The City of North Bend Jumps Into the Local Real Estate Market With the Purchase of Two Private Properties
I made a couple of public records requests from the city of North Bend about the city’s purchase of three buildings and two parcels of property using Urban Renewal funding. The first request was for the Bill of Sale on the property at 2076 Sherman Avenue, North Bend, OR which was formerly the home of Ciccarelli's restaurant.
The reason for the request was to find out the intentions of the city for this purchase.
The government should not be in the business of buying and selling private property because it will always look shady no matter if it is an above-board deal or not.
People do not like to see their public officials using their tax dollars to make private transactions. The government is supposed to be the objective arbitrator not a competitive player in the private market.
Economic development is derived from private businesses that use their own money to make deals, which allows for a rebounding dollar to create a dynamic economy. It is not derived from the government which has no other money except the tax dollars taken out of the market from the people.
The opportunity for an individual or group of individuals to own property is eroded every time some government agency gets into the business of real estate and it furthers society down the road to communism.
The theory of Communism may be summed up in one sentence.
“Abolish all private property,” quote by Karl Marx.
The following is the email exchange between me and the NB City Manager:
Mr. Taylor,
You don't need to file an open records request. This was all done in a public meeting. All three buildings (two properties) were purchased for $550,000 via the North Bend Urban Renewal Agency. I have attached the CMAs that an independent commercial real estate broker generated for the URA. The URA, in collaboration with the South Coast Development Council, a regional economic development partner, has been working to recruit a craft brewery to downtown North Bend since 2021.
https://www.northbendoregon.us/sitefiles/boards/agenda09092023170919168.pdf?dt=111423480648
Also, the county records show the sale information.
https://records.co.coos.or.us/pso/detail/6136600/R
https://records.co.coos.or.us/pso/detail/6139000/R
Please let Maycie know if you still want to proceed with your public records request.
Best regards,
David---
David A. Milliron, Credentialed City Manager (ICMA-CM)
City of North Bend, 835 California Ave, OR 97459-0014
541-756-8536 | dmilliron@northbendcity.org
North Bend: Coast, Community, Culture.
Attachments:
Hello David,
I do not need Maycie to process that last records request and I cc'd her this reply, but I put in a new request for the lease agreement for the one property that was formerly Ciccarelli's. Are there different lease agreements for the different properties? The last request form was a North Bend School District records request form. I found the one for the city of North Bend, so it would be correct.
I also have a few questions.
Does the city's URA intend to pay taxes on these three properties?
Does the city's URA intend to sell these properties at some point or is the city going into the property management business?
Sincerely, Rob Taylor
PO Box 973
Bandon, OR 97411
Mr. Taylor: Thank you for your clarification, sir. I've attached the executed lease agreement, as you asked. As to your questions:
1. Does the city's URA intend to pay taxes on these three properties?
According to Oregon Law, the Urban Renewal Agency (URA) must provide the lease agreement to the Coos County Assessor’s Office. This office then establishes a Lease Account for the specific part of the property that is being leased to a taxable entity. The County then uses this Lease Account for tax assessment purposes, and it will continue to be subject to taxation unless the County is informed of a change. It is the URA's responsibility to inform the County when a lease is terminated or any changes to it. This process is similar to how the Coos County Airport District handles leases for commercial hangars or property within its commercial business park. See Section 6 (Property Tax) of the attached lease agreement.
2. Does the city's URA intend to sell these properties at some point or is the city going into the property management business?
The Urban Renewal Agency (URA) has no intention of becoming a long-term property manager. The URA's primary focus is on tackling blight and addressing disrepair. Following the initial lease term, which ends on December 31, 2026, the leaseholder will be offered the first opportunity to buy the property at its fair market value. This consideration considers their investment in renovating and upgrading the interior to suit their intended use.
Best regards,
David
---
David A. Milliron, Credentialed City Manager (ICMA-CM)
Attachments:
2023 11 02 Commercial Lease Agreement - North Forty Beer Company
The City Manager of NB, David Milliron replied to my email very quickly. He answered my questions and sent all the documentation that was requested plus some. After going through the material, I sent for more information from the county’s Assessor’s Office. Trust but verify is always a good rule.
Ciccarelli’s actually occupied two parcels: 25.13.15AB TL 11600 (Acct# 6136600) and 25.13.15AB TL 11700 (Acct# 6139000).
They are: Lots 1, 25 & 26, Block 19, Town of North Bend, Coos County Oregon.
Deed 2023-06505 was recorded on 9-15-2023. It shows a purchase price of $550,000.
The seller was Paula Beaudry Trust; purchaser was North Bend Urban Renewal Agency.
For the tax year 2023-23,original property tax due for Account # 6136600 was $1,396.93. For Acct# 6139000, it was $ 3,492.60.
I don’t have any hard information as to who will be leasing from the NBURA, but currently, both properties are tax-exempt.
Once the properties are leased, they will become taxable
Steve Jansen
Coos County Assessor
Steve Jansen is a top-notch county Assessor and he got right back to me. He verified the info provided by the city manager. It all appears to be on the level, but it does not dissuade me from the belief that the government should not be in the business of real estate.
Sincerely, Rob Taylor
Updated November 22, 2023:
Hi David,
I have a few more questions on the purchase of the two properties on Sherman Ave.
1. Does the city have any proposal for the building at 2066 Sherman Ave. North Bend? It is the one that used to be a salon.
2. Did the brewery receive any grants from Urban Renewal, Main Street, or any other sources as part of this purchase or for any other reason?
3. Did the city do any inspections on the building first before purchasing them?
4. Are there any major repairs that need to be done to any of the three buildings that the cost will have to be covered by the city?
Sincerely, Rob Taylor
Dear Mr. Taylor,
I'm sorry for not getting back to you sooner. I was engaged in business meetings throughout Friday.
1. Does the city have any proposal for the building at 2066 Sherman Ave. North Bend? It is the one that used to be a salon.
The property at 2066 Sherman Avenue, formerly Salon Bella, was part of a package acquisition by the Trust totaling $550,000 for three buildings. The URA offered a lease to the salon's co-owners with terms similar to the adjacent property, which they declined in favor of relocating to a new location on Florida Avenue near Lincoln Square in North Bend. They requested a month-to-month lease through March 2024 at a rate of $600 per month while their new location is being renovated.
2. Did the brewery receive any grants from Urban Renewal, Main Street, or any other sources as part of this purchase or for any other reason?
The URA completed the purchase of the buildings on September 15, 2023. Subsequently, on October 14, 2023, North Forty Beer Co., LLC was awarded a reimbursable Redevelopment Assistance Grant by the URA, capped at $24,000. This grant is accessible to all eligible property owners or businesses within the URA district. The company is obtaining a building permit for the interior work specified in the grant. Upon completion of the work, the URA will review the reimbursement request, issue a Certificate of Occupancy, and coordinate with the Coos County Tax Assessor for tax purposes. Please visit [Grant Program Information](https://tinyurl.com/4se6ukvr) for more information.
3. Did the city do any inspections on the building first before purchasing them?
The Trust facilitated multiple pre-purchase inspections involving various professionals, including building officials and licensed contractors. The final inspection on September 5, 2023, identified the need for immediate roof repairs, which were covered under warranty. The URA also conducted Phase I environmental tests for hazardous materials.
4. Are there any major repairs that need to be done to any of the three buildings that the cost will have to be covered by the city?
The URA has planned several repairs for the salon property, including exterior, interior, back door, bathroom, front entrance, and HVAC issues. Additionally, for the brewery/coffee shop property, we plan to address exterior drainage, security fencing, and retaining wall concerns. On September 26, 2023, the URA Board approved the bid for overlay paving of the Washington Street Parking lot adjacent to these buildings, coinciding with the closure of a nearby restaurant.
Please don't hesitate to reach out with any further questions or concerns.
Best regards,
David