Sunday, July 5, 2015

OSU-Cascades 4-Year campus site prep underway



            Heavy equipment has begun clearing land for what will be Central Oregon’s first four-year university campus on Bend’s west side -- even as a group opposing the selected site takes its case to the state Court of Appeals after setbacks in earlier appeals.
            OSU-Cascades officials announced June 18 they would start construction “as soon as required permits” were issued by the City of Bend.
            By the week of June 29 equipment was on site and workers were cutting trees and moving dirt for construction roads. The date was significant in that it was the deadline for a group of mostly west side residents opposed to the campus to file an appeal with the state Court of Appeals.
Site preparation is underway at the OSU-Cascades campus
            The site opponents, acting under the umbrella Truth in Site, had earlier lost appeals of the city’s approval of the first phase campus by the city, and a subsequent appeal rebuffed by the state Land Use Board of Appeals.
            One spokesman was reported by local media to say the opponents would take their fight to the Oregon Supreme Court. However, by July 4 the latest action item posted on the Trust in Site website was before the LUBA decision.
            OSU-Cascades has already delayed start of the proposed campus on 10 acres on the northwest corner of NW Chandler Avenue and NW Century Drive pending the earlier appeals.
            To accommodate the first group of approximately 100 students in Fall of 2015 the university will provide classes and housing at facilities of Central Oregon Community College and other classes at the OSU-Cascades Graduate & Research Center on Colorado Avenue.
            In a statement issues June 18, OSU President Ed Ray noted that every delay of construction would mean, “..another group of young people leave Central Oregon to seek a four-year university degree, and many never return.”
            Bend and Central Oregon is has the largest population of any area in the state without a university, Ray emphasized, but a 30-year “aspiration...is finally being realized.”
            OSU Cascades Vice President Becky Johnson said the start of construction could make it possible for students could attend classes and live on the new campus site by the Fall of 2016.
            The initial 10-acre campus will have two buildings, one a 113,000 square foot dormitory and dining center and the other a 43,650 square foot academic building, altogether designed to accommodate 1,890 students.
            At issue with opponents of the site is the lack of a master plan for an adjacent 46-acre site, known as the pumice mine property, on which the university has a purchase option.
            Although opponents argued the university should have developed a master plan including the larger site, both the hearing officer and state LUBA decisions ruled otherwise.
            Even with the appeal to the state Court of Appeals, Johnson said in announcing the start of construction that, “Oregon state is confident that significant construction progress can be made while a potential appeal is being considered and still allow the university to adjust to changes that could result from an unlikely remand or reversal by the Court of Appeals.”

Friday, June 12, 2015

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.

Friday, June 5, 2015

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.

Monday, May 18, 2015

Briefs: New vacation rental rules; hotel developer and Mirror Pond twist



            After months of complaints regarding noise and parking impacts, among other issues, the Bend City Council has approved regulations tightening vacation rental requirements in residential neighborhoods.
            New rentals will need to be spaced at least 250 feet from the property lines of another rental, but existing rentals are in effect “grandfathered” from that requirement.
            The city will require a fee of $1,749 for new rental permits, a big increase from the previous $454. The process will also now involve public notices to neighbors and a more extensive review  by city staff.
            Vacation rentals in commercial areas will not be subject to the 250 foot separation requirement. The fee for those will increase from $454 to $558.
           An existing city regulation requires vacation rental operators to pay a transient lodging tax.
            The new ordinance also sets occupancy limits based on the size of the property; requires a property be rented at least once in a 12-month period; allows a license to be transferred in the case of death or divorce; and requires that owners comply with a “good neighbor policy.”
            The 250-foot separation rule would not apply to owners who rent their properties for fewer than 29 days.
http://bendoregon.gov/index.aspx?page=1281
            .

Hotel developer looking at city-owned site
           
Could the third time be a charm?
A Springfield based hotel development and management company is considering buying a 3.1 acre site on the north edge of Bend’s downtown core, the third prospective buyer to eye the property in recent months.
InnSight Hotel Management Group is reported to be in a 90-day due diligence period to determine feasibility for a potential 100-120 room hotel, additional living units and retail space for the site at Olney Avenue and Wall Street across from Pioneer Park.
The current asking price is $2.28 million, the same as last month when another hotel company looked at the property but ended talks with the city, according to a report in the Bend Bulletin.
InSight’s portofolio includes about a dozen hotels in Oregon and one in Burlington, Washington, with brand affiliations that include Marriott and Holiday Inn, according to the company's web site.
Another developer, Getz Properties, which developed the Forum shopping area in east Bend, offered $1.9 million for the site in early 2014 but decided not to proceed due to traffic and access concerns, it was reported.
The property is the original Bend Bulletin site, which the newspaper occupied from 1966 to 2000 and traded to Brooks Resources for it’s current location on NW Chandler Avenue. Developer Jeff Pickardt and Todd Taylor later acquired the property and sold it to the city for $4.78 million in 2005, as real estate values were escalating.


Another option proposed for Mirror Pond

            The Tumalo Irrigation District has stepped into the discussion of how to solve problems created by continued silt buildup in Bend’s cherished Mirror Pond section of the Deschutes River.
            A district official says it is considering a way to acquire and upgrade the existing Newport Avenue dam, owned by utility PacificCorp, and continue to generate electricity as a district revenue source.
            The plan would also involve changes to the district’s existing water intake system including ending a diversion from Tumalo Creek near Shevlin Park and another downstream of the Newport dam. A new single diversion would be built at the dam.
            The result could improve flows in the middle Deschutes River and enhance fish habitat by adding colder water from Tumalo Creek to the Deschutes below Bend, the district believes. By giving up the Tumalo Creek diversion the irrigation district would need to acquire additional water rights from the Deschutes.
            It’s not clear how the district’s plan would address passage for fish and boaters around the dam. That issue has been at the top of discussions by a committee of city and volunteer community members on improving flows and limiting silt in the stretch of the river.   
            An leading option in the city-community process has been to buy the dam, remove it, and redevelop the area around the nearby substation as well as other city-owned parking lot property near Drake Park. That plan would involve keeping the appearance of Mirror Pond while also allowing fish and boater passage below the stillwater stretch.

2015 in Bend - Inventory extremely tight in lower price ranges


            A year-to-date quick look at sales of single family homes on up to an acre in the greater Bend area shows continuing upward movement in prices with steadily decreasing inventory priced at less than $200,000.
            In the first few months of 2015 through May 11, statistics gleaned from the Multiple Listing Service of Central Oregon show that homes available at list prices under $200,000 have dropped 70% from the comparable period of 2014.  
             Anecdotally, real estate brokers say some major builders are having difficultly finding contractors to start new homes, which in turn means fewer units available for sale.
            In the $200,000 up to $300,000 price range there is less than a 1.72 months supply of available homes, factoring average month sales through mid-May. Homes on the market in the $300,000 to $400,000 range reflect an inventory of only 2.30 months, another barometer of an extremely tight seller’s market.
            For the same periods median sale prices have risen $15% from $275,000 in 2014 to $315,057 this year to date.