West Bend Village

Editor’s note. This is the first in a series of articles that will explore the economic realities behind new urbanist development projects. West Bend Village in Bend,Oregon, was the first attempt at New Urbanism for developer Mike Tennant. The 22-acre project was begun in 1994, completed in 1996, and yielded gross profits of about $7,500 per lot (see table). The return convinced Tennant to devote his firm’s resources to building only new urbanist projects. The project is an infill neighborhood of 88 homes, connected directly to existing city blocks and adjacent to retail and other services. The homes sold fairly quickly, starting at $120,000 and topping out at $200,000. Resale prices have significantly exceeded the original selling prices, and homes in West Bend Village now start at about $200,000. In developing West Bend Village, Tennant worked mostly within existing city standards — with the exception of seeking and receiving approval for public alleys and narrower streets. In addition, he got approval for bringing sidewalks closer to the property line, allowing for a 9 to 11 ft. wide planting strip. Lots were sold to multiple builders who chose their own home plans — but were required to meet key design standards governing roof pitch, porches, and location of garages. The overall goal was to create a walkable, comfortable neighborhood. Tennant Development has since moved on to three larger new urbanist projects: Awbrey Village and Northwest Crossing, both in Bend; and Canyon Rim Neighborhood in Redmond, Oregon. Despite a desire to keep housing affordable, Tennant has found that land prices and public costs have resulted in higher housing costs in Awbrey Village — where larger homes on sloped lots start at $300,000. The developer hopes to bring those prices back down in Canyon Rim, where homes start at $145,000, and Northwest Crossing, where he has been able to better control costs.