The City of Hillsboro just dropped a bombshell on its social media pages, announcing the development of the Block 67 site, former Hanks Grocery, on Baseline between 6th and 7th. The proposal has announced Rembold as the developer and a number of pre-leased tenants. The most exciting part of this for many locals is the addition of a significant grocery known as Fresh Foods. The announcement was sudden in so much as the Urban Renewal Advisory Committee has not met to hear about or weigh in on this matter yet. This deal seems to have been in the works for a while and will certainly involve a very large commitment from the Downtown Hillsboro Urban Renewal District funds which will use public and taxpayer money to fund projects like this. Time will tell on that, but the Herald will speculate that the number could be in the millions. Projects like this one require financial carrots. The land (3.5 acres) which is owned by the City could also be offered up to make such a large deal work. No matter what, this is big news for the City of Hillsboro and the downtown core area.
From the City of Hillsboro’s Public release:
Block 67 Development Proposal Moves Ahead
Rembold’s Mixed-Use Project Plan Has Tenants Lined Up
A proposal to redevelop Block 67 in Downtown Hillsboro to provide market-rate and affordable housing, medical offices, retail space, and a public plaza will move forward.
The City of Hillsboro has agreed to begin negotiations on a mixed-use development agreement for the property – between 6th and 7th avenues, between Oak and Baseline streets – with real estate developer Rembold, in partnership with Related Northwest.
The agreement with Rembold is anticipated to cover the land transaction, uses on the site, design, financing, and construction of the Block 67 site in Downtown Hillsboro.
Rembold is a woman-led real estate development company based in Portland. The company recently developed multiple mixed-use projects in Beaverton, in partnership with the City of Beaverton. Rembold is currently partnering with the City of North Plains Urban Renewal Agency on the development of a grocery store-anchored retail center.
Rembold’s Concept for Block 67
In November 2021, the City of Hillsboro issued a formal request-for-proposals (RFP) to attract a qualified partner to redevelop this critical site, deliver needed housing, and contribute to Downtown Hillsboro’s vibrant mix of uses, housing, and authentic character.
Rembold’s proposal describes developing the Block 67 site into a mixed-use project that will provide housing, including co-generational affordable housing, medical offices with classroom space, retail, services, and plazas for public benefit.
Project partners include:
- Fresh Foods: A family-owned, veteran- and minority-run, full-service grocery store specializing in natural, organic, gluten-free, vegan, and environmentally friendly products, as well as traditional favorites.
- Mamancy Tea: Founded on the belief that nothing is more important than spending quality time with the people you love, Mamancy Tea is a small, woman- and minority-owned business that crafts exceptional teas and chocolates for any occasion.
- Centro Cultural: Founded by a group of migrant families who wanted to make Washington County their permanent home, Centro Cultural serves the needs of our diverse community by promoting personal growth and empowerment, and by providing social and support services.
- Beyond the Wall Climbing: A local company with extensive experience advancing the sport of indoor climbing, including roped climbing, bouldering, fitness classes, and group experiences.
“This announcement is incredibly exciting for our community and for the future of Downtown Hillsboro,” said Mayor Steve Callaway. “The City of Hillsboro purchased this property to ensure this block was developed well and developed right to support our dynamic Downtown, and Rembold’s proposal meets and surpasses our expectations.”
Community Engagement Fuels Interest in Block 67
The City’s plans to negotiate with Rembold and finalize the uses and scale of the project follow extensive community engagement over several years. A 2021 survey received responses from 1,165 community members, and community conversations took place at four in-person open house presentations and one virtual presentation.
“It is extremely exciting to be at this critical point in the Block 67 project and to have proven partners in Rembold and Related Northwest,” said Hillsboro Economic and Community Development Director Dan Dias. “The project concept does an amazing job of capturing the elements that our community hoped to realize. Our team will engage over the next couple months to ensure the feasibility of the project and negotiate a win-win project for the Hillsboro community and Rembold/Related Northwest, and we will continue to engage with our community to inform them on progress.”
In addition to its project partners, Rembold has received letters of support for their proposal from other community organizations:
- The Hillsboro School District
- Virginia Garcia Memorial Health Center
- Washington County
- The Hillsboro Downtown Partnership
“Rembold, in partnership with Related Northwest, is thrilled to be moving forward with the development of Block 67,” said Rembold Vice President Kali Bader. “We look forward to working with the City of Hillsboro and greater community to bring this dynamic project to Downtown.”
For more information about Block 67 and the history of the project, visit Hillsboro-Oregon.gov/Block67.
Really like the look of this. Mamancy needs a better space than the one it has, and a city with as many cart-based restaurants as Hillsboro has can use more cart space.
This is also going to ease the burden on other market locations. Fresh Foods is opening a North Plains location, which should eliminate some of the redundancy and mileage for folks living up there: https://pamplinmedia.com/ht/117-hillsboro-tribune-news/522336-417373-north-plains-might-soon-have-a-grocery-store-in-town
I can’t help but notice the added density to the north of the proposed downtown Fresh Foods site, and it would be great if much of that’s on Block 67 land. Given the scope of the other proposals, and the fact that the neighborhood keeps saying it wants a replacement for Hank’s, this seems like a fine compromise.
In the meantime, this location would be a lot more walkable than the remote WinCo, the TVH and 219-bound Grocery Outlet, and the Cornell-adjacent Albertsons.
This announcement apparently is premature – it is a hand shake. But this has a better design than the last mess they tried to do. I wonder about the equity of allowing lease negotiations to go on before the public process is done. Many tenants and business owners in downtown would have loved a shot at some space there. As it is it looks like carefully selected partners to grease the wheels. Also, the URAC was not advised at all on this but rather informed by City Staff after the decision was already made. With interest rates and inflation rising on materials and labor this project will be difficult to execute – and the resulting rents will be so much higher than they would have been when commercial money was 4% and building costs lower. Let’s see what happens. There is a lot to like in this plan, but good ole Scratch is always in the details!
I would like to know how many living units will be built there and how many of those will be Affordable housing units ?
Also when you say affordable does that mean that they will be subsidized housing or just on the lower end of the already exceedingly high rental market?
They said there would be affordable housing in the new Southside Hillsboro area as well and they are expensive. The average rent being 1882.00 so I am confused on what the city is calling affordable.
I will be pleasantly surprised if I get a clear or any answer
Thank you for your time
Sherri- you are at the heart of the matter. When they say “Market Rate” housing that means $2000 a month for 2 BR apartments and $1600 a month small studios. When they say “affordable housing” they are talking about Section 8 managed housing that will be open to people from Portland and all over. This current development while flashy seems to lack details and apparently is not a done deal at all- just a hand shake discussion. Please stay involved and let your voice be heard at City Council and the land use hearings. The Herald will attempt to stay in touch with what is going on and post he details! Have a great Sunday!
Why does all property development and building fall on the burden of the taxpayers. We are already being taxed on everything possible but the county city and state continue to spend money A great thought is let the businesses and the shops that wish to occupy the space pay for it. If it’s not feasible maybe the city should get out of property management using the propert owners of Hillsboro. Let’s run it like a business instead of a freebie or at our cost
Jeff- you are correct. When Cities play developer and in this case that is what is happening, things get expensive and out of control. The best way to handle this IMHO would have been to let the private market absorb that land when it was for sale, and the community would use the land use process to manage what went there. As it is this is going to cost us, the people of Hillsboro, Millions. That is money that would have gone to schools etc- or just to run the city. We appreciate you reading and your comments.