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Urban Renewal Agency details $4.25M financing, property purchases and market studies for downtown redevelopment
Summary
Forest Grove’s Urban Renewal Agency reported a 10‑year, $4.25 million financing used to acquire downtown parcels, outlined grant programs that have leveraged private investment, and previewed near‑complete market studies for a grocery and boutique hotel to guide future redevelopment.
The Forest Grove Urban Renewal Agency told the board it financed a 10‑year note of $4.25 million to buy downtown properties, reported multiple grant programs that have helped leverage private investment, and previewed near‑final market studies for a grocery store and a boutique hotel to inform a community conversation about downtown redevelopment.
A staff presenter summarized URA mechanics and recent activity: "the board took out a 10‑year note. Okay? And the 10‑year note was uh $4.25 million," and used part of those proceeds to purchase two key parcels — a gravel lot south of city hall identified in the presentation as the Woodfold property and a theater building on Pacific Avenue. The presenter said the Woodfold purchase was "around 2 million" and the theater property purchase "around about 3 million" (both figures described as approximate).
The URA is also funding programs to spur private investment. Staff described a building improvement grant program funded at $350,000 per year that can match private funds (grants up to $100,000) and a storefront improvement program; staff said the two programs have nearly matched their funding each year and, together, have helped catalyze roughly $1.4 million in public and private investment over two years.
Board members heard that two consultant studies — one on grocery feasibility and one on a boutique hotel — are nearing completion (one roughly 95% done, the other about 70%). Staff said the reports will be publicly released and used to guide a work session with the board and to provide material useful to prospective developers.
On financing strategy, staff said the board structured its use of increment revenue so roughly 50% supports grant programs and roughly 50% services the URA debt; they noted the agency currently has about $1.4 million in unappropriated fund balance that could be used for incentives or targeted purchases. Board discussion focused on possible policy 'buckets' — grants, infrastructure, incentives — and on how unappropriated funds might be allocated to encourage desired development (for example, fee waivers, tax‑exemption buy‑downs, or direct incentives).
Staff noted short‑term leases on some purchased properties provide limited revenue while the agency finalizes redevelopment options. The board agreed to hold a work session once the market analyses are finalized to evaluate incentive options and decide next steps.
The URA presentation and board discussion are expected to lead to a publicly scheduled work session and later policy decisions about how to use the remaining URA funds and properties.
