Two projects find home at Coquille mill site

By Jolene Guzman, Staff Writer
Wednesday, October 08, 2008 | 17 comment(s)

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The soon-to-be-built McKay’s Markets store on the former Georgia-Pacific mill site won’t be the only building going up on the long-vacant property in Coquille.

The Coquille City Council approved a resolution this week authorizing the sale of a 2.67-acre parcel of the mill site to Coos-Curry Electric Cooperative. The cooperative intends to build an office and warehouse.

Since acquiring the property in 1993, the city watched many near deals fizzle until 2007, when the city approved selling a piece of the property to McKay’s.

“Finally it looks like it’s going to grow,” Coquille Mayor Steve Britton said Tuesday.

Coos-Curry’s new office would be about 1,500 to 2,000 square feet, with room to expand and the warehouse would be connected in the same building. Plans include a pole and equipment yard, and place for storing vehicles. A chain-link fence with decorative security slates would conceal a portion of the site.

The new buildings would replace the electric cooperative’s Coquille office on Second Street and its warehouse between Coquille and Myrtle Point. The facility will be adjacent to Mast Bros. Towing and Collision Repair.

The electric company will buy the parcel for $2.32 per square foot for a total of $270,266. Coos-Curry also will extend South Mill Street for access to the facility for a total cost of $603,000. The city has agreed to a  reimbursement of $100,000 paid for by the developer of the other side of South Mill Street. If that portion is not developed in 10 years, the city will reimburse Coos-Curry.

Beyond site preparations, City Manager Terence O’Connor said building on either project probably won’t begin until after the rainy season.

The city wasn’t the only entity to suffer strike outs over the years.

“There were a number of years when the state tried to market the property as well,” O’Connor said.

He said the Oregon Department of Community and Economic Development tried to sell it for light industrial uses. After about six years, the state deemed that there wasn’t a need for that much light industrial property on the South Coast and gave the responsibility for the sale back to the city.

Four years ago, a developer expressed an interest in creating a mixed development for commercial and residential, but then dropped the idea.

O’Connor said that still may be a possibility for the 14 acres of property remaining. The city’s selling price is $2.32 per square foot, but it’s negotiable if a developer offers to build something that matches with what the city wants for the site.

Working out a deal with Coos-Curry gives O’Connor hope that such a developer is out there, even in the shaky economy.

“Coos-Curry Electric reinforced the city’s belief that the property is valuable,” he said.

Having some building activity on the site might encourage other developers to take a closer look at the property.

“Once the McKay’s store and Coos-Curry’s office and pole yard start going in, I think there will be a lot of inquiries,” Britton said.
Mill site timeline


n 1993 — the city of Coquille acquired the property from Georgia-Pacific. Working with Georgia-Pacific, the U.S. Forest Service and the state of Oregon, the city tore down all the buildings and cleaned the site.


n 1995 — the city annexed the property into the city and zoned it commercial and light industrial.


n 1998 — Bi-Mart Corp. expresses an interest in the site for building a store and introduces another developer to the city.


The city enters into an agreement with a developer to purchase 12 acres and leave an option to purchase another 10 acres of the property.


n 2002 — city installs a traffic light at the access of the G-P site from state Highway 42.


n 2003 — Bi-Mart withdraws agreement.


n 2004 — Safeway starts negotiations with the city to build a new store.


n April 2005 — MBK Northwest LLC approaches the city with an interest in the property.


n June 2005 — city and MBK sign a letter of intent. Later the developer offers the city $75,000 per acre for the site.


n 2006 — contract with MBK expires with no sale.

Charles McKay contacts city to discuss buying a portion of the site for a McKay’s Market.


n 2007 — city approves the sale to McKay.


n June 2008 — Coos-Curry Electric Cooperative approaches the city about buying a portion of the property.

n This month — city approves a resolution authorizing the sale of 2.67 acres to Coos-Curry.
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COQUILLE RESIDENT wrote on Oct 17, 2008 11:04 AM:

Come out to Coquille and see the work in progress on the new McKay's store!

everyman wrote on Oct 15, 2008 1:13 PM:

The old buildings in Coquille are just like the majority of it's politicians...rotten to the core (exemplified by exposed beams at the old theater)

kokeel wrote on Oct 13, 2008 9:36 PM:

McKays new store is a sure thing, they have started work on the site, a lot of red tape & codes to go through to build. A lot of fill dirt was haul in after the G.P. mill was torn down. A lot of pile driving will have to go in and rock. McKay store plans has already been draw to specifications.
Keep Mayor Britton, vote in some new young blood on the city council,Mayor does not have much power it is the city council who can fire the city manager, does the city council ever evaluate the city manager?. We really need change in Coquille. Some of these employees just want their job and don't want to put any effort in to do the job, just sit on their fanny and draw good wages,benefits,retirement for the future. Think positive it is a go. One other thing we need to clean up the residential areas around coquille we have city codes that needs to be enforced. We do have a county dump to take your throw aways don't pile them up in your yard. Have some pride in taking care of you residences.

grandma wrote on Oct 13, 2008 2:22 PM:

BOY HOW PEOPLE FORGET ALL THE HARD WORK FRAN WORKED TO GET A VA NURSING HOME THERE. GEE THEY GOT ONE UP NORTH BUT THE COAST IS STILL WITHOUT ONE. KEEP UP THE WORK FRAN. JOIN THE VFE THERE ARE 9 POST IN COOS BAY

Fairview Frank wrote on Oct 11, 2008 5:24 PM:

I'd have put in a Super Walmart; great deals on food and it gives the pan handlers a place to hang out :)

everyman wrote on Oct 10, 2008 4:39 PM:

...expressed interest, huh? Isn't that what Bimart did? Isn't that what MBK did?

Expressing interest and writing the check are two TOTALLY different actions...one blows sunshine up your rear...the other buys tomorrows groceries.

to clueless wrote on Oct 9, 2008 9:14 AM:

Actually, there's a good chance the current ccec office will sell, and fast. several parties have expressed interest in purchasing it.

Clueless In Coquille wrote on Oct 9, 2008 7:51 AM:

I agree with Everyman. Mr. McKay purchased the property. Shortly after, McKay's became an employee owned business. Each time I shop at McKay's I ask the clerks, when will the new building start. The answer is always 'real soon'. That's been going on for over a year. The Coos-Curry venture will undoubtedly be a go - but it will leave more empty old office space in old downtown Coquille.

Also, vote for change. Vote out of office all the incumbents running again. Let's give some other folks a chance at leading Coquille.

Coquille Resident wrote on Oct 9, 2008 7:37 AM:

Everyman: I was trying to "think positive for a change", ha ha!

And, I never knew that Les Schwab owned the McKays building.

everyman wrote on Oct 8, 2008 4:59 PM:

UNLESS the city screws up??? Don't you mean "until" the city screws up...?

Coquille Resident wrote on Oct 8, 2008 2:46 PM:

The C-C deal u can count on for sure(unless the city screws up) as they really want to consolidate their two separate facilities into one newer facility.

TO CB RESIDENT wrote on Oct 8, 2008 2:43 PM:

I can live with you saying "Try thinking positive", but to throw in "for a change" - what gives you the right to label me like that?

Rick James wrote on Oct 8, 2008 2:33 PM:

I highly doubt there will ever be a new McKay's in Coquille. The land was purchased almost 2 years ago and nothing has happened up to this point. Everyman has it exactly right, that town is doomed until some fresh minds replace the old. All they care about is collecting a pay check until they can retire and pushing through projects for the big names in town. It's pathetic that no new homes can be built because of no sewer permits, but the RV park on the river keeps on growing.

Coos Bay Resident wrote on Oct 8, 2008 1:49 PM:

To Coquille Resident,
Just be happy a NEW McKay's Store is coming to your town! The new Store will probably be much bigger and nicer than the current one you have there in town. And for all you know a new store could also bring in more jobs. Regarding the current McKay's store, yeah it will be an eyesore for awhile but has a town grows so does the stores and ect. Try thinking positive for a change, the old McKay's for all we know could be fixed and bought out by another company and a new store or something will come in thus bringing in more jobs to a small town!!

What a Shame wrote on Oct 8, 2008 1:29 PM:

For Coquille Resident.....The building and the property that Mckays now occupies does not belong to Mckays. The building and the property now and has always belonged to Les Schwab Tire Center. Les Schwab is considering, after Mckays moves out, making that building their tire shop for large trucks etc. and keeping their existing one across the street for cars and light trucks. Nothing has been jput in stone yet, but they are considering it.

everyman wrote on Oct 8, 2008 1:27 PM:

Hmmmm...like most things re; Coquille...I'll believe it IF I see it...(not when)

Fire the City Manager (so many "done deals" that have fallen through, it's pathetic)

Vote out the Mayor (see city manager)

coquille resident wrote on Oct 8, 2008 11:26 AM:

what will become of the current mckays store? this concerns me because many of the remaining empty store fronts in that area are so dilapidated and run down = major eyesore

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