Rubicon Investments has purchased four remaining lots at TimberMill Shores in a move they say could help them seek out other interests and potentially spur growth.

Lots 7, 8, 10 and 13 have since been purchased at the site as the real estate investment firm, which has offices based out of Medford and Corvallis and operates locally as Klamath Holdings, LLC., continues its efforts to develop the properties that sit along Lake Ewauna, in downtown Klamath Falls.

Rubicon continues to plan for an incoming $30 million, 90,000 square-foot Oregon Department of Human Services (DHS) center, which has expanded since first estimates offered earlier this year. State officials selected the site following evaluations of other properties in Klamath Falls.

Though they could not comment on who is interested, the firm’s top officials say they are currently in talks with a restaurant business and bank that may also want to look into building at the site.

Rubicon’s owner, Daniel Bunn, visited Klamath Falls Friday. The developer also has plans to hold an open house event on-site starting at 4:30 p.m. Thursday.

“It’s important for us to get involved with the communities we build projects in,” said Justin Hurley Braswell, chief strategy officer.

The family business

Rubicon owns and develops several similar projects across Oregon, in addition to others located in Washington and California. It is a family-owned company that eventually became Rubicon under the ownership of Bunn’s father and grandfather.

Bunn, who grew up around the family business and also served on the Medford City Council, obtained a bachelor’s in economics and political science and master’s in finance from Pepperdine University.

The majority of Rubicon’s portfolio consists of properties with medical and government offices, in addition to some retail outlets nearby and lots for residential developments. The firm’s website currently lists 17 different development sites.

The most similar property to TimberMill Shores, which also houses an Oregon DHS facility, is the Harvard West development in Roseberg. Though the former hospital property is open and also has a restaurant, Hurley Braswell said that continued on-ramp work along Interstate-5 has put a hold on their efforts to seek other interests.

When talking about TimberMill Shores, Bunn said he was well aware of the potential risks. Still, he said that they had plans for Rubicon to remain in the area for quite some time. He also touched on his business being family-owned, adding that “we don’t have unlimited resources.”

“For us, this is a lot of money we’re putting up,” Bunn said. “We’re very invested in it (succeeding).”

Potential outlooks

Plans for the new DHS offices are the most activity that the site has seen since Rob Shaw, managing partner of the properties, first told the Herald and News of elevated interests in the properties in 2016.

Back then, 10 of 14 lots had been purchased, though none of the companies involved have since announced plans to move forward with their own projects.

Shaw had previously told the H&N that the scenario was quite similar to what happened in Bend’s Old Mill District, a former mill company property that has become a mixed-use retail development.

Klamath Falls could very well see a similar, albeit unique, outcome along TimberMill Shores, though local economists do not expect it to happen overnight.

Still, Greg O’Sullivan, Klamath Falls Economic Development Association director, says he’s optimistic of what could come out of the property over the next decade. He added that Rubicon seems like a “pretty experienced developer” after his meeting with Bunn and his family in Medford.

“It’s a big piece of property,” O’Sullivan said. “When you say ‘TimberMill Shores,’ it takes in a significant amount of property right there.”

KCEDA’s offices are also based at the South Portal building on the edge of the highway coming into downtown Klamath Falls. O’Sullivan used this as a reference point, saying he and others have seen several tourists ask for information as they pass through town.

O’Sullivan said he can only see benefits moving forward with the TimberMill Shores site development, given its commercial retail potential and location in proximity to the highway interchange.

“We need something to pull people off of that highway,” he said. “I think those types of uses really work well for something like that.”

DHS building adjustments

Hurley Braswell and Bunn briefly touched on the construction and development processes of the site’s first building, adding that they like to take as much time as possible in the development phase of projects to make sure everything checks out.

Initial estimates for the two-story, 50,000 square-foot complex were at $16 million. Those specs have since changed to estimates of $30 million to call for a 90,000 square-foot, three-story complex. Hurley Braswell also said they could look to bring at least 50 additional DHS jobs to the area.

LGC Pence will oversee construction, while TVA takes charge of architecture. Both are Portland-based firms that have worked on other Klamath Falls projects.

More detailed permitting and construction on the DHS building could start as soon as next spring, though the group also has plans to submit conditional use permits to the City of Klamath Falls within two or three months.

Rubicon’s current plans are to get better acquainted with others in the area and talk more on what they hope to do as TimberMill Shores moves forward, Hurley Braswell said.

“You’ll see us be a more active member in this community,” he said.

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TimberMill Shores: Banking on Future Development (H&N)