Urban Renewal board signs MOU to pursue redevelopment of Northwest Rubber site with housing partner

The McMinnville Urban Renewal Agency voted unanimously to authorize a memorandum of understanding to negotiate redevelopment of the Northwest Rubber property, a 3.5‑acre urban‑renewal site the city purchased in 2023.

Community Development Director Heather Richards summarized the RFQ process and said the city received eight proposals, shortlisted three and invited interviews. After negotiations with earlier shortlisted developers stalled, staff recommended pursuing Guardian Real Estate Services LLC in partnership with the Housing Authority of Yamhill County because their proposal met the agency’s goals for catalytic redevelopment, parking, and an affordable housing focus.

Key elements in the Guardian proposal, as presented by staff: a purchase price of $4.7 million (the city’s acquisition cost in 2023 was $4.25 million plus closing costs, financed by a loan), approximately 171 housing units (the proposal includes many live‑work and HUD‑based affordable units), roughly 3,000 square feet of commercial space and 117 parking stalls (code requires 85 stalls under the city’s affordable‑housing provision). City staff confirmed the urban renewal budget includes carrying costs through the upcoming fiscal year and recommended a three‑month MOU to advance negotiations toward a development agreement.

Councilors asked for traffic-impact analysis and careful attention to parking and street operations; staff said the MOU would allow negotiations to address those specifics and that plan approvals would still require design review and traffic studies when formal applications arrive.

The URA resolution authorizing the interim city manager to enter the MOU passed by a 6–0 vote.