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Developer: Main and Esplanade redevelopment viable again after value engineering; aims to start late 2025
Summary
Developer Doug Getzinger reported cost increases and subsequent value-engineering work that reduced project costs and prepared the Main and Esplanade redevelopment to seek financing; he said construction could begin late this year with completion expected in early 2027 if financing and permits proceed.
Klamath Falls, Ore. — Doug Getzinger, lead developer for the Main and Esplanade redevelopment, told the Klamath Falls City Council on Aug. 4 that the project has been reworked after cost increases and is ready to resume financing outreach and permit steps with a goal of starting construction late in 2025.
Getzinger said tariffs and market uncertainty raised project costs about 33 percent this year, prompting the development team to value-engineer the design to preserve material quality while reducing price. "As a result ... we had to go back to the drawing board a little bit here in April, May, June, and value engineer the project a little bit," he said.
Why it matters: Council members said the redevelopment is a focal point for downtown revitalization. The project combines apartments and a hotel on a site the council described as a gateway into the city; successful financing and construction are linked to broader Spring Street revitalization efforts.
Project status and schedule: - Cost and financing: Getzinger said project costs previously rose about 33 percent and that the team is meeting investors over the next 30–60 days to secure financing. - Permits: City site permit outstanding items were limited to bonding and an encroachment permit; county permits were substantially complete for the apartment portion and still advancing for the hotel. - Timeline: Getzinger said the team is aiming to begin construction this fall, potentially in November, and projected a 12–14 month construction timetable if both hotel and apartments start together. "Our goal is still this fall, so I'd say November," he said. He estimated the combined project could be finished "early 2027." - Phasing: The team is considering phasing the hotel six months after the apartments as an alternative to simultaneous starts.
Council reaction: Council members pressed for clarity on a realistic start date and urged the developer to keep the site tidy and provide visible signs of progress for the public. Councilor Mike Angeli suggested simple on-site improvements and signage to show activity and build momentum; Getzinger said he would discuss such measures with his team.
Next steps: The developer plans further value-engineering meetings with structural engineers and contractors and to pursue investor meetings immediately. He said the project will likely request any final extension from the city only when the team is prepared to break ground.
Action taken: This item was a status presentation; no council action or vote was recorded on the redevelopment update.
