By RAELYNN RICARTE
News staff writer
June 21, 2007

Hood River County’s plan to erect work force housing in a public parking lot has not penciled out – but officials remain committed to the goal.

“I think it’s in the best interest of the community for us to pursue affordable housing,” said Ron Rivers, county commission chair.

“We have a role to play here but it’s a little bit limited because of our fiduciary responsibility to taxpayers.”

Dave Meriwether, county administrator, said proposals for the State Street lot failed a three-pronged test. He would not disclose the details of several options brought forward by Winkler Development, the hired consultants. He said only that the Portland firm had not met the following criteria:

n Retain adequate parking to meet the needs of county employees and visitors.

n Provide taxpayers with a return on their investment into the property.

“We’re not saying that it can’t be done but it’s more difficult to accomplish those things than we originally thought,” said Meriwether.

Jim Winkler, owner of the company, called it a “daunting assignment” in March to design a financially-sound housing plan for the 50,000-square-foot lot. His team expressed interest in siting 41 units on the property, leaving room for 50-65 public parking spaces.

Winkler believed that low-income tax credits could be used to construct an apartment complex that would offset the cost of new condominiums. He said that mix of housing would provide both rental and owner possibilities.

The Downtown Hood River Neighborhood Association and other nearby landowners, strongly objected to that idea. They argued that so many residences would endanger pedestrians by increasing traffic flows on an already busy street. They also questioned where children would play since there would be little, if any, green space. Some citizens contended that it was inappropriate to build low-income rental units in an area that showcased historic homes.

The county board asked Winkler, which specializes in mixed-use development, to explore the feasibility of a housing project in the lot. The focus of the elected body fell on that site because it was already zoned to accommodate residences. And, since the land was under county ownership, the construction costs would be lower than if property had to be purchased.

But Winkler downscaled the project to meet public concerns. And site preparation proved costly due to the topography and location. So, the developer ended up with no profit margin.

The county commission is now going back to the drawing board. Officials will look at selling off the northern section of the lot and using that money to purchase a more workable piece of land.

“We envision this project as the first step to build on for the future,” said Meriwether. “So, if there is not a viable market for the State Street lot, we may have to look at it again for some type of housing.”

He expects to learn what the parking area would sell for — and how it could be used — within the next month. The county board will then review the financial data and decide how to proceed in their quest for affordable housing.

The agency believes that teachers, firefighters and other service professionals can no longer pay the going price for a home, so they are forced to commute and live elsewhere.

In March, Winkler presented data reflecting the current crisis faced by Hood River County:

n The median annual income for a household of four people in the county is $50,000 – almost $18,000 below the Portland-metro area.

n Construction costs are running about the same for the two locations in spite of the income differential.

n Financial experts recommend that only 30 percent of a household budget be spent on rent or a mortgage. To meet that benchmark, an affordable housing in Portland would range from $140,000-$180,000. The price in Hood River County would have to be even lower.

Rivers said it is difficult to see how affordable housing can be achieved without some type of government intervention. He said selling part of the State Street lot could get the ball rolling on at least one project.

He said the county also needs to take a hard look at reducing development fees and streamlining construction costs for housing projects that cater to low- and middle-income workers.