Bend city councilors vote 4-2 to support Caldera Ranch proposal over Jasper Ridge for 100-acre housing expansion

BEND, Ore. (KTVZ) – Bend city councilors weighed two proposals Wednesday night to add about 100 acres on the east side of the city’s urban growth boundary under a state law aimed at expediting more affordable housing. In the end, they voted 4-2 to choose the Caldera Ranch site along SE Knott Road over the Jasper Ridge location by NE Neff Road.

Senate Bill 1537 allows cities to do a one-time, single-site UGB addition of up to 100 net residential acres. About one-third of the units must be affordable to households earning up to 80% of the area’s median income, for rent, and up to 130% of AMI for homebuyers.

There are other requirements, of course, and city staff noted that even with the expedited process, it likely would take 2-3 years for the first new homes to emerge at either site and another decade to build them out.

Neighbors in the Providence area generally spoke out against Jasper Ridge over traffic impacts, while Woodside Ranch residents opposed the adjacent Caldera Ranch proposal largely over the potential impact on the area’s already high wildfire danger.

Some of those who testified – each limited to one minute due to the full house and long night – recommended the council chose neither location. Instead, they urged the city to focus on more infill development and greater density within the existing city limits, while city planners undertake the more traditional update of Bend's 20-year growth plan.

The Bend Chamber and Central Oregon Builders Association took a different stance in their testimony, not favoring either site but urging the council to pick one or the other, so the city can take another needed step to deal with its affordable housing crisis.

When deliberations began, Councilor Ariel Mendez noted that the draft plans for Caldera Ranch included 22 rental units for those earning just 30% of the AMI or less, a level which is “kind of unheard of.” He also noted the proximity to Caldera High School and a planned middle school students could talk to, as well as other nearby amenities as part of the new Stevens Ranch development.

Colleague Anthony Broadman said the need at Jasper Ridge for a city water service area swap with Avion Water, estimated to cost $7 million, was “sort of disqualifying for me." Councilor Megan Perkins also leaned toward Caldera Ranch for the “diverse mix of income” levels that will be able to live there.

Councilor Mike Riley said he preferred the Jasper Ridge site, despite the water issue that would need to be worked out, noting a “better fit with adjacent development patterns.” He said the southeast area “already is going through an enormous amount of change,” and said the city "should give them a little bit of a break.”

But Riley also said the process “feels rushed” and urged spending a bit more time evaluating the sites and issues, with a decision early next year. Councilor Barb Campbell also called for a pause in the "incredibly rushed process," noting that two new councilors coming aboard soon (one being Steve Platt, who defeated her in November) and adding, “I have confidence they can catch up” on the issues.

Mayor Melanie Kebler sided with colleagues backing the Caldera Ranch site for a “quicker path to more affordable homes.”

“We are an infill city, but we need every tool we can use” to address the need for more housing, Kebler said. “I think we should move forward now. I don’t think we can wait.”

At the suggestion of Mendez, the motion was amended to require elements of wildfire mitigation from the Caldera Ranch developers. And amid Knott Road traffic concerns, city staff pointed out that another roundabout will be required when the new school is built, or perhaps when this project comes to life.

Kebler, Perkins, Mendez and Broadman voted in favor of the Caldera Ranch choice, while Campbell and Riley were opposed. Councilor Megan Norris recused herself, since Hayden Homes, her employer, was the developer on the Jasper Ridge site.

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City of Bend news release:

Council Selects Site for Future Urban Growth Boundary Expansion

The Bend City Council considered two site proposals at the Wednesday night Council meeting, selecting a site on the southeastern border of town named the Caldera Ranch site for future inclusion into the City’s Urban Growth Boundary (UGB). This is the first step in bringing land into the UGB for future affordable and market rate housing under Senate Bill 1537. 

The Council voted 4-2 to select the Caldera Ranch Site based on a variety of factors, including transportation infrastructure, water and sewer service and proposed amounts of affordable housing.

Adjacent to Knott Road, the Caldera Ranch Site is 91.4 acres and plans for 716 housing units. The site will also be home to a future, small commercial development on Knott Road and a centralized, four-and-a-half-acre neighborhood park. Of the 716 units proposed, roughly 254 would be affordable housing either available for rent or to buy.

“Bend, and all of Oregon, are still in a housing crisis, too many people cannot afford housing in Bend, and we need to build more homes to meet the needs of our current and future residents,” said Mayor Melanie Kebler. “Thankfully the Legislature and Governor worked together to provide cities like ours an opportunity with Senate Bill 1537, and our decision tonight is the first step in a process that will result in more affordable housing hitting the ground sooner in Bend.”

In 2024, the state Legislature passed a bill, known as Senate Bill 1537, that provides qualifying local governments a one-time option to add up to 100 acres of net residential land to their urban growth boundary. Using this bill, cities can go through a streamlined Urban Growth Boundary expansion process to build affordable and market-rate housing.

Any land added to the City through this process requires a minimum of 30% of housing units to be affordable. Affordable in this context is based on a household of four making 80% of the area median income (AMI), approximately $83,750 annually, if they are renting or 130% of the AMI, approximately $136,110 annually, if they are buying a home.

The Caldera Ranch Site goes beyond the minimum requirements, providing 35.5% of its units as Affordable under the bill.

The plan includes 254 deed-restricted affordable homes, including 192 units at 80% area median income, as well as 38 units aimed at lower-income residents making 30% of the area median income. Fourteen townhomes and 10 detached housing units are planned to be sold to households making 130% of the area median income.

Before the site can be developed, the applicant will need to apply for a UGB Amendment and Comprehensive Plan Text and Map Amendment within one year of site selection. They will then need to apply for a Master Plan and Annexation. These processes will include future opportunities for public comment. Construction of the first homes could start as soon as the summer of 2027, with a proposed ten-year build out from that time.

More information on the bill requirements and general background can be found on the City's website.