Sutherlin council authorizes Oak Street Commons purchase after environmental review

The Sutherlin City Council voted to authorize the city manager to enter a purchase‑and‑sale agreement for the Oak Street Commons property, with the purchase price authority stated within $560,000, after a multi‑part presentation on environmental conditions, design and financing for a proposed workforce housing development.

Keith Kimchak, the project representative introduced by Livability Services Director Pat Lynch, told the council the city now has a purchase agreement pending council approval and that phase 1 and phase 2 environmental assessments had been completed. Kimchak said the project team and the newly formed workforce housing task force refined a proposed unit mix and recommended using a community land trust to hold land title so residents would own homes but not the soil beneath them, reducing upfront costs.

Rick Young Seierman of RYS Environmental summarized the site’s phase 1/2 findings and told the council, “the detected contamination is not likely a barrier to development of the property,” while stressing that additional sampling and Oregon Department of Environmental Quality (DEQ) oversight will be required if the site’s use changes from industrial to residential. He identified low‑level oil detections, one dioxin result above a residential screening level, and potential methane/vapor intrusion tied to buried wood waste from a former log pond—each flagged as needing further assessment or mitigation.

Design consultant Jamie Norrington described zoning changes required (from M‑1 to R‑3) and use of a planned unit development (PUD) to achieve higher density while meeting a 25% open‑space requirement. Norrington said the layout being considered yields roughly 13.9 dwelling units per acre but recommended options to reduce lot count to allow wider building footprints and more product flexibility.

Deb Flagan of Hayden Homes and Simplicity Homes reviewed product types under consideration — cottage homes, single‑family homes, duplexes and two nine‑plex apartment buildings — and provided example sizes and price points (the nine‑plex was given as an illustrative cost of about $1,650,000). Mike Schrader, advising on financing, recommended forming a special‑purpose 501(c)(3) to own, construct and borrow for the project and noted possibilities for tax‑exempt loans, state infrastructure grants and employer participation to lower unit prices and rents.

Council discussion focused on the environmental findings, the need for additional sampling of northern tax lots and the former log‑pond area, how DEQ will guide remedial steps (excavation, capping or institutional controls), and governance of the recommended nonprofit owner. A resident during public comment raised traffic and sidewalk safety concerns on nearby Sixth Avenue, which councilors said they would pass to the police and engineering staff for follow‑up.

Christie Goldberg, community development staff, asked the council to authorize the manager to enter the purchase agreement within the $560,000 figure stated in the staff report. Council moved and seconded the motion; roll call recorded Aye votes from the majority of members and a No vote from Councilor Daigle. The motion carried, authorizing pursuit of the purchase while preserving follow‑up steps the council and staff outlined, including further environmental assessment and public outreach.

The council directed staff to continue public engagement, hold follow‑up meetings with local employers and task‑force members, and proceed with additional DEQ‑required sampling and remediation planning as part of the next steps in permitting and financing the Oak Street Commons project.