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TALENT -— On a split vote, the Talent Urban Renewal Agency board approved an agreement with DOSO Properties LLC to create affordable senior housing, townhouses and a commercial building on the Gateway site at the corner of Highway 99 and West Valley View Road. DOSO would receive two of four lots for $1 each, would pay appraised market value for the townhouse site and have an option to purchase a fourth lot, according to the agreement, approved Wednesday. TURA would supply $590,000 to assist with architectural design, engineering, geotechnical studies and land use permitting for the project. TURA would be responsible for any remediation of the property if issues are found during an environmental assessment. The assessment is expected by November, said City Manager Sandra Spelliscy. “We can’t know everything but we have before us a great opportunity to make a very well-informed decision that responds to the needs and requests of our residents for what they want to see for the future of Talent,” said board member Emily Berlant. “A lot of agencies have been involved in this lengthy process and they have done more than due diligence to protect the city’s assets.” DOSO and TURA entered into an exclusive agreement in January to explore development on the 4.3-acre site the agency had purchased. One lot would remain as a public space and the city is negotiating over a final lot with Maker City Talent for development. Cost for all elements of the project has been estimated at $22 million. Board members Ken Baker and John Harrison voted against the agreement. Members Berlant, Stephanie Dolan, Daria Land and Ryan Pederson voted in favor. The City Council serves as the agency’s board of directors. “I fully support the Gateway project. I would be very happy to see it succeed,” said Harrison. “We need more time to research and plan how the Gateway project could be financially supported without financially overburdening our small city.” The developer is taking a high level of risk while at the same time lowering his profit and fees, Harrison said. He also expressed concerns that the agency would have to cover the expense for commercial lot development at a time when no new prospects for occupancy have come forward. Provisions in the agreement include: -- Construction of the 20 townhouses and the Housing and Urban Development-regulated, multistory, 60-unit senior housing structure would be completed within two years of DOSO taking ownership. -- A new appraisal can be sought on the townhouse lot if it is valued at less than $520,000 or more than $560,000. The provision would protect TURA from budget impact of a lower price and allow DOSO to seek another appraisal if it is higher. The appraisal would be done during the construction finance approval process. -- Construction of the 2,500- to 5,000-square-foot commercial building would not need to begin until 50 percent of the projected floor space is under lease. -- The agency will pay system development charges by the city, Medford Water Commission and Rogue Valley Sewer Services on the senior housing and commercial development lots.-- TURA will retain the open space lot and pay for its development. -- Senior housing units would be 600 square feet and feature underground parking. The townhouse units would be 1,400 square feet and include garages. “Oregon Community Services basically allocates (HUD) affordable housing tax credits,” said Jerryck Owens-Murrey of DOSO. “Essentially they have criteria that you must meet.” A study session prior to the meeting looked at return on investment the city might accrue from the project. A staff report concluded the agency already has spent $2.02 million for land and services and that under the agreement another $1.21 million would be spent. Return to the city via taxes on the property would not repay the agency outlay for 45 years, the report concluded. “If I would have known some of these numbers I would have pushed for a different structure on this deal,” Baker said during the regular meeting. “It’s almost $3.3 million. Some of the people I have talked to are just like, ‘You aren’t voting for that, are you?’” Board chair Darby Ayers-Flood said the mission of urban renewal is to remove blight, build infrastructure and ignite development, all with no intention of making a profit. Law requires ending the project at a net-zero balance, she said. Reach Ashland freelance writer Tony Boom at [email protected].