<div>BEND, Ore. -- The Bend City Council moved forward Wednesday night with the purchase of a large office property on the city’s east side, approving both a purchase agreement and financing authorization tied to the deal.The city is pursuing the PacificSource office property at 2965 NE Conners Avenue -- the large building that can be seen from Mountain View Park -- along with an associated parking parcel at 1979 NE Tucson Way. The purchase price is $17.95 million.Council also authorized up to $25 million in full faith and credit obligations. That larger figure is not the building’s purchase price. It would also cover improvements, furnishings and other costs associated with preparing the property for city administrative use.City staff described the property as a rare opportunity because of its size. The four-story building contains more than 70,000 square feet of office space and roughly 300 parking spaces.“There’s only five buildings that staff is aware of that are privately owned office spaces that exceed 50,000 feet,” Real Estate and Facilities Director Matt Stuart told council. “So this is a really rare opportunity.”The proposal comes as Bend continues to evaluate its long-term facilities needs. The existing City Hall was built in 1990, when Bend’s population was below 30,000, and the city has since expanded into nearby properties and leased office space.The Wall Street Annex across from City Hall provides about 15,000 square feet of leased space. The city currently spends about $400,000 a year leasing that building.Staff estimates debt service on the proposed financing at about $1.6 million annually, assuming a 5% interest rate.The city also expects additional operating costs once it fully occupies the new property. Stuart estimated those costs at roughly $1 million to $1.5 million more per year than current operations.During the period before PacificSource leaves, staff said tenant rent is expected to offset those operating costs.PacificSource’s current lease runs through Dec. 31, 2028, meaning the city would not immediately move into the property.PacificSource said in a statement that it is not leaving Bend and intends to maintain a physical office presence in Central Oregon, though future space decisions have not been finalized.The purchase does not mean the Conners Avenue building will simply become a replacement City Hall.City officials said the property would primarily serve administrative functions and could include a ground-floor permit customer service center.A separate civic space and council chambers remain under consideration, including a possible project on city-owned property along First Street.Some councilors raised concerns about the broader facilities strategy and long-term costs.Councilor Gina Franzosa questioned whether the city has enough clarity around its overall facilities plan and how the new debt could affect other future investments.“I think there’s not a lot of clarity around the plan and the rationale for it,” Franzosa said during the discussion. “Is this a long-term investment or a short-term investment or we don’t know.”Other councilors argued the purchase could save the city substantially compared with constructing a new administrative facility and could allow valuable downtown property to be redeveloped.The council ultimately approved the purchase agreement and the financing authorization Wednesday night.The transaction is not yet final. The city still has due-diligence periods for inspections, appraisal, financing and the existing tenant lease.Staff told council it expects those reviews to conclude later this year, with a potential closing around February 2027.</div>

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BEND, Ore. -- The Bend City Council moved forward Wednesday night with the purchase of a large office property on the city’s east side, approving both a purchase agreement and financing authorization tied to the deal. The city is pursuing the PacificSource office property at 2965 NE Conners Avenue...

Bend council moves forward with $17.95M PacificSource office purchase

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BEND, Ore. -- The Bend City Council moved forward Wednesday night with the purchase of a large office property on the city’s east side, approving both a pu

Bend council moves forward with $17.95M PacificSource office purchase

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