More Layers Of Management Coming For JR

From the Bend Bulletin:

Manager sought for Juniper Ridge
Bend hoping to find development specialist for project

With a large amount of infrastructure work to complete, ongoing transportation-related holdups and a second business set to move in, Bend officials are looking for some outside help with the commercial development of Juniper Ridge.

Currently, the city’s 1,500-acre project in northeast Bend is managed by a large and sometimes confusingly structured group of people that includes the Bend City Council, city officials, the project’s former master developer and the Juniper Ridge Management Board, a five-member volunteer group of residents with experience in business, development and government.

But now, city officials are looking to bring in another person to serve as Juniper Ridge’s development manager, a contract position city officials said will be key in helping to organize future land deals with businesses interested the project and oversee other elements of its development...

This will be the fourth or fifth group brought in to move JR forward, depending on if you count the Juniper Ridge Management Board (JRMB). We are still paying Juniper Ridge Partners i.e. Ray Kuratek and Jeff Holtzman (JRP) 6% of every sale of the first 50 acres sold beyond the 20 acres that Les Schwab bought and optioned, per the Option Agreement. This is on top of the $2,515,000 paid to JRP for turning over the Master Plan they developed with Cooper-Robertson.

Three firms were interviewed on a full blizzard of a day in Bend: "James “Jim” Carnahan, a Bend development manager and engineer who formerly worked with David Evans and Associates; Dike Dame, the president of Williams & Dame, the Portland firm that developed the Broken Top golf resort; and David Ditz, a Colorado-based development company owner."

According to John James, Chair of the JRMB:

“The city wears two hats — the city’s normal situation is the regulator, which they do well, and also the developer, and they don’t do that as well,” James said.

“The idea is to get someone independent, from the development community to report to Eric (King) and this board and try to get all the infrastructure and entitlement issues taken care of, which are significant in 2009.”

City manager Eric King indicated the Development Manager would be paid from money budgeted for Juniper Ridge operations.

Due to the blizzard, I stayed home after seeing five accidents within six blocks of Brookswood. More when I speak with Mr. James and read the meeting minutes.

Unfortunately the minutes will probably not be available until after the selection vote by the City Council.

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?