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After years of planning and several setbacks, officials expect first phase to begin this summer

extension of Crestview Drive to Highway 99W will make way for development of a large residential and
commercial area called Crestview Crossing.

A project several years in the works continues to inch along as Newberg officials and developers earmark an additional $575,000 toward construction of a section of new road off Highway 99W.

East Crestview Drive is a proposed section of road meant to run between the eastern city limits at Northeast Crestview Drive and North Springbrook Road. This segment of East Crestview Drive is classified as a "major collector street" in the city's transportation system plan.

Newberg received a $740,000 grant from Regional Solutions in 2015 to construct the section of road from Highway 99W to North Springbrook Road. Since the grant was received in 2015, city officials have worked with a handful of groups as funding partners. Funding is made up of the grant, plus $1.1 million is city system development charges, and the rest to be made up by Springbrook Properties and JT Smith Companies. JT Smith Companies will build the road from Highway 99W to the county line. Newberg will build from there as far as their funding allows, and Springbrook Properties will take the rest.

The total estimated cost is $5 million.

City staff has been working with Allison Properties LLC to finalize their financial contribution toward the project; it will contribute $575,320.

The city has gone to bid on design services for the roadway project. A bid award is expected in April and JT Smith Companies is focusing on starting its construction project in June as it is now at work on engineering.

Complicating the work, however, are other plans for the future of Crestview Drive. Crestview Crossing, a development across 99W from Providence Newberg Medical Center, was proposed in 2006 as a mixed-use compilation bisected by the highway, but has gone through years of starts and stops. It ground to a halt when the country went into recession. It was later revived in 2014 when Tualatin-based Gramor Development took it over. However, progress again slowed over issues surrounding streams and wetlands on the 33-acre property.

Beaverton-based 3J Consulting is now working to gain the necessary permits for wetlands mitigation with the Army Corps of Engineers and Department of State Land.

Community Development Director Doug Rux said that JT Smith Companies are still working on the joint permit, and acknowledged that "it's taken some time."

"The last word I got is that they believe they're getting close," Rux said.

Jesse Nemec, senior land development manager at JT Smith Companies, said they expect to have the permits in hand and be ready for construction by June, and are working on final engineering for its phase of the project.

"There's been some complexities with the stream corridor on the site and what the Army Corps of Engineers said they want is preservation," Nemec said.

He said the design now is "more modular and can preserve the stream corridor."

"We believe we've given the Army Corps of Engineers what they're looking for," he said. "We're closer than the project's ever been. We're about ready to move forward."

All told, the project will encompass 33.13 acres on land zoned for commercial and residential use. It will be a mixture of 18 single-family homes on large lots, 230 cottage homes and 51 multi-family residences. It will also include a 4.4-acre parcel destined for future commercial development.

According to an application to the city from 3J from last summer, the proposed neighborhood will feature "active and passive open areas for use by the residents."

Rux said there are three segments toward road construction. The first phase is being done by JT Smith Companies, who are building through the Crestview Crossing project. Segments two and three are being funded by Allison Properties LLC, as well as through the Regional Solutions grant and city funds. This segment goes from the county line to the Springbrook Road roundabout, Rux said.

"JT Smith Companies are working on public improvement drawings for their portion," Rux said. "Our engineering department will be taking a report on April 15 to the council to award an engineering services contract for Crestview Drive from the county line to the roundabout.

Rux said for segments two and three, they are looking to go to bid on construction in October, have half the project completed by April 2020, have the full project completed by February 2021, and close out the project in March 2021.

As for the JT Smith Companies portion, Rux said the rough schedule is to start construction this summer, but "I don't have an end date for that."

3J's application also stated a willingness to create affordable homes, proposing 5 percent of single family detached homes with price and deed restrictions. This would account for 12 single-family homes marketed for families earning less than median family income, meaning when a family spends no more than 30 percent of its income on housing.

The improved roadway will connect North Springbrook Road with Northeast Crestview Drive, which is outside the city limits. Gramor Development's project will connect Northeast Crestview Drive to Highway 99W at North Providence Drive and develop a large swath of land adjacent to the highway for commercial and residential use.

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