Five proposed site‑specific TIF projects would add hundreds of rental units; developers pledge affordability and local hiring

At the March 10 work session, staff outlined five site‑specific developments that have applied for tax increment financing assistance and said each already has land‑use or pre‑application review.

Jonathan Taylor summarized the proposals and the affordability and local‑hire commitments developers offered to qualify for enhanced TIF support. He said the city will require development agreements tying rebates to annual certification of those commitments and warned that failure to certify could trigger loss of the rebate or a clawback.

Projects described by staff included:

- Century Project 1 (near Mount Bachelor Drive): staff listed total project cost of about $60 million, an average proposed market rent of $2,400 and a developer commitment to dedicate 20% of units at 90% area median income (AMI) for 30 years, with the reduced‑rent average cited as $1,700. The application said the developer would aim to use 61% local contractors and pursue Energy Star certification.

- Century Project 2 (across the street): described as a roughly $125 million project. Staff said the developer proposes average market rent of $2,400, a 15% set‑aside of units at 90% AMI for 20 years (reduced average rent $1,600), LEED Silver certification and a target of 23% local contractor participation. Staff reported a BURRA recommended investment figure of $33.9 million and projected $117.3 million in local economic activity tied to the project.

- Red Ridge / Bridal Ridge (northwest Bend): presented as a garden‑style apartment proposal with about $53.1 million in project costs for roughly 78 units. Staff said the applicant proposed 20% of units at 85–90% AMI for 30 years, a reduced rent average of about $1,700 and a target of 80% local contractors. Staff reported a BURRA investment estimate of about $14.2 million over 30 years and an estimated $89 million local economic impact.

- Viridian (near North Park Drive and Mount Washington Drive): described as a 69‑unit garden‑style project with average market rent staff listed as $1,700. The developer proposed dedicating 20% of units at 80% AMI for 24 years, a reduced average rent of $1,500 and 51% local contractor participation. Staff said BURRA’s investment projection is about $6.8 million over 30 years and projected $25 million in local economic activity; because the site is currently publicly owned and nontaxed, staff said there would be no immediate tax impact but estimated the project would generate about $2.6 million for schools, parks and fire over the analysis period.

Taylor told the commission that, taken together, the suite of proposed projects would produce a substantial number of units and that about half of the proposed units would be rent‑restricted if developers meet their certification commitments. He repeated that the assistance is structured as an annual rebate of the increment and that developers must certify compliance each year to receive the payment.

Commissioners pressed staff on several implementation points, including how rebates are paid (annual rebates after assessor certification), how the city enforces local‑hire or energy targets (development agreements and clawbacks), and the timeline for construction (staff estimated many projects would begin construction in 2026 and reach certificate of occupancy around 2028 if financing closes).

Why it matters: staff presented per‑project affordability commitments—often 15–20% of units at 80–90% AMI with multi‑decade affordability periods—and local‑hire targets that the city will use in development agreements to secure public benefit from TIF assistance. If council and BURRA approve the site‑specific districts and developers meet commitments, the projects would add market and restricted rental units to Bend’s housing supply.

Next steps: staff said BURRA will consider recommending the site‑specific TIF plans on March 19, the city will open public comment and an online open house on March 20, taxing districts will have 45 days to comment, Planning Commission will review comprehensive plan conformance on April 14, and council hearings and ordinance readings would follow for any district adoption.