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City of Bend details plans to turn 64-unit Third Street motel into homeless shelter

Old Mill Inn and Suites motel
Noah Chast/KTVZ
City of Bend intends to use state grant funds to buy Old Mill Inn & Suites Motel for use as transitional homeless shelter

(Update: City announcement with details of project)

For up to $5 million, if state grant comes through; other topics include Juniper Ridge improvements, expanded land-use public notifications

BEND, Ore. (KTVZ) – Bend city councilors on Wednesday night unanimously approved the purchase of a 64-unit motel on Southeast Third Street for up to $5 million for use as a homeless shelter, if a grant requested from a new state program comes through, along with other conditions.

The council authorized City Manager Eric King to enter into an agreement for the city to buy the Old Mill Inn and Suites at 904 SE Third Street, subject to the state grant approval, as well as an appraisal confirming its value and a determination that it can be effectively converted into a homeless shelter. The city would partner with area service providers to run the facilities.

The city issued this news release Thursday morning providing details of its plans:

City of Bend Advances Project Turnkey Plans

At yesterday’s City Council meeting, the Council unanimously approved a purchase and sale agreement for the property located 904 SE Third Street, known as Old Mill Inn and Suites. The property would be purchased for a price not to exceed $5 million (subject to an appraisal) with funding made available through Project Turnkey and provide 64 units of transitional housing for community members who are experiencing homelessness or are at risk of homelessness.

Additional funding is being requested from Project Turnkey for necessary upgrades and repairs to the motel, and to help support the first year of operations. The City is working with NeighborImpact and other social services partners to plan for managing the motel for community members most in need of stable housing, if the City is selected to receive funding.

Approving the purchase and sale agreement was Council’s next step in the Project Turnkey application process. If the City is awarded funding through Project Turnkey, the sale of the property must close by June 30, 2021, to meet Project Turnkey timelines.

In addition to the tight closing timeline, Bend Development Code amendments are needed to locate transitional housing facilities like this in Bend. Those changes include removing a provision for 1,000 feet of separation between temporary housing sites (which includes temporary shelters) and allowing transitional shelter sites as a permitted use in certain commercial zones, particularly along Third Street, without requiring a conditional use permit. A transitional shelter in a location like this provides residents with safe and sanitary living conditions, centralized critical services, and access to transit and employment opportunities.

City Council has prioritized these two code amendments to meet Project Turnkey timelines while ensuring opportunities for public comment. A Planning Commission public hearing is expected on March 8, followed by a City Council public hearing on March 17. Both public hearings give community members an opportunity to comment on the proposed development code changes. Planning Commission meeting agendas and viewing instructions are available hereCity Council agendas and viewing instructions are here.

After any proposed development code changes take effect, the property would be subject to an additional land use review process to assure that necessary improvements are included at the site, such as sidewalks, parking, bike parking and trash receptacle screening.

Project Turnkey funding is available on a first come, first served basis. Bend is one of 11 applicants from 28 counties that has advanced to the second phase of the application process. These applicants are competing for $35 million in available funding. If the City does not receive Project Turnkey grant funds, the hotel would not be purchased at this time. Any adopted code amendments could be relied on in the future to locate transitional housing facilities in Bend.

About Project Turnkey

Project Turnkey provides $35 million in State funding to cities, counties, housing authorities, or 501(c)(3) nonprofit organizations to acquire motels or hotels to use as non-congregate shelters for people experiencing homelessness or at-risk of homelessness. Oregon Community Foundation is administering the Fund through an application and selection process, with guidance from an Advisory Committee of state, local, and community stakeholders.  

Continuum of Housing

There are many types of housing needed in a community. Temporary transitional shelter sites are one of many possible short-term solutions to help address homelessness in Bend. Mid- and long-term solutions, like generating revenue to support housing and other critical services, and acquiring housing facilities, are also necessary to support community members as they transition out of homelessness and into stable housing. To learn more about the continuum of housing needed in Bend, visit the Emergency Homelessness Task Force page.


Earlier Wednesday evening, councilors authorized a promissory note from the Bend Urban Renewal Agency. City Urban Renewal Manager Matt Stuart said the note is meant for improvements on the city-owned Juniper Ridge property.

"I just wanted to review the promissory note which would allow BURA to build the improvements at Juniper Ridge," Stuart said. "That would enable us to create the four additional lots."

Councilors elected to move forward on construction improvements for the Juniper Ridge Employment Sub-district.

They also gave final approval to code amendments after the city worked with the Neighborhood Leadership Alliance to expand public input, like mailing notices of certain land use applications to property owners within 500 feet of a project, double the current 250-foot radius.

The amendments relate to public meetings, notifications, and public comment processes for development applications.

The council also met with by legislative lobbyist Erik Kancler to discuss bills in Salem, including one that that would directly impact Bend.

The bill requires the department of Land Conversation and Development to approve the City of Bend's expansion of urban growth boundary.

"The land would be brought in right away, because Bend clearly has a housing need," Kancler said.

Roughly 260 acres could be added for housing if the bill is successful. It would bring in the other half of the 642-acre Stevens Road tract. Another 380 acres of the tract was sold for $22 million in November to developers who plan a mix of uses on the site.

But councilors like Anthony Broadman want the state's goals to reflect those of Bend.

"I see this as Bend helping the state fix a problem," Broadman said. "I think it's really important that the solution to the state's problem reflects over and above the goals of the people of Bend and the land of Bend."

The council also officially proclaimed February Black History Month in Bend, bringing in several leadees of local activist groups in an effort to bring awareness to inclusion and equality.

Bend / Central Oregon / Government-politics / Top Stories
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Alec Nolan

Alec Nolan is a multimedia journalist for NewsChannel 21. Learn more about Alec here.

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Comments

75 Comments

    1. I’ve always been curious where this increasing number of homeless come from. Are they Bendites who’ve lost their home, doubtful. Or are they from other parts of the country who came here unaware of Bend’s housing costs? Or did they move to Oregon to take advantage of lax drug laws and expansive liberal welfare policies? Whatever the reason they’re piling up on Hunnell Rd. and exits off the Expressway. Another concern is our city council’s lousy history when it comes to managing real-estate.

  1. Did I miss it, or did the reporter leave out the most important data point? How many units? If it is 10 then a bad deal, if it is 100, pretty good deal. Details matter.

        1. Yes, perhaps the motel manager would have answered at 10 or 11 p.m. But I knew we’d have more details this morning. There’s always “more to the story,” but that’s always a tradeoff with being first (once you feel you have enough info to share).

      1. So, updated reporting says 64-units. That gives an important perspective. That pencils out to around $80K per unit, which is very cheap, believe it or not. There is a big controversy in L.A. because it is costing something like $250K per tiny, almost ship container size new units, where other cities have pulled it off for much less. $80K is Bend would be cheap, but the devil is in the details or course (remodeling, upkeep, etc etc.) I also just realized that this would take an expensive piece of property off the tax rolls, so that is an additional ‘cost’

  2. Another example of wasted tax payer money. One way bus tickets to Vegas, Venice Beach, New Orleans or any other location is much better option. STOP ENABLING.

      1. Bring back the vagrant laws. If you cannot sustain you and your family then vagrants need to be out doing public service, hwy debris pickup, recycle sorting at the landfill to name a couple.

        1. I agree. It should be illegal to live on public land without approval. I know liberals hate this approach, but, by citing, and eventually jailing them, you can identify which ones are truly incapable of caring for themselves, and which ones just are not dealing with ongoing issues. Give services to those truly in need, and bust or force into treatment those that can be saved. It is a tough love approach, but just supplying housing is an endless, and losing proposition.

  3. State grant for this? And the state is saying they don’t have enough of our money and want to tax more, even after all the new taxes put in place recently like our new sales tax called a “CAT” tax

  4. Who is paying for the operating expenses? You have to staff it, clean it, secure it, repair it and the neighbors are going to hate it. How many beds and what’s the min and max capacity? In other words, what is it going to cost to house how many people and who will pay for it? Is there a plan? What is the goal and does anybody think this will make our homeless issues better? City is going to regret this.

    1. The answers to all your questions from the City is Uh, We don’t know…we don’t care…we are only trying to look like we are doing something and oh, btw, we would never do this if it was ‘our’ money. Sally is a developer, and I don’t know about the others on the Council, but these are the questions they would ask if they had any skin in the game.

    1. My first reaction to your comment is that you are paranoid…but then I thought, I wonder how many councilors actually live, say south of Wilson? I don’t know, but I am guessing it is much less than half. It is human nature to relate best to issues that you are directly familiar with, so it is logical that a councilor who has a development on say, Greenwood would not particularly relate to Motel Row on 3rd. In Portland, there is a long history of City Council members not living on the poorer Eastside. There has been a push to have them elected by District, but has not happened. Maybe should be a thought here.

  5. I’m for helping people into housing as long as it’s a legitimate transition center to get people off the street for good. Housing and assistance that lacks resources for mental health care and/or mandatory drug/alcohol treatment is a waste of taxpayer money…..and the problem will only get worse over time.

    1. Hard to require mandatory drug counseling and treatment when the state voted to decriminalize hard drugs. If someone is homeless, they can’t pay the $100 fine, so they will just rack up fines like parking tickets! Dumb law that takes the impetus out of testing for drugs and holding them accountable!

  6. People on here complain about the homeless when they hang out and panhandle. They also complain about viable solutions such as this motel purchase but rarely offer viable solutions of their own. It is easy to be judgemental and dismissive until it is you without a roof over your and your family’s heads.

    1. I guess I qualify because I have been there. And I can say if someone else is providing for me, that gives me absolutely no insensitive to provide for myself. I’m thinking about renting out my house and then go live in a shelter.

  7. So many mean and selfish comments here. Homelessness is not going away. Finding clean, efficient, safe ways to house folks who are going through hard times is not only kind and caring but ultimately helps people get back on their feet. The NIMBY attitude of so many who are more fortunate, is typical but, but happily, the needs of the needy are being addressed.

    1. “So fortunate ” not even close, I like so many others worked hard my whole adult life. I was not raised to just put my hand out and say give, give and give me more.

  8. There will still be some homeless that will turn living there down. Some don’t want to go through the minor steps to get help. 2nd street still has people living in their rvs right next to the shelter, there’s a guy in a wheelchair that refuses to stop drinking and most nights he is causing problems at retail places trying to get into their bathrooms so he can lock himself in. Safeway by the butte has had to deal with him throwing up on himself in their wine area

  9. To quote Alice Walker from a 1970 short story
    “One day this is gonna be a pitiful country.”

    Bend city council should ask VISIT BEND to offer some of their oodles of $ they’ve made from the millions of tourists who are still coming here during a pandemic. Freekin disney for yuppies is all bend is anymore.

  10. It will be great for the drug dealers. A one stop shop for all their hard drug needs. They should have picked a hotel closer to the bottle drop and the liquor store though.

  11. I didn’t see it anywhere in the story, but was the motel already for sale, or is it being approached with Eminent Domain? Or are they just approaching the owner and asking them to sell?

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