benefits

  • Approximately 15 new employees
  • $4,175,000 of additional tax assessed value to Urban Renewal District
  • Hotel accommodates additional tourism lodging demands in Central Oregon
  • Many seminars, meetings, and events are held in the public meeting room each year
  • Approximately 50,000 in transient room tax

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