Bend urban renewal agency advances three housing projects, pauses broader housing applications

The Bend Urban Renewal Agency on June 18 advanced three site-specific housing proposals that together propose 413 new units across three projects, and directed staff to draft the documents needed for development assistance and the creation or amendment of tax increment financing (TIF) areas.

Urban renewal project manager Jonathan Taylor presented the three applications and staff recommendations, and reminded the agency that the projects draw on the city’s TIF policy for housing affordability. Taylor said staff recommended pausing acceptance of new applications for a site-specific housing policy while the agency completes a broader policy review this fall — but recommended TIF for employment projects remain available in existing districts.

Parkway Studios (17 NW Irving), a 24-unit studio project proposed by Parkway Studios of Redmond, received a motion to proceed and unanimous approval from the agency. Applicant Eric Kreipu told the agency the project relies on urban renewal assistance to be financeable, that he is using local contractors and local design teams, and that he plans to pursue energy-efficiency measures. The agency approved staff direction to draft a development agreement and provide development assistance for Parkway Studios.

The Jewel project (corner of NE Fourth and Olney) is a proposed 125-unit, studio/one‑bedroom building. Applicant representatives said the project would target middle-income households and would aim for at least 15% of contracts to local minority- and women‑owned businesses. Staff noted the application seeks a minor boundary amendment to include the site in the Core Area TIF plan; under Oregon law minor amendments that add less than 1% of the original plan area may be adopted by resolution. Because agency members asked for more certainty on unit mix and financing, the agency voted to direct staff to prepare a minor amendment but asked for a check‑in before the amendment is adopted — effectively advancing the site into the TIF amendment process but asking staff and the applicant to return with clearer commitments and updated timelines.

Project Emblem (Quaterra Multifamily Communities / Lennar) would create a new TIF area and construct 264 units on an 8.3‑acre site in the southeast growth area. The applicant told the agency that the site has been difficult to finance and that TIF assistance would be the difference in making the project viable. After discussion about the scale of the rebate per affordable unit and whether the site met the legal blight findings used to justify a new TIF, the agency voted to direct staff to draft documents necessary to establish a new TIF area and to provide development assistance for the project; the motion passed.

Across the three proposals staff summarized combined impacts including roughly $27 million of proposed TIF rebates over the life of the programs, a projected $124 million in local economic output during construction, and an estimated household rent savings of $19 million if applicants deliver the affordability they propose. Taylor said the projects meet the extended‑rebate policy for greater than 12 years and that the applicants have proposed local contracting commitments and varying affordability mixes (including units restricted between 60–90% AMI depending on the site).

After the project votes the agency moved — and passed — a motion to pause acceptance and review of new applications under the city’s Tax Increment Assistance for Housing Affordability policy until the agency completes a review and any changes to the policy, while allowing employment projects within existing TIF areas to proceed. Agency members said the pause is intended to allow a comprehensive policy review later in 2025 while not blocking projects already far along in the process.

What the votes mean: the agency’s approvals direct staff to draft development agreements and associated documents (including a resolution to establish the new TIF area for the Emblem site). Parkway Studios will move into drafting of a development agreement next; Jewel will proceed through an amendment check‑in process before final adoption of the minor amendment; Emblem will proceed through the new TIF area resolution and public review process recommended by staff. The agency also set a public hearing timeline (public hearing for the new TIF area was scheduled for Sept. 3 in staff’s presentation) and reminded taxing districts they will be notified and given an opportunity to comment.

Why it matters: Bend continues to use targeted TIF tools to assist development in core and growth areas and to secure restricted‑rent units. Agency members and applicants repeatedly framed the decisions as responses to current market conditions — high interest rates and higher construction costs — that make otherwise viable housing projects difficult to finance without subsidy. The agency’s pause on new applications signals that staff and members want a fall policy review to consider refinements to the housing TIF program going forward.

What’s next: Staff will draft development agreements and bring resolutions and final documents back to the agency for formal adoption and required public hearings. If the agency advances resolutions, the City Council will also take action as part of the formal urban renewal/TIF adoption process. The agency also said it will conduct the policy review this fall and return with recommended changes.

Key votes and motions (at a glance) - Parkway Studios (17 NW Irving): Motion to direct staff to draft development agreement and provide development assistance — passed unanimously. - Project Emblem (61105 Ferguson Road): Motion to direct staff to draft documents to establish new TIF area and provide development assistance — passed. - Jewel (424 NE Olney): Motion to prepare a minor amendment to include the site in the Core Area TIF plan and to direct staff to prepare a development agreement; council asked for an added check‑in prior to adoption — motion passed (amendment/check‑in added). - Pause on new site‑specific housing applications under the TIF policy: Motion passed; employment projects in existing TIF districts remain eligible.

Speakers (selection) - Jonathan Taylor — Urban renewal project manager (staff presentation) - Eric Kreipu — Parkway Studios (applicant, Parkway Studios) - David Mosey — Applicant representative (Jewel project JV) - Peter Van Overbeck — Quaterra/Lennar representative (Emblem project) - Chair Mike Riley — Bend Urban Renewal Agency (motions & direction)

Proper names mentioned - Bend Urban Renewal Agency - Parkway Studios - Jewel (project / site at NE Fourth & Olney) - Quaterra Multifamily Communities (Lennar) - Core Area TIF Plan

Discussion versus formal action - Discussion: Policy pause, application specifics, local contracting targets, and financial assumptions for ROI. - Direction/formal action: Motions to direct staff to prepare development agreements, to prepare a minor amendment, and to begin the formal TIF adoption process for the Emblem site; vote to pause acceptance of new housing applications under the current TIF policy.

Sources (selected transcript excerpts) - Topic intro (staff presentation): "So good afternoon, chair, members of the commission. I'm Jonathan Taylor, the urban renewal project manager." (transcript block starting 805.18: evidence_excerpt: "So good afternoon, chair, members of the commission. I'm Jonathan Taylor, the urban renewal project manager.") - Parkway applicant testimony: "My name is Eric Kreipu... I'm a small time independent developer... I'm using local architect, local engineer." (transcript block starting 1910.64: evidence_excerpt: "My name is Eric Kreipu, and I'm trying to build the Parkway Studios here in downtown. ... I'm using local architect, local engineer.") - Staff summary of pause and next steps: "This round will be the conclusion of the 2025 effort... staff is recommended by staff to move a motion to pause the applications of acceptance for the housing specific policy..." (transcript block starting 834.0: evidence_excerpt: "...staff is recommending that the employment policy continues to remain active in only the existing urban renewal districts.")

Searchable tags: urban-renewal,tif,housing,affordable-housing,Parkway-Studios,Jewel,Emblem,TIF-amendment

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