This article was in Tuesday’s (October 24th, 2017) Herald and News

Written By: Sean Bassinger, H&N Staff Reporter

Dwight Unti, president of Tokola Properties, believes there’s a real opportunity for the former Balsiger Ford site to rejuvenate what he calls an “incredible” downtown.

“You have a super authentic, as you know, incredibly beautiful downtown Main Street district,” said Unti, who wants to invest in a mixed-use property at the site.

Unti visited Klamath Falls last week with updates on The Esplanade, a new residential and retail development that would place several apartments and additional retail spaces along the V-shaped intersection of Main Street and North Esplanade Avenue.

Tokola Properties would have at least 90 percent of the stakes in owning the new development, with the city providing about $2 million toward the $11-12 million project. Future revenue could then be earned back through property taxes over time.

Rent in the residential units could cost between $750 and $1,200 to start, according to Unti, and would cater toward what he describes as a “vibrant mix of people.” There would be elevators, community gathering spots inside and out and ground floor retail spaces available.

Unti placed great emphasis for the need of making the area a community in itself.

“You don’t have any contemporary urban form living opportunities downtown right now,” Unti said. “You’re going to get a substantial number of people who are younger that want that urban living opportunity.”

Unti shared more new information about the development at two different Oct. 18 meetings. The first was a work session with city staff and councilors, while the other was a meet-and-greet hosted by the Klamath County Economic Development Association (KCEDA).

Creating a “catalyst”

Tokola Properties has roughly 35 years of long-term real estate development experience across Oregon. The company has several sites either under construction or complete in Gresham, Hillsboro, Forest Grove, Independence, The Dalles and other areas in the state.

Unti said that Tokola Properties was primarily interested in long-term assets. Since 2008, the company has been focused on the creation of mixed use developments just like The Esplanade.

“I want to invest only where there’s strong community support,” he said.

Previous reports from the Herald and News state that the three-story building would have 50 to 60 residential units along with lower-level retail spaces at The Esplanade. The overall project would cost $11 million to $12 million, $2 million of which the city would front as part of its Spring Street urban renewal plans.

Hopes for new downtown life

Though he admits that the timeline is quite “aggressive,” Unti did say that there’s a possibility of the development being live by Fall 2018. Previous reports slate the completion date closer to 2019.

Joe Wall, management assistant to the city manager, said he hopes that the project would help revitalize downtown Klamath Falls as a catalyst for development. Wall mentioned how the Balsiger Ford building had previously been unoccupied for decades prior to its demolition in 2016.

“I think this is a site that has long been an eyesore in the community,” Wall said. “The next step is really determining whether we go forward with this.”

City responds

Klamath Falls Mayor Carol Westfall said she liked what she saw, describing The Esplanade as a well-needed piece of the downtown community.

“You can tell we’re passionate and excited and want to move forward with the project,” Westfall said.

Councilman Bill Adams said he liked the project and thought it would be good for the city, though he still had doubts about the money they had available for the entire Spring Street renewal project. He also said he was not a fan of having to put $2 million into the development.

“You call the public-private partnership, but that only comes to financing the project,” Adams said. “quite truthfully, I don’t like subsidies, period.”

Unti said that there could be the possibility of partial city ownership, but that it would also increase the risks taken on the city’s end. Regardless of any further decision, Unti called the entire project an investment that “yields a great return.”

“There’s a process here that you’re going to earn the money back,” Unti said.

Kendall Bell, city councilor and vice president of the Klamath Falls Downtown Association (KFDA), said she personally visited communities where Tokola properties had other similar properties.

“I’m super impressed on how much Dwight Unti and Tokola properties has tried to learn about our community,” Bell said.

KFDA President Nicholas Phair said he was excited to see what happens next in the process. Phair also mentioned previous efforts through a $100,000 grant to install elevators for those interested in upstairs living.

“It meets a lot of the strategic priorities of the downtown association,” Phair said.

If approved, the city would then work to establish a disposition and development agreement with Tokola Properties, a decision that would happen on a later date.

“I’m committed to Klamath Falls,” Unti said. “It’s time to reinvest in ourselves instead of waiting for the ‘what if.’”

To read this article and others on the H&N website, please refer to the link below:

Developer Shares Details on Balsiger Site Proposal (H&N)