Drought in Central Oregon. Reservoir gauge nearing empty

            You’re driving on a remote road and look at the fuel gage. Less than a quarter tank and there was a sign 30 miles ago warning of no service for 100 miles.

            That could be an apt analogy for the situation facing some farm and ranch irrigators in Central Oregon as storage levels in Wickiup Reservoir dip below 2%, a decades low with some warnings it could be empty in a few weeks.

            Most at risk are irrigators in the northern reaches of Central Oregon served by the North Unit Irrigation District, whose water rights are “junior” to others in the Deschutes River Basin.

            Already some growers have given up hopes of another cutting of late season hay or other crops, preparing to write off a bad year. But given the low level of Wickiup there’s also mounting concern that another below average snowpack as with this past winter could lead to even more troubles come Spring of 2019.

            Abnormally hot weather during August and the lack of any measurable rain at lower elevations in the basin since mid-June have only created more stress on the network of irrigation districts that distribute water in the basin.

            As of September 20 the US Department of Agriculture’s drought monitor showed that only a thin northern strip of three counties in northeastern Oregon had escaped some level of drought designation. And even that area was classified as abnormally dry.

            Most of Deschutes County was in the “extreme drought” minus a small northeastern portion of the northeastern county, which was in “severe drought. (See drought map).

              All told nearly 97.68% of the state was in some state of drought, and 88.07% in the severe to extreme category. That compares to 28.57% in moderate drought the same period of the previous year, when no area was classified in a higher drought condition.

Previous posts regarding water

Apart from heat jokes...a serious water situation in Central Oregon
Water update - so far so good but Central Oregon is holding its breath

             

Bend and Central Oregon in brief

A whopping Bend transaction shows region’s attraction

            Yet another sign of the growing economic profile of Bend and Central Oregon was visible in August with closing of one of the region’s most expensive real estate transactions.

            Seattle based Security Properties, a leading national apartment owner-manager, paid $45 million for the 228-unit Farmington Reserve apartments on Aaron Way, a project developed by Portland-based BPM Real Estae Group.

            Security Properties, a nearly 50-year-old company, owns or manages more than 80,000 multi-family units with a portolio value of $5.7 million, according to the company’s website.

            The Bend acquisition valuing each of Farmington Reserve’s 228 units at $197,368 compares with Security’s recent purchase of a 248 unit complex in Lacey, WA for $54 million, or $217,741 per unit and another 162 unit project in Bremerton, WA for $182,098 per unit.

            Security’s strategy is to invest in existing apartments, rather than develop new ones for its investment portfolio. The company in early September was advertising for a property manager to oversee the Farmington Reserve complex.

 

Bend moves to reconcile zoning with comprehensive plan

            How does, and how will, Bend grow?

            On the one hand there is the city’s comprehensive plan. On the other is zoning. And the two often don’t mesh as theoretically they should.

            Now the city is taking steps to reconcile both, all the more important now that a decade-long process has resulted in an urban growth bounday plan blessed by the state.

            There is an estimated more than 2,500 acres inside the city where the comp plan and zoning contradict. Rezoning some of the area could open a path for higher density and mixed-use developments in some areas where zoning is more restrictive.

            In a late August vote related to the land use realignment the city planning commission recommended changes to the city council which must eventually make the final decision.

If approved the new policy and plan could eliminate a costly $6,000 fee to rezone property and shorten the time involved in the application process.

 How to address housing affordability in Central Oregon?

            What is at times called a crisis in available housing to match employment income patterns in Central Oregon is highlighted in a new survey of  regional consortium of governent, development, employment and other interests.

            Of nearly 800 respondents the survey reports more than 80% recognized housing affordability as a ”serious” problem. The number jumps to 94% when that sample is added to those who agree it’s a “somewhat serioius” challenge.

            Developers surveyed generally responded that more incentives in the form of bonuses for density and relaxed building height requirements could result on more affordable housing.

            Of 92 employers in the survey, 64% said housing was a serious problem for acquiring and maintaining employees. Surprisingly, 74% said they would support public housing efforts and 19% that they might consider the potential for employer-financed housing projects.

            In Jackson, WY – a mecca for tourism based businesses in the Rockies--the idea of employer-financed housing has taken shape with a requirement that new businesses occupying new commecial construction contribute to building housing units in a ratio to their number of employees.

            Read the full housing survey here: https://coic2.org/needs-assessment/

From prison to a hedge fund sale

            A Bend man who served time in federal prison and paid more than $6 million in fines for conspiracy and export violations in sale of aircraft to Libya has sold 100 acres of his Deschutes River frontage property to a hedge fund manager for $4 million.

            The transaction involves 100 acres the sellers, Edward Elkins and wife Dee, sold to Scott and Carol Ann Smallwood of Virginia. Smallwood was formerly with hedge fund PDT Partners but now heads Periwinkle Trading.

            The 100 acres is now zoned to allow 10-acre building sites and is part of approximately 700 acres often known as Gopher Gulch that Bend developer Brooks Resources had planned for a community of more than 2,000 homes in the early to mid-2000s.

            Brooks abandoned the plan but later sold 140 acres that became Pacific Cascade Heights subdivision. Bend Parks and Recreation purchased approximately 150 acres for the Riley Ranch Nature Reserve.

            After the sale to the Smallwoods the Elkins retain slightly more than 300 acres which could be divided into smaller parcels according to brokers familiar with the property.

                      

State DOT backtracks on Bend “drinking culture”

            The state Department of Transportation had second thoughts after implying that Bend’s well-known reputation for micro-breweries creates a “drinking culture” that contributes to hazardous driving conditions.

            An early draft of DOT’s 2019 Oregon Transportation Safety Performance Plan observed,

“Bend, the only metro area in (Central Oregon) has the bragging rights for the most breweries in the state and is actively marketed around the country for its ‘Ale Trail’.....This culture of drinking, combined with the increased dangers of recreational driving, increases the dangers on the road.”

            With quick reaction, including from outgoing Deschutes County Commissioner Tammy Baney who chairs on the state Transportation Commission, state officials offered an apology, explaining that, “...the original language as the intent of the message was not clear and could have been more specific to the concerns around impaired driving for the entire Region.”