The City of Albany is turning to a Eugene-based company to help build up its riverfront.
Obie Companies built and manages the 5th Street Public Market and Market District in Eugene. When CEO Brian Obie heard Albany wanted to revitalize its waterfront, he contacted the mayor, spurring discussions. This summer, Obie asked to enter into exclusive negotiations on a hotel and mixed-use development.
Last week, the Albany City Council approved selling three parking lots, and approved making an option-to-purchase agreement between the city and Obie.
Albany's Economic Development Manager, Sophie Adams, told KLCC there are a few more steps in the process.
“It doesn’t mean that they have to purchase one, two or three of these properties, but it gives them the exclusive option to," she said, "We will do a few things on our side, they will do a few things on their side, and together we will come to a mutually beneficial development agreement.”
The City of Albany is likely to grant a 10-year multi-unit property tax exemption (MUPTE), which would apply to this and potentially other downtown construction. Once the City Council adopts a MUPTE, Obie will have 18 months to exercise the option to purchase. Adams said most similar projects take about three and a half years to complete after the sale.
It’s not Obie’s first venture outside of Eugene. The company a hotel in downtown Boise in late 2016.
In public comments during the City Council meeting, one resident said he questioned the optics of the deal, because Albany’s former Economic Development Manager Seth Sherry left his post in June to join Obie Companies.
Others are concerned there won’t be enough parking downtown. Adams said there will be opportunities for the public to give input, and that conducting a third-party analysis of impacts to downtown parking is planned.
Representatives of the Obie Companies did not respond to a request for comment from KLCC.
