The Redmond Urban Renewal Agency approved a $275,000 system development charge (SDC) buy down for a proposed mixed-use multifamily project at 612 Southwest Fifth Street and authorized the city manager to sign the agreement.

Chuck Arnold, renewal program manager, described the project as consistent with the downtown urban renewal plan and said the housing development opportunity fund originally held about $10,300,000 and has roughly $5,300,000 remaining. "The goal of this fund...is to raise the assessed value in the district," Arnold said, and staff estimates the agency’s investment will be returned in about five years.

Brandon Cook Boss, chair of the Downtown Urban Renewal Advisory Committee, said the committee met and agreed the project "does provide new high density housing in downtown, it provides development of a blighted property, and it helps to bring customers to downtown businesses." He noted the agency’s prior housing investments: of eight housing projects the agency has supported, 175 total units were created and 98 of those units were deed-restricted affordable, about 50 percent; including the NOVA apartments, which are "affordable by design," the committee counted 124 affordable units or roughly 70 percent of the total.

Brandon said the committee had discussed public-safety concerns with the developer and was satisfied with the developer’s proposed mitigations, which include improvements to the parking lot across the street, new crosswalks on Fifth Street and additional parking provided by the developer.

Developer Drew Hood introduced himself as a local developer. Don Coleman said he was advising on underwriting and financing. The motion on the floor, as stated in the record, was: "I move to approve the system development charge buy down agreement with Keithan's Properties LLC in the amount of $275,000 for the development of a mixed use housing development at 612 Southwest Fifth Street and authorize the city manager to sign the contract." The motion was seconded, the board voted by voice and the motion passed.

Board members and staff referenced prior SDC buy downs, including a recent project at 470 NW West Fir (nine units: six market-rate and three deed-restricted) and the Bank Commons conversion at Deschutes and Sixth (five-unit contribution for market-rate units). The transcript records no amendments to the buy down agreement and no recorded roll-call vote.