Grants Pass council approves sale of 5.7 acres to Allenwood Homes for 110-unit rental development

Grants Pass— The City Council on June 17 authorized the city manager to sign a development agreement with Allenwood Homes LLC and to convey a 5.7-acre parcel for construction of phase 1 of a mixed-income residential project that will include 110 rental units and a 3,500-square-foot community building.

Bradley Clark, a city community development staffer, told council the agreement covers property closing terms, warranties, phasing and requires the developer to secure necessary land use approvals and building permits. Clark said the Oregon Housing and Community Services department committed more than $37 million toward construction-related costs for the rental phase, and that the citys contribution toward the public street portion will come from a Business Oregon grant of about $1.9 million. The developer will pay the city $450,000 for the 5.7-acre parcel; the proceeds will return to the parks land acquisition fund.

"Phase 1 would essentially be the construction of Arroyo Drive, the construction of the units and the community center," Clark said, summarizing the agreement and noting the citys financial exposure is limited to the grant-funded infrastructure the council has already approved.

The project team named by the city includes Pano LLC (developer/funder partner) and InkBuilt Architecture as the design partner; NeighborWorks Umqua and Oregon Human Development Corporation will provide resident services and property management, Clark said.

Erica, executive director of NeighborWorks Umqua (joining by phone), described on-site resident services that will focus on housing stability, eviction prevention and wealth-building supports. "Resident services primarily is working to ensure housing stability for our residents," she said, adding the nonprofit expects to provide both on-site casework and connections to rental-assistance resources.

Councilors pressed staff and the developers representatives on public outreach, parking and the projects phased homeownership component. Clark said a neighborhood meeting drew roughly 30 people and a Planning Commission hearing had about 10—5 attendees; he noted the city extended notice beyond the typical 100-foot radius for the neighborhood meeting. The development plan includes 94 parking spaces (49 driveway spaces and 49 on-street), with no separate event parking other than at the community building.

Several council members expressed concern about density and parking. Councilor Eric said he was worried the proposal may be too dense for the location and that nearby residents may not have had sufficient notice. Councilor Indra and others questioned the long-term tax implications of nonprofit ownership and the likelihood the homeownership phase would be completed; staff and Erica said the homeownership phase is intended but funding for that phase is not yet secured and could be built in stages.

Public comment focused on process and land use. Patrick Rooney of Josephine County asked why the property, acquired in 2005 for parks purposes, was being conveyed instead of being developed as a park. Clark and staff responded that the citys parks acquisition account must be replenished when surplus park land is sold and that the sale proceeds will return to that acquisition fund.

Council debate split 4-4 on the motion to authorize the manager to proceed. Councilors Rob, Seth, Joel and Rick voted in favor; Councilors Kathleen, Indra, Eric and Victoria voted against. Mayor (serving as tie-breaker) voted to approve the action, making the final outcome approval of the agreement. Council discussion noted that if the council chose not to proceed, the city could face a potential financial obligation for work already performed by the developer, and that some of the projects funders have July funding deadlines.

The agreement requires the developer to obtain all land-use approvals and to provide written confirmation that building permits are ready to issue before developer ownership transfer for phase 1. Clark said closing on phase 1 is required by the major funder in July, which is why council considered the item now.

The council also asked staff to monitor project performance and outreach engagement and to return with implementation updates as the project moves into permitting and construction.

What happens next: the city manager will continue to negotiate and execute the development agreement; the developer is to close on phase 1 on July 1, subject to extension by mutual consent. Timetables for construction, certificate-of-occupancy milestones and any community-notice commitments are addressed in the agreement and the projects planning record.

","sections":{"lede":"Grants Pass City Council on June 17 approved a development agreement allowing Allenwood Homes LLC to buy 5.7 acres for phase 1 of a mixed-income project that includes 110 rental units, after the mayor broke a 4-4 tie.","nut_graf":"The project, which staff said is supported by about $37 million in commitments from Oregon Housing and Community Services and a $1.9 million City-administered Business Oregon grant for public street infrastructure, will be delivered in phases: the rental units and community building in phase 1 and a separate townhouse homeownership phase later, subject to funding. Council debate centered on parking, density and outreach.","ending":"The agreement requires the developer to secure permits and the city to confirm building permits are ready before developer ownership transfers for phase 1; staff said they will return with updates as the project proceeds through permitting and construction."},