Bend City Council authorizes purchase of Rainbow Motel


At its meeting Wednesday, the Bend City Council approved buying the 1.03 acre site at 154 NE Franklin Avenue, which includes the Rainbow Motel, for $4.55 million.

The City will purchase the motel with General Fund dollars and be able to use it for any desired use allowed in that zone.

The purchase of the motel is an opportunistic public investment that could meet a variety of short-term and/or long-term community needs, including but not limited to an immediate need for transitional shelter as well as a future possible site for City Hall, affordable housing, a civic plaza or other public uses.

City Council goals include creating temporary or permanent housing for 500 homeless individuals, creating 1,000 rent and price-restricted housing units, developing housing-specific strategies in the Core Area, and stimulating redevelopment opportunities in the Core Area.


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