State sells SE Bend’s Stevens Road tract for $22 million

Money goes to Common School Fund; mix of housing, employment uses planned

BEND, Ore. (KTVZ) – A 382-acre parcel of state-owned land in southeast Bend is expected to sell for $22 million – a transaction that state officials said Monday will add much-needed housing to the city and benefit Oregon’s public schools.

The Oregon Department of State Lands said it has signed a sale agreement with Lands Bend Corp. for the property, located at the southeast corner of Stevens Road and 27th Street.

The acreage is within Bend’s urban growth boundary, and the city’s comprehensive plan envisions development of a complete community with a mix of housing and employment types.

The agreement allows time for the buyer to complete due diligence, with sale closing anticipated late this year.

The State Land Board last December approved the parcel to be listed for sale with broker Cushman & Wakefield.

The property is school lands, managed to obtain the greatest benefit for Oregonians and their schools. Sale proceeds go to the Common School Fund, which sends twice-yearly distributions to Oregon’s K-12 public schools.

“This is an outstanding outcome for Oregon’s schools,” says DSL Director Vicki L. Walker. “The more dollars we put into the Common School Fund, the more our students benefit.”

Sale and development of the Stevens Road acres is also expected to significantly benefit the city of Bend.

A report on the city’s urban growth boundary extension estimates the development impact of the acres at more than $450 million after full build-out and estimates the addition of more than 800 jobs through 2028.

But the land’s potential to provide the full range of housing types needed by Bend’s rapidly growing community has been the most-noted benefit.

“The Bend community and its elected officials asked the state to quickly list the property for sale, kicking off the development processes that will result in housing needs being met,” Walker said in a news release Monday.

Lands Bend Corp. will take on the remaining steps in the development process, including annexation and the master planning work that will engage the Bend community in discussing development details.

Principals Gary Miller and Harry Crowell have collaborated for more than a decade on many projects in Bend, including the Stone Creek community.

Miller said, “We are really looking forward to working with the state, city officials and community in the design and development of a master plan that benefits and contributes to the future of the city of Bend. We really enjoy working in Bend -- it is a fantastic community.”

The remaining 261 acres of the Stevens Road property, which are outside the city’s urban growth boundary, remain in state ownership.