The city of Redmond has found a way for new affordable housing to co-exist with a longstanding discount grocery store.
The city agreed sell a 25-foot-wide strip of land to Downs Family LLC, which owns the Grocery Outlet at 798 NW Fifth St., for $41,370, according to a report to the Redmond Urban Renewal Agency earlier this month.
Members of the Downs family have operated the store since the 1970s, when it was Redmond Canned Foods, and maintained a portion of the adjacent property for parking, according to a lawsuit that Downs Family LLC filed in March.
The city bought 1.97 acres south of the Grocery Outlet for $676,000 and intended to sell it to Housing Works, Central Oregon’s affordable housing agency. Housing Works is planning a two-story apartment building with 40 to 50 units on the property.
The agreement with the urban renewal agency, which is the Redmond City Council, calls for 736 NW Fifth St. to be sold to Housing Works for $608,630.
Grocery Outlet will pursue and pay for a lot-line adjustment and pay for parking improvements, according to the agreement. Downs Family initially claimed rights to a 100-foot-wide strip of land, which would have parked 30 to 40 cars.
The city ultimately agreed to sell a smaller area, 5,251 square feet, but it’s a “reasonable compromise which will enable Grocery Outlet to reconfigure their parking in a manner that will work for its patrons,” said Ed Fitch, attorney for Downs Family LLC.