Grants Pass council directs staff to develop infill housing RFP, targets downtown lots

The Grants Pass City Council on Sept. 15 directed staff to prepare a request for proposals (RFP) for an infill housing incentive program aimed at stimulating "middle housing" development near downtown.

Amber (city planning staff) presented the program concept and recommended proceeding with an RFP. The council approved that direction with a motion to proceed and asked staff to return the RFP for council review before it is posted. The motion was seconded by Councilor Rick and passed in a roll call vote with all councilors present voting yes (Eric: yes; Rob: yes; Kathleen: yes; Indra: yes; Rick: yes; Victoria: yes; Joel: yes).

The program targets lots within roughly a quarter mile of Sixth and Seventh streets between the Rogue River and Interstate 5. Qualifying parcels would be vacant or under‑developed (assessed improvement value under $100,000), have city water and sewer within about 50 feet, be at or under half an acre, and yield middle‑housing units (accessory dwelling units, duplexes, triplexes/quadplexes, townhomes, cottage clusters) or small mixed‑use projects. Projects must meet at least 60% of the zone’s maximum density and deed‑restrict units against short‑term rentals.

Incentives proposed in staff’s draft include predevelopment matching grants: Level 1 would match 50% of predevelopment costs up to $25,000 per project; Level 2 would match 50% up to $75,000 for small multifamily (5+ units) or mixed‑use developments. Qualifying predevelopment costs would include site plans, engineering, environmental assessments and feasibility analyses. Staff said the RFP would be scored by a small review committee (2–3 staff and 1–2 Urban Area Planning Commission members), with a 30‑day application window and a short review period before council approval of selected projects.

Amber told council the proposed funding source is the city’s sale-of-surplus-lands fund (LB fund), which currently holds about $555,000. She recommended pausing a smaller SDC (system development charge) grant program that has been used for affordable housing so the LB fund could seed the infill program; she noted the construction excise tax (CET) program is an alternative funding source for affordable housing and continues as a recurring revenue source.

Councilors raised questions about parking, curb/gutter/sidewalk requirements, neighborhood character, displacement risk and whether projects should be required to provide off‑street parking. Several councilors asked that the RFP give extra scoring weight to projects that include off‑street parking and to projects that expand home‑ownership opportunities rather than only rentals. Councilors also requested a clawback clause be included so that if predevelopment support is provided but a project does not proceed, the city can recover funds. Staff said the RFP can be drafted to include those scoring priorities and contract protections.

Amber and city staff emphasized that the program is intended to encourage development that uses existing infrastructure so the city does not take on additional ongoing maintenance costs. Council also discussed giving preference to local builders and developers in scoring.

What’s next: staff will prepare the RFP and return it to council for review and final approval before posting. Council asked staff to include a clawback clause for predevelopment funds, extra scoring weight for off‑street parking and for home‑ownership projects, and for the item to return to council with the draft RFP and scoring rubric.