Sean C. Morgan
Of the New Era
The Sweet Home Planning Commission agreed to extend a Santiam River Club subdivision permit for one year, to June 5, 2008.
Santiam River Club developers had until June 5 to complete its tentative subdivision plan.
“Ongoing national media coverage of ‘The Housing Bubble’ during the past nine months has adversely affected otherwise healthy real estate markets across the country,” CEO Phil Ordway said in a letter to the commission. “Consistent with many other similar developments in the western U.S., our presales at the Santiam River Club have not yet materialized to the degree we feel is necessary to proceed with first phase development.
“As an extra measure of caution, we are now in discussions with potential additional investors so that when market demand recovers, which it most certainly will, we will be in position to proceed with development at a more rapid pace.”
The subdivision includes 66 lots east of Clark Mill Road and north of the old Stock-Tomco Airport. It is part of an overall master plan including some 750 acres along the north side of Sweet Home and up to a maximum of about 1,500 units.
The subdivision is being marketed as upper end vacation and second homes.
With upsets in the housing market, one of the first things people don’t buy is a second home, Ordway said.
Right now, the Colorado Rockies and the mountains of North Carolina are the only areas where this type of housing is selling, he said. “We decided to be prudent and not go forward with guns blazing until we had stronger presales.”
Depending on markets, the earliest that construction will begin may be spring 2008, Ordway said. Santiam River Club will wait for the market to recover.
“It’s a prudent step to protect what we have until the timing is right,” said Troy Cummins, a development partner. “Part of this business is being patient, and right now is the time for patience.”
Designs and engineering are nearly ready for city review, Ordway said. It is almost ready to bid. Once the markets are ready, Santiam will move forward.
Present and voting to extend the deadline were Alan Culver, Greg Stephens, Henry Wolthuis and Michael Adams. Karen Billings was excused from the meeting early. Frank Javersak and Chairman Dick Meyers were absent.
In other business, the commission:
– Approved a 16-lot subdivision requested by Danny McCubbins, located at 955 45th Ave., south of Long Street at the intersection of Kalmia and 45th Avenue.
Neighbors raised concerns about drainage and the narrow, undeveloped streets.
Based on the hearing, the commission chose to recommend that the City Council initiate a local improvement district to improve Kalmia and 45th streets.
If the City Council agrees to initiate an LID, it could choose to require the formation of the LID or allow those living on the streets to vote on forming the LID, Community Development Director Carol Lewis said.
Voting in favor of the subdivision were Stephens, Adams, Wolthuis and Billings. Culver voted no because he was concerned about access issues with 45th Avenue.
– Approved a variance from the 25-foot public frontage requirement for a three-lot partition by Steve Barber located at 1250 49th Ave, on the private drive that runs parallel to 49th Avenue between the lots and the street.
Culver, Adams, Stephens and Wolthuis voted to approve it.