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Urban Development + Partners is moving forward with plans for a three-building mixed-use development that would anchor the north end of downtown Lake Oswego.

The Lake Oswego Redevelopment Agency‘s board last month voted to authorize negotiations with UD+P for a memorandum of understanding and a disposition and development agreement for the project, which is expected to cost more than $60 million.

The Portland developer plans to construct three buildings on a 1.07-acre site that was cobbled together by the city of Lake Oswego to bring new development. The city spent $6.8 million to assemble the parcels, which are for now mostly covered by surface parking lots.

A 51-room boutique hotel would occupy the westernmost parcel at B Avenue and First Street, and come from the same people behind the Atticus Hotel 鈥� a luxurious wine-country retreat in McMinnville. The Lake Oswego hotel is likely to be part of the Atticus brand, said Sarah Zahn, UD+P’s development director.

Architect Nathan Cooprider designed the McMinnville hotel and is on board to design its Lake Oswego counterpart. Plans call for a four-story, 45,000-square-foot building, Zahn said.

The middle parcel would have a four-story, 45-unit apartment building.

The third parcel would have 30,000 square feet of office space. It would rise as three main floors, with a small fourth floor opening onto a rooftop deck.

鈥淎t UD+P, our major focus is really urban infill 鈥� walkable, community-based development 鈥� and we feel like this location in downtown Lake Oswego is a good opportunity to continue that focus,鈥� Zahn said.

Hacker is designing the office and residential structures. DCI Engineers is also working on the project.

UD+P has not selected a general contractor. The developer will invite handpicked contractors to participate in a selection process, Zahn said.

For the city of Lake Oswego, the plan would fulfill a long-held goal to anchor the north side of downtown and to complement The Windward and other new developments to the south. Lake Oswego officials refer to the UD+P project as North Anchor.

鈥淲e’re really looking at something to energize a compact shopping district,鈥� said Sidaro Sin, redevelopment manager for the city.

Four-story buildings are appropriate for the existing scale of downtown, Sin said.

鈥淭he key thing here is kind of a balance between a development that works and also fits within the character of Lake Oswego,鈥� he said.

Zahn expressed hope that the boutique hotel would work in concert with 鈥� a new four-story, mixed-use building from the Haladay family’s 10 Branch development company that includes a 10,000-square-foot event center and wedding venue.

鈥淲e feel like there’s demand in Lake Oswego for all of these uses,鈥� she said.

UD+P is Lake Oswego’s latest business partner for North Anchor. A previous request for proposals led to the city selecting Sturgeon Development Partners; however, the firm withdrew from the project last year. Sturgeon Development Partners had planned a somewhat different project, with a larger, 132-room hotel, but no multifamily or office space.

鈥淭hey weren’t able to secure all the financing that they needed at the time,鈥� Sin said. 鈥淚t was amicable.鈥�

Vanessa Sturgeon, a principal and founder of Sturgeon Development Partners, said local politics in Lake Oswego, including demands by one city councilor for affordable housing, sank the project.

鈥淚t ended up spooking our investors,鈥� she said. 鈥淭he Lake Oswego political environment is what killed the deal.鈥�

Lake Oswego then launched a second request for proposals in late 2019 that led to the connection with UD+P.

UD+P is confident it will be able to complete the project despite the economic upheaval wrought by the coronavirus pandemic, Zahn said.

鈥淲e have our own investment fund that we bring to bear on projects, so our horizon is a long-term horizon,鈥� she said. 鈥淭his gives us some more flexibility.鈥�

UD+P is not obligated to buy the land right away, Zahn said.

鈥淲e can work with the city,鈥� she said.

The city and developer are on track to execute a memorandum of understanding in June, and a disposition and development agreement in September, Zahn said.

鈥淲e would start construction next summer,鈥� she said. 鈥淪o hopefully, from a timing perspective, we’ll be at a good time for starting a project and financing a project.鈥�