HomeMy WebLinkAboutItem 03 Downtown Project Request and SUB Property
AGENDA ITEM SUMMARY Meeting Date: 1/11/2021
Meeting Type: Executive Session
Department: CMO
Staff Contact: Courtney Griesel,
Economic Development
S P R I N G F I E L D ECONOMIC Staff Phone No: (541) 726-3700
DEVELOPMENT AGENCY Estimated Time: 30 Minutes
ITEM TITLE: DOWNTOWN PROJECT REQUEST AND SUB PROPERTY
ACTION
REQUESTED:
Provide direction to staff regarding requested acquisition, redevelopment support and
disposition of Downtown property located at 17-03-35-32 taxlots 5100, 5000, and 4900
(236-248 Main Street).
ISSUE
STATEMENT:
Masaka Properties LLC (Masaka) has requested SEDA support in the acquisition of
redevelopment property from Springfield Utility Board (SUB) as well as funding for
preliminary project assessment work related to the property and redevelopment vision. The
requested SEDA investment includes;
• $76,000 in financial support to Masaka LLC for assessment work
• $790,000 for acquisition by SEDA of real property currently owned by SUB
ATTACHMENTS: Attachment 1 – 29 October 2020 Masaka Request Letter
Attachment 2 – SUB Property Purchase Memo
Attachment 3 – Queen Bee Tenant Property Purchase Letter of Interest
DISCUSSION/
FINANCIAL
IMPACT:
Masaka proposes to redevelop a portion of SUB owned Downtown property and is
requesting SEDA financial assistance in early stage assessment of the project in an amount
of $76,000 (ATT 1). The proposed development will require/provide;
• SEDA acquisition of lots 4900, 5000 & 5100 from SUB (ATT 2) in an amount not
to exceed $790,000
• Future transfer of lots 5000 & 5100 to Masaka in a yet to be determined amount
• Likelihood of tenant relocation costs to SEDA
• Opportunity to support existing tenant interest (ATT 3) in acquiring lot 4900
• SUB acquisition of City owned property adjacent to the site and SUB offices
Early Masaka redevelopment concepts envisioned a mix of hotel products. This has been
updated to now reflect ground floor commercial and upper floors of market rate residential.
In order to better understand the project feasibility and proforma, Masaka is requesting
$76,000.00 in SEDA funding support to complete;
- $39,500 - Project Optimization & Infrastructure Study: Funds architecture (Campfire
Collaborative) and engineering (Branch/SystemsWest/Cultivate) study.
- $22,000 - General Contractor Construction Cost Estimate & Analysis: Funds
construction cost estimates by general contractor Ryan Thomas Construction.
- $14,500 - Economic Feasibility Assessment: Funds local market assessment and
proforma study (Len Blackstone), grant/incentive research (Lori Bumgardner), and
investor/bank funding strategy development (Masaka)
This work is intended to inform product type and feasibility of the project. Limited SEDA
support on initial code and massing analysis has been provided on past similar projects.
The SEDA Board is requested to discuss and direct staff to;
a) Fund all, a portion, or none of the current Masaka request for assessment funds;
b) Authorize SEDA acquisition of SUB property (Map 17-03-35-32; Taxlots 4900, 5000 &
5100) in an amount up to $790,000.00 and as outlined in Attachment 2 and direct this
authorization as contingent or not contingent on outcomes of Masaka assessment work
related to redevelopment of taxlots 5000 & 5100;
c) If not contingent, authorize initial discussions and negotiations with Queen Bee (tenant)
related to their expressed interest in purchase of taxlot 4900.
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
29 October 2020
Springfield Economic Development Agency (SEDA)
City of Springfield, Oregon
225 Fifth Street
Springfield, OR 97477
Dear SEDA Board:
On behalf of Masaka Properties LLC, thank you for your ongoing investment of time, consideration, and
resources to support our prospective project at 248 Main Street, the first new construction project in
the downtown core in nearly 15 years. Envisioning this project as a show piece of downtown, Masaka’s
development team has explored numerous options for the scale and scope of this mixed-use development. We are now writing this letter to request assistance from the SEDA board to fund a more detailed cost and feasibility study for this project. This will provide the necessary information to enable Masaka to
“right-size” the project based on the economic viability, and reveal where an insertion of gap-funding by
the City would enhance the project to make the highest and best use of this site.
Masaka Properties LLC has been instrumental in the efforts to revitalize our downtown core, refurbishing
living units and developing new commercial spaces which have attracted a new and vibrant community to
what was once a stagnant area. Masaka Properties LLC and partner DNL Properties LLC have self-funded
our many projects to date, investing nearly 2.5 million dollars in renovations to properties negotiated from
previous owners who were holding valuable and underutilized buildings blighted with much “deferred
maintenance”. From our renovations over five significant downtown buildings, we’ve not only increase the
tax revenue of the 300 block three-fold but also have provided inspiration and motivation to other holdout
investors to believing in the potential of downtown Springfield.
All of this new activity would have never been possible if not for a strong partnership with the City of
Springfield. The SDC buyback program has had a significant impact on our ability to make these projects
pencil. We are grateful for the knowledgeable and problem-solving staff at the permit office, along with
shared excitement with city-elected staffers. Community and renovation isn’t built by individuals, but by a
dedicated team, to which the city of Springfield has been invaluable.
We see the tremendous potential for this new development at 248 Main Street to “up the game” with
respect to downtown development, creating a positive impact that will undoubtedly be a catalyst for other
developers to seek opportunities to invest in downtown Springfield. Together with Campfire Collaborative:
Architecture & Design we have envisioned a build that would bring many more people and businesses to
an underdeveloped and underutilized property.
This is not a generic mixed-use urban infill project. Our proposed design is inspired by the history of this
site as the home of the Springfield Hotel ( from ~1890 until the late 1950’s) and the original Springfield
City Hall and police/fire station. The historical and cultural assets of this site reveal a rich narrative of
early Springfield industry, politics, and social activities. This project is an opportunity to build a modern landmark, creating new commercial and living spaces downtown while also showcasing notable points of
interest about the City’s past, making a project that is very specific and appropriate for this site.
Last August (just over 14 months ago), Masaka Properties brought this grand new vision to the SUB board
meeting to request the opportunity to purchase the property. It then turned into a “swap” of city owned
parking for the benefit of SUB who, for the collective goal of downtown economic development, first
Attachment 1, Page 1 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
considered the sale of the four properties (including the Masonic Lodge). Masaka Properties LLC underwent
extensive contract revisions to iron out a suitable and transparent deal with City legal, but since has been
reconsidered due to the positive involvement the SEDA board participation could offer.
Masaka Properties to date has invested $32,500 into exploring various approaches in scope and design,
opportunity zone investigations, legal fees for an original contract negotiation with the city of Springfield
(which now is changed beyond completing), and countless project management time with meetings and
correspondence. Some of the deliverables our development team has compiled to date include:
• Architectural massing studies for design options exploring 2/1, 4/1, 5/1, with variations for parking
and on-site amenities (as well as earlier hotel scheme that included remodel of Masonic Lodge as
part of the scope)
• Typical unit designs for studio and 1-bedroom apartments (as well as typical room designs from the
earlier hotel scheme)
• Drone photography of the site to analyze views/site lines from prospective floor elevation heights
• Extensive historical research, including coordination of an oral history interview with the most recent
private owner whose family owned/operated the original hotel from ~1910 until its closure in the
late 1950’s
Our goal remains clear. We wish to build a mixed-use building, consisting of four to five ground-level
commercial spaces, a “three-to-four over one” building of 45-50 living spaces with the future potential of a
later additional roof floor for either a river view public event space/restaurant or penthouse units depending
on market trend.
What we have investigated thus far is the workability of three plans. A modest “two-over one”, “three-over-
one” with a later fourth potential, and a grand statement for the city, a “five-over-one”. Ballpark estimates
for construction prices per square foot has put the range of all these ideas around 6-16 million dollars
based on like kind projects ranging from $225-$250 a square foot.
We already have a few major components of the project accomplished. There is a clean Phase 1
environmental done by SUB which requires no further follow-up. The look, design and basic floor plans
for both studio and one-bedroom units have been roughed out to reflect major selling points we have
learned by our leasing experience and market testing which our own downtown lofts have provided a
working lab model. The additional historical homage to items around the city (the old fire bell at city hall for
example) we are planning to be placed on the location which would attract interest and relevance for this
developments connection to the city community.
Our budgeting research has determined that, including the helpful incentives from the city (i.e. SDC buy
backs and property purchase pricing), if the project were to be built to the grandest scale it would likely
require some “gap” funding. If we build to the “three-over-one” with the structural capacity to add an
additional floor in the future, our need would not be as great or at all.
To determine a solid game plan whereby SEDA, the city of Springfield and Masaka Properties would come
to a better understanding of the development and shared risks, we would like to request assistance money
to further architectural/engineering studies to be able to narrow in on construction methodologies that
affect cost estimating, do a comprehensive cost assessment reflecting BOLI wages, along with pro-forma
and economic feasibility analysis, and some tighter financial commitments from our local banks. This will
prove to all involved the viability and fine tune for us if the project pencils enough to engage.
Attachment 1, Page 2 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
Masaka Properties LLC has invested $32.5K into design/feasibility work to get to this point, and would like
to request funds from SEDA in the amount of $76,000 to complete the proposed optimization study. On
the next page you will find a breakdown of the scope elements of the proposed study and associated costs
for each item, including:
• Design Optimization & Infrastructure Study – Architectural refinement to create enough definition for
cost estimating and pro-forma study; includes coordination with Engineering consultants to determine
infrastructure needs and options.
• Construction Cost Estimate & Analysis – Estimated budget pricing for new construction with variations
for number of stories, and with add-on options for rooftop amenities and/or a future additional floor
level
• Economic Feasibility Assessment –CMA, Pro-forma study, grants/tax incentives research, and funding
strategy for project implementation.
Should funds be approved, work would begin immediately and earnestly with a goal for assessment
completion by March/April 2021 and targeted construction commencement by the end of calendar year
2021. We are enthusiastic about a partnership with like-minded visionaries like yourselves to see to it that
Springfield’s downtown momentum continues and flourishes for the future.
Thank you for your interest, consideration and trust in what Masaka Properties LLC has done and will
continue to do with your gracious help.
Respectfully,
David B. Loveall, Partner
Masaka Properties LLC
Attachment 1, Page 3 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
Design Optimization & Infrastructure Study 8-12 weeks $39,500 total
Architectural Services 20,000$ Campfire Collaborative
Site Survey 3,500$ Branch Engineering
Civil consultant 1,500$ Branch Engineering
Geotech consultant 2,000$ Branch Engineering
Structural consultant 5,000$ Branch Engineering
MEP consultant 5,000$ Systems West Engineers
2,500$ Cultivate, Inc.
Construction Cost Estimate & Analysis 3-5 weeks $22,000 total
22,000$ Ryan Thomas Construction
Economic Feasibility Assessment 3 weeks $14,500 total
7,500$ Len Blackstone
3,000$ Lori Bumgardner
4,000$ Masaka Properties
Identify opportunity zone investors, bank lenders, & other funding sources; explore tax abatement
options; compile & analyze data from Pro-Forma & develop funding strategy; identify thresholds for
financial viability of project, determine optimal building heights/unit counts that 'pencil' & whether there
is a funding gap.
Funding strategy
analysis
Establish market conditions for new development based on comparison/analysis of similar developments
in the area, considering proximity, development cost, unit types/counts, rental revenue, occupancy
rates, etc. Consider additional units from other proposed developments and evaluate rental
capacity/saturation point. Compile detailed pro-forma for project, to include hard and soft development
costs, loan servicing costs, and projected rental incomes and operating costs.
Evaluate improved energy performance opportunities, sustainable product sourcing, waste stream, etc.
Outline parameters for pursuing LEED or other green building certification.
Sustainability consultant
Research grant opportunities (age-friendly community, main street/downtown, historic/cultural, etc.),
energy/sustainability incentives, explore eligibility requirements for affordable housing $$$ (mixed
income development?)
Grants/tax incentives
research
Competitive Market
Analysis & Pro-forma
study
Construction cost estimating for 3/1 and 5/1 structures, to include systems and design elements
generated from architectural analysis.
Construction Cost
Estimate
Topographic survey with property corner boundary control, but without a recorded/filed survey.
Document existing conditions including physical features, elevations, and abutting utilities adequate for
civil engineering design.
Refine previously explored massing models and develop hybrid 3/1 scheme, with program concepts
inclusive of an optional rooftop meeting/event venue. Land use & building code analysis. Coordinate
with consultants & integrate input into design schemes. Work closely with contractor & financial
consultants to inform construction cost estimate & pro-forma study, and adjust architectural concepts in
response to budget findings to determine optimized schemes.
Review existing infrastructure, supply, drainage, power, alley restrictions.
Soil anlaysis, water table, soil types/characteristics, clay structure, bedrock depth, soil bearing capacity.
Evaluate sizing and material options for structure for 3/1 and 5/1 buildings, and/or other variations as
determined by architectural or financial studies .
MEP systems options and sizing for 3/1 and 5/1 structures; evaluate capacity of existing infrastructure &
determine utility service requirements for new development. Fire sprinkler system sizing/supply/access.
OPTIMIZATION STUDY SCOPE
Attachment 1, Page 4 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
SITE INFORMATION
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0.49 AC0.36 AC0.18 AC0.18 AC0.2 AC2.8 AC
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6100
48004700460045004300
6200 5900
8100
7800
7600780278047801
7805
7400
760167008500
6601
7500
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6101
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5100
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SEE MAP
17033523
SEE MAP
17033444
SEE MAP
17033441
SE E MAP
17033531
SEE MAP
17033533
SEE MAP
17033534
SEE MAP
17033524
FOR ASSESSMENT ANDTAXATION ONLYN.W.1/4 S.W.1/4 SEC. 35 T.17S. R.3W. W.M.Lane County1" = 100'
CANCELLED
200-500
1300-1600
1700
1800
2000-2401
3700
3800
4400
5400
5600
5800
6000
6300
7100
7700
7803
7900
17033532SPRINGFIELD
SPRINGFIELD
17033532
LCATJCG - 2018-11-06 08:20REVISIONS09/20/2011 - LCAT113 - CONVERT MAP TO GIS08/07/2017 - LCAT174 - PTN OF TL 5500 & TL 5900 INTO ROAD08/15/2018 - LCAT174 - MAP CORRECTION TL 400011/06/2018 - LCAT174 - ACRE AND MAP CORRECTION TL 4000
DevNW Project
Site
Mason
Lodge
Right: View of site looking
Northwest, from intersection
of Main Street and Pioneer
Parkway E
Right: Site includes buildings/
lots at 230 & 240 Main Street
and adjacent parking lot along
Pioneer Pkwy E.
Right: Site is comprised of two
tax lots, #5000 & #5100
Zoning Information:
Total site area: 11,150 s.f.
(93’ x 120’)
Zoning: Mixed Use Commercial
Setbacks: Zero setbacks for
buildings
Building height: 90’ allowable,
no shading restrictions
Parking: Parking exempt, but
project intends to provide as
much parking as feasible on-site
Proposed address to reclaim street number of 248 Main Street, the original address of the Springfield Hotel (not currently assigned/in use.)
Attachment 1, Page 5 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
DRONE IMAGERY
Aerial view of the site
looking South/Southwest
Aerial view of the site
looking North/Northeast
Aerial view of the site
looking Northwest
Attachment 1, Page 6 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
View @ 30’
DRONE IMAGERY
View @ 40’
View @ 50’
View @ 60’
View @ 70’
Attachment 1, Page 7 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”13' - 6"26' - 6"
MIRRORED DOOR
ON CLOSER
5' - 0"WARDROBE DESK/TV KITCHENETTE
DESK/TV
STUDIO APARTMENT
DBL QUEEN HOTEL RM
WARDROBE DESK/TV KITCHENETTE
KING/BIZ. HOTEL RM
FAMILY SUITE RM.
DESK/TV BUNK
Project number
Date
Schematic Room Layouts
19018
SPRINGFIELD HOTEL
2020.06.17
DN
DN
DN
UP
-
-
1
1
2
2
3
3
6
6
a
e
g
4
5
5
27' - 0"6' - 0"27' - 0"
21' - 4"21' - 4"21' - 4"
f20' - 5 3/8"13' - 6"13' - 6"13' - 6"13' - 6"13' - 6"13' - 6"18' - 6 5/8"d
c
b
536 SF
Suite[202]
310 SF
King[204]
310 SF
King[206]
310 SF
Queen x2[208]
310 SF
Queen x2[210]
310 SF
Queen x2[212]
526 SF
2K Deluxe[214]227 SF
Single Queen[213]
435 SF
2Q Deluxe[209]
310 SF
Queen x2[207]
310 SF
King[205]
304 SF
King[203]
471 SF
King Deluxe[201]
256 SF
King[216]256 SF
King[217]
239 SF
Bunk Rm[220]
193 SF
Queen + Bunk[221]
186 SF
Queen + Bunk[222]
289 SF
Office/Staff[251]
15' - 7 1/4"
23 SF
Elect.[252]5' - 0"40 SF
Utility[253]5' - 0"5' - 0"3' - 2"253 SF
Queen x2[218]
253 SF
Queen x2[215]
239 SF
Bunk Rm[219]
277 SF
Common Area[250]
886 SF
Lounge/Circulation[200]
295 SF
Balcony[42]
11' - 1 1/4"
232 SF
Single Queen[211]
JOB
SCALE
DRAWN BY
CHECKED BY
DATE
REVISIONS:PLOTTED ON:CAMPFIRE COLLABORATIVE: ARCHITECTURE & DESIGN, PC541.914.0334hello@campfirelab.comwww.campfirelab.com
1" ACTUAL
IF THE ABOVE DIMENSION DOES NOT MEASURE ONE INCH (1") EXACTLY, THIS DRAWING WILL HAVE TO BE ENLARGED OR REDUCED AFFECTING ALL LABELED SCALES.
1/8" = 1'-0" 12/13/2019 11:16:42 AMA1.02
19018
Author
CheckerOwnerSPRINGFIELD HOTELLevel 2 Floor Plan248 Main Street, Springfield2019.12.13
No. Description Date
1/8" = 1'-0"1 Level 2 Floor Plan
MASSING STUDY - 2 over 1, with rooftop terrace
Commercial: 6027 s.f. w/ 5 tenant spaces; plus
1908 s.f. shared lobby/bar/meeting space on
ground floor
Living/sleeping units: 34 units, 186-671 s.f. ea
Parking: 21 stalls along alley
This was our earliest scheme, which incorporated the
Masonic Lodge as part of the scope, aligning the
second floor plates of the existing & new buildings for
shared access to the new elevator/egress stair.
Attachment 1, Page 8 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
UP
--
-
-
-
-
1
1
2
2
3
3
6
6
a a
g g
4
4
5
5
16' - 9 3/4"16' - 6 1/2"
f
d
c
b
776 SF
Tenant Space[140]
785 SF
Tenant Space[130]
775 SF
Tenant Space[120]
692 SF
Lounge/ Circulation[100]
211 SF
Trash[104]
18 parking stalls4 commercial tenant spaces
h
h
26' - 0 7/16"24' - 6"
m
1471 SF
Tenant Space[105]
JOB
SCALE
DRAWN BY
CHECKED BY
DATE
REVISIONS:PLOTTED ON:CAMPFIRE COLLABORATIVE: ARCHITECTURE & DESIGN, PC541.914.0334hello@campfirelab.comwww.campfirelab.com
1" ACTUAL
IF THE ABOVE DIMENSION DOES NOT MEASURE ONE INCH (1") EXACTLY, THIS DRAWING WILL HAVE TO BE ENLARGED OR REDUCED AFFECTING ALL LABELED SCALES.
1/8" = 1'-0" 9/4/2020 2:48:53 PMA1.01
19018
JLF
N/AMAIA HARDY & TAYLOR LARSONSPRINGFIELD HOTELGround Floor Plan1145 6TH STREETSPRINGFIELD, OR 974772020.09.04
1/8" = 1'-0"1 Ground Floor Plan
No. Description Date
DN
-
-
1
1
2
2
3
3
6
6
a
g
4
4
5
5
45' - 1 3/4"
16' - 9 3/4"16' - 6 1/2"
f
83' - 7 1/4"36' - 5"d
c
b
Balcony[42]
24' - 4"
h
h
m
1764 SF
Courtyard[315]
10 One-Bdrm Loft Units1 2-Bdrm Loft Unit
+ Podium-level courtyard+ Public balcony @ Main St.
JOB
SCALE
DRAWN BY
CHECKED BY
DATE
REVISIONS:PLOTTED ON:CAMPFIRE COLLABORATIVE: ARCHITECTURE & DESIGN, PC541.914.0334hello@campfirelab.comwww.campfirelab.com
1" ACTUAL
IF THE ABOVE DIMENSION DOES NOT MEASURE ONE INCH (1") EXACTLY, THIS DRAWING WILL HAVE TO BE ENLARGED OR REDUCED AFFECTING ALL LABELED SCALES.
1/8" = 1'-0" 9/4/2020 2:49:12 PMA1.02
19018
Author
CheckerMAIA HARDY & TAYLOR LARSONSPRINGFIELD HOTELLevel 2 Floor Plan1145 6TH STREETSPRINGFIELD, OR 974772020.09.04
No. Description Date
1/8" = 1'-0"1 Level 2 Floor Plan
UP
UP
WasherDryerWasherDryer DESK/TV7' - 5 1/2"14' - 3 1/4"28' - 11"15' - 6"10' - 0"2' - 6"11' - 3 1/4"3' - 0"7' - 7"2' - 8"2' - 8"3' - 0"3' - 0"10' - 0"1' - 8"5' - 0"COATS/BIKE
STUDIO APARTMENTCLOSET
DESK/TV
KITCHENETTE
PANTRY/ LINEN
ACCESSIBLE BATHROOM
COATS/BIKE
1-BDRM LOFT UNIT
PANTRY/ LINEN
ACCESSIBLE BATHROOMCLOSETCLOSETLOFT BEDROOM
JOB
SCALE
DRAWN BY
CHECKED BY
DATE
REVISIONS:PLOTTED ON:CAMPFIRE COLLABORATIVE: ARCHITECTURE & DESIGN, PC541.914.0334hello@campfirelab.comwww.campfirelab.com
1" ACTUAL
IF THE ABOVE DIMENSION DOES NOT MEASURE ONE INCH (1") EXACTLY, THIS DRAWING WILL HAVE TO BE ENLARGED OR REDUCED AFFECTING ALL LABELED SCALES.
1/4" = 1'-0" 9/4/2020 2:49:46 PMA1.05
19018
Author
CheckerMAIA HARDY & TAYLOR LARSONSPRINGFIELD HOTELSchematic Room Layouts1145 6TH STREETSPRINGFIELD, OR 974772020.09.04
No. Description Date
TYPICAL UNITS:
(22)1 Bedroom Loft: 561 s.f. (390.5 ground floor, 171 s.f. loft) + ~60 s.f. balcony
(22)Studio Flats: 390.5 s.f. + ~60 s.f. balcony
CORNER UNITS:
(2)2 Bedroom Loft: 803 s.f. (632 s.f. ground floor, 171 s.f. loft) + balcony
(2)1 Bedroom Flat: 632 s.f. + balcony
MASSING STUDY - 4 over 1, with optional 6th floor penthouse & rooftop event space
Commercial: 3807 s.f. w/ 4 tenant spaces on
ground floor; 1764 s.f. podium-level courtyard
Residential units: 35 units, 390 - 803 s.f. ea
Parking: 18 covered stalls under podium
This was our grandest scheme, which would nearly
max out the allowable 90’ height limit if 6th floor/
rooftop spaces included.
Attachment 1, Page 9 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
HISTORICAL IMAGERY
Sanborn Fire Map from 1907 -
shows the Springfield Hotel at
the corner of Main Street and 3rd
(now Pioneer Pkwy E).
Railroad tracks run along 3rd
Street, spurring off of the main
line south of downtown
The map also shows the Town
Hall and Fire Station (Hose House
& Hose Tower) to the west of the
hotel. The map notes that the
fire department was comprised of
20 volunteer members, and had
2 hose carts and 1000’ of 2-1/2”
hose at the time.
At the back of the site, note
the small building labeled
“Calaboose.” This was the 1-rm
jail cell behind the town hall.
This fire bell now resides in City
Hall, on loan from the Springfield
Museum
Original fire bell
Attachment 1, Page 10 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
HISTORICAL IMAGERY
October 22, 1910 - grand opening
celebration of the new electric
streetcar line connecting Eugene
and Springfield.
The crowd is gathered around 2
flag-decorated streetcars in front
the of the Springfield Hotel on
Main Street. Ladies in fancy hats
enjoy the celebration from the
upper balcony of the Hotel.
According to the Lane Co History
Museum, “Eugene officials and
citizens rode the cars from the
Southern Pacific Depot at 4th
Avenue and Willamette Street
in Eugene past the University
of Oregon campus, through
Glenwood on a trestle, and
then over the newly constructed
streetcar bridge over the
Willamette River into Springfield.”
Image c. 1908 shows Cadillac
parked in front of the Springfield
hotel.
Campaign poster in the front
window of the hotel is promoting
George Chamberlain in his
controversial 1908 campaign,
when he ran for a Senate position
while still holding the position of
Oregon Governor.
Attachment 1, Page 11 of 12
M A S A K A P R O P E R T I E S L L C
“Developing Communities One Building at at Time”
HISTORICAL ASSETS
Right: The original jail cell bars
from the “Calaboose” were
uncovered during the demolition
of the Hotel in the late 1950’s.
Former owner Ralph Smeed
(grandson of Rosa Montgomery
who ran the hotel from ~1910
until its closure) recently donated
these to the Springfield History
Museum.
Right: We have compiled dozens
of clippings from old newspapers
mentioning the Springfield Hotel,
its patrons, ownership history,
amenities, and a broad spectrum
of business and social activities
that connected early Springfield
business leaders.
Far right: Springfield’s first fire
alarm bell, which now resides on
display at city hall. According
to the plaque, the City’s Fire
committee bought the 375-pound
bell in 1907 from Chicago for
$57.50. The city stopped using
the bell in 1920 when the Booth
Kelly Mill volunteered its loud
steam whistle use as Springfield’s
official fire alarm.
Right: Original guest ledgers from
the Springfield Hotel, provided by
Ralph Smeed.
Attachment 1, Page 12 of 12
M E M O R A N D U M Springfield Economic Development Agency
Date: 1/11/2021
To: Nancy Newton, City Manager BOARD
From: Courtney Griesel, Economic Development/CMO BRIEFING
Subject: Downtown SUB Property Purchase Summary MEMORANDUM
ISSUE: The Springfield Economic Development Agency (SEDA) might authorize acquisition of
Springfield Utility Board (SUB) owned downtown real property in order to facilitate a mix of future site
redevelopment and improvements.
The transaction between SEDA, the City and SUB includes;
• SEDA acquisition of three taxlots (described below as sites A & B; Map 17-03-35-32, Taxlots
4900, 5000, & 5100) from SUB in an amount not to exceed $790,000.00.
• City sale of one taxlot (described as City Lot 2900) to SUB in an amount of $170,000.00.
This purchase might enable two future negotiations for Downtown redevelopment opportunities;
New market rate housing on Site A (48 Units/49,000SF) by Masaka Properties
Renovation of commercial on Site B (8,000 SF Lot) by existing business, Queen Bee Tattoo
BACKGROUND:
Masaka Properties LLC (Masaka) has requested SEDA support in the acquisition of Downtown
redevelopment property from Springfield Utility Board (SUB). Based on 2020 SEDA Board direction and
additional information gathering and negotiations with SUB, property negotiations for acquisition and
disposition of Downtown property are recommended as outlined below;
• Site A and Site B – SEDA acquisition from SUB for a total purchase price of $790,000.00.
This price reflects the previous SUB purchase price of the 0.40 acre site at $840,000.00 in 2018
with additional discount applied for needed Site B building repairs.
• Site A – SEDA negotiation for future sale of property to Masaka for redevelopment.
Following completion of Masaka redevelopment and feasibility studies, terms of sale from SEDA
to Masaka might be negotiated to facilitate support of envisioned redevelopment for this portion
of the site. Existing Site A buildings are not anticipated to remain as part of redevelopment.
Tenant relocation costs may be incurred and are a planned obligation within the Urban Renewal
Plan.
Attachment 2, Page 1 of 2
MEMORANDUM Page 2
• Site B – SEDA negotiation for future sale of property to existing business, Queen Bee Tattoo.
The existing tenant located within Site B has provided a letter expressing interest in acquiring the
building they currently occupy. SEDA might negotiate terms of sale to support business
ownership and reinvestment. The existing 6,098 SF building is expected to remain. Sale to the
current tenant avoids tenant relocation impacts and eliminates the need for SEDA to carry
landlord responsibilities on the property.
• City Lot – City sale of City owned parking lot to SUB for $170,000.00. This price is based on
completion of a 2020 appraisal and supports SUB’s desire to complete assembly of properties
adjacent to their Downtown offices. This site is currently vacant and in anticipation of this request,
the City stopped issuing parking permits on the 23 spaces within this lot in 2020.
RECOMMENDED ACTION:
The SEDA Board is requested to discuss and authorize SEDA acquisition of SUB property (Map 17-03-
35-32; Taxlots 4900, 5000 & 5100) in a price not to exceed $790,000.00 and direct this authorization as
contingent or not contingent on completion of Masaka assessment work related to redevelopment of
taxlots 5000 & 5100.
If purchase of SUB owned property by SEDA is not contingent on outcomes of Masaka
assessment work, the SEDA Board is requested to authorize initial discussions and negotiations
with Queen Bee (tenant) related to their expressed interest in purchase of taxlot 4900.
Attachment 2, Page 2 of 2
September 6th, 2020
To SEDA Board Members,
We are excited to propose a plan for the purchase of the property located at 226, 228 and 230 Main
Street, Springfield, Oregon. The scenario we would like to offer is a purchase price of $365,000 payable
over a 15 year term. For the first two years we would pay $2,000 per month and the remainder of the
loan would be $2,620 until the balance is paid, at an interest rate of 2.99%. We propose this in
consideration of the added costs of commercial building ownership including an added $400 per month
in insurance and approximately $200 per month in property taxes.
This building has been the home of Queen Bee Tattoo and Salon, Lifetime School of Tattooing and the
main offices of the Evergreen Tattoo Invitational for the past 6 years. Our businesses have provided fine
art, expert tattooing and international exposure to the City of Springfield. We provide family wage jobs
for our nine regular contractors, and two full time receptionist positions. We are licensed by the Oregon
Higher Education Coordinating Commission and provide tattoo training for artists including disabled
veterans, individuals suffering from PTSD and other displaced workers through different programs.
With Covid 19 we were forced to close all three companies for two months. There was a lot of stress and
uncertainty. Fortunately we are able to say we did not lose a single artist or employee, and in fact we
were able to hire a second, full time receptionist and two new artists (soon to be three). Once we were
able to reopen, we hit the ground running. As a result, we have been met with great success. We have
had one of the most profitable quarters in our company’s history.
It would benefit the downtown area to keep a stable, established business. Our clients support the
surrounding businesses when they come to downtown. Our first shop opened in downtown in March
2008 and is still thriving at 14th and Main Street, 12 years later. We are a fixture in the neighborhood.
The stability that building ownership could provide to us would allow us to expand into the upstairs
space and grow all three businesses.
We have plans to improve the face of the building including adding new lighting, paint, signage and
more. We would like to beautify the building while maintaining the esthetic and charm of the 120 year
old structure. The interior needs many upgrades as well and with this plan we will be able to cover the
cost of those improvements while continuing to operate as usual.
We respectfully submit this proposal to the board and request that you consider us for this opportunity.
We believe this is a win for us, the proposed hotel project and for the city. We know that we can
continue to be an asset to the downtown area for years to come.
Sincerely,
Erin and Riley Smith
lifetimeink@gmail
541-743-3357
Attachment 3, Page 1 of 1