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North Bend OKs exclusive negotiations with Related Northwest for 230 Main affordable housing
Summary
Council authorized an exclusive negotiation agreement with Related Northwest to advance development of an affordable housing project at 230 Main; the ENA expires Dec. 31, 2025 and can be extended, and the developer will bear due‑diligence costs subject to a possible $250,000 reimbursement if the city withdraws without cause.
The City of North Bend on April 1 authorized the mayor to execute an exclusive negotiation agreement (ENA) with Related Northwest to develop an affordable or “attainable” housing project at 230 Main Avenue North.
Background: the city purchased the property in December 2023 with the stated intent to work with a developer to create housing aimed at local needs. A June 2024 RFP produced recommendations from an advisory committee of public and private stakeholders; Related Northwest was the committee’s recommended developer.
Terms and next steps: the ENA gives Related Northwest an exclusive period to negotiate a final disposition and development agreement (DDA). During the negotiation period Related Northwest is allowed site access to obtain required data and will pay consultant, contractor and surveyor fees for due diligence. The ENA as presented will expire on Dec. 31, 2025 unless the parties mutually agree to up to two additional six‑month extensions. If the city withdraws from the ENA without Related Northwest’s fault, the city would be required to reimburse Related Northwest for third‑party costs up to $250,000.
Staff said a Phase I environmental site assessment conducted before the city’s purchase did not identify conditions requiring further investigation; staff recommended approval so negotiations can proceed. Related Northwest and city staff said the developer intends to pursue low‑income housing tax credits and other financing sources for the project, and that the parties will negotiate whether the developer will purchase the property or enter a long‑term ground lease.
Council discussion covered contract extension mechanics and deliverables. Councilmember Harold asked whether extensions require council approval; staff said the ENA allows the mayor or her designee to execute extensions if both parties agree, but that staff will brief council and the CED committee during negotiations. A council question also confirmed that deliverables developed during due diligence would transfer to the city if the parties part ways.
Action taken: Motion to approve AB25‑032 authorizing the mayor to execute and administer an ENA with Related Northwest passed unanimously.
Ending: Staff said negotiations and developer due diligence will begin; council will receive periodic briefings and will consider any requested development agreement or code changes that might be necessary for project approval.
