A planned development on Battle Ground’s Main Street that features hundreds of apartments and commercial property has received the go-ahead to move forward.
The Battle Ground City Council voted 5-2 to approve the “West Main Commons” development agreement between the city and the developer, Deacon Development, on Sept. 6.
The agreement for the $85 million project features 220 market-rate apartments ranging from studio to two-bedroom units and 36,000 square feet of commercial space on the project’s north end. The development would be located to the west of Battle Ground’s Best Western hotel.
The development previously came before the council on July 18 for the consideration of an eight-year multifamily tax exemption (MFTE) for the project. The exemption, allowed under state law, would allow for abatement on property taxes on the residential portion of the property. It would not affect the commercial property or the land value itself pre-development.
The approval of the exemption is still being worked on.
During the most recent meeting, the city council approved an amended agreement with more detailed language about the development’s open space requirement and a section that addresses how the environmental review will play into the project, according to a staff report.
Tricia Davis, who was one of two council members who voted against the agreement, asked about the potential to turn the development into a phased project. Davis inquired about the potential to build the residential portion first, which would then be followed by the commercial aspect which would not yet be filled with tenants, thus limiting the tax revenue.
Battle Ground City Manager Erin Erdman said the developers have not indicated a desire to complete the project in phases.
Councilor Shane Bowman said he would like the commercial aspect to come first.
“When we have residential property that’s hot, that’s the first thing that’s going to be developed, and then commercial property will sit,” Bowman said.
He said the city’s intention in a prior developer’s agreement was not explicit, which led to issues.
Councilor Adrian Cortes phrased the updated agreement as “a second step of many steps” before he moved for its adoption. Cortes said each development agreement is unique to the project, noting past agreements the city approved did not work out as city officials had hoped.
“It doesn’t necessarily mean that what happened there is going to repeat over and over,” Cortes said.
Deacon Development President Steve Deacon acknowledged parts of the agreement are vague. Deacon said commercial leasing is a concern. He added his company likes to have half of the space leased before it moves forward with a development.
He said the developer is not able to undertake full-fledged marketing tactics until a development agreement is approved. He noted filling out all of the commercial space is important to the developer’s operation.
“It may disappoint you, but it monetarily harms us, so we want to do it all at once. We just need to make sure we can get some leases in place,” Deacon said.
Deacon said there has been preliminary interest, but they have not been able to sign a lease because of additional steps that needed to be taken
“I would be pretty shocked if this didn’t move right along, but you just can’t guarantee it,” Deacon said. “If you told us … you have to guarantee you’re going to do the commercial either before or with the residential, we would probably have to pass, because I can’t guarantee that.”
Deacon said the last several years have put a strain on commercial development.
“We’re even more cautious than we were five years ago,” he said.
Both Deacon and the council were not as concerned about filling out the residential portion of the project.
“I have not seen apartments yet built in this town that are not rented out, period,” Bowman said. “You go to the (Battle Ground) village that’s been there for 14 years, and there’s still vacant commercial property.”
Bowman, who voted alongside Cortes, Mayor Philip Johnson, Deputy Mayor Cherish DesRochers and councilor Troy McCoy in favor of the agreement, said he wanted to avoid any potential loopholes.
Erdman said the city’s attorney, Ken Harper, went through the agreement “with a fine-toothed comb.”
“I want to make sure that we’re not missing a comma somewhere, and that this has been fully vetted multiple times, and then we’ll take a chance, or at least I will,” Bowman said.
Alongside Davis, councilor Shauna Walters voted against the development agreement.
