Urban Renewal Board OKs start of negotiations with Paladrome Properties for downtown redevelopment

The McMinnville Urban Renewal Agency voted unanimously to approve Resolution 2025-03 authorizing City Manager Jeff Towery or his designee to enter into and manage a memorandum of understanding with Paladrome Properties Group LLC to negotiate redevelopment of properties at 904 Northeast 10th Avenue and 836 Northeast Alpine Avenue.

The resolution, introduced at the agency meeting, directs staff to begin negotiations and — if the board authorizes it later — to develop a subsequent development agreement. City Manager Jeff Towery told the board that, if the resolution passes, the agency would schedule an executive session to set negotiating parameters and identify the negotiating team.

Why it matters: The parcels are in an area the agency hopes to redevelop for mixed-use housing and commercial activity; the memorandum of understanding (MOU) would establish a framework for formal negotiations and potential public-private development steps.

Walt Gao, chair emeritus of the McMinnville Industrial and Redevelopment Advisory Committee (MIRAC), told the board the committee used an RFQ process that narrowed eight applicants to three finalists and that Paladrome’s submission “most clearly addressed the criteria that were in the RFQ,” including a mixed-use commercial and residential approach. Peter Kircher, another member of the review committee, told the board the consultant’s preliminary financial summary showed the top-ranked proposal would yield a higher annual tax increment to the city: “If Paladrome takes it over, you’ll get $382,500 a year,” Kircher said, contrasting that with lower returns from other finalists.

Board members and staff repeatedly stressed that approval tonight does not finalize terms: Towery said the agency will convene an executive session to discuss standards, terms and negotiation limits before any binding agreement is signed. Board members asked about the possibility that the city could require payment for the land or other subsidies. Towery said the negotiating scope is up to the board and that the city would explore compensation, parking requirements and potential subsidy arrangements during negotiations.

Several council members and agency board members urged caution about giving land without compensation and emphasized the city’s interest in affordable housing. Council President Sal Peralta and others noted the city’s housing needs analysis showing a shortfall in subsidized units and long Section 8 waiting lists; Peralta said the project could be a way to “bring more affordable housing into the community.” Other members stressed the need to continue due diligence, including background checks on the developer and more detailed financial analysis during the negotiation phase.

Formal action: Councilor Cunningham moved to authorize the city manager to enter into an MOU with Paladrome Properties Group LLC; the motion was seconded by Council President Peralta and passed unanimously. The resolution directs staff to return with negotiation parameters and, if appropriate, a subsequent development agreement.

What’s next: Staff will schedule an executive session with the Urban Renewal Agency to identify negotiating limits and the negotiating team and will pursue a background check and additional financial analysis of the prospective developer and proposals before bringing back binding documents for the board’s approval.