On Tuesday, Feb. 28, Redmond City Council will decide whether to move forward with a development agreement for the construction of the 40-acre Northpoint Vista mixed-income neighborhood project, formerly known as Skyline Village.

The $140 million project aims to construct 450 units in east Redmond near the Desert Rise Industrial Park, with a groundbreaking goal set for 2024. The project will combine affordable, workforce and market-rate housing options.

Some options may include cottages, triplexes, duplexes and townhomes.

It will also include sustainable design and commercial uses including space for childcare, parks, trail connectivity, community amenities, transit opportunities and other infrastructure.

The massive project aims to address rising housing insecurity and a limited housing supply in a region grappling with rapid population growth.

“Affordable housing and workforce housing is the most critical issue facing the region,” said John Roberts, Redmond deputy city manager. “The price of home ownership is becoming further and further out of reach as wages aren’t keeping pace with housing costs.”

According to the Beacon Appraisal Group, the median sale price of a house in Jan. 2023 was $420,000 in Redmond. Five years ago, in 2018, the median price tag in Jan. was $279,000.

“Whether it’s home ownership or rents we continue to see an increase in those that are severely rent burdened,” Roberts said.

Half of the units are required to be reserved as affordable housing for those that make 80% or less of the area median income, or approximately $71,920 per year for a family of four in 2022, according to the Oregon Department of Housing and Urban Development.

The remaining half of the units will be a mix of workforce and market-rate housing.

Roberts added that numbers may shift during the course of the project. The only non-negotiable part of the project is that half or more of the units must qualify as affordable housing for a minimum of 50 years.

Linda Cline, housing program analyst for the city of Redmond, said the city hopes Northpoint Vista can act as a model for mixed-income housing across the state.

Addressing a crisis

The housing shortage has contributed significantly to an increase in rates of homelessness facing the region as people contend for limited options.

“Addressing the unhoused or homeless is top of mind. It’s definitely one of our top priorities,” said Redmond City Councilor John Nielsen. “It’s going to be a large undertaking but we can make this work and show a better path forward.”

But, officials stressed that Northpoint isn’t a perfect solution for homelessness.

“I can’t think you can say with certainty that it will help the unhoused (or) unsheltered population,” Roberts said.

Cline said many who are experiencing homelessness are working and would find housing if housing was available. But, she questioned whether Northpoint would make a dent in the overall number of homeless as the future is uncertain.

For homelessness, Roberts said cities need shelters, transitional shelters and permanent supportive housing along with an undercurrent of behavioral health and mental health services.

According to Nielsen, there are two sides to the homelessness issue: those who have been pushed out onto public land east of Redmond and those who need immediate housing assistance.

“I’m trying to attack it from both sides,” Nielsen said. “If all we do is focus on the folks who are on the street, then that doesn’t solve the problem long-term.”

Nielsen said one of his goals is to make sure others aren’t pushed out onto the streets and to increase the housing supply so that everyone can have a shot at making the American dream a reality.

‘Missing middle’

Having a number of housing options at multiple income levels, he said, gives people the ability to move up the chain rather than being forced to jump from low-income housing into the leftover expensive options.

Currently, the housing that falls between these two extremes is missing. This “missing middle” was part of the reason the legislature passed HB2001 in 2019, which opened the ability for property owners to build certain housing types such as duplexes and triplexes in residential areas.

Roberts said Northpoint Vista predates HB2001 and that it doesn’t directly affect the project, however, there are indirect impacts. Because of the bill, the city amended its code to allow for a Planned Unit Development process, which helps them more easily modify standards that might not work for the development.

Northpoint, he said, will likely end up as a PUD, which will give them more creativity in the end design.

“HB2001 took away a lot of local control,” Roberts said. “With the PUD, we actually retain more control. The developer and us both get more of what we want.”

Hurdles in the way

But, the project still faces some hurdles in the near future — most notably connecting streets, sewer and stormwater to the area. Roberts said the city received $2 million from the state for sewer design and construction. The projected total infrastructure cost is expected to sit at about $10 to $12 million.

“There’s so many moving components,” Nielsen said. “Starting from underground, just getting infrastructure out there, getting roads out there to accommodate growth… there’s so much to it.”

Nielsen added that there are a lot of moving targets and complexities in trying to find funding for 450 homes, finding a way to keep costs down and helping as many people as they can.

But, he said, the city is in a good position to make this project a reality.

“Affordable housing and workforce housing is the most critical issue facing the region.”

John Roberts, Redmond deputy city manager