Financial hurdles delay Hotel NB project

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Story Published: Jul 15, 2008 at 9:10 AM PDT

By Azenith Smith

NORTH BEND - Construction will begin on Hotel North Bend this week as the nonprofit heading up the project closes the deal Friday, but not without having to jump through several financial hoops.

As KCBY first reported to you back in June of last year, Umpqua Community Development Corporation has been working on rehabbing the 1920 historic structure along Highway 101.

Their plan is to create 33 affordable residential units and three commercial units.

But, one of their biggest challenges has always been to secure the funds for the estimated $7 million project.

"Everybody's been hearing about the housing crisis," says Executive Director Betty Tamm. "The housing issues with the banks and lenders really affected us. It affected are loan rates and tax credits we've used to finance this."

Now that they've just closed on the financial package, they've awarded the construction bid to Harmon Construction of Coos Bay.

They will begin with concrete work in the basement area, and then they'll move on to the much-anticipated exterior plans.

"The very top is falling apart so there's going to be new tile and paint," says Tamm. "It will just be really pretty. The front entrance will be restored to its historic appearance. Right now, there's plywood doors and windows. It will be a lot better."

Umpqua CDC hopes to have construction completed in 15 months for a grand opening date of October 2009.

They're currently accepting applications for tenants to be placed on the waiting list. Those interested can call (541) 673-4909.

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