Sweet Home, OR's Local Newspaper Since 1929.
Changing the Use of a Building Triggers a Hidden Cost

A Salem project got dinged because the structure in question was originally built for worship rather than as a living space.

By Nigel Jaquiss

Oregon Journalism Project

It’s not just projects in Astoria, of course, that are running into challenges in front of the Bureau of Labor & Industries.

In Salem, nonprofit developer DevNW wanted to replace a shuttered church with 18 units of affordable housing. DevNW kept the church’s exterior walls and built the new units inside.

BOLI rejected DevNW’s request for a prevailing wage exemption, ruling in 2022 that the project “did not meet the definition of ‘residential construction’ because the project includes the renovation of a church building, which is neither an apartment building or a single family home.”

In recounting this Kafkaesque denial to lawmakers in 2023, DevNW executive director Emily Reiman said the decision hit the project’s finances.

“BOLI’s denial of this exemption added $870,000 to the project cost,” Reiman said. (That’s nearly $50,000 per unit, a 13% increase.)

The project, since completed, got dinged because the structure in question was originally built for worship rather than as a living space.

The Salem Housing Authority could have warned Reiman what she faced. In 2021, that organization sought a prevailing wage determination from BOLI for the redevelopment of Yaquina Hall, built in 1948 as a dormitory for nurses at Oregon State Hospital.

During the intervening years, the building was converted to offices. The housing authority proposed to convert it into 52 affordable apartments—18 of them reserved for people with serious mental illness.

BOLI’s determination issued May 5, 2021: “While the project will be privately owned and will predominately provide affordable housing, the project does not meet the definition of ‘residential construction,’ because Yaquina Hall is an office building rather than an apartment building.”

“I was shocked,” says the Salem Housing Authority’s Jessica Blakely. “After that decision none of the housing authorities want to touch surplus public properties.”

That issue will also add costs to the conversion of empty office space to affordable housing around the state—based on BOLI’s rulings, any such project will have to pay prevailing wage.

Linn-Benton C.C. welcomes President Cavin,community learns of $10 million fund drive

Alex Paul

At a recent meeting of the Linn-Benton Community College Foundation Board of Trustees, members were asked to introduce themselves and tell how long they had been associated with the college.

When it came to be retired Albany Realtor Russ Tripp’s turn, he simply stated, “Since before there was a community college.”

Thursday evening, during an open house to honor new LBCC President Rita Cavin and to publicly kick off a $10 million capital campaign drive, Tripp’s dedication was recognized with a plaque.

Tripp’s family has donated $500,000 to the renovation of Takeena Hall, the performing arts center on the Albany campus.

Gary Ruppert, director of the LBCC Arts and Communications Division, said that when Takeena Hall was completed some 25 years ago, it was a state-of-the-art facility that was the envy of other community colleges in the state.

Today, equipment is outdated and worn. Parts are nonexistent for many items resulting in the “cannibalization” of parts when a piece of equipment goes bad so others can be repaired.

Also recognized Thursday was the partnership between Samaritan Health Services and LBCC. Samaritan C.O.O. Steve Jasperson was presented with a plaque in honor of that cooperative educational venture.

Over the last two years the Foundation has worked with fund raiser Tom Wilson to reached $7.5 million of a projected $10 million goal.

Campaign chair Dave Schmidt said he has been close to the college for many years.

“I have seen that you can have the best instruction, curriculum and facilities, but if the students can’t pay for tuition, books, child care and living expenses, if the college budget can’t provide the latest training technology and if instructors’ training becomes obsolete, then the objectives for which this college of ours exists are severely limited.”

Schmidt, a former Linn County Commissioner, said that is where the LBCC Foundation comes to play. “Our goal is to fill the financial gaps our tax dollars are unable to fund,” Schmidt said. “More to the point, the human and economic gaps within our wonderful community.”

Schmidt said the Foundation is “in the business of ‘Making a difference one life at a time.”

He said that two of his sons attended LBCC and “I will testify that LBCC did make a difference in their lives.”

Schmidt said that of the $7.7 million raised to date, $1.25 million has come from staff, faculty and retired LBCC, $1.74 million from the Foundation board, $4.12 million from gifts of more than $45,000 each and $850,000 from Samaritan Health Services.

He encouraged those present to participate, ranging from joining the President’s Club (pledging $500 per year for four years); to making endowed scholarships of $15,000 to $45,000 or more.

“There is also the opportunity to make a ‘Heritage Gift” through your will or trust,” Schmidt said.

Although the official campaign goal is $10,000, Schmidt said his personal goal is $12,000,000, adding he knows the area served by the college will come through.

Mike Cowgill, chair of the community-giving portion of the campaign, told of the plan to sell paving stones will be used as an entryway area under the college’s capital construction program.

The pavers will include the name of the donor and will cost from $100 to $1,000 each.

Cowgill said the project could raise from $250,000 to $500,000 for the campaign.

“It will provide a first class image to those entering LBCC,” he said. “These pavers will be a great legacy in honor of someone you care about and help make your mark on LBCC.”

Want to know more? Would you like to learn more about the Linn-Benton Community College capital campaign or the LBCC Foundation. Call Douglas Keck, director of development, at 541-917-4209.

Total
0
Share