A new analysis shows property near Pilot Butte may be the most feasible for a new Bend City Hall project, but city councilors are holding on to the vision that the future headquarters will anchor a planned urban core closer to the Bend Parkway, the Bend Central District.
The Bend City Council backed a staff recommendation at a work session June 10 to keep properties in both locations open as potential City Hall sites. That decision may still be years away, as the opening of other new facilities and flattening growth has pushed the anticipated City Hall move-in to 2038, about eight years later than previously thought.
“We’re OK in the facilities we’re at,” said Matt Stuart, real estate, facilities and housing director with the City of Bend. “There’s no rush for us to pull this trigger, because we can live within our means today.”
The analysis shared with City Council this month is the framework for a larger discussion about how Bend should use its most valuable real estate as it looks to spur housing and development in key areas.
Along with the existing City Hall property downtown and property near Franklin Avenue in the Bend Central District, city councilors added the 15th Street property to the analysis — and the short list for future City Hall sites — at a work session in November. Spanning 20 acres from U.S. Highway 20 to Bear Creek Road, it’s the current home to the Bend Police Department and a public works yard in transition to a new $130 million campus in northeast Bend.
Bend wants to build its new City Hall as part of a public-private partnership that could include housing, commercial and plaza space to help offset the cost of development. The City Hall building itself is expected to be about 85,000 square feet and cost around $145 million.
The current City Hall building on Wall Street downtown is 25,000 square feet, and was built in 1990, when Bend’s population was fewer than 30,000 people. The City has purchased office buildings nearby to accommodate growing staff.
Leaders see the project as a catalyst — one that could help spur development activity in the surrounding area.
Among the three potential City Hall sites, the City has the least to lose in future taxes and land sale revenue by putting the facility at 15th Street, because it has the least potential for future private development, according to the analysis.
In addition, the housing and retail space to accompany City Hall could break ground sooner than the other sites, which won’t be ripe for development for another 10 years.
The City first launched studies into building a new administrative headquarters building about 10 years ago. A previous City Hall siting study in 2021 narrowed the search to downtown and the Bend Central District. Then, as it bought up several acres along Franklin Avenue and First Street east of the Parkway, the City floated the land as a potential City Hall site. In the meantime, an old motel on the City’s property along Franklin Avenue has served as a 60-bed homeless shelter.
On Wednesday, the City Council gave direction to hold on to the property between First Street and the Bend Parkway as a potential future site for City Hall, and start the visioning process for how to guide development along Franklin Avenue.
What the City does with its property in the Bend Central District has big implications for how the area takes shape, said Kirk Schueler, CEO of Brooks Resources. That company is a partner in Taylor Brooks, which shelved plans for a five-story apartment and retail building on Franklin Avenue several years ago, citing high construction costs and uncertainty over the City’s real estate plans.
“We all hold some cards in the Central District,” Schueler told the Source. “They’re holding some cards. How they play those cards is what we’re thinking about.”
For Schueler, the news that City Hall may be more feasible elsewhere isn’t necessarily a blow to the Bend Central District vision.
“City Hall would be great if it was there,” Schueler said. “If it’s not going to be there, it would be great to know what the City hopes they can accomplish with their land.”
Katy Brooks, the City’s economic development officer, said Wednesday evening that this decision-point opens the door for the City to try to strategize about spurring development at its Franklin Avenue property.
City Councilor Mike Riley said he wanted the City to commit to getting development started there within three years. The analysis says the property could host 570 housing units and 600 parking spaces without a City Hall, but will need some kind of public subsidy, like a tax abatement, to get going anytime soon.
“I’m really still committed to really thinking about City Hall in the BCD, but I’m also really excited about getting Franklin going on that corner faster, and getting some redevelopment there,” Mayor Melanie Kebler said.
The Bend Central District was rezoned for tall, dense development in 2016, but has seen minimal housing growth since then. An urban renewal district is slowly trickling reinvested property tax dollars into improving transportation, including a safety project that just began on Franklin Avenue. A pedestrian bridge spanning the Bend Parkway is expected to be finished in 2028.
While the 15th Street property may be more economical, Central District advocates say City Hall is exactly the type of development needed for the urban core.
“Placing a centralized City Hall within the Bend Central District aligns perfectly with the city’s urban renewal and economic goals,” said Daniel Elder, director of operations at Visit Bend and member of the Bend Central District Business Association Board, in an email.
And while Wednesday’s discussion seemed to have ruled out the existing downtown property as a future City Hall site, some on the City Council wanted to keep it in the running. The City currently owns about 2 acres, but under one scenario, nearby Bend-La Pine School District property, including a parking lot and nearby Troy Field, would be redeveloped as a public space.
City Councilor Ariel Méndez said that scenario is “really hard to contemplate because it’s so big and so different, and very complex. But I kind of like it. I feel like I can’t give really clear direction right now.”
Editor’s note: This story has been updated from the original version published June 10, following the conclusion of the Bend City Council meeting.
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If the article’s figures are correct, the new city hall building pencils out at a whopping $1705 per square foot. This is two to three times comparable commercial/office construction costs.
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