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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.

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