2023-54-Order No. 2023-007 Recorded 2/17/2023Steve Dennison, County Clerk
Commissioners' Journal
Recorded in Deschutes County CJ2023-54
02/17/2023 9:20:35 AM
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BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Designating the Deschutes County
Property Manager, Kristie Bollinger as the
Deschutes County Representative for the Purpose
of Signing Documentation to Complete the Sale
of Deschutes County Owned Property Located at
19755 Simpson Avenue, Bend, Oregon 97702
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ORDER NO. 2023-007
WHEREAS, the Board of County Commissioners of Deschutes County has authorized the sale of
property located at 19755 Simpson Avenue, Bend and consisting of 7.12-acres to Central Oregon Regional
Housing Authority D.B.A Housing Works; and
WHEREAS, on January 21, 2022, Deschutes County issued a Request for Proposals (RFP) for Real
Property Disposition and Development of said property; and
WHEREAS, Deschutes County received five proposals; and
WHEREAS, on March 31, 2022, Deschutes County issued a Notice of Intent to Award a Purchase and
Sale Agreement for said property Ly to Central Oregon Regional Housing Authority D.B.A Housing Works KJ and
KOR Community Land Trust (Respondent); and
WHEREAS, the awarded response to the RFP included a purchase price of One Million Three Hundred
Thousand ($1,300,000) Dollars for said property; and
WHEREAS, upon a geotechnical assessment of said property by the Respondent's third -party
environmental consultant, the assessment concluded that though the property is developable, additional costs
will be associated with the development due to existing soil conditions; and
WHEREAS, because of additional costs associated with development, Respondent and Deschutes
County agreed to a revised sale/purchase price of Five Hundred Thousand ($500,000) Dollars; and
WHEREAS, Deschutes County will sell said property to Housing Works (Buyer), and upon completing
a property partition with the City of Bend, Housing Works will convey a portion of said property to KOR
Community Land Trust for Two Hundred Fifty Thousand ($250,000) Dollars; and
WHEREAS, it is anticipated the transaction will close between the County and Buyer on or before June
30, 2023; now, THEREFORE,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY
ORDERS as follows:
PAGE 1 OF 2- ORDER NO. 2023-007
Section 1. The Deschutes County Property Manager, Kristie Bollinger is designated as the Deschutes
County representative for the purpose of signing the necessary documents to complete the sale of property
located at 19755 Simpson Avee�nue, Bend, Oregon 97702.
Dated this of ,--kb
` , 2023 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ATTEST:
Recording Secretary
PAGE 2 OF 2- ORDER No. 2023-007
ANTHONY DEBONE, Chair
PATTI ADAIR, Vice Chair
PHIL CHANG, Commisser
19755 SIMPSON AVE, BEND, OR 97702
1812060000100
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BOARD OF
COMMISSIONERS
AGENDA REQUEST & STAFF REPORT
MEETING DATE: February 8, 2023
SUBJECT: Consideration of Board signature of Order No. 2023-007, authorizing the
Deschutes County Property Manager to execute the documents associated with
the sale of County -owned property located at 19755 Simpson Avenue, Bend,
Oregon 97702
RECOMMENDED MOTION:
Move to approve and sign Board Order No. 2023-007, authorizing the Deschutes County
Property Manager to execute the documents associated with the sale of County -owned
property located at 19755 Simpson Avenue, Bend, Oregon 97702.
BACKGROUND AND POLICY IMPLICATIONS:
Until 1993, Deschutes County owned and operated the County's Demolition Landfill located
on Simpson Avenue, which was comprised of 79.29-acres. Prior to the conveyance of 72.17-
acres to Oregon State University -Cascades in 2018, the County completed a property line
adjustment through the jurisdiction of the City of Bend resulting in a 7.12-acre parcel north
of Simpson Avenue that has since remained in County ownership.
The 7.12-acre property known as Map and Tax Lot 1812060000100 is zoned Residential
Medium Density (RM). In August 2021, the property appraised at $2,880,000 by a third -
party appraiser.
In 2021, the Board of County Commissioners directed staff to issue a Request for Proposals
(RFP) for the disposition and development of the 7.12-acre property for affordable housing.
The RFP was released on January 21, 2022 and proposals were due March 7, 2022; resulting
in five proposals. On March 31, 2022, the County issued a Notice of Intent to Award a
Purchase and Sale Agreement (PSA) to Central Oregon Regional Housing Authority D.B.A
Housing Works and KOR Community Land Trust (Housing Works and KOR).
The awarded proposal included a property purchase price of $1,300,000 with the
development of 100-units, comprised of 80-multifamily rental units constructed by Housing
Works on the east side of the property and 30-singlefamily units constructed by KOR for
homeownership on the west side of the property.
Due to the historical nature of this site being mined for pumice, upon proposal award,
Housing Works and KOR contracted with the Wallace Group to complete geotechnical
exploration at the property. The report included, "Portions of the property that were mined
have subsequently been backfilled with undocumented materials to achieve the surface
elevations present today." The report further included, "Based on this exploration, the site
is suitable for the expected development from a geotechnical perspective, provided that
alternative foundation systems are included into the design." And, "Due to the very loose
nature of the undocumented fill materials, we do not recommend any vibration be used
on -site for development of foundation elements or paving areas."
Because of increased costs associated with engineering, alternate foundations and
mitigating vibrations associated with the development of foundation elements and paving
areas, both Housing Works and KOR were required to revise site designs that affected the
number of developable units. As a result of the adjusted site design, the Housing Works
development is reduced to 59-units and the KOR development increased to 40-units.
Subsequently, in August 2022, because of increased development costs, Housing Works
and KOR requested a reduction in purchase price from $1,300,000 to $500,000; the Board
of County Commissioners authorized the reduction.
Housing Works and KOR are working closely with the City of Bend Community
Development Department to review and evaluate the proposed projects. One item under
consideration is whether the City will vacate a portion of SW 17th Street to maximize the site
for the Housing Works development. Note that City staff will bring the vacation petition
before City Council in the near future. Additionally, Housing Works will submit a partition
application to the City that will result in two parcels for the two separate independent
developments. The City is requiring Housing Works, and the County as the current property
owner, to enter into a Development Agreement, which will memorialize certain specifics
related to the development, but will have no requirements financial or otherwise that
would impact the County.
The County is prepared to convey the entire 7.12-acres to Housing Works, and upon
completion of the partition process, Housing Works will convey a partitioned parcel of +/-
3.38-acres to KOR for $250,000, which is 50% of the total revised sales price; Housing
Works and KOR will execute an Option to Purchase Agreement to memorialize the separate
transaction. Prior to the property conveyance from the County to Housing Works, an
Affordable Housing Covenant will be recorded on the property's title that will restrict all
units at no more than 120% median family income (MFI) based on the Bend -Redmond area
for no less than 60-years. It is anticipated the conveyance will be completed no later than
June 2023.
As of February 1, 2023, Housing Works anticipates starting construction June 2024 with
targeted completion of August 2025. KOR anticipates starting construction June 2024 will
home sales starting January 2026.
BUDGET IMPACTS: $500,000 in gross sales proceeds.
ATTENDANCE: Kristie Bollinger, Property Manager