Wednesday, July 17, 2024

Apartment and hotel owners hire attorney over City’s transitional housing deal

An apartment complex and neighboring hotel have joined forces to hire an attorney in an attempt to stop the City of Lincoln City and nonprofit homeless outreach service provider Helping Hands Reentry from developing transitional housing on Highway 101.

Lincoln Woods Apartments Owners Thomas and Leslie Barnes say they are upset with “the way it was handled,” saying “the City moved very fast on this and operated in secret,” prompting them to hire a specialized land use attorney with neighboring hotel The Ashley Inn & Suites.

Attorney Byron T. Farley, of Salem-based Martinis & Hill, said he believed the City of Lincoln City made major decisions without the public’s knowledge and was exploring legal options for his clients.

“We just can not believe that the City has overlooked the fact we have been in business for over twenty years and this will drop our property values significantly.” Leslie Barnes said. “We have 150 kids living in those apartments and we are worried for them.”

“This will completely destroy our business,” Ashley Inn & Suites Owner JD Desai said. “The loss of value will make it unmarketable. Putting this on the main artery of Lincoln City — I just don’t understand why they felt this was the most promising site.”

Desai said Helping Hands Reentry’s Tillamook location is in a remote area and their Seaside location is in an industrial area, and he questioned the motives of City officials for placing transitional housing next to apartments and a hotel that sees 25,000 tourists a year.

Helping Hands lincoln city
The red area highlights two tax lots recently purchased by The City of Lincoln City for transitional housing (Satellite image via Google Maps)

“This location sits above ours where anyone can look into our pool or patio area,” Desai said. “The City underhandedly secured this site and did not give us proper notice.”

The Barneses said a marijuana dispensary located near the Helping Hands location will not be beneficial to people trying to recover from drugs, but according to Helping Hands Reentry’s website, frequent drug & alcohol screenings are part of their program.

The Barneses and Desai said they had no idea about a $750,000 deal between the City of Lincoln City and Helping Hands Reentry — a nonprofit serving the homeless — where the City purchased land and two vacant buildings at 3454 NE Highway 101 & 2201 NE 34th Street, for $400,000 and gifted it to the nonprofit. A $350,000 urban renewal rehabilitation loan will be given to Helping Hands to bring both buildings up to code and both the purchase of the property and the loan are secured with promissory notes and trust deeds. If Helping Hands does not use the property for transitional housing, the building reverts back to the City.

Both the Barneses and Desai said they were not given enough notice to raise objections to the deal as the City negotiated in secret executive session meetings over the course of a year and only recently opened up the deal to public scrutiny.

The City posted a public notice advertising a public hearing Dec. 3 in local newspaper The News Guard to satisfy legal requirements and also sent notices to businesses and homeowners within 250 feet of the proposed transitional housing site.

City Councilors Rick Mark and Riley Hoagland felt citizens didn’t have ample notice about the proposed real estate transaction and provided testimony at the Dec. 9 City Council meeting.

“I think there might be a lot of people who are not as informed as they would like to be,” Mark said.

Immediately following the councilor’s comments, City Manager Ron Chandler went into the details of the deal: Video @ 23:30

Farley said the City’s last-minute removal of an agenda item at the Jan. 13 City Council meeting concerning the City’s definition of transitional housing, fundamentally changed the notices given to nearby property owners. Farley submitted a brief stating the definition conflicted with the State of Oregon’s definition of transitional housing prior to the meeting and its subsequent removal from the agenda.

City Attorney Richard Appicello told the City Council at the Jan 13 meeting:

“I just want to talk about the label we have been using of transitional housing. Earlier the planning director withdrew the proposed amendment to the code adding a proposed definition of transitional housing. That amendment was not needed by this application.  What happened in this case is Helping Hands went to the planning department and said here is the proposed use — they happened to use the word transitional housing — but it’s the use they described in their application not on their brochure. It involves housing as well as counseling. They applied for that use. The planning director, using her discretion, looked at the use and then looked at our zoning code and exercising her discretion — in a noticed decision — decided that the use was more like an emergency shelter use than other uses, and as such was not a permitted use in the [general commercial] zone but rather should be processed as a conditional use.”

A news release issued Friday from the City of Lincoln City stated the purchase is complete and invited the public to meet Helping Hands Reentry 5:30-7 p.m. Jan. 30 on the 3rd floor of City Hall in council chambers.

We invite you to come meet our friends with Helping Hands and hear first-hand from CEO, Alan Evans how the program is structured and functions in Lincoln City and other coastal communities and how Helping Hands can improve the quality of life for all by giving a helping hand to a sustainable life.

City Manager Ron Chandler and Helping Hands Reentry could not be immediately reached for comment.

This is a developing story.

Previous coverage:

City Council discusses transitional housing deal; storing vehicles on street

Justin Werner
Justin Werner
Justin Werner is the founder and editor of the Lincoln City Homepage, a trusted source of local news and information for residents and visitors of Lincoln City, Oregon. He is also a community leader, entrepreneur, and dedicated advocate for transparency and accountability in local government.


  1. Bad location and it would attract more and more drug users. Just feet away from the bldg is the crosswalk. Big signs (NO LOITERING) and do you think that has worked? No. They use cell phones to communicate. Still beg at Starbucks. This bldg would only encourage more and more of them. BAD CHOICE OF LOCATION. The sidewalk in front of the bldg is continually filled with bottles, condoms, people sleeping in the bushes right in front. Bread pkgs thrown about. Kids catch bus just feet away.

  2. Would someone please explain why the city used taxpayer dollars to buy this parcel only to donate it and then provide city financing for the renovation? Why didn’t Helping Hands buy the property outright from the sellers. This makes no sense at all. And I see that the City Manager has some sort of representation for the property sellers…hmmm. Usually where there’s smoke, there’s fire….

  3. Done in a hurry and a COVER UP for SURE! I am so glad the apartment owner and Ashley Inn hired attorneys. We stand behind them in this ridiculous purchase. I now can’t use the crosswalk as the druggies sit there right under the NO LOITERING sign.

  4. I keep my eyes open and what the city is being sued for is exactly how it happened. The citizen taxpayer has no voice that is listened to. Actually behind closed door sessions the city stratigacally buys the land and congers this scheme with contingencies. Behind closed doors. We the people don’t count. This money being plied is just debt. Who cares. The taxpayer will pay and the businesses and residences will suffer in loss in property values and neighbor safety. City Hall has been running arounding spending like a drunken sailor. Needs to be addressed and stopped.

  5. What do you expect if you voted for sanctuary cities this is what happens. If you voted for Brown this is what happens. They go around Oregonians and do what they want.

  6. Most cities demolish old buildings and start fresh. Another example of a bad choice and the cost of over one million dollars is the old school house, known as the Cultural Center. They could never pay the monthly payments, so the city did, then they hired professionals to assist in the running of the center, that didn’t work. The city ended up again making the payments. The building has had many issues, smells terrible inside. The Cultural interest just isn’t here in Lincoln City. Another bad choice.

  7. There us the Lincoln woods apartment right behind this building. 150 kids live there. Residents will have to walk past that infestation daily. Crime and break-ins will increase. No one wants that and no one on the property was informed.
    This pockets are getting a bribe in the council? Is the city going to guarantee the safety of the tenants. If the city council cares so much they can house those people in their own homes. But don’t put the community at risk.


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