A victory for OSU-Cascades 4-Year Campus...But appeal may be in works

The quest to build a new campus for the OSU-Cascades 4-year university has passed another hurdle thrown up by litigation from a group of mostly Bend  west side residents who would prefer a site away from their neighborhood.

In a decision announced June 9, the Oregon Land Use Board of Appeals (LUBA) essentially sided with OSU and Bend city officials in the latter’s approval of the first phase 10-acre site for the new campus.

The decision quickly elicited published comments from a leader of an opposition group, Truth in Site,  that had appealed the city’s approval.

As reported by several media, the group spokesman said it would take the next step and file an appeal of the LUBA decision to the Oregon Court of Appeals, and continue on to the state Supreme Court if necessary.

The group is  asking for dontations to continue fighting the preferred location to the west of NW Century Drive and NW Chandler Avenue.

One published report said Truth in Site needs $27,000 to continue their litigation.

            The group is soliciting donations through it’s web site with the statement that “...100% of the donations received are used to pay for the mounting legal fees incurred as we fight for a university to be built in the best location for all (as underlined) of Central Oregon.

Truth in Site’s web site includes the tag line “For OSU Cascades/Against the Westside Site.”  http://www.truthinsite.com/

            The LUBA decision could be appealed by June 29, at which time the Court of Appeals would have 49 days to render its ruling. Either party could then appeal a decision to the state Supreme Court.

            Truth in Site’s continued opposition has led to formation of another citizen group, Now for Bend,  in support of the selected campus site. It includes a broad crosssection of civic and business leaders.

Among the “coalition members” listed on Now for Bend’s website are the Bend Chamber of Commerce, Deschutes County Commission, Economic Development of Central Oregon, Bend Memorial Clinic, Brooks Resources,  Deschutes Brewing, Mt. Bachelor ski area, Old Mill District and Bank of the Cascades. http://www.nowforbend.com/

            LUBA came down in favor of the university and city by deciding the city followed it’s existing development code in not requiring the university to submit a master plan to also include an additional 46-acre site that it is studying for additional campus development. 

            LUBA sided with the city and unversity’s contention that no master plan including the additional acreage was required since university had not purchased the property, although it has conducted geological and other studies of the former pumice mine and has a purchase option agreement with the current owners.

Look...up in the sky. It's a ????

Better duck Chicken Little!

            If you believe the somewhat breathless reports coming from national business media there is  “panic” emerging from the potential that the sky will fall as the result of rising interest rates.

            A sampling of headline briefs on financial news channel CNBC’s website:

• Yikes! Mortgage rate spike-what it means for you
• How rising interest rates hit the housing market
• Preparing your budget for rising rates
• How to position yourself for a rate hike
• Is it too late to finance your home
• $ave Me: Before the Fed raises rates, ready your credit

        “I heard a new word today from a mortgage lender, 'panic,'” said CNBC’s Diana Olick, who went on to explain clients are no longer willing to let rates float until their loan closes but are rushing to secure locks.

        But to put this in perspective, anyone who is old enough to remember double digit rates would probably suggest taking a deep breath before going into the duck and cover pose.

In May the average 30-year Freddie Mac mortgage rate was 3.84%, although the recent "panic” has apparently been stimulated by a rapid increase to about 4.08% as reported by Mortgage News Daily on June 5.

Some of the rush to buy or refinance that house and lock those rates is attributed to speculation on Federal Reserve rate deliberation and snippets of comments by Chairman Janet Yellen.

On top of that the recent jobs report was better than expected, and suddenly there seems to be fear that--horrors!--the economy is indeed improving, which is often viewed as a trigger for the Fed to tighten rates and control the inflation gorilla. No more quanitative easing?

Nevertheless for the younger generation let’s look back to August of 1981 when the 30-year Freddie Mac rate topped 17.0% and was still above 10.0% in late 1990. Even as recently as July of 2006 the rate was 6.76% - 2.68% higher than on June 5 this year.

      Applying the recent uptick in rates from 3.84% to 4.08% to gauge the impact in the purchase of a Bend home at the current median price of about $315,000, with 20% down, or a loan of $252,000, the monthly payment would increase by  a whopping $35 a month.

Is that really a deal breaker for 99.99% of potential home buyers in that price range?

     Admittedly, as the CNBC discussion pointed out, the issue with some borrowers is concern that rates will continue to rise and it’s now or never to make a move. If that’s the case, other factors such as more jobs and at least some improvement in wages and the overall economic climate will enable borrowers to afford gradual 30-year rate increases.

     And remember what happened when Chicken Little met the Fox on the way to warn the King? Maybe better to sit tight and not panic.