Oregon: Parcel transfer vital to Town Center project, developer says

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A development firm hired by the City of Oregon has been in preliminary negotiations with four or five potential tenants interested in locating in the Town Center property along Navarre Avenue.
Mike Denman, a principal with River Rock Oregon, told city council’s committee of the whole Monday the firm’s primary focus to date has been on restaurants.
“We are in lease negotiations with tenants. We are not allowed to tell you who they are. They make those announcements,” he said.
A community center and hotel are also in the plans, Denman said.
The city completed the purchase last month of the 12.4-acre parcel where a Kmart store was located.
During its regular meeting, city council this week is scheduled to consider an ordinance that would transfer the property to River Rock, which would expedite commercial development of the site, according to the city administration.
“Now that we hold the deed to it we can put it in the hands of our developer so they can enact the process of building there,” Mayor Mike Seferian told the committee.
Denman said his firm’s efforts are hampered by not having title to the property.
“The city purchasing the property went a long, long way and it’s helping a lot but the next true step is for us to be able get it in our name and sit down with tenants and explain our plans and then start signing leases. We can’t sign leases when we don’t own it,” he said. “We can’t go in for building permits, we can’t go for lot splits, we can’t get financing for construction.”
The city had been leasing the property at 2830 Navarre Ave. since 2018 from AMJB LLC, a Delaware company, but the parties recently agreed to a purchase price of $4.25 million
The administration opted to issue bonds to finance the purchase of the parcel.
To pay off the bonds, the administration is establishing a public financing instrument called a Tax Increment Financing district used by local governments to fund infrastructure and other improvements. In turn, the improvements benefit development. The objective is to recoup interest and other costs through an increase in property tax revenue resulting from a completed development project.

Mayor’s touts progress in industrial park
Mayor Seferian said the administration is “still actively pursuing opportunities in our industrial park.”
“We hope that we can come forward with something to present to you possibly by November or December with something I think you will really enjoy,” he said.
City council in March approved the purchase of about 45 acres along Corduroy Road for $2.52 million. Prior to council’s vote, Mayor Seferian said the purchase was needed to make the city’s industrial area more attractive for potential development, which would bolster the city’s tax base.
He described the purchase as “the final piece of the puzzle” and it would be viewed favorably by big ventures that have more capital to invest in projects.
Most of the industrial area is zoned advanced manufacturing, he said.