Letter | Housing crisis made worse by city’s shortcomings
Published 5:00 am Wednesday, April 29, 2020
Rapid crisis response and professional real estate management deals so far elude city management. No, I’m not referring to the recent Umatilla River flooding or the COVID-19 response, they came through in spades in both instances. It’s the severe housing shortage that city officials referred to as a “crisis.”
Remember that one? The city made a substantial investment in not only consultant studies to justify immediate action, but various property donations and tax incentives to jump start a city-sponsored building program unlike anything we’ve witnessed in the history of Pendleton. City management felt their actions were the most expeditious way to add 300-plus affordable housing units sorely needed, according to those city-commissioned studies.
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Direct negotiations with one contractor resulted in the completion of 32 units in the Pendleton Heights subdivision. However, those units proved to be far from affordable and, despite renegotiating new incentives and conditions several times, financial difficulties encountered by the contractor have left the plan to add an additional 100 units at a standstill.
Another project on land donated by the city for an additional 200 units has yet to bear fruit. Despite announcements from city officials to the contrary, construction on these two projects plus a new hotel at the airport has been limited to promises and shuffling paper.
Understanding those real estate experts at city hall is becoming a real challenge. Unloading the old fire station, a building valued at over $500,000, for a whopping $300,000 doesn’t make a whole lot of sense.
Of course, they say that it was actually $350,000, but when a $50,000 grant was included to seal the deal, it’s a bit misleading. With just two bidders on the sale, it doesn’t say much for their marketing skills or their faith in the free market system. I would be curious, based on original cost, improvements, and adjustments for inflation how the taxpayers fared on this deal, and what the county property tax appraisal will amount to. That will be the bottom line on grading the performance of management on this particular deal.
Premature announcements on private projects using public funding, and questionable real estate deals, have left residents skeptical that city officials can make rational decisions when it comes to managing public property. Real estate agents are in business for one reason, to make money for both themselves and their clients. Perhaps it’s time for city officials to recognize their shortcomings and rely on the professionals with some skin in the game.
Rick Rohde
Pendleton