A 20-acre subdivision in the north end of Stayton is soon to see new construction after sitting dormant for 11 years while the developer planned out a court-mandated stormwater drainage system.
City officials told Our Town they are prepared to partially lift a stop work order on Phillips Estates, allowing completion of two existing homes and construction of 11 more.
The subdivision has been approved for 68 single-family homes along Oriole Street to be built in three phases, and is being developed by JCNW Family LLC.
Bill Martinak, representative agent of the LLC, said the family was glad to see progress after a decade of work stoppage.
Permits for the remaining 55 lots will be issued after the stormwater system is complete, according to a court-approved, arbitrated agreement finalized in 2015.
At issue is an existing stormwater system that drains into Salem Ditch, an irrigation canal west of Phillips Estates operated by Santiam Water Control District.
In 2012 the district tried to block annexation of Phillips Estates into the city limits because of concerns over additional runoff. In 2013 they reached an agreement with the LLC for a new stormwater drainage system into Mill Creek that would be built by the developer then given to the city.
This agreement reinforced language in a construction plan for Phase I of the subdivision approved in 2008.
Later in 2013 the developer began construction on two model homes and a retention pond to collect stormwater during phases I and II. The pond was designed using water measurements taken during the dry season and overfilled during heavy rains. It also included a pipe that discharged into nearby groundwater, which was not part of plans approved by the city.
In October of 2014 the city issued a stop-work order because of these deficiencies. JCNW Family LLC challenged the city on the grounds that stormwater mitigation for the subdivision was a work in progress and did not need to be completed until Phase III.
In August of 2015 an arbitrator validated the stop-work order and outlined a process by which construction could continue. Once the city approved plans for the drainage system it could issue 13 permits, reflecting roughly 20 percent of overall units.
The arbitrator’s decision was finalized the following month in Marion County Circuit Court and included an award of $101,378 to the city for attorney’s fees.
According to Interim Public Works Director Barry Buchanan, the city-approved drainage system must still receive state approval as it will pass through a wetland. There is also a need for additional approval from DEQ.
The developer must also submit detailed design and construction plans for Phase III in follow-up to the initial approval granted Sept. 29. This two-step process is required when a development is built on a wetland as opposed to the more straightforward subdivision approval process, according to city code.
City Manager Julia Hajduk said she does not see any of these regulatory steps as insurmountable, though they may take time. She said it is “very exciting” to see the subdivision move forward and that it will help provide needed housing in Stayton.
