Address
Description
Project Status
Complete
Project Type
Urban Renewal
Date Received
10/04/2018
Project Summary
This 2000 square foot building has lived several lives since it was constructed in the 60s. It has been a cafe and donut shop, a hair salon, as well as a Motorsports parts and service business. Today it lives on as Yo Treats Frozen Yogurt and Clackamas River Outfitters.
After sitting vacant for several years, the Urban Renewal Agency purchased the building in 2018, with plans to renovate it in order to meet the needs of the 2 businesses mentioned above. Normally, the Agency would like to partner with a private builder/developer in order to complete a project like this, but when no willing party stepped forward to purchase and renovate the building, the Agency took lead.
The Agency will hold and manage the property for approximately 2 years, after which the building will be sold. All rent revenue as well as sale proceeds will come back to the urban renewal agency in order to repay the majority of the project costs. Those funds will be redeployed toward other urban renewal projects.
While the structure of this project was uncommon, the Agency is proud of it and the impact it is having on Main Street.
| Costs | Amount |
|---|---|
| Property Acquisition | $171,400 |
| Development Soft Costs | $20,514 |
| Hard Construction | $216,325 |
| Interest (paid) | $2,800 |
| Broker Fees (at time of resale) | $13,633 |
| Taxes, Ins., Maintenance | $11,799 |
| Total Costs | $436,471 |
| Income | Amount |
|---|---|
| Rent Revenue | $50,000 |
| Loan Interest (received) | $1,587 |
| Sale Proceeds | $272,667 |
| Earned Tax Increment | $9,503 |
| Total Income | $333,757 |
Net Subsidy from EURA - $102,714
*Some of the figures used in this table are estimates and will not be known with certainty or accuracy until the Agency has sold the building.
Estacada City News - Creative Urban Renewal (PDF)
