Tuesday night, the Corvallis City Council will consider a property tax exemption for a new affordable housing project.
The Central at Wake Robin would be a $57.3 million apartment project on a recently rezoned 5.9 acre industrial site. The plan is for 168 units across five three-story buildings. There would be a mix of one, two, and three-bedroom apartments.
Here’s what affordable would mean in this instance. Of the units planned, 55 would be for folks at or below 50% of area median income, and they’d pay a rent that’s 44.8% below market rates. Likewise, there would be 58 units for folks making 60% or below, and they’d save 30%. The 55 units for folks making 70% or below would save 16.7%. ECONorthwest, who analyzed the project for the City, confirmed those numbers.
They also said the $340,858 per unit development cost falls within reasonable ranges for affordable housing construction in Oregon.
City staff is recommending Council approve a letter of support for the tax exemption. In a memo to Council, City finance director James Inglis, writes, “There is no significant impact on the 2025-27 budget for the tax exemption. However, since it is a full property tax exemption, there will be a loss of tax revenue for all taxing jurisdictions in the amount of approximately $11,876 annually for 15 years at 3% annual increase annually. However, because the property will redevelop rather than remaining vacant, it is anticipated that in year 16 it will generate annual property taxes of approximately $484,329 per year, which is significantly more than it produces in its current status as a long time, largely vacant property.”
The developer, Annex Group in South Corvallis also built the Union at Pacific Highway project at 150 Wake Robin. That project yielded 174 units of similarly affordable housing.
This project would replace industrial buildings that are reportedly no longer being used.
By Hallie Greenberg
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