Real Estate & Construction Briefs – January 2022

Affinity plans two complexes totaling 426 units in Pasco

Affinity at Broadmoor LLC intends to build 426 apartments on a 20-acre site at Pasco’s Broadmoor area, according to documents filed under Washington’s Environmental Protection Act, or SEPA.

The site is on the south side of Burns Road, west of the intersection with Broadmoor Boulevard, aka Road 100. It is owned by Broadmoor Properties LLC, helmed by Dale Adams of Reno, Nevada.

Broadmoor Properties intends to build two apartment communities, one for seniors and one for the general public, Affinity at Broadmoor and Hydro at Broadmoor.

The Affinity complex will consist of a single, 180,000-square foot building with 170 units and a 5,320-square-foot clubhouse. The Hydro complex will have eight 30,000-square-foot buildings with a combined 256 units and a 4,800-square foot clubhouse.

The Affinity will be age restricted with interior hallways.

Both will have Class A amenities, according to the filing.

The project is part of the Broadmoor area, home to a future Costco store.

The Spokane-based developer intends to secure building permits in March and to complete construction by Nov. 1, 2024.

Columbia Shores plans 500 homes in west Pasco

RP Development of Pasco is preparing to develop Columbia Shores with 498 single-family townhomes and three single-family residences on a 39-acre site at 11530 W. Court St. in Pasco’s Broadmoor area.

SG Land Management LLC, also of Pasco, is the proponent for the project, according to documents filed under Washington’s Environmental Protection Act, or SEPA. It will be served by a mix of public and private roads and feature recreational amenities.

The site is between West Court Street and Harris Road and will be developed in four phases. The first will focus on the sloping southern side that faces the Columbia River.

$42 million subdivision planned in Prosser

A Pasco developer plans to build Arabella West, a residential subdivision on Prosser’s Hoisington Road, according to documents filed in December under Washington’s Environmental Protection Act, or SEPA.

Anthony Potts of AAA Renovation & Construction is subdividing the 18-acre property into 154 lots for a project with an estimated value of $43.2 million. The site is west of Albro Road and south of Hoisington. Wine Country Road nips the intersection to the northeast. Development is expected to start in March and to take one year.

The site plan includes a 5.5-acre park with dog park, walking path and community garden.

Knutzen Engineering of Kennewick designed the project.

Port, Housing Authority not included on Build Back Better list

A joint venture between the Port of Kennewick and the Kennewick Housing Authority to develop low-income housing near the entrance to Clover Island appears to be dead.

The two agencies teamed up in the hope of being included on a list of development projects Sen. Patty Murray, D-Washington, intended to create for the Build Back Better program. It didn’t make the list.

“We are zeroed out,” reported Tim Arntzen, the port’s executive director.

The plan caught port-watchers by surprise and triggered a fierce debate between advocates for low-income housing and area businesses that felt the Willows, a former mobile home park site now serving as a trailhead, was the wrong spot.

Port officials said Murray’s office encouraged the two agencies to team up and that they were disappointed to be left off after diverting time and energy away from other priorities.

Under the proposal, Build Back Better money would have supported infrastructure work in service of housing for low-income residents and those transitioning out of homelessness.

Kennewick Bed Bath & Beyond not included on closure list

Bed Bath & Beyond will close nearly 40 stores by the end of February, including four in Washington state.

The closures are part of a longer-term strategy to close 200 stores announced more than a year ago

The Kennewick store, 1220 N. Columbia Center Blvd., is not among the 37 to be closed in the coming weeks. The list includes East Wenatchee, Longview, Seattle and Union Gap.

The closures are part of a multiyear transformation and focus on e-commerce. In a Jan. 6 earnings report, the company reported a net loss of
$276.4 million in the quarter that ended Nov. 27. Supply chain issues hindered its performance, it said.

Benton County rural capital program has millions to spend

The Benton County Rural County Capital Fund had more than $21.9 million available, with nearly $15.7 million uncommitted, according to a Dec. 31, 2021, update.

The fund, known by the initials RCCF, is funded by the Legislature from a tax rebate of 0.09% and supports economic development initiatives, including infrastructure and construction, in Benton County and its cities.

The fund accumulates about $300,000 per month, according to the county. The county commission appropriates money as requested by its partners.

To date, the county has appropriated $1.2 million to itself, $550,000 to the Port of Kennewick, $2.3 million to the Port of Benton, $1.6 million to the city of Kennewick, $4 million to the city of Richland, $2.3 million to the city of Prosser, $3 million to the city of West Richland and $830,500 to the city of Benton City.

In all, it has accumulated $31.7 million, appropriated $15.8 million and has $15.9 million in unappropriated funds. The available balance is $21.9 million.

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Labor, materials for homes up 23%

The cost of goods and services to build new homes was 23% higher in November than prior to the pandemic, according to the National Association of Homebuilders.

The Producer Price Index, compiled by the Bureau of Labor Statistics, said the price of goods used in residential construction – excluding energy – rose 1.8% in November compared to the prior month. It was up 17.3% compared to November 2020 and nearly 23% compared to pre-pandemic levels.

Softwood lumber, steel mill products, ready-mix concrete, gypsum and paint were all more costly compared to a year ago. Legal, architectural and engineering prices also rose though not as much as materials.

Friends of Badger needs last $23,000 for hilltop trail

Friends of Badger Mountain has raised all but $23,000 of the $1.5 million the nonprofit needs to buy the final 21 acres it needs to create a new hilltop trail on Little Badger Mountain.

Friends is an outdoors-oriented organization dedicated to creating public trails on local hilltops, including Badger Mountain, Candy Mountain and the Red Mountain area. The Little Badger Preserve Trail will be a 2.2-mile stretch, with the first section set to open in the spring.

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Gov. Jay Islee budget includes ‘Middle Housing’

Gov. Jay Inslee is proposing to change to state policy to allow duplexes and townhomes in all areas within a half mile of major transit stops in larger cities. The move is part of a larger strategy to address homelessness and a housing crisis that has left the state 225,000 homes short of what’s needed to keep pace with growth.

The proposal, if adopted, will include a model ordinance to help cities implement new measures.

The governor’s 2022 budget and policy package, released Dec. 15, includes $800 million to address housing and homelessness. The proposal includes a variety of strategies, including more supported housing and programs to help people avoid losing their homes over issues such as being unable to pay power and water bills.

The “Middle Housing” proposal increases density and is expected to encourage affordable homeownership by relaxing the conditions that have forced home prices to rise faster than wages. The move would allow lot-splitting and duplexes on all lots in large and midsized cities, effectively ending single-family zoning.

Washington Realtors supports the proposal.

Nordstrom mulls breakup with Rack, its discount arm

Nordstrom Inc., one of the brands Tri-Citians most want to see open a local store, is considering spinning off its discount division, Rack.

While Nordstrom is unlikely to ever open a mainline store in the Tri-Cities, officials for the Seattle-based retailer have said that a local Rack outlet could be a possibility.

But the subsidiary isn’t meeting its parents’ expectations for a recovery to pre-pandemic sales levels. It has hired AlixPartners to advise it on a possible spinoff, according to Chain Store Age, citing reports by Bloomberg.

What that means for a potential Tri-City location remains unclear. In the interim, Nordstrom fans can travel to Spokane to visit both a mainline Nordstrom and a Rack, or to the greater Seattle and Portland areas, which both have multiple locations for both.

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