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Clackamas County and Happy Valley are voluntarily waiving up to $9.4 million in fees and property value for the developer of the Eagle Landing mixed-use development project. (Veritas Investment Company)

Clackamas County and Happy Valley are voluntarily waiving up to $9.4 million in fees and property value for the developer of the Eagle Landing mixed-use development project, known to some as the "New Hope/Eagle Landing Village."

County commissioners approved a resolution and a disposition and development agreement on Thursday to conditionally waive $7 million in transportation development fees and give away $2.4 million worth of county property to Happy Valley-based Veritas Investment Company and New Hope Community Church, collectively referred to as "the developer" in county documents.

Eagle Landing, a 2.1 million square-foot mixed-use village, is slated for construction across Interstate 205 from Clackamas Town Center, on the western edge of Happy Valley. The project is to include high-end housing with an automated parking system; a five-star hotel; retail, office and entertainment space; a civic center with a performing arts theater; the New Hope church and an athletic facility. The 96 acres surrounding the project already include a golf course and club, event facility, walking paths and parks.

New Hope has full veto power of any businesses in the new Eagle Landing village that church leaders don't feel comfortable with, according to a fact sheet prepared by former pastor Ray Cotton.

"We are very closely evaluating the types of businesses and companies that will be a part of this development to make sure that they share traditional values and will be a good fit and mix for them and us," Cotton wrote.

In an interview Monday, Clackamas County Chair John Ludlow said he didn't know the church had that kind of influence, and doubted any other commissioners knew either.

"I do find it a little unusual the church would have veto power," Ludlow said. "This is the first I have ever heard of it."

Commissioner Paul Savas said he didn't know the extent of the church's involvement either, and that the county isn't involved in agreements between the developer and potential businesses.

"The county is not in the midst of any of those agreements," Savas said. "It would surprise me that the parish had some language like that."

Neil Nedelisky, project developer for Veritas Investments, spoke about revelation and vision in a presentation about the Eagle Landing project at New Hope in September 2013.

"I am not here to cast a vision for this church, I am here to carry out what God has called me to do and what you people are asking me to do," Nedelisky said back then.

Nedelisky quoted a Bible verse from Habbukuk about waiting. He thought Eagle Landing was going to be a five-year project, but at that point it had been 18 or 19, he said.

"This has not been an easy process, but it has been a life-changing process for me as a developer and as a man," Nedelisky said. "I sit back after every win, and we have had a ton of them... This has probably been the toughest land-use decision in the history of Oregon, and we have come through it totally unscathed."

Nedelisky's faith has grown through the process, and he is confident God called him develop the project, he said. He called the congregation his "strike-force team."

Clackamas County's development agency owns about 5 acres of property, worth an appraised $2.4 million, at the intersection of Southeast Bob Schumacher Road and Southeast Stevens Way, within the planned Eagle Landing development. The property contains an apartment complex and is currently zoned regional center high-density residential, but has received conditional zone change approval to planned mixed-use.

Thursday's agreement stipulates that the county will convey the property to Veritas after the developer puts $2.4 million in a third-party account, where it will stay for as long as three years, to be returned if the developer meets specific milestones and development thresholds. If the developer does not meet these requirements, the money could go to the county, and the developer may have to pay some or all of the waived transportation fees.

Requirements include at least 2 million square feet of new construction, including 600,000 in office space, 400,000 square feet of retail, and 600 housing units by the time the project is completed. The company must also finish a master plan by April 15.

Transportation system development charges are supposed to offset the costs of infrastructure improvements needed to accommodate new development. In exchange for the county's $2.4 million property and $7 million fee waiver, the developers must fund the construction of a new road to accommodate increased traffic.

County staff estimates the development will raise nearly $6.5 million in new property taxes each year.

Commissioner Tootie Smith, who brokered the deal, said she is excited about the project and its potential to bring jobs and attention to the county. Compared to Hillsboro's deal with Intel and the state's arrangement with Nike, $9.4 million in waived fees is nothing, she said.

Ludlow was the only commissioner who voted against the breaks, which he called a "gift" and said Eagle Landing could happen without.

"Nobody here has told me this development cannot happen without $10 million of public money," Ludlow said, rounding up. "It can exist on its own without public funds. Where does that $10 million go?"

Savas disagreed with Ludlow, and said the breaks are risk-free because of the conditions requiring the developers to hold up their end of the deal.

"To characterize it as a gift that we are giving away any money, I don't see it as that," Savas said. "There is a return on investment."

-- Hannah Leone

503-294-4001; @HannahMLeone