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Developers outline EB‑5 and CPACE financing approach for North Anchor hotel; land acquisition and DDA amendment planned
Summary
UDP developers briefed the council on financing progress for the North Anchor project, saying they are pursuing an EB‑5 capital raise and exploring CPACE (commercial PACE) as a complementary financing tool and plan to advance a land acquisition and a DDA amendment in the fall to accelerate the hotel project.
Representatives of UDP updated the council on the Lake Oswego North Anchor project at the July 15 meeting, describing recent financing work and a proposed capital stack that would pair EB‑5 investment with a CPACE loan (commercial property assessed clean energy) and a land‑acquisition component to accelerate hotel construction.
UDP said it is close to an agreement to finance up to about 75% of the hotel with an EB‑5 offering managed by an experienced sponsor. EB‑5 is a U.S. immigration‑linked private investment program administered by U.S. Citizenship and Immigration Services; investors provide capital that must create qualifying jobs and are repaid on an agreed schedule. UDP told the council it has used EB‑5 for prior hotel and mixed‑use projects and has prepared EB‑5 offering documents and the required economic studies.
As a complementary source, UDP proposed using CPACE financing for eligible sustainability and energy measures. CPACE loans are funded by private capital and administered under state enabling statutes and local program administration; in Oregon CPACE programs are implemented through county or other public administration. UDP said the program works well for hospitality projects because energy and efficiency retrofits are eligible measures and because CPACE can pair with EB‑5 without the subordination issues that typically complicate conventional second mortgages.
UDP told council staff they are pursuing a land acquisition that would include a land‑lease component and would include a city right to repurchase if project financing or construction cannot proceed. UDP said they previously used a similar land‑acquisition/repurchase structure successfully in a past public‑private project and that completing the land transaction would materially accelerate project readiness. UDP said closing on the land would represent a multi‑million‑dollar progress milestone toward construction.
UDP asked the council for continued cooperation and said they will return with related requests. City staff said the county must approve CPACE program administration for applicants in Clackamas County; a county decision would be a necessary step to unlock CPACE for this project. UDP said it expects to return with a draft DDA amendment in September and would pursue a phased schedule: close on land (fall 2025), continue capital raising and, if financing conditions allow (including county CPACE approval and EB‑5 commitments), seek a ground‑breaking window in early 2026.
No formal council action was required at the July 15 update; UDP and city staff said they would return to the council with any formal amendment requests and with financing documentation as those pieces advance.
