McMinnville approves DDA with Guardian for Northwest Rubber site, paving way for 150–171 affordable units

The McMinnville Urban Renewal Agency and the McMinnville City Council voted this week to authorize a disposition and development agreement (DDA) with Guardian Real Estate Services to redevelop the former Northwest Rubber site at 904 Northeast 10th Avenue and 835 Northeast Alpine Avenue.

City Manager Adam Garvin told the board and council the DDA is the product of roughly two years of procurements and negotiations. Under the agreement Guardian will pay $4.7 million at closing, which staff said covers the purchase price and about 20 months of carrying costs. The earliest closing would be November–December 2027 if the developer secures initial funding; the agreement allows extensions that could push final closing to June 30, 2031, to accommodate multiple public funding cycles.

The developer proposes roughly 150–171 units of workforce and affordable housing targeted at 50–60% of area median income (AMI) using the Portland metro AMI table. Garvin described an earnest‑money structure with an initial $125,000 nonrefundable deposit and a second $125,000 extension deposit; two further $250,000 option payments would be available but not credited toward the purchase price.

Environmental due diligence and remediation terms were specified: Guardian is responsible for the first $500,000 of cleanup; amounts from $500,000–$750,000 are split 50/50 with the city; the city covers costs between $750,000 and $1 million; Guardian covers any costs above $1 million. City staff said the city's maximum remediation exposure under the DDA is $375,000. The city also will grant certain fee waivers and permit reductions (50% reductions for planning, building and engineering fees) and may fund remaining parks System Development Charges from URA funds, construction excise tax, or the general fund.

Councilors and URA board members recorded unanimous support. The URA approved its implementing resolution (Res. 2026‑05) by a 4–0 vote; the City Council later approved the parallel city resolution (Res. 2026‑38) by a 5–0 vote. Both actions authorize the city manager (or a designee) to execute and manage the DDA and related documents.

Why it matters: the DDA converts a city‑owned former industrial parcel into a proposed mixed‑use residential project that the city and developer intend to reserve as long‑term affordable housing under funding covenants tied to state and federal financing. The agreement attempts to share environmental risk and holding costs while preserving the developer’s ability to pursue multiple funding cycles.

Implementation and next steps: staff said Guardian must obtain four administrative land‑use approvals (Northeast Gateway design review, landscape plan review, multi‑unit design review, and a traffic impact analysis) prior to closing. Construction is required to begin within six months of closing and to complete within 30 months after environmental remediation is deemed complete. Guardians’ president provided a personal guarantee of construction completion as a condition in the DDA; that guarantee expires when construction is finished.

Votes at a glance: - URA Resolution 2026‑04 (Adopt URA FY 2026–27 budget) — Passed 4–0. - URA Resolution 2026‑05 (Authorize DDA with Guardian) — Passed 4–0. - City Resolution 2026‑38 (Authorize DDA with Guardian) — Passed 5–0.

The council asked staff to proceed with contract finalization and to return any remaining administrative items required for closing.