Main Street Revitalization - Weaver Building

Project update - Construction completed and the building is now being operated by private owners as of 2019.

The city is exploring various options to stimulate Main Street growth and revitalization, like this project, including direct investment in mixed use retail-residential space along Main Street.

What was the Plan?

The City adopted the John Day Comprehensive Plan in 2003 and in 2007 approved the John Day Downtown Plan as a companion to the Comprehensive Plan.

The goals of both plans included retaining and enhancing the character and quality of John Day's urban corridor as growth and development occurs. Neither plan contemplated three decades of population and socioeconomic decline becoming the status quo.

As a result, the City launched a new Strategy for Growth in 2016 to begin investing more actively in our community.

Why is the City Considering Main Street Revitalization?

Private sector investors seek a market rate of return for commercial and mixed use development in the range of 12-15% annually. According to the Cambridge Associates Impact Investing Benchmark, even social impact investment funds returned a net Internal Rate of Return (IRR) of 9.5% to investors in 2015.

It is difficult for private sector or social impact investors to realize a market rate return by investing in John Day's Main Street. The age and condition of our buildings requires more investment capital than they can realize in rents or local sales. This condition will only get worse as our population declines. Before we can attract private sector capital, we have to close the profitability gap in our Main Street infrastructure.

Additionally, of the 877 housing units in the city limits, 46.8% were built prior to 1960, making the average John Day home more than fifty years old. The City's Strategy for Growth recognizes there is a severe shortage of market rate and affordable housing. Attracting digital commuters, active retirees and young rural professionals to our community will require the city to invest in rehabilitating both its housing stock and its commercial spaces.

How will we do it?

The first project the City is undertaking is the purchase and restoration of the mixed-use building located at 131 W. Main Street. This 11,294 square foot building is the largest mixed-use building in John Day and was listed on the market for over 900 days before it was purchased by the City. The building allows for the creation of eight newly renovated multi-family units on the second floor: two studio apartments; four one-bedroom apartments; and two, two-bedroom apartments; with four renovated retail/office spaces on the main floor.

The initial capital outlay by the City of $100,000 (purchase price) plus closing costs will be offset by a $100,000 reimbursement through state lottery funds managed by the Oregon Main Street Network. A $200,000 loan will begin the restoration and will be repaid by rental income from the commercial tenants. This first phase of acquisition and development will proceed through the spring of 2018 and will make the building fire safe and ready for renovation. In Phase 2, funding from local, state, federal and non-profit sources will complete the restoration.

The direct return on investment for John Day taxpayers on this project is an additional 8 residences added to the property tax base, new water and sewer revenue contributions, and the economic value of the new households and renovated retail/office space. There is also a contingent (or preservation) value that results from restoring an 122-year-old building in a prominent downtown location.