[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6579312,"mediaKeyId","3091729-8a982b18b1fb829e772b0d7bf8aaeac8","parentId",3091729,"title","Urban renewal advisory committee recommends Palindrome Properties as preferred developer for Northwest Rubber site; Leland analysis says proposal likely to net—","audioSeconds",2491,"startMs",79000,"endMs",2570000,"viewUrl","/Search/View?dp=1&key=3091729-8a982b18b1fb829e772b0d7bf8aaeac8&start=79&end=2570","thumbnailUrl","https://assets.pipeline.soar.com/3091729-8a982b18b1fb829e772b0d7bf8aaeac8/thumbnail_79000.jpg","articleUrl","/articles/6579312/McMinnVille/Yamhill-County/Oregon/Urban-renewal-advisory-committee-recommends-Palindrome-Properties-as-preferred-developer-for-Northwest-Rubber-site-Leland-analysis-says-proposal-likely-to-net","mediaUrl","https://secure.pipeline.soar.com/6579312-b4f4238b3d0b0d82a7ed72e7e22be9c5/orig.mp4?Expires=1771156706&Signature=HGIFFPfYMEc2W~JEQN6DGzh~kwkMeScOoi2kihGrt-tehyX1W7OBByoqTsp7oHE1HkLbOekzcnOTpxwfO2uWvObyW2ZgXq9CjaFQkC1awF7Pe2TAKhzV8ppdbd4dj1mNLQONXFyp1aZKRoLAxAE68Rwcu1RZkvFtTO-g-4JsDzOYv5qV93I118DOMuR1xoCaQzjudI0-sS7-VuntvYVcTYhRnpQ6s6FEotPz4Fq~WwfGDlAqOr4iTzTa8Gj2y2X0NwOyUyLQZ17EW9UAWGfZYjNLJ~fEAil2ZY8jtjc0yDxT16MxJQ08U5V5~9s6~s7I7ewRQBTiEds1CaKzwQuHgA__&Key-Pair-Id=KUT5TJCACFTXG","author","City Council of McMinnville, OR","date","2025-04-23T06:04:54.953Z","article","The McMinnville Urban Renewal Advisory Committee recommended Palindrome Properties Group, LLC as the preferred developer to redevelop the vacant Northwest Rubber site, and advised the McMinnville Urban Renewal Agency to authorize a memorandum of understanding that would let the city begin negotiations with that team, Community Development Director Heather Richards said at an Urban Renewal work session April 23.

The site — a roughly 3.5‑acre parcel in the Northeast Gateway area the city purchased on Oct. 23, 2023 — was bought for about $4.25 million plus closing costs with a loan from the city’s wastewater fund, Richards told councilors. The urban renewal agency is currently making interest‑only payments; a balloon payment is due in five years, she said. “This is a work session, so, really, it’s to get you the information you need to make informed decisions,” Richards told the council and urban renewal board before introducing the selection recommendation.

Why it matters: the project would be funded with urban renewal (tax increment) dollars, which the city says cannot be used for general‑fund purposes. The council and the Urban Renewal Board will decide whether to authorize an MOU (listed on the agenda as Resolution 2025‑03) that would allow staff to begin negotiating a development agreement; any final development agreement would return to the board for public approval.

What Palindrome proposed and why it scored well

Palindrome’s concept presented to the city includes a two‑phase program: a housing first phase and a later commercial/hospitality phase. In materials submitted to the city and discussed at the meeting, Palindrome described a first phase of housing—presented to the selection committee as “88 units” with a mix of market‑rate and affordable units—and a second phase that would include a 51‑room hotel and about 11,000 square feet of a market‑style hall with small ‘‘micro‑retail’’ vendor spaces. The proposal also references design features that reuse industrial elements of the site and a micro‑retail approach intended to buffer nearby storage‑unit parcels.

City staff and the subcommittee that reviewed proposals recommended Palindrome on three grounds: team experience, the development program’s fit with the city’s Northeast Gateway vision, and the proposal’s responsiveness to community feedback gathered during the selection process, Richards said. The selection subcommittee and the McMinnville Urban Renewal Advisory Committee (MURAC) both voted to bring that recommendation to the urban renewal board.

Fiscal analysis: Leland Consulting Group presentation

Leland Consulting Group presented a 20‑year fiscal model comparing the three semifinalist proposals. The consultant used the firms’ reported project costs, standard tax and fee assumptions, and local property‑tax indexing rules (including change‑in‑property‑ratio adjustments under Oregon law) to estimate net present‑value revenues to the city and overlapping taxing districts.

Andrew Oliver of Leland summarized the results: “Palindrome’s proposal is likely to generate the most total revenue for the city, and the greatest diversity of types of revenue,” he said during the presentation. In Leland’s model, the Palindrome concept produced the largest net present value of fees and tax increment over a 20‑year horizon—roughly an order of magnitude larger than the smallest proposal in the comparison—largely because Palindrome included a hotel and a larger retail program. The model also estimated greater local employment and guest spending tied to the hotel component.

Terms Palindrome has requested and concerns raised

Palindrome requested several common incentives in public‑private partnerships, according to Richards’ presentation and the developer’s materials: the land available at no cost, system development charge and fee reductions that the city already offers to qualifying affordable housing components, and a 15‑year property‑tax exemption (for the affordable housing portion) rather than a perpetual nonprofit exemption. Richards told the board the Palindrome team is for‑profit and therefore would not qualify for perpetual nonprofit tax exemption.

MURAC and public comments raised several issues the city asked be addressed in the negotiation or development agreement: parking (the proposal did not meet the city’s off‑street parking standards as submitted), protections against developer nonperformance (clawback provisions and personal guarantees), and analysis of fiscal impacts on overlapping taxing districts at the time the urban renewal district sunsets. The committee also asked that community engagement continue throughout design and construction and that any sale or purchase of the land provide a “fair return” to the public.

City staff emphasized limits of tonight’s action: the board’s vote would authorize negotiating an MOU and would not finalize any development agreement. Richards reminded the group the board will set negotiation standards and limits in a future executive session with the city’s negotiation team.

Public input and next steps

Councilors asked about parking, the scale of the hotel and market hall, staffing and construction timelines, and the financial assumptions Leland used. Palindrome representatives in the audience said they expect to refine the design in negotiation and offered examples from prior projects where micro‑retail and mixed‑income housing were combined on an industrial site.

If the urban renewal board approves the MOU (Resolution 2025‑03), staff will enter negotiations with Palindrome. Any negotiated development agreement would be presented later in a public meeting for the board’s approval. Richards and Leland also told the board the fiscal model will be used as a negotiation tool and can be updated as terms evolve.

Clarifying details extracted from the meeting

- Site purchase: Oct. 23, 2023, for about $4.25 million plus closing costs (purchase funded by a loan from the city’s wastewater fund).
- Site area: described in staff briefing as approximately 3.5 acres.
- RFQ timeline: city issued an RFQ; eight responses in Phase 1; four interviews; three semifinalists (Ethos, Guardian, Palindrome); two‑phase process with community design workshop in Phase 2.
- Palindrome concept (as presented): Phase 1 housing (presented as ~88 units with a stated affordable component); Phase 2 hospitality/commercial (51‑room hotel, ~11,000‑sq‑ft market hall, micro‑retail vendors).
- Developer request highlights: land at no cost; use of existing city incentives for qualifying affordable housing; a 15‑year property‑tax exemption for the affordable housing portion.
- Leland Consulting Group 20‑year model: Palindrome’s concept generated the largest net present‑value revenue projection in Leland’s comparison of the three semifinalists.

Sources and documents in the record

Materials reviewed at the work session include the RFQ and semifinalist submittals, the Palindrome proposal concept and project one‑sheet, fiscal impact analysis from Leland Consulting Group, MURAC recommendation materials and comments transmitted by subcommittee members, and the draft Resolution 2025‑03 (MOU authorization) scheduled for the urban renewal board. The fiscal memo from Leland and public comment letters were part of the meeting packet distributed before the session.

Ending: timing and what to watch

The urban renewal board will consider a resolution (2025‑03) authorizing the city manager to enter into an MOU to begin negotiations with Palindrome; the MOU would enable negotiations over the development agreement but would not itself approve a development agreement. Any final deal would return to the board for public approval. The timing for negotiations and any development agreement will depend on the board’s direction and on continued design and market considerations.

Speakers quoted in this article are identified in the meeting record and are listed in the speakers section below.","mediaType","Video","parentTitle","McMinnville City Council and Urban Renewal Agency Meetings 4/22/2025","oneSentenceSummary","The McMinnville Urban Renewal Advisory Committee recommended Palindrome Properties Group, LLC as the preferred developer for the Northwest Rubber site and urged the Urban Renewal Board to authorize an MOU to begin negotiations. A fiscal analysis from Leland Consulting Group presented at the same meeting showed Palindrome’s concept would likely generate the most tax and fee revenue of the three finalists over 20 years.","taxTitle","McMinnVille, Yamhill County, Oregon","taxId",51161,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6579307,"Council, Urban Renewal board approve fee and annexation items; URA authorizes $100,000 development assistance for Paquette Hotel",97,11352000,11449000,"/Search/View?dp=1&key=3091729-8a982b18b1fb829e772b0d7bf8aaeac8&start=11352&end=11449","https://assets.pipeline.soar.com/3091729-8a982b18b1fb829e772b0d7bf8aaeac8/thumbnail_11352000.jpg","/articles/6579307/McMinnVille/Yamhill-County/Oregon/Council-Urban-Renewal-board-approve-fee-and-annexation-items-URA-authorizes-100000-development-assistance-for-Paquette-Hotel","https://secure.pipeline.soar.com/6579307-d48e918c0e9d6d09f7f81404e1ee110f/orig.mp4?Expires=1771156706&Signature=E1CaoOXyhhTTruBOZy2w9ZuAuIz5CXVYAwTrGeeEu0WR~wEMIiZpj7bxXw0bsxxbSlzLVgl7wXwULJe1F-uWwO8hjmze3efeHjN2VBnf9~xCWBK5jDUZTtp9Q5z02r28t9jd4HA179fir6CtWFh0i7mwE~7cl0iplRij8xjzhfVu1eaP1iVeCDCuZ1wxUWqNQPwvZf2Gyu-ODGpKf3587GzpohUCP3glGk7SpoYSMqmBcJM5mHPyF0o4TXdkwyNR1TAZU4NeAOAd5up2mby4sVrTWoqq6JLFzIX86s38t8N3~1MTqaUXy3CxIFVB9rQzqz0m8sFHGvf8idZnIstCBA__&Key-Pair-Id=KUT5TJCACFTXG","McMinnville’s City Council and Urban Renewal Agency handled a mix of routine and development‑related items April 23, approving infrastructure cost adjustments, land‑use steps and a small urban‑renewal development assistance package.

Key outcomes at a glance

- Meadows Drive change order (Resolution 2025‑15): The council approved a change order to share additional construction costs for the Meadows Drive project. Staff said the work became necessary when crews opened pavement and discovered existing inlet and manhole connections that needed replacement; the board approved the city’s share for the added work.

- Sanitary sewer user fees (Resolution 2025‑09): The council approved a 2.5% increase in sanitary sewer rates, effective July 1, 2025. Public Works staff said the increase continues a multi‑year schedule of modest annual adjustments the council adopted after a pause during the pandemic; staff cited higher construction and chemical costs at the wastewater plant as part of the rationale.

- Annexation agreements (Resolutions 2025‑12 and 2025‑13): The council approved two annexation agreements that establish the conditions under which properties that are partly inside the urban growth boundary will join city limits when conditions are met. One agreement (Jose Garcia) requires the owner to annex the unincorporated portion of his partitioned parcel when adjoining property annexes to avoid creating an island. The other (Stanley and Nyla Cook Revocable Trust) was the more conventional voluntary annexation framework for a two‑phase 10‑lot subdivision; staff explained required public‑facility and access conditions would be tested during subsequent land‑use review and permitting.

- First reading passed for Ordinance 51‑59 (comprehensive plan amendment / zone change): The council conducted and passed on first reading a comprehensive plan and zoning map change for property at 2320 SE Stratus Avenue (docket CPA‑01‑24 / ZC‑04‑24). The first reading passed 4‑2; the ordinance will return for a second reading at a future council meeting.

- Urban Renewal Agency assistance for Paquette Hotel (Urban Renewal Resolution 2025‑02): The Urban Renewal Board authorized the city manager to enter documents that would put $100,000 of agency support into Alpine Hospitality LLC’s Paquette Hotel project at 1066 NE Alpine Avenue. The support is structured as a five‑year forgivable loan tied to performance metrics and recorded against the property; if the developer fails to meet agreed milestones the loan becomes repayable with interest. Staff described a five‑year repayment/disbursement plan for permit‑fee and SDC billing so the agency can spread the cost while the project is built and occupied.

Why these items matter

- Sewer rates: The 2.5% increase continues a period of modest adjustments staff says are necessary to cover rising operational and capital costs after a pause in rate increases during the pandemic era. The council approved the increase after staff presented assumptions and a schedule tied to the forthcoming wastewater master plan.

- Annexations: The approved annexation agreements set clear conditions for future development and protect the city against isolated unincorporated islands. In both cases the agreements require future land‑use work and public‑facility dedication, and they record obligations that run with the land.

- URA assistance: The $100,000 package for the Alpine/Paquette Hotel was modeled on an earlier hotel assistance package. The funding will be delivered as a forgivable loan structured to be payable if the project is sold or if performance milestones are not met; the agency and city finance staff said the URA can absorb the payment schedule without jeopardizing planned projects.

Votes, roll calls and notable discussion

- Ordinance 51‑59 (Stratus rezoning): passed first reading 4‑2 (cast as recorded in the April 23 roll call). Several councilors raised traffic, pedestrian safety and cumulative growth concerns during the public hearing on that item; staff noted transportation and sewer capacity analyses would be required at the development‑permit stage.

- Resolution 2025‑09 (sanitary sewer fees): adopted unanimous 6‑0 in the roll call presented at the meeting.

- Urban Renewal Resolution 2025‑02 (Paquette Hotel assistance): passed unanimously 6‑0 at the Urban Renewal Board meeting following the council session.

Public comment highlights

Multiple members of the public urged the council to approve more housing and to support affordable development projects elsewhere in the city. Several residents and business owners raised persistent noise, speed and traffic concerns on Third Street and adjacent intersections; a number of public comments focused on downtown traffic safety and enforcement. The meeting also included requests that the city move forward with staff work to prepare a ballot measure for a proposed recreation bond.

What’s next

- The Stratus rezoning ordinance will return for a second reading on a future council agenda (the first reading passed 4‑2).
- The Urban Renewal Agency’s recommended MOU to begin negotiations with Palindrome Properties (Resolution 2025‑03) was placed on the URA agenda for May 13, 2025.
- Staff will proceed with the five‑year permit‑fee/SDC billing arrangement for the Paquette Hotel if the developer meets the milestones that trigger disbursement or forgiveness.

Speakers and staff who appeared frequently during the business portion of the meeting included Community Development Director Heather Richards, City Manager Jeff Towery, Public Works and Wastewater staff, city finance staff and multiple councilors who led questioning during deliberations on annexations and fees. The full meeting packet and staff reports are posted to the city website and include the cost‑share change‑order materials, the sanitary sewer fee review memo, and the annexation‑agreement forms.

Ending: how to follow up

The council’s next regular meeting dates and the URA meeting schedule are listed on the city calendar. Staff told the board that items with outstanding technical analyses (transportation or detailed sanitary‑sewer capacity reviews) will be resolved during development permit review or via conditions spelled out in the annexation agreements.","City Council approved a set of infrastructure, fee and land‑use actions April 23, and the McMinnville Urban Renewal Agency authorized a $100,000 development assistance package (five‑year forgivable loan) for the Paquette Hotel at 1066 NE Alpine Avenue.","actionData","errors"]

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Urban renewal advisory committee recommends Palindrome Properties as preferred developer for Northwest Rubber site; Leland analysis says proposal likely to net—

Council, Urban Renewal board approve fee and annexation items; URA authorizes $100,000 development assistance for Paquette Hotel