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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.

Yunke wins four events to pace S.H. girls in win

Junior Andrea Yunke won four events to pace the Husky girls to a win over Junction City and Sisters Thursday at Husky pool.

Yunke won the 200 freestyle, 100 freestyle and swam legs on the winning 200 medley and 200 free relay teams.

“Andrea has put in a lot of water time,” said Coach Doug Peargin. “She’s our high point girl right now. She has come a long way this season and is doing very well.”

The flu bug has hit the swimming team hard, Coach Peargin said.

“Today, if we had to have a meet, our relay team would have only one of the regular girls. We have three out. We usually have a little sickness around Christmas, but this year, it has lingered for a month.”

The Huskies aren’t the only team battling the flu. Coach Peargin said Sisters was hammered by the bug last week.

Calendar: Thursday the Huskies host North Marion and Stayton as they begin preparing for the district meet.

Girls Results

Sweet Home, 96; Junction City, 32; Sisters, 18.

200 medley relay: SHHS A, first, 2:10.3 (Yunke, Starha, Blank, Duncan); SHHS B, second, 2:25.5 (Gilliland, Foucht, Vancleave, Jackson).

200 freestyle: Yunke, first, 2:26.6; Duncan, second, 2:26.7.

200 I.M.: Starha, first, 2:34.0; Gilliland, third, 3:13.6.

50 freestyle: Blank, second, 27.7; Vancleave, fourth, 30.4; Gourley, sixth, 33.7.

100 butterfly: Gilliland, first, 1:31.1.

100 freestyle: Yunke, first, 1:05.7; Foucht, third, 1:09.1; Gourley, fourth, 1:17.4.

500 freestyle: Duncan, second, 6:54.2; Jackson, third, 7:13.1.

200 free relay: SHHS A, first, 1:56.1 (Yunke, Starha, Duncan, Blank).

100 backstroke: Foucht, first, 1:13.9; Jackson, third, 1:25.0; Gourley, fourth, 1:24.8; Fowler, fifth, 1:28.4.

100 breaststroke: Starha, first, 1:20.3; VanCleave, fourth, 1:33.5.

400 free relay: SHHS A, first, 4:53.7 (Gilliland, Jackson, Vancleave, Foucht); SHHS B, second, 5:42.4 (Blank, Fowler, Gourley, Xing).

Boys Results

Sweet Home, 83; Junction City, 72; Sisters, 11.

200 medley relay: SHHS A, first, 1:54.3 (Ecker, Birky, Cheek, Martin).

200 freestyle: Cheek, second, 2:07.4; Burford, third, 2:25.3.

200 I.M.: Birky, first, 2:12.2; Coulter, third, 2:41.7.

50 freestyle: Birky, first, 23.6; Slauson, fifth, 28.2.

100 butterfly: Cheek, first, 1:06.4; Coulter, second, 1:11.4.

100 freestyle: Martin, first, 57.1; Slauson, fourth, 1:09.0.

500 freestyle: Ecker, first, 5:57.5; Bate, second, 6:16.4.

200 free relay: SHHS A, second, 1:51.7 (Coulter, Slauson, Burford, Bate)

100 backstroke: Ecker, first, 1:06.0; Burford, fifth, 1:21.2.

100 breast stroke: Martin, second, 1:21.1; Bate, fifth, 1:27.9.

400 free relay: SHHS A, first, 3:43.8 (Ecker, Cheek, Martin, Birky); SHHS B, fourth, 4:13.3 (Coulter, Burford, Slauson, Bate)

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