The Garner Group

Newsletter List: Central Oregon News Digest

Central Oregon News Digest

by The Garner Group
Posted 8/25/2008 November 2008
Compiled by The Garner Group Realtors & Development LLC
388 SW Bluff Drive •  2762 NE Crossing Drive • Bend, Oregon
Tel. 541 383-4360 • www.thegarnergroup.com


www.thegarnergroup.com

A LESSON FROM THE MARKETPLACE

By Sandy Garner, President and CEO
The Garner Group Realtors & Development LLC


Various sources nationally have attempted to analyze the housing market but we are tempted to follow the rule that, like the late Tip O’Neill said of politics, all real estate is local. In Central Oregon, prices have fallen as builders seek to turn unproductive and sometimes costly platted lots into new home neighborhoods.EL-sold-web-1.1.jpg This has created an unparalleled advantage for new home buyers, who find the price level they must accept to sell their old home in today's market more than compensated for by the huge bargain they gain in their new one.
    An example of this trend may be found in Eagles Landing (right), a Northeast Bend neighborhood of exceptional quality that we are privileged to represent. Stonebridge Homes NW, the builder, has focused on the requirements and preferences of the market in every respect from home design to pricing. The model home was judged best value in its price class during the COBA 2008 Tour of Homes™. We are seeing strong sales in Eagles Landing and competing offers on individual listings as a result.
    Home values will increase in time as projections for population and job growth in Central Oregon are achieved. The spectacular growth rate of the decade just past may not be duplicated, but growth will continue nonetheless. The Oregon Employment Dept. says Central Oregon will lead the state in job growth over the next 10 years (more below) and the appeal of living in the region continues to draw praise from national media.


NEWS ABOUT THE GARNER GROUP

Much has happened at The Garner Group since our last newsletter. We have opened a second office and added several agents, and are seeking to recruit more.
    In June, we moved into quarters at 2762 NW Crossing Drive in NorthWest Crossing. The Garner Group is the exclusive agent for real estate sales in the neighborhood controlled by the developer, West Bend Property Co. LLC, and is listing and selling properties for individual builders and homeowners.
    John Anderson, Michelle Gregg, Loryn Light and Gary Oliver have joined The Garner Group as licensed real estate brokers. All are knowledgeable about Central Oregon real estate as a result of their professional experience and deep roots in Oregon and the Bend area. Click here to read their biographies.


ECONOMY

Central Oregon to lead state in job growth

Employment in Central Oregon should grow by 25% between 2006 and 2016 versus 14% for the state as a whole, according to the latest biennial projection from the Oregon Employment Dept. Central Oregon will add 20,890 jobs to become the fastest-growing region in the state. Expected population growth supports this estimate. Biggest gains will be in non-manufacturing jobs. Health care and professional/business services lead the way at 33% and 32%, respectively. Central Oregon created 280,640 jobs between 1996 and 2006, a growth rate of 52%.

Income continues upward
Personal income in Deschutes County equaled the national growth rate of 6.2% in 2007 versus 2006, according to the US Bureau of Economic Analysis, following hikes of 11% and 8.9% in the two previous years. Average per capita income last year was $34,458 in Deschutes County, $38,632 nationally.

LAND USE

State nabobs spike north end growth
The Oregon Transportation Commission has asserted its authority to determine how and when development in the north end of Bend will occur. The commission on Aug. 21 tabled a tentative agreement between the city and the Oregon Department of Transportation that would lift ODOT’s stop order on business development near Highway 97 and Cooley Road, including Juniper Ridge. Under the agreement, companies seeking to build or expand would pay $9,000 per added rush hour car trip into a fund for long-term reconfiguration of Highways 97 and 20. Commission members want to see detailed plans for Juniper Ridge, finalize a plan for highway reconstruction, pinpoint financing sources, and require the city to put urban growth boundary expansion and development of a regional transportation plan ahead of additional north end development. This stymies the city’s plans to create the revenue stream needed to go forward with Juniper Ridge.

Companies looking at Juniper Ridge
Otherwise, plans for Juniper Ridge appear to be moving forward on two fronts. Bend officials retain the long view of a mixed-use community on the 1,500-acre site that would incorporate a university and high-tech R&D center along with residential, commercial and light industrial pods. The near-term approach is directed toward marketing light industrial property, reflecting the shortage of large parcels in Bend. News reports indicate Suterra LLC, Outback Manufacturing Inc. and Pepsi-Cola Bottling Co. as prospects—all Bend companies looking to enlarge—and hint at negotiations with other companies.

Bend UGB expansion delayed…again
Details of the revised proposal to expand Bend’s urban growth boundary will not be ready for city council review until November. The initial proposal last year created an uproar because it focused the UGB expansion almost entirely on the city-owned Juniper Ridge property and adjacent land between northeast Bend and the sewage treatment plant. Methodology used to calculate the area was also challenged. The new plan is expected to envelop only a portion of Juniper Ridge and distribute added land more equally around Bend’s perimeter.

PROJECTS

Traffic agreement clears west side project
Proterra-Bend II LLC has agreed to off-site street projects as a condition to proceed with a mixed-use development with condos, office and retail space on the former Mt. Bachelor park and ride property in southwest Bend. The company will build one roundabout, widen another and modify two other intersections to improve visibility.

Growth area gets retail center
Brookswood Meadow Plaza is taking shape on a 4.24-acre site bordering Brookswood Blvd. in southwest Bend. The center contains 49,650 sq ft of retail space in three buildings and is expected to house a market, pizza restaurant and other businesses. It should open this fall.

Hotel, apartments replace condo plans
Two condo projects planned for Bend have been changed. City Center Properties will build the Sage Hotel, a six-story, 117-room luxury hotel with all the trimmings, on NW Franklin St. downtown. The approval process, including a traffic study, is underway. City council has given the green light to the 432-unit Sun Ranch apartments in southeast Bend, targeted for completion in fall 2009. Owners will make traffic improvements to Reed Market Rd.

MEDIA ATTENTION

NorthWest Crossing spotlighted
Cottage Living magazine picked Bend’s NorthWest Crossing as one of its top 10 neighborhoods for 2008. The annual selection “celebrates the best places to enjoy life just right—communities where neighborly houses and pedestrian-scaled streets aren’t a thing of the past.” The article has generated a spike in inquiries about the neighborhood, according to agents at The Garner Group’s NorthWest Crossing office.

USA Today: a great time to buy
“It’s a great time to buy a home in Bend, Ore., a popular resort and retirement community,” began a story in the July 28 issue of USA Today. The article by Christine Dugas drew attention to bargain-level median home prices, a diversified economy, and expectations that a rebound in housing will be supported by the continued appeal of outdoor recreation, climate and scenery.

More from USA Today
In May, another USA Today writer described Bend as “the new Boulder (Colo.)” and described the conversion of second-home owners into full-time residents. “Many buyers lured here by the small city’s outdoor living, natural beauty and mild weather are finding their vacation homes too good to be true and are relocating as full-timers,” wrote Larry Olmsted.

Seattle paper tips hat to Bend pubs
Bend offers “a wealth of options for the discerning beer fan,” The Seattle Times declared in an article profiling the city’s brewpub choices. Bend pubs are great places to “experience life like a local” after a hard day of biking, rafting or hiking, according to the newspaper.

TRANSPORTATION

Redmond air traffic stays above 2007
Commercial passenger boardings at Roberts Field in Redmond for the first six months of 2008 were 10% above the same period in 2007. Comparative monthly gains tapered downward in May and June and boardings in July were 2% below the same month a year ago. The cumulative total through July is 8% above 2007.

Allegiant adds Phoenix flights, Horizon adjusts
Allegiant Air will begin non-stop jet passenger service between Redmond and Phoenix-Mesa Gateway Airport on Oct. 24 with round-trip flights Mondays and Fridays. Allegiant currently flies twice a week between Redmond and Las Vegas.

New air terminal open in Prineville
Prineville Airport has a long-awaited new general aviation terminal building. The 2,300-sq ft structure cost $250,000 and contains a pilots’ lounge, computer room, restrooms, a kitchen area and a conference room. Officials want to attract more general aviation traffic to Prineville.

State awards transportation grants
Non-auto transit projects in Central Oregon will share a $10 million distribution of lottery funds under the state’s ConnectOregon II program. They are:
  • City of Prineville Railway, freight unloading terminal, $3.5 million.
  • City of Bend, intermodal transit center at NE 4th St. and Hawthorne Ave., $2.8 million.
  • Madras Airport, heavy aircraft and engine maintenance hangar, $2.2 million. This will be leased by Butler Aircraft Co.
  • Roberts Field, Redmond, air cargo ramp, $1.5 million.
Bend hangar project begins
Work is underway on 73 new hangars at Bend Municipal Airport. The Federal Aviation Administration approved the hangars, a 24-acre aviation industrial park and a 342,000-sq ft expansion of the Epic Aircraft plant. Deschutes County commissioners have sidetracked a plan to create an urban renewal district to fund the expansion.

Agency buses link Central Oregon cities
The Central Oregon Intergovernmental Council is testing demand for regional commuter bus service. A pilot program with scheduled runs between Bend, Redmond, Madras, Prineville and Sisters began in July. La Pine-Bend service was added in August after privately owned Central Cascade Lines suspended scheduled operations. The agency uses Dial-A-Ride minibuses.

BUSINESS LOG
  • Stratos Aircraft intends to build a single-engine jet plane from composite materials at an undetermined Central Oregon site. The company will target the Very Light Jet segment of the aircraft market, limited to planes weighing less than 10,000 pounds. Federal Aviation Administration certification is being sought.
  • Crown Point National Bank will open early next year pending approval of a federal charter by the Office of the Comptroller of the Currency. The main office will be in downtown Bend with a branch in Portland. Founders have pooled more than $4 million to fund the bank and will make a public stock offering after regulatory approval occurs, according to reports.
  • Warm Springs Composite Products has been awarded a contract to supply fire-rated components for doors and frames to be used in a 164-story building, said to be the world’s tallest, under construction in Dubai, United Arab Emirates. The company, owned by Confederated Tribes of Warm Springs, has opened an office in Dubai.
  • AT&T, formerly a minority partner, has completed its acquisition of Edge Wireless, a Bend company that provides cellular phone service in parts of four western states.
  • G5 Search Marketing Inc. of Bend has entered a strategic relationship with Google to resell its AdWords on-line advertising program and plans to add some 50 employees to its current staff of 46 over the next two years.
  • Bend Brewing Co. was named the top small brewpub and brewmaster Tanya Cornett the champion brewer at the Brewers Association World Beer Cup last April in San Diego, Calif. Two gold awards went to Bend Brewing and one to Deschutes Brewery in individual product judging.
  • Tumalo Farms won first prize at the American Cheese Society’s 2008 annual competition in Chicago for best goat’s milk cheese aged 60 days or more. This is the second annual award for the local cheesemaker’s Classico brand.
  • Three Creeks Brewing Co. has joined the ranks of Central Oregon’s craft brewers with a new brewpub in Sisters. The 6,000-sq ft facility in the FivePine center contains a brewery, restaurant and bar and will offer eight to 10 brews on tap.
  • Two local irrigation districts are moving forward with plans to generate electricity from piped canals. Swalley Irrigation District may have a 1-mW plant on line by April 2009, and Central Oregon Irrigation District is looking at May 2010 for completion of a 3.3-mW plant. Both will be north of Bend. Permit and zoning issues are being addressed at county, state and federal levels.
  • Media notes: Bend will add a CBS television affiliate when KBNZ begins broadcasting this fall. The owner, New Vision Television, also owns KOIN-TV in Portland and 13 other stations. The popularity of talk radio has encouraged Summit Broadcasting Co. to launch KBNW as a news and talk station simulcasting on AM and FM.

DESTINATION RESORTS

Tetherow links open for play
Tetherow Golf Club, centerpiece of the Tetherow resort immediately southwest of Bend, opened in July. The 18-hole, par 72 course was designed by Scotsman David McLay Kidd, who now lives in Bend. The clubhouse is scheduled to open in September.

Crescent Creek application filed
Cascade Timberlands LLC has submitted a preliminary plan to Klamath County officials for Crescent Creek, a destination resort south of La Pine. Occupying 5,500 acres of logged-over timberland, the resort would eventually support 1,965 single-family homes, 785 overnight lodging units, two golf courses, a lodge with restaurant and meeting facilities, trails and bird-watching platforms. Owners would set aside a 3,600-acre wildlife management area.

Sunriver mall project inches forward
Deschutes County commissioners have opened the door to a zone change that would permit redevelopment of Sunriver Village Mall but opponents have taken the issue to the Oregon Land Use Board of Appeals. SilverStar Destinations LLC must file a zone change application and site plan with the county. The company proposes to establish a mixed-use town center on the 16.5-acre site containing condos, retail and commercial properties.

Crook projects face resistance
Crook County officials have made it known they will comply with an advisory measure passed in last May’s election calling for a moratorium on destination resort development. The county’s destination resort overlay map will have to be redrawn to exclude ownerships not already under development. The 580-acre Crossing Trails resort near Powell Butte faces stiff opposition from area residents, and the Oregon Department of Transportation is requiring developers to pay for some $13 million in intersection improvements.

Court OKs Jefferson resort process
The Oregon Court of Appeals has ruled that Jefferson County officials were in order when they approved a new destination resort zone. This removes one obstacle in the path of two resorts proposed in the Metolius River basin northwest of Sisters, but an extensive application process is expected. Ponderosa Land & Cattle Co. and Dutch Pacific Resources LLC face vigorous opposition from land-use watchdog groups.

AROUND CENTRAL OREGON

Redmond: Property purchase could lead to parking decks
Redmond city officials plan to buy three properties near city hall for $2.9 million. The largest, a restaurant and office building, would house city offices while the current city hall is demolished and a new one built in its place. Eventually it could be redeveloped into a parking structure or mixed-use building. The other two would comprise the planned Centennial Park, across the street from city hall. The civic center project should be complete by 2010.

Redmond: East side growth hinges on another bypass
Now that the Highway 97 re-route in Redmond is open for traffic, attention is being directed to other highway needs. An additional 5-mile route bypassing the south Highway 97 business area is necessary before 1,800 acres on the east side of Redmond, owned by Deschutes County, can be rezoned for development. No scheme has emerged for raising the required $230 million, however. The Oregon Department of Transportation is expected to begin an environmental impact study late this year or early in 2009 that should lead to final route selection.

Redmond: School fund land eyed for industrial jobs
Land immediately south of Redmond, acquired from the Bureau of Land Management by the state of Oregon, is being eyed for development into a 945-acre industrial complex. The state and city are likely to cooperate on the project, which would bring proceeds into the state’s Common School Fund and become a magnet for new jobs.

Redmond: City wants hotels near airport, expo center
Redmond officials are asking hotel operators for proposals to build and operate two hotels—one described as full-service and the other as express—within walking distance of the Deschutes County Fair & Expo Center. Land at Roberts Field would be leased from the city.

Sisters: Project would enlarge downtown
Creation of a four-block mixed-use neighborhood that would extend downtown Sisters northward and provide affordable rentals is proposed in plans submitted to the planning commission. Black Butte Crossing would occupy 10 acres with 32,000 sq ft of commercial space and up to 243 apartment units in three-story buildings that would conform to the city’s Old West theme, building out in four to seven years.

Sisters: Hotel proposed for west end
Sisters Village Hotel, a three-story structure with 98 rooms, is proposed for a site at the west end of downtown Sisters. Final application is expected by October. The hotel might be built in phases and would follow the city’s western architectural requirements.

TGGLOGO2.jpg    388 SW Bluff Dr., Bend, OR 97702
    2762 NW Crossing Dr.., Bend, OR
    www.thegarnergroup.com | 541 383-4360

541 383 4360 | info@thegarnergroup.com

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