After over a decade of planning, reorganizing tax codes and navigating red tape, a new neighborhood is being built from the ground up along the riverfront.
The so-called “Downtown Riverfront” is the culmination of years of work by the city, private developers and the Eugene Water & Electric Board to create a new economic and residential center in Eugene.
In early 2018, the City of Eugene purchased 16 acres of riverfront property for $5.8 million from EWEB. Up until the purchase, the property had been used for industrial purposes since Eugene’s settlement by European Americans over 150 years ago.
The new development will be primarily residential, with some limited land parcels set aside for retail stores, a restaurant, a central plaza and a new hotel.
The Riverfront Neighborhood will be directly connected to the newly constructed Knight Campus at the University of Oregon, via the Ruth Bascom Bike Path. The path recently had lights installed that are turned on at night along its stretch between the university and the Riverfront Neighborhood.
Anne Fifield, the Economic Development Manager for the City of Eugene, said that the city hopes the development will integrate the urban downtown with the city’s park system and the river.
“The river is gorgeous, and there’s nothing there. We can’t even access it,” Fifield said. In her opinion, the riverfront is an area that is “completely underutilized.”
The new neighborhood will be clearly defined by natural and manmade features being sectioned off by the Willamette River, Ferry Street and railroad tracks. Fifield said that the development will be integrated into downtown by 5th Street, which will cross the Union Pacific railroad tracks and extend into the development.
The plan for the new development will have high-density housing, with apartment buildings ranging from four to seven stories. A significant portion of the housing will be multi-family units; there will also be townhomes and 75 affordable housing units. All of the estimated 500–1,000 units that are not categorized as affordable housing will be priced at market rate.
The cost of this development comes with a substantial price tag. Riverfront Park, which began construction in 2020 and was finished in 2022, was originally estimated to cost $14 million, but ended up costing $18 million.
Fifield said that with inflation and supply chain issues, construction costs have gone up dramatically, with some road projects around the city coming to double what was initially budgeted.
Fifield said that any major, new or unanticipated construction costs will be paid for by the developer, Atkins Dame, as opposed to the city.
“We’ve built all the infrastructure; there are roads that didn’t used to be there. Underneath the roads, there’s sewer, there’s water and there are electrical connections. All of that is ready. All of that infrastructure that you can’t see, that’s what we did,” Fifield said.
In short, the city’s primary role in developing the Riverfront Neighborhood is over, and now Atkins Dame is up to bat. “Any future cost overruns, it’s on the developer’s time,” Fifield said.
A cost-benefit analysis of the development completed by the city in 2018 estimated that the total project would cost $138,750,000. Public investment would account for $25,925,000, while the remaining $112,825,000 would be financed by Atkins Dame.
Fifield said that the development, while costly, would provide housing for hundreds, if not thousands, of residents and provide new income for the city. “Long term, the development is going to generate tax revenue and keep us fiscally sustainable,” Fifield said.
Susie Johnson is a resident who visits the new Riverfront Park, and has lived in Eugene since 1970. In her over half a century in the community, she’s seen a lot of development and a lot of change.
On the new Riverfront Neighborhood, she had two main thoughts: “I’m really excited” and “It’s about time,” she said.
Johnson said she has heard of similar riverfront revitalizations in cities such as Corvallis, and she is looking forward to such a “prime spot” in Eugene finally getting “properly” utilized.
The question of what will become of the historic Steam Plant building on the riverfront has yet to be resolved. Atkins Dame never wanted the building, as it has “negative value,” Fifield said, meaning it would be cheaper to tear the structure down and build something new in its place than to try and restore it.
There is a plan in place to transfer ownership of the property from the city to local developers deChase Miksis Development and Mark Frohnmayer for $1, who would convert the Steam Plant into a boutique hotel. The city would be giving, free of charge, the Steam Plant to these developers because of the extensive and expensive work that would have to be done to make the building safe for humans to reside in.
“It’s so cool-looking, but it’s a real challenge,” Fifield said, “If you want to save a historical building, you have to throw public subsidies at it.”
The city of Eugene has earmarked $1.5 million in public funding for the project, but there remains a $5 million spending gap that the city hopes to find funding for. The total cost of the renovation is estimated to be $56 million.
A map detailing the plan for the Downtown Riverfront Neighborhood can be found here.
