Council approves first reading of Emblem tax-increment finance plan to support 264-unit development in Southeast Bend

Bend City Council on Oct. 1 held a quasi‑judicial public hearing and approved the first reading of an ordinance establishing the Emblem tax‑increment finance area, a site‑specific urban renewal plan intended to support development on an 8.38‑acre vacant parcel in Southeast Bend.

The plan identifies a maximum indebtedness of $22,100,000, of which staff said about $21,400,000 (97%) would be available for development assistance and $663,000 for plan administration. City staff told council the site is currently assessed at about $101,000 and the proposed project would support construction of 264 residential units with an expected average market rent of $2,333; the developer has projected 53 rent‑restricted units (20% of total) split into 13 units at 70% area median income (AMI), 13 at 80% AMI and 27 at 90% AMI.

Jonathan Taylor, Bend’s urban renewal manager, told council the plan is intended to address blighted conditions as defined by Oregon Revised Statute 457 — staff described the primary blight factors as inadequate infrastructure and a parcel that has been vacant and stagnant for 10 years. He said the TIF plan term would run 26 years and the developer anticipates a certificate of occupancy in February 2026.

Taylor summarized the financial impacts the plan would have on taxing districts and the city: the staff analysis estimated an average annual impact of about $918 across taxing districts and a roughly $128 annual impact to the City of Bend general fund from the frozen base calculation; the project was also estimated to generate roughly $4.7 million in system development revenue and to spur about $85 million in project investment overall.

Council discussion focused on the definition of blight in a greenfield urban growth boundary (UGB) expansion, the composition of the rent‑restricted units (all 1‑bedroom in the developer’s application), and the scale of the requested support. Mayor Melanie Keebler and other councilors said the TIF conforms to the adopted Southeast area plan and argued it would accelerate construction of housing and commercial customers needed to support nearby commercial corners; Councilor Steve Platt and others described it as consistent with the city’s comprehensive plan goals to support mixed‑income housing and efficient use of large blocks of land.

Councilor Mike Riley said he would not support the measure, saying he disagreed that the land is “stagnant and unproductive” and that the level of TIF assistance — about $22.1 million — was too large for the return he expected. Riley also questioned the mix of affordable unit sizes, noting most restricted units were one‑bedroom and expressing concern about family housing needs.

The motion for first reading was moved by Councilor Mike Riley and seconded by Councilor Megan Norris. The public hearing included two speakers: Karen Johnson, land use chair for the Old Farm District Neighborhood Association, who said the association supports the project but urged more two‑ and three‑bedroom restricted units; and Sharon Sampson, a local resident, who said the proposed rents did not appear affordable.

Council voted to approve the first reading. Recorded on the record: Mover — Councilor Mike Riley; Second — Councilor Megan Norris. Vote (voice/roll call as recorded in the hearing): Yes — Councilor Steve Platt, Councilor Megan Norris, Councilor Gina Franzosa, Councilor Bridal Mendez, Mayor Pro Tem Megan Perkins, Mayor Melanie Keebler; No — Councilor Mike Riley. A second reading and final adoption were noted as possible at the Oct. 15 council meeting.

The ordinance and TIF report reference state statute for blight criteria (ORS 457), the Bend comprehensive plan and the city’s Southeast area plan; staff noted the plan had been reviewed by the planning commission and by the Bend Urban Renewal Agency prior to the council hearing.

Why this matters: city staff said Bend needs tens of thousands of housing units over the next 20 years to meet projected demand, and the Emblem TIF is intended to lower development costs on a site that staff characterizes as not developing under current market conditions. Opponents questioned whether the tool and the scale of assistance are appropriate for this parcel and asked for a different unit mix in the rent‑restricted set.