Saturday, December 15, 2007

City Funding BURA at JR

A little noticed item on the coming Monday's BURA meeting before the City Council meeting will fully commit the City of Bend to paying BURA costs, with the hope that in the future BURA will be able to repay the city general fund.

From the Issue Summary:
On December 5, 2007, City Council approved a resolution to issue full faith and credit obligations of up to $5 million. A portion of these obligations ($3.725 million) will be used to finance Cooley road and other infrastructure improvements for the Juniper Ridge Urban Renewal Area. This debt is expected to be issued in January 2008.

Tax increment revenues from the Juniper Ridge Urban Renewal Area will be used to repay the $3.725 million in full faith and credit obligations. Current tax increment revenues total approximately $150,000. With the addition of Les Schwab, the increment revenues are expected to total $300,000.

Because tax increment revenues from the Juniper Ridge area are currently not sufficient to allow the Agency to issue its own tax increment debt, the Agency has to rely on City issued full faith and credit debt for the Juniper Ridge Urban Renewal Area for now. In the future, when increment revenues are adequate, the Agency will be able to issue its own tax increment debt for infrastructure improvements.

The attached Intergovernmental Agreement provides a pledge of tax increment revenues by the Agency for repayment of the $3.725 million City full faith and credit debt and future City full faith and credit obligations up to $10 million.

This just days after announcing that current budget shortfalls are going to force cuts in many other services, including police and fire services. And now we're going to dig an even deeper hole?

What is it going to take to force our Council to deal with the reality of our city's financial situation?

And can someone tell me why the BURA board is the City Council? How did that ever come about? You look at this stuff and it looks like two groups working with each other, and then you realize is is the exact same people wearing two hats!

And you look at the Intergovernmental Agreement itself, and you see its signatories are two city employees, John Russell and Eric King. WTF?

8 comments:

Anonymous said...

Is Juniper Ridge really "infrastructure?"

Or is it more building that puts us even further behind the infrastructure 8ball?

*

Its problem is NOT 'infrastructure' its the REFUSAL to PAY for infrastructure. To date the CITY has spent $15 MILLION dollars of short-term treasury cash on Les Schwab MT. Borgman fiasco. Les Schwab the richest company in Oregon, pays nothing, I would call $400K nothing, its 2.6% of COST.

To date Mike Hollerns gang of builders have paid $12k for new homes, cost to Bend has been over $60k. Thus, builders/developers pay 20% of COST.

We who pay taxes call BOTH of the above LLC welfare.

There are two infrastructure problems here.

1.) The richest people refuse to pay, which is how the rich always get richer.

2.) During the boom-years Bend never paid for the 100% increase in population load, by increasing water/sewage/storm 'infrastructure'. Today we're estimated to need over $2 billion dollars in arrears, conveniently exactly how much Mike Hollern and pals made during the go-go years.

Anonymous said...

http://www.bendinfrastructurefirst.com/

Anybody wanting the TRUE story of Bend

Infrastructure

Should visit the above site, details exactly how Billions of Dollars have not been spent during the boom years, for 100% increase in Bend population.

All the ugly details are at this site. Note, also these guys just got 5k signatures, and its going on the next ballot, but MUST pay its way as it goes, a little late, but the tide is turning.

Anonymous said...

someone tell me why the BURA board is the City Council? How did that ever come about? You look at this stuff and it looks like two groups working with each other, and then you realize is is the exact same people wearing two hats!

*

It's always this way JRP is KURATEK, but they never say so, BURA is GARZINI/ANDERSON, but they never say so, ...

Blame a distant acronym, but never the key players.

Juniper-Ridge is Les Schwab.

City-Council are puppets that beckon to the call of EDCO.

Garzini has been the REPUBLIC prison master of Central Oregon since 1998. Our own Mr Fix-it, in the MAFIA sense, omerta.

Borgman and Hollern are the money men, who at the end of the day, get all the chips no matter what the outcome.

Parenti calls Garzini the #1 prison booster in America. Its critical to never forget what this is all about.

Anonymous said...

Jim Johnson CRS is a real estate expert who tells exactly how to 'get rich quick' on Juniper Ridge. Very timely Sep 2007.

Investments in Bend Oregon Real Estate

Bend Oregon has seen some of the fastest growth in the nation in the last few years. Its population has grown steadily and real estate prices have risen dramatically. The real estate market has cooled down some now but there are still some opportunities out there for the smart investor. The days of buying a house, condo or land and then “flipping” it are over.

The good investments are going to be centered around the City of Bend’s new Juniper Ridge development in North Bend. The City Commissioners are planning on a mixed use zoning and have already annexed 500 acres into the city limits. Most of this first phase will be light industrial (IL) zoning and research and Development. But the second phase will possibly have a new four year college campus, some commercial and residential.

This land is all owned by the city of Bend but there are several hundred acres of private property around the development that are for sale now or will be on the market shortly. These are the properties that a smart investor can make some money on.

Most of this land is small hobby farms from 3 to 20 acres. It is currently zoned for low density use. However, the city is in the process of rezoning most of this property and bringing it into the city limits. A new sewer main is proposed to border the south end of Juniper Ridge and run east to the sewer plant

The city is supposed to make their proposed changes public on March 26, 2007. This is two years later than what was initially planned. Delays in infrastructure engineering required by the state have been the cause. So this date is not etched in stone. However, it should be made public soon.

The smart investor could be buying some of the surrounding properties now and possibly doubling their money in a couple of years. Similar land has been selling in the last couple of years for $250,000 per acre and more. Investors should be tying up properties with contingencies prior to that time. There are sellers out there willing to sell their property with an extended closing date subject to rezoning

Development land currently inside the city limits (UGB) is listed for sale at $500,000 to $600,000 per acre. However it’s not selling at this time. There is an over supply of available lots. But these lots should sell out this year. It’s the authors’ opinion that residential land inside the city limits will settle out around $450,000 an acre next year when the city moves the city limits.

Everyone seems to be waiting for the city to make a determination on where the new city limits will be and what the zoning will be. Several investors paid over $250,000 an acre on land outside the UGB thinking that it would be developable and buildable today. That has not happened. Once the boundary proposal is official you will see more activity in the market for development land.

Finished lots on Bends East side have been selling for around $160,000 each. They are around 8,000 square feet. Larger lots sell for more. The minimum lot size today is 4,000 square feet according to city building code. The trend is towards larger homes on smaller lots.

On site infrastructure has been running between $25,000 and $30,000 per lot. Large amounts of rock and or sewer pump stations can add to the costs. Off site costs can also add up quickly. Today’s cost to bring in a sewer main is around $100 per foot.

As of the end of February 2007 there were 59 single family lots for sale in Bend with an average size of 5,183 square feet. The average asking price was $164,800. Past sales of bare land outside the city limits on the East side have been averaging $270,000 per acre. Properties with homes and other improvements have averaged $291,000 per acre.

Bends real estate market is cooling its jets for a while but rest assured it will heat up soon.
Bend is a great place to live and there will continue to be more and more people moving here. The development of Juniper Ridge by the city will add more jobs to the mix and the need for more housing.

Investments in land on the outskirts of Bend will pay huge dividends in the future. Much of the land will be zoned for residential. But there is some land that will become commercial or light industrial. An investor does not have to develop the land. Just hold it for a couple of years and resell it.

About the Author:
Jim Johnson CRS is a real estate expert who has lived in Bend Oregon since 1981.
Call 541-389-4511 or see his web site www.BendOregonRealEstateExpert.com

Anonymous said...

Bruce,

This press release is very interesting. Note that this is the same lawfirm (SWW) that wrote the infamous 'les schwab agreement', and that this gal, was involved, and she is now running EDCO.

Very, very, very convenient.

***

Monday, September 17, 2007
Karen Kervin
Director, Client Relations
503-796-2993

Schwabe Attorney Katherine Tank Named Secretary of EDCO Board of Directors

Bend, OR -- Katherine Tank, a shareholder at the Bend office of regional law firm Schwabe, Williamson & Wyatt, was appointed as secretary of the Economic Development for Central Oregon (EDCO) board of directors. The EDCO plays a lead roll in the economic development and diversification of central Oregon.

“It’s an honor to serve in this position,” said Tank. “Central Oregon is a wonderful place to live and work and I feel fortunate to be among so many people dedicated to building a strong, successful community.”

Tank joined Schwabe in 2003, strengthening the firm’s labor and employment practice. Tank’s experience includes positions at the Ninth Circuit Court of Appeals, U.S. District Court for the District of Oregon. She also served as a visiting foreign attorney in Brussels, Belgium.

In addition to her position with the EDCO board, Tank currently serves on the board of directors for the Bend Chamber of Commerce, Central Oregon Employer Council, and the Human Resources Association of Central Oregon, Inc. She is admitted to practice law in Oregon, Alaska, U.S. District Courts and the Ninth Circuit Court of Appeals. Tank is a frequent guest on Good Morning Central Oregon where she discusses employment-related topics.

“Katie is deeply devoted to both her clients and her community,” said Mark Long, managing partner at Schwabe. “We are all very proud of her leadership.”

"Both on EDCO’s board and executive committee, Katie has been an MVP volunteer these past two years,” said Roger Lee, executive director of EDCO. “She has been an invaluable legal resource on a variety of legal and operational matters for the organization. The board of directors was enthusiastic in their endorsement of her new leadership role."

Tank received her juris doctor degree from the University of Oregon School of Law (Order of the Coif) and her bachelor of science degree from the University of Oregon.

About EDCO

Founded 25 years ago, Economic Development for Central Oregon (EDCO) is a non-profit corporation dedicated to building a vibrant and thriving regional economy. EDCO members work to attract new investment and trade-sector jobs (manufacturing, professional, headquarters and high technology businesses) to Central Oregon through marketing, recruitment and substantive assistance to existing companies. www.edcoinfo.com.

bruce said...

Re: This press release is very interesting.

Yes it is, good catch.

Anonymous said...

Bruce,
Not a perfect memory here . . . but, to answer your question regarding how BURA became the City Council.

A number of years ago (3-5?) the then BURA was a collection of Bend residents who, for reasons unknown to me, were the sitting members of BURA. They, in their infinite wisdom committed something like a million dollars for a one block "improvement" of Minnesota from Bond to Lava that ended at and included the "bird fountain" on Lava. There was something of a quiet uproar about spending the entire BURA budget for such a project and, because of public pressure, the City Council - who was responsible for oversight of BURA in the first place - decided to disband the citizen committee and replace them with the themselves.

If only the Bulletin, like most other papers of similar size, would have publicly accessible digital archives you could easily research this topic. Unfortunately they are too cheap or too wary to do such a thing. Bummer.

bruce said...

2007-064829 PDF TIF DOC TYPE: Deed CONSIDERATION: $3,671,236.80 DATE REC: 12/19/2007 4:09:42 PM
DIRECT: CITY OF BEND INDIRECT: SCHWAB HEADQUARTERS LLC
SUBDIVISION: PP 2007-78 LEGAL: PARCEL

Here's a direct link to the deed.

http://recordings.deschutes.org/TempImages/96490411694015.pdf