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http://www.omniture.com --> Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Readers Photo Gallery Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Homelife Magazine Joy Magazine Readers Choice 2006 Oregon Golf Info Oregon Wine Info Our Valley Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend September 23, 2006 Bella Vita must pay prevailing wages By Meg Landers Mail Tribune A state board ruled Thursday that Medford's Bella Vita project will have to pay higher wages than its developers originally anticipated. The Bureau of Labor and Industries determined that Bella Vita, on hold for nine months, is a public project, which means workers must be paid "prevailing wage" rates in accordance with Oregon law. BOLI ruled that Portland developer Cook Development Corp. must pay prevailing wage rates on the project because Bella Vita has a direct connection to the publicly funded Medford Urban Renewal Agency. "I'm not surprised," said developer Terry Cook. "It's not prevailing wage rates, it's government wage rates." MURA acquired the property, built a parking garage on the site and contracted with Cook to build Bella Vita, a six-story commercial and residential project bordered by West Main, Eighth and Fir streets. Advertisement The parking garage was built with prevailing-wage rates for construction workers. Plans called for the private Bella Vita portion not to pay the higher prevailing wages. BOLI ruled on a complaint filed last December by the Oregon and Southwest Washington Fair Contracting Foundation. The group alleged that MURA failed to include the Bella Vita project under the state's prevailing wage rate law. MURA is considering its next steps. "At this point we don't have an answer," said Jackie Rodgers, acting director. Rogers noted that there is no procedure for appealing a BOLI ruling to a higher authority. Christine Hammond, administrator of the wage and hour division at BOLI, said MURA has 15 business days from Thursday to request a redetermination. "The ball's kind of in their court," she said. In March, following an investigation, BOLI notified MURA and Cook Development Corp. that prevailing wages would have to be paid at Bella Vita. Representatives from BOLI, MURA, and Cook Development met in April and agreed to review the development contract and funding sources to determine whether the prevailing wage rate was required. In June MURA and Cook submitted a revised development agreement to BOLI. Daniel Bonham, the director of the Fair Contracting Foundation in Portland, said he's pleased with the ruling, because it means wages will be paid to local people rather than itinerant workers. He said families will have or will be able to afford medical benefits, and there will be enhanced apprenticeship and training opportunities for the local construction industry. He said that paying prevailing-wage rates, "really isn't going to affect their bottom line that much." Hammond said a recent public/private partnership in Portland saw its costs increase by 2.75 percent after BOLI ruled that prevailing wages had to be paid. "Most of the difference ends up being benefits like health insurance and retirement," she said. Dan Thorndike, MURA's attorney, said the Bella Vita project could see a larger increase than 2.75 percent. Cook, the developer, said he had just learned of the decision and was not prepared to talk about how much it might affect labor costs. Concerns about labor costs for another public/private project in Medford prompted Mayor Gary Wheeler to send a letter to BOLI Thursday. Wheeler requested that BOLI exempt the proposed Lithia Motors headquarters building from the prevailing wage law. The Lithia building is part of the Middleford Commons project, between Central and Riverside avenues south of Jackson Street, and is a public/private partnership with Lithia, MURA and the city. Thorndike said the decision on Bella Vita doesn't affect Middleford. "It should not have any effect, we hope," he said, adding that Lithia's headquarters is completely a private project. Jason Anderson, Medford City Council member and liaison to MURA, said he was disappointed with BOLI's interpretation because MURA spent months working with the bureau, amending the development agreement as recommended by BOLI. Thorndike echoed Anderson's reaction. "What was all that effort about?" Thorndike said. Reach reporter Meg Landers at 776-4481 or e-mail [email protected] . Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Windermere Van Vleet Men's Clothing Southern Oregon Loans --> GMAT Prep Fundraisers Send Flowers Texas Electric Choice Entertainment Guide --> Casinos Canada Trunks, Footlocker Online Casino Reviews Online poker at AbsolutePoker.com