Last night at the Hillsboro City Council meeting, a new design and development partner was introduced who appears to be on the verge of taking the long-awaited downtown Hillsboro project over the goal line.ย Three or four other developers have worked with the City over the past few years to bring the former Hank’s Thriftway site back to life.ย ย Making up over 3 acres of prime development land between 6th and 7th Avenues along TV Highway and the MAX light rail, the location has always had the promise of a new vibrant neighborhood.ย No matter how many options have come forth, something always happens.ย The right fit never came along.
Koz Development recently made an unsolicited offer to the City of Hillsboro. It was so good that the City jumped at the opportunity and entered into an agreement to move the project ahead.ย Finally, a great fit has come forward, and if all goes to plan, Koz will bring hundreds of Missing Middle or Work Force apartments to the core of Historic old town.
So, who is Koz, and why did they pick this site in Hillsboro?ย The Herald, in an exclusive outreach, talked to CEO Cathy Reines, and here is what she shared between meetings today.
โWe believe this project will fill a need in Hillsboro, bringing much needed, workforce housing to the Downtown core while activating the area between Downtown and the Health & Education District.ย ย We anticipate the 500+ new residents will enjoy the easy, walkable access to the many shops, restaurants, and services along Main Street (and in old town), along with access to Hillsboroโs robust transportation system,โ said Kลz Development CEO Cathy Reines.
Her desire to develop the property goes beyond the opportunity she sees. Cathy is a Hillsboro native, having been born and raised here.
The HilHi grad continued, โThis project is personal for me.ย ย I grew up in this community and spent my early years in a house one block from where these two new buildings will provide homes to individuals 55 and over as well as those essential employees that are the backbone of Hillsboroโs workforce. ย I hope this project can make a difference and I am able to give back to the community that raised me.โ
The key for the Hillsboro community is that these are not Section 8 apartments, which have been the focus of affordable housing projects and are very hard to get into. And they are not Market Rate apartments which demand $2,500 a month for two bedrooms. Rather, they are going to have rents by agreement with the City that are for those in the middle, who represent a huge percentage of our population. One hundred of the neighborhood units will be built for residents 55 and older and priced at affordable rents.
A grocery store has been a priority, and the community wants one. Koz knows that is a community goal and will have that space ready when a suitable partner steps up. They expressed a strong commitment to working with the city and community members to work towards that.ย A mix of attractive units, a public area, commercial shops, and a good amount of parking will please all locals downtown who know the woes of not having enough spaces.ย New codes in Hillsboro and across the State no longer require parking.ย Koz is providing them to make sure the project succeeds!
The Herald has covered all aspects of Block 67 for years.ย This is the right time, the right project, and the right team to make this work based on our discussions and the plans they have ready to move ahead with.
Here are some screenshots from the presentation given by City Staff and the Koz leadership last night. More will follow on this one, but our downtown businesses should all rally around it. Leave your comments and questions in the section below!
A new development partnerย is leading the planning and design for a catalytic mixed-use project in Downtown Hillsboro.
FROM THE CITY OF HILLSBORO
In the fall of 2024, an unsolicited proposal to redevelop the Block 67 site was received by the City.
After reviewing all aspects of the proposal โย which included key community prioritiesย โย the City is recommending to proceed with a Disposition and Development Agreement (DDA) with Koz Development.
Koz Development is proposing a full block redevelopment which will consist of two mixed-use buildings delivering needed housing, a space for a grocer/food cooperative, and other commercial spaces to contribute to the community’s vibrancy.
Building A:
- Fronts Washington Street
- Four-story, 100-unit age restricted community for those 55+
- 66 studios;ย 27 one-bedrooms; 17 two-bedrooms
- Daycare and salon on the ground floor
Building B:
- Fronts SE Baseline
- Six-story, 224-unit workforce housing
- 129 studios; 65 one-bedrooms; 30 two-bedrooms
- Two retail commercial spaces on the ground level, one being a grocer and/or food co-op.
Parking:ย 114 proposed on-site surface parking spacesย and prosed lease of approximately 130 additional currently unused spaces at the Intermodal Transit Facility (ITF) garage.
Community priorities for the site remained consistent with previous public input:
- housing options at a range of affordability levels,
- maximize the propertyโs value to the community,
- ensuring adequate parking, and
- construct a grocery store or food market.
The proposed project addresses many of these community desires for the site.
Communityย Open House: Thursday, December 19
The developer and City anticipate holding an open house to inform the community of project details on Thursday, December 19 from 6 – 7:30 pm at the Civic Center Roomย 113 B&C.
We’re very excited about this project for Downtown – the new partner KOZ brings an interesting new twist to fill 2 needed niches in the housing needs of Hillsboro. They have been very successful with this concept in other communities and we look forward to seeing this take place. This along with the new parternership project in the medical/education district with Hillsboro School District, OHSU campus and Virginia Garcia will be a great match for the KOZ project, providing much needed medical work based learning. Finally we hope to see Block 67 transform into something we’ve all been waiting for!
This sounds like KOZ for celebration, rather than KOZ for concern.
“middle workforce apartments”
IE places Oregonian’s will live to support the employees @Intel and the like, that are imported from out of state, and paid wages to be able to BUY the outrageously priced South Hillsboro homes.
Sorry local chumps no affordable housing for you!
This is kitty corner from my house so I’m super excited for this. Not just because I will get a grocery store within walking distance but also no one will be able to set up tents there any more so it should reduce the amount of people wandering my property and trying to get in my house in the middle of the day.
I know members often keep an eye on this page, so I’m just going to ask: Either the Hillsboro Food Co-Op happens here or never, right?
Hank’s Thriftway didn’t seem to disappear for lack of a customer base, but for the real-estate opportunity (with Baker’s Burgers clearing out along similar lines). Since Hank’s closed, however, Collective Market gave it a try as a neighborhood market before shifting to more of an eatery/foodie supply store model. New Seasons was acquired and faces both stock and labor issues, Freddy’s and Safeway/Albertson’s sit in merger limbo and small-footprint outlets like Green Panda haven’t fared so well in the region.
Lidl/Aldi have shown no interest in the Pacific Northwest, so this seems like the opportunity that the Co-Op (and its years upon years of investors) have been waiting for. At some point, it has to be more than lawn signs and a stand at the Saturday Market. With few real outside grocery options suited to that footprint (though never count Whole Foods out of any discussion), this seems like a prime opportunity for the city and the co-op to make a pitch to the developer.
What are the obstacles and why won’t it happen?
Knowing what I know, having watched and discussed all of this with Co-Op members- this will come down to money. If the City was willing to use Urban Renewal money to build out coolers and fixtures to get the store open, then I think the Co-Op can be a natural fit. They have the membership and I thknk they represent enough consumers to make that site work. But the money to get a space built out might be the issue. I have no doubt everyone is talking. But, the project can not be hamstrung with a forward commitment that can’t work. Councilor Alcaire made a clear point she wants to see. Affordable groceries. She does not want to see the target tenants being expected to pay New Seasons prices and having to walk/bike/drive to Winco. Grocery Outlet keeps getting better and fresher items. So I guess we will find out- and I must agree with your assessment. Wants Vs Needs is always a crossroads. If a Grocery can not be found to go in there, I am certain the ownership group will fill the space!
Will the buildings be energy-efficient with energy-efficient windows, solar panels and/or EV charging stations?
There was discussion about that- EV spots for sure. The Codes are very tight on window designs. I am not sure about a solar array but given take credits and all I think it is highly possible. I will let you know what I find out!
My son lived in a Koz in Tacoma. TINY apartments (150 sqft) but it worked perfect for him while he was in college. Saved a lot of money too.
Seems to make sense to have this right next to the teaching hospital.
Glad to see more housing coming to Hillsboro. Iโm curious if there is really demand for even more 55+ only housing in downtown Hillsboro with the new building on Main just opening and starting to lease. I dont know a lot about that specific housing segment but do large numbers of elderly only want to live with other elderly residents?
Merrill Gardens prices ate $5400 to $9000 per month. With elevators and one level living and rents in the 1500 ish range plus or minus, I think the units will all be totally reserved ahead of time. Alma Gardens in Orenco is like this one but smaller and they haven’t ever had a vacancy that I know of.
Now that it’s visible to the average schmoe on the street, I’ll say this about Merrill Gardens: It has the looks and amenities of a stationary cruise ship. Granted, it’s a more refined vessel like the Avalon, Viking, or Tauck river liners you might see in an ad before Rick Steves’ European Christmas on OPB, but it explains the price tag and the appeal to a certain well-heeled demographic that prefers rain and Doug Firs to Saguaro cactus and 105-degree Septembers.
I could see the new place appealing to people who’d actually like to walk their walkable neighborhood while they have the ability to do so. The residents of Alma Gardens certainly make their presence felt at La Provence and New Seasons. Honestly, Orenco Station as a neighborhood seems to have broad appeal for the 55+ crowd, and I’m glad to see a developer realizing Hillsboro sometimes has the answer in its own backyard.
As it turns out, a certain local Broker touted this site to some old friends from the neighborhood. A discussion a couple years back was had hoping that would light a spark. We need more people like that in Hillsboro. Hmmm… who is that guy?
Ah, that makes sense based on price. I didn’t know that both buildings are below market rate housing.
The units have to be priced for people in the middle earning 60 to 80 percent of AMI for the area and the City required a 10 year commitment and audits annually of 20 percent of the units.
Are there no architects that can design a building to be aesthetically pleasing and blend in with our pacific northwest landscape and environment? All these “shipping container” designs might blend in with a different environment, like the desert outside Phoenix, but they are so flat, dull and uninteresting, just to keep the price down, really? I’m tired of all the “ugly” buildings when we used to have visually appealing architectural designs. And what’s with all the big “white” buildings? Boy, there’s nothing that will make an eyesore stand out more than to paint a newly built, 5-story senior living building in downtown Hillsboro white! White in THIS environment? Where is the architect from? This is the Pacific Northwest, our climate is cool, wet and rainy. It’s not sunny and blue skies like southern California, or Florida, or Texas, or New Jersey. Is there anyone from Oregon involved in these decisions on how to build new structures to fit our surroundings?