Developer Proposes Changes to Annexation

(This article appeared in the 5/11/2010 issue of the Nugget Newspaper)


The Sisters City Council reviewed Bill Willitts' proposed annexation agreement changes during their workshop session on Thursday, May 6, at City Hall.

Last December the City of Sisters and the owners of the 30-acre McKenzie Meadows Village property signed an agreement to annex the land into the city. The property is owned by Bill Willitts, Curt Kallberg and the Reed family, all Sisters residents.

Voters initially approved annexation back in 2006.

Intended for a senior living community, the property lies on the west edge of Sisters directly north of Sisters Middle School.

The council discussed several proposed changes to the agreement.

The first proposed change deals with the "one-in-10" requirement. The recorded annexation agreement calls for 10 percent of all units built to be "affordable," and evenly distributed throughout the retirement community. Of the 10 percent, one half must be affordable for individuals or families earning 80 percent of the Deschutes County AMI (Area Median Income, $58,000), and one half must be affordable to those earning 50 percent of the AMI.

The first request was that the "one-in-10" requirement apply specifically to the two buildings intended exclusively for low-income seniors (52 units total) rather than project-wide. The two buildings are phases one and two (26 units each) of Pacific Crest Affordable Housing's Independent Living apartments. (See related Nugget article, May 5, 2010, "Plans shifting for senior housing facilities.")

Council President Bill Merrill disagrees with the language of this proposed change.

"I don't think we should restrict the 'one-in-10' requirement to Pacific Crest's project - it should apply to all development on the property, including Pinnacle Alliance Group's project (assisted-living apartments for seniors)," said Merrill.

Councilor Sharlene Weed had a different perspective.

"We're getting a bonus with this project (Pacific Crest Affordable Housing), more affordable housing than we originally thought we'd have at McKenzie Meadows," said Weed.

Referring to Pacific Crest's Bend-based "affordable housing" communities, Weed was addressing the fact that one- and two-bedroom apartments rent on a sliding scale with the resident's income, and range from $394 to $589 a month. Monthly rents must stay "affordable" for 60 years, per state law.

Development of any senior-living apartments at McKenzie Meadows Village is still dependent on a number of factors: Local and state approval of Pacific Crest's plans, financing for the Pinnacle Alliance Group's development of senior assisted-living apartments, not to mention City of Sisters planning department approval.

Bill Willitts agrees there are unknowns in the development of the property.

"I'd like to be able to keep our options open should Pacific Crest not be able to develop their affordable apartments," said Willitts.

Curt Kallberg, one of the McKenzie Meadows Village property owners, also believes flexibility is the key.

"I agree with Councilor Merrill, the 'one-in-10' requirement makes sense because we're not sure ultimately how many apartments we're going to build," said Kallberg.

Merrill added, "I'm also concerned that we're excluding people younger than age 55 in the development of affordable housing. To deny the less fortunate the opportunity for affordable housing is not good for our community."

The second proposed change involved reducing the unit sizes of the one-bedroom (from 700 to 675 square feet) and two-bedroom (from 900 to 875 square feet) apartments in the Pacific Crest development to comply with HUD (Housing & Urban Development) requirements.

Councilors indicated little concern with this change.

The third requested change involved the agreement's "commercial medical facility." In the agreement, 1.22 acres of the property is to be set aside for a "commercial medical facility." Willitts would like the words changed to "medical facility" to better serve the needs of all Sisters Country residents while creating a close connection with the nearby schools.

Kate Moore, RN, and Program Manager of Maternal Child Health with the Deschutes County Health Services, spoke to the council regarding the synergy the medical facility would have with the local schools.

"This school-based health clinic portion of the facility would be open part-time, 20 hours a week, and act as a 'connector to health services' in the community. We offer health services from birth to age 20, services such as well-child checks and immunizations. We partner with the schools to mentor students regarding health issues," said Moore.

Regarding senior health care at the medical facility, Moore added: "Mark Adolf (Pinnacle Alliance Group) has offered to provide janitorial services in exchange for providing senior health services in the facility."

Councilor Merrill is uncomfortable with this agreement change.

"I'm uncomfortable with this change until we hear from the Sisters School Board - let's give them an opportunity to concur or disagree. Maybe they want the medical facility on their property (and not McKenzie Meadows')," said Merrill.

No final decisions were made regarding the requested annexation agreement changes.

The council did agree to direct city staff, including city attorney Steve Bryant, to amend the language of the agreement for further Council consideration at a future workshop (date to be determined.)