CITY COUNCIL || Negotiations Pave Way for First UGB Expansion Area Development

City Council Recap, October 3

Courtesy: Tor Hanson, Bend Chamber Special Projects Reporter

City officials and four developers on Bend’s Westside have successfully negotiated a development agreement for the planning and development of the first expansion properties in the new UGB (Urban Growth Boundary). After a year-and-a-half of discussions; Northwest Crossing (NWX2, Brooks Resources), CCCC LLC (Coats Property), Rio Lobo Investments, and Anderson Ranch Holding Company have agreed to pay for several infrastructure improvements on Bend’s Westside to be able to build more than 1,000 homes on 383 acres.

The agreement lines up with Council Goal #1, which states “Implement a growth plan that is consistent with community goals for the economy, environment and affordability.” The sub-goal is to prioritize planning and infrastructure investments in the “expansion” and “opportunity” areas.

Russ Grayson told the council, “We filled the board room for a year-and-a-half having these discussions.”

Comparing the UGB process to flying an airplane, Grayson told the councilors the city has been cruising at 30,000 feet, working on the comprehensive plan. Focusing in on a specific expansion area in town, the plane is now moving down to the 15,000 foot level. Eventually the process will move into master plan for the expansion area (5,000-10,000 feet), and finally landing the airplane, and start building homes on the ground.

“We’re in the second step of the process and culminating this work with a development agreement.”

“The contract sets everything in stone regarding what the developer needs to do,” said Grayson. “It is a package deal.”

The contract sets forth required infrastructure construction upgrades on the developers’ part. The contract also locks down what the city can ask for from the developers. Everything is laid out in the contract. Once the contract is approved, the city cannot add additional commitments from the developer group regarding transportation, water, and sewer.

Properties included in the agreement are located both inside and outside of the UGB. All of the properties within the UGB are defined in the city of Bend’s comprehensive plan in regards to what can be built on the individual parcels of land – single-family or multi-family residences.

There is also a separate development application currently moving through the county’s decision process for the property that falls outside of the current UGB – the so-called Transect Development. As a part of that discussion, the city has agreed to a binding agreement with the two property owners (CCCC LLC – Coats Property and Rio Lobo Investments) when it comes to infrastructure impact taking place within the city limits. However, the discussions do not bind the city to land-use requirements.

The UGB expansion area consists of 383 acres of land set aside for residential development as well as 29 acres of employment land. An additional 5.4 acres are already located within the city limits. According to the comprehensive plan, the developers are set to build more than 1,000 single- and family-units, including affordable housing units. The plan also includes a future elementary school.

The two properties that are currently a part of the county (Transect Development) are slated for an additional 187 residential lots, adding more than 1,100 housing units on Bend’s Westside.

The current UGB plan was approved by the state in late 2016 and includes 2,380 acres that will eventually be annexed into the city. It is the first major development of the many expansion areas.

According to Grayson, the four different developers approached the city in early 2017 as individual units, an approach that would see city staff work on four different mitigation studies concurrently.

“We wanted to look at this [project] as one large development and cumulative impacts, figure out what the required mitigation was and the improvements, and then figure out how it would be built,” according to Grayson.

A feat according to Kirk Schuyler, President of Brooks Resources Corporation who summarized the outcoming of the negotiations saying, “You know when you got it right when no one feels they didn’t get their share or paid too much.”

The main part of the agreement between the city and the four developers focuses on transportation improvements on Bend’s Westside. According to the agreement, the four developers acting under the un-official name of Westside Infrastructure Group (WIG), will provide infrastructure on Bend’s Westside.

A total of 13 intersections were analyzed with eight of those identified as having “Significant Impact.” To solve the added traffic stemming from the new housing units, the developers have agreed to build two new roundabouts (Skyline Ranch Road & Skyliners Road plus Skyline Ranch Road & Shevlin Park Road). In addition, the developer will pay to push Skyline Ranch Road all the way from Shevlin Park through Skyliners.

The total cost for the road improvements are estimated at $1.4 million, which will be shared amongst the developers. Some of that money is already flowing to phase 3 of the 14th Street improvement project, which in itself is not a part of the traffic mitigation, but will help move traffic on Bend’s Westside.

Reminiscent of the Westside Consortium infrastructure improvement project in the early 2000’s, that saw 10 private developers pitch in for the construction of several roundabouts on Bend’s Westside and the Bill Healey Bridge, the four developers again decided to approach the city as one unit instead of “racing to the planning desk.”

However, there is a major difference between the agreement negotiated between the Westside Consortium and the city 18 years ago and the WIG development agreement. That time,  developers were paid back for infrastructure upgrades via SDC-credits (System Development Charges). This time, the developers will not receive any credits for the transportation part of the agreement.

“This is a model that we will be using with growth management when we start looking at other expansion areas,” said Grayson. The model will allow the developers to expedite future Land Use submittals.

The project also includes upgrading the existing sewer and water systems in the area. However, most of these projects will receive SDC credits, which will come into play as the developers start building the housing units.

The credits are estimated to come in around $6.4 million, but as the developers start to build out their properties, the projects will generate an estimated $23 million in SDCs during the life of the construction projects (approx. 15 years).

According to Schuler, the first houses will be built in 2020.

“Almost four years after [the city] expanded the UGB, the first house will be there,” said Schuyler.

Vote: Unanimous – 6 in favor, none against. Boddie absent.

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  1. Roland says:

    Way to go Bend and Greedy developers set up to keep the most expensive place in bend the most expensive. Bet your going to throw some nice low income housing in there to overcome your grief for affordable housing…. yeh Right

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