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LID Project North end of town on hold
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Author Topic: LID Project North end of town on hold  (Read 3417 times)
Posts: 105

« on: November 21, 2007, 02:35:04 PM »

I just read an article in the I V News and unless I am misunderstanding it appears that the development project on the north end of town has been put on hold indefinitely. According to the article the city of Cave Junction never had the legal authority to be involved in the project in the first place, because the LID lies outside of city limits and ODOT not the city of Cave Junction is in charge of directing the improvements. The LID (Local Improvement District) was set up to spread the cost of the improvements on hwy 199 to other land owners in that zone. One of the other land owners objected to being saddled with the costs claiming that their property being a tree lot does not benefit economically from the improvements being made on hwy 199. So they hired a legal firm to represent them in a legal challenge to the LID project. Now it looks like the developers and The Siskiyou Clinic AND THE TAXPAYERS may have to foot the bill for the improvements to hwy 199. Does this mean an end to the project? I don't know...I guess time will tell. Besides the legal problems the LID project faces we are also in a nationwide real estate downturn some are saying we haven't seen the likes of since the depression. Not a very encouraging scenario for developers involved. Hopefully this situation will be resolved.

« Last Edit: November 29, 2007, 05:22:38 AM by Admin » Logged
Senior Member
Posts: 22

« Reply #1 on: November 24, 2007, 05:27:08 PM »

I don't think that the LID being curtailed necessarily means that the project will stop. The way I understand it, the ability to pass part of the costs on to the other property owners by Manor LLC has been stopped. Manor LLC may decide to continue the projects but now their costs have risen because they can not get the others to pay.

Between this and the lack of continued development and sales of all the other properties in the city, mainly residential, will make it much more difficult to attract any prospective businesses to occupy the commercial area. It is sort of a chicken and egg problem.  It will be now more expensive per square foot of commercial space because the costs just went up.  Without the increases in residents and continued growth there is less chance of attracting any business that can make enough money off our existing residents to be able to afford to pay the lease fees.

So you may be right that the north end project will eventually be on hold but  as I read the article, it is only that Manor LLC can no longer force part of the costs onto the other commercial properties along the highway at this point.

I wonder why they would ignore the rules for properly setting up a LID? Seeing that they obviously did, I mean not pay attention to the laws and rules for setting up an LID, what else didn't they take into consideration? Like getting tenants?  Is this project just a case of irrational exuberance? Time will tell, won't it. Too bad we lost the pleasant wooded entrance to our once quaint small town in the process if it is all hype and hope.

Was this entire project a field of dreams concept?  Build it and they will come!? I still wonder where they are planning to get the water for the extra 9 holes. The existing fare ways are brown most of the summer. Do they think that the course will generate enough money to buy the water from the city? If so what will the green fees be? Can our area support such? What about our own golfers?  Is there really planning going on or is this just a case of trying to eventually get forgiveness where permission is not probable?

This whole project is an interesting study in how communities are developed. Not by planning and fore thought but by developers from out of town doing their thing for profit taking huge risks but not necessarily doing their homework. It will be interesting to see how this goes from here.  At what point do you quit throwing good money after bad? For without new residents with good incomes or some form of new businesses that provide good wages, I believe most of the newly created lots will sit for a long long time.

Not only in an area where incomes are low but the federal government has with drawn support and we already have minimal law enforcement. Seems like all the ingredients for massively expanded commercial activity.. Don't you think? 
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