November 15, 2009 - Foreclosures Hit Home

By Damian Mann

Mail Tribune

Sammie Pakros, her 2-year-old grandson and her ex-husband have been living on borrowed time.

In March 2008, the 53-year-old couldn't make her $1,400 mortgage payment on her east Medford home after losing her job as a dental hygienist.

Pakros hasn't made a payment since.

Like many Jackson County residents forced into foreclosure proceedings because of the recession, she has been coming to terms with the day she must leave her home of the past 25 years.

"If they call me tomorrow and tell me to move out, I will cry, but I will move on," she said.

Since the recession began in December 2007, lending institutions have foreclosed on 1,718 homes in Jackson County. A third more mortgages went into default during that time, according to county statistics.

This year alone, 919 homes have been foreclosed on and 1,855 property owners have received notices they are at least 90 days behind in their payments, according to data compiled by Rogue Federal Credit Union, based on county information.

And it's only expected to get worse.

Some 2,500 adjustable rate mortgages countywide will automatically ratchet to a higher interest rate beginning next year, which will put more families at risk of losing their homes, local real-estate experts said. One expert said he knows of a loan that will rise from $1,400 a month to $2,100, and the homeowner is out of work.

Stemming the tide of foreclosures has been the goal of ACCESS Inc., a nonprofit that provides food and housing assistance, and Building Hope, an alliance of businesses and organizations spearheaded by Rogue Federal Credit Union and the Home Builders Association of Jackson County.

But keeping up with the demand for assistance has taxed these agencies, which spend considerable time wading through the complicated financial situations and loan problems of local residents.

They have been helping residents make the tough decisions to scale back on expenses and find other income sources, while considering the harsh realities of whether they have the financial wherewithal to keep their homes.

Pakros said though she has a dog-washing business, Dirty Dogz, she can't generate enough income to even consider refinancing options. Her bank has been more understanding than most, offering her a three-month reprieve on payments that would be tacked onto the end of her loan.

Because the downturn in the economy has meant people are putting off their teeth-cleaning, Pakros has had difficulty finding a job. And for the first time in her life, she's had to get food stamps, she said.

She fears that when the time comes to leave her home, she won't have the money to pay rent for an apartment for her, her grandson A.J., and her 61-year-old ex-husband, Alden Pakros, who is disabled.

"I'm just living with my ex platonically," she said. "We're just there to support each other to get through this."

It's an all-too-familiar situation to Pete Cislo, who has devoted two hours a day to Building Hope. The organization has provided educational classes and counseling to 600 families since it was founded a year ago.

Cislo said he has advised some people to stop making their mortgage payments because they have run out of money.

A Medford architectural designer, for example, came to him and said his work had dried up because of the collapse of the construction market. His wife was pregnant and they had only $6,000 left in savings.

"I never expected to be in a public situation telling people not to make house payments," said Cislo, who works for Leave Your Mark landscaping supply.

Cislo said he first encourages people who are behind in their house payments to contact the lender. They might find, like Pakros did, that the lender is in no hurry to get them out of the house.

Or they might find their lender difficult to deal with, as did one Medford woman who was short $160 on her $1,800 house payment. The lender refused to accept the partial payment, Cislo said.

Medford resident Fred Burnhart, in a desperate battle to save his home from foreclosure, spent the better part of this year getting bounced from banks to refinance companies as he tried to renegotiate his loan.

He said he was barraged with paperwork, misinformation and offers to refinance at a monthly rate higher than he paid before. He said he received 15 different answers from 15 different people about his loan modification.

"They don't give a damn whether you keep your house or not," said Burnhart, who is struggling with declining income from his business.

Eventually, Burnhart managed to get his loan renegotiated with help from ACCESS Inc., but is still worried about a second loan and the possibility he could still lose his house.

ACCESS Inc., on the front lines of the foreclosure crisis, has only two full-time employees to help 80 families figure their way out of foreclosure.

"We are over our limit as to how many cases we can handle," said ACCESS Housing Director Cindy Dyer, who said she has been referring callers to Building Hope.

Each case her organization confronts is unique, requiring a great deal of staff time to sort through.

ACCESS doesn't want to shut the door to people seeking help, but Dyer said the need is overwhelming.

She said a year ago ACCESS was helping people who had taken out bad loans. Now, many of the people coming to the organization have lost their jobs and are running out of money.

"It's now an unemployment issue," she said.

Kerrie Davis, community education and outreach coordinator for the not-for-profit Rogue Federal Credit Union, said she expects commercial loan foreclosures to follow on the heels of residential defaults if the economy doesn't improve.

"I think we've got 2010 to go through," said Davis, adding she hopes to see signs of improvement in 2011.

Davis, who speaks at seminars designed to help residents survive foreclosure, said she's noticed many of the participants enjoyed a middle-to-upper-class lifestyle and had never been in serious financial trouble before.

Some who were strong supporters of nonprofits never imagined they would need support themselves.

"I told them don't forget about getting your food stamps — there was a look of shock," said Davis. "Somebody said this was their American dream. These people are paralyzed."

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 11, 2009 - County's Skeptical of Bypass Proposal

By Damian Mann

Mail Tribune

Appeals by legislators and transportation officials failed to fully convince Jackson County commissioners Tuesday that a $100 million Highway 62 bypass proposal won't be a waste of money.

"I don't think it's the best project for the entire community of Jackson County," Commissioner Jack Walker said.

After years of discussion and research, the Oregon Department of Transportation is proposing a bypass to alleviate congestion on busy Highway 62 in north Medford. The new roadway would begin just east of Poplar Avenue, on the north side of Highway 62, and create either a two-lane or four-lane highway running roughly along the old Medco Haul Road for 3.5 miles to just south of White City. Another option is to end the bypass at Vilas Road.

Projections indicate that 27 percent of drivers on the highway would use the new route.

"It's really a lot of money to handle about a third of the traffic," said Commissioner Dave Gilmour. "If all that comes out of this is a permanent bypass that goes from Vilas Road to Ace Hardware (near Poplar Avenue), not a lot is gained."

While the commissioners's support is not required for the project to move forward, their opposition could jeopardize the funding and the money could go elsewhere in the state, Matt Garrett, director of ODOT warned.

Commissioners said they want ODOT to answer questions about the project before the county endorses it. After receiving assurances their questions would be answered, the commissioners agreed Tuesday they would not send a letter opposing the project.

The bypass would primarily be funded through Oregon House Bill 2001, which provided more than $900 million in transportation projects over 10 years throughout the state.

The money will be raised through bonds and by increasing motor vehicle fees and the gas tax by 6 cents per gallon.

Legislators who helped Jackson County get the money in Salem were surprised the commissioners didn't endorse the bypass plan that was part of a multi-year planning effort. The bypass also has been identified as a project of statewide importance, offering tourists a gateway to Crater Lake.

"It's not spending money for the sake of spending money," said Rep. Peter Buckley, D-Ashland.

Rep. Dennis Richardson, R-Central Point, said it's important to have the county endorse a project that has been the subject of much discussion for at least 12 years.

"Commissioner Walker is grousing about what's already been done," he said.

Art Anderson, ODOT area manager, said the portion of Highway 62 — also known as Crater Lake Highway — in the Medford area is one of the most congested in Southern Oregon, with an average of about 40,000 vehicle trips a day.

While ODOT prefers to build a four-lane bypass, Anderson said that the $100 million might only pay for a two-lane segment at first. However, the long-range plans call for the roadway to be four lanes, he said.

Rep. Sal Esquivel, R-Medford, said a four-lane roadway to Vilas has been proposed for years.

"Do it right in the first place," he said. "We fought very hard to allocate the money for this project."

The commissioners also asked for more information about how many businesses would be harmed by the bypass, either by being displaced or having their access changed.

Walker said many local businesses are struggling with the economy and don't need limits placed on customer access.

"If I were one of those businesses, I would say not now," he said.

Anderson said ODOT does consider the impact on businesses, but also must look at safety issues on Highway 62.

"It's a balance," he said.

The commissioners also voiced concern that other local transportation projects could get shortchanged if the state throws more money into extending the bypass in the future. The total cost to build the bypass to White City has been estimated at up to $450 million.

When the bypass is built, ODOT wants to turn over jurisdiction of Highway 62 to the city and county. Gilmour said if the county assumes responsibility for the roadway it would also have to pay for the maintenance, which could be considerable.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 10, 2009 - Stepdad May Face Charges In Accidental Shooting

By Damian Mann

Mail Tribune

Medford police may file charges against a stepfather who allegedly left a loaded gun near a napping 4-year-old who accidentally shot himself in the foot Saturday.

"There are a variety of criminal charges that could come into play in this case," said Medford police Lt. Tim Doney.

The boy found a .40-caliber handgun on the headboard of his parents' bed, where he was taking a nap, Doney said. He was taken to Rogue Valley Medical Center, where he was treated for a gunshot wound to the left foot and ankle and released.

The stepfather, Christopher Burgdorf, 44, applied pressure to the wound until emergency crews arrived at the scene Saturday afternoon in the 2700 block of Merriman Road, Doney said.

"It could have been far worse," he said.

The boy's mother, Renee Burgdorf, 44, was at the house at the time. The boy has a twin brother, police said.

Doney said there is a possibility that some kind of charge or charges could be brought in this case.

The Burgdorfs were married Aug. 8 and are both graduates of Eagle Point High School.

Doney said investigators are still piecing together what happened leading up to the discharge of the weapon and are interviewing family members. The weapon has been seized by investigators.

Accidents with children and guns aren't common in Medford, Doney said. "It's not that frequent where it turns into somebody getting shot," he said.

Doney said police recommend parents secure any weapon in a safe or with gun locks, which are available free from Medford police by calling 774-2268.

"We'd rather dole out free gun locks than respond to incidents like this," Doney said.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

November 5, 2009 - Ruling Opens Door For South Medford Walmart's Growth

By Damian Mann
Mail Tribune

A ruling by the Oregon Court of Appeals Wednesday could boost Walmart's plans to build a Supercenter in south Medford.

The court affirmed the city of Medford's decision not to require a new traffic analysis from Walmart, reversing a June 1 decision by the Oregon Land Use Board of Appeals.

The world's largest retailer has attempted to build a 176,500-square-foot store adjacent to the South Gateway shopping center on the site of the old Miles Field for the past six years.

Once permits are approved, Walmart could build the store within 10 to 12 months, said spokeswoman Karianne Fallow. It would employ about 300 people, with 75 percent being full-time jobs, she said. "If it is appealed to the (Oregon) Supreme Court, that is another delay in the process," Fallow said.

She said Walmart is pleased with the court ruling, saying it demonstrates that the company has complied with all local codes.

In June, LUBA agreed with Walmart opponents Medford Citizens for Responsible Development that the city's codes failed to account for the impacts of large-scale development on traffic.

The Court of Appeals, however, ruled LUBA's decision was unlawful because the city's code doesn't specify that a traffic analysis is required prior to development.

The appeals court found that both parties presented plausible interpretations of the city's code, though neither side covered all aspects of the code. Without a compelling argument from either side, the court said LUBA must affirm the city's interpretation.

Mayor Gary Wheeler said the court ruling was a strong one in favor of the city.

"This is the code we've been using for 20 some odd years," he said. "It just reaffirmed what we thought we wrote."

Wheeler said the city requires a traffic analysis at the time the zoning is changed on the property, not prior to development, which he said was the crux of the argument presented to the court.

Based on the city attorney's interpretation of the ruling, Wheeler said it appears the city is in a solid legal position against the opponents.

"It doesn't seem like they would have much of an ability to win an appeal," he said. "But, it's up to them."

He said the area has changed quite a bit since Walmart first proposed the store, with a new interchange opened and with Barnett Road being improved. In addition, the city will be upgrading both Garfield and Holly streets to improve traffic circulation.

Wendy Siporen of Medford Citizens for Responsible Development said she hadn't reviewed the court ruling, but wasn't authorized to speak on behalf of the group.

Another member, Ivend Holen, couldn't be reached for comment Wednesday afternoon.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

October 31, 2009 - After The Storm

By Damian Mann

Mail Tribune

EAGLE POINT — Mesmerized as a freak electrical storm hit their neighborhood Aug. 1, Eric and Marilynn Yarborough gasped as golf-ball-sized hail pelted their house next to the Eagle Point Golf Club.

"It sounded like golf balls hitting the roof," said 62-year-old Marilynn.

Some of their plants were destroyed and a few statues were broken, but otherwise the Yarboroughs thought they'd weathered the 20-minute onslaught fairly well.

But this month, as they noticed neighbor after neighbor replacing roofs after the fall rains came, it dawned on them they better get their own roof checked. Now they're listening to the sounds of workers clambering overhead, installing new shingles.

"The roof was totaled," Eric said.

He said neighbors had other problems such as broken windows, crumbled garage doors and battered air conditioners.

The storm has been a boon to roofing companies and other contractors trying to survive the recession.

"It's not Obama's stimulus package," said Eric. "It's Mother Nature's."

Shane Neville, foreman for Pressure Point Roofing, which is installing the Yarboroughs' new roof, said his company has replaced three roofs so far and has bids out on two or three others around the golf course.

Several other roofing companies are also working in the area, he said.

Many roofs had damage to metal valleys, heat vents and pipe covers.

"One guy said he had hail that was baseball-sized," said Neville.

Ron Bieraugel, who lives near the golf course, said the hailstorm dumped two inches on his driveway.

Neighbors had to have their cars repainted or windows replaced in their vehicles.

"My garage door looked like a waffle iron," he said. "I was just shocked as I was walking the dogs and people showed me their damage."

Bieraugel said he had to have his roof replaced, bringing damages on his four-year-old house to $11,000. But some of his neighbors needed $15,000 worth of repairs, he said.

A neighbor down the street counted 265 broken Spanish tiles, and the insurance company decided to replace the whole roof, said Bieraugel.

He said people didn't realize the extent of damages at first. "My sister was in denial," he said.

Hail pummeled his heat pump so hard that the cooling fins have been severely damaged, said Bieraugel. The unit will be replaced with a more energy-efficient model after the first of the year, he said.

Shrubbery also took a beating. The storm destroyed 90 percent of the leaves on spruce and pine trees in his front yard. He said he replaced the trees, which weren't covered by insurance.

Hank Rademacher, an agent with County Financial in Eagle Point, said he personally has dealt with at least a dozen clients whose homes received some kind of damage.

"Most of them are centered around the golf course community and out to Stevens Road," he said. "On Keystone Way, there was a string of five houses in a row that all had to have their roofs replaced."

Sometimes one house would sustain severe damage, while the one next to it would go unscathed, Rademacher said.

Generally, the roofs that have a 50-year lifespan survived better than other roofs, particularly those that are less than 30 years, Rademacher said.

He said he's received claims for vehicles as well.

Eagle Point planner Bunny Lincoln said the city hasn't calculated how many homes were affected by the hailstorm because most of the owners don't need permits for repairs.

"As long as they are not doing anything structural, it doesn't require permits," she said.

Lincoln said she knows several homes that were damaged by the hailstorm, including her own.

"It took me hours and hours to clean up my swimming pool and backyard," she said.

Her house didn't sustain any damage, though.

Rick Holtz, a meteorologist with the National Weather Service in Medford, said large hail usually falls in narrow bands.

Sometimes an area a half-mile away can escape without any hail, he said.

"When you are getting up to that size of an inch or more in diameter, it is somewhat rare here in the valley," he said. "We can go a number of years and not have anything close to that."

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

October 30, 2009 - City Says MURA Should Repair Parking Structures

By Damian Mann

Mail Tribune

A parking structure that was built to help revitalize downtown Medford has developed cracks in the roof and flooding problems in the basement that have contributed to an estimated $535,000 in needed repairs, city officials have discovered.

Another parking structure at Middleford Alley also needs an estimated $280,000 of work.

The 10-year-old, $7 million Middleford building, at Riverside Avenue and Sixth Street, and the four-year-old, $10.2 million Evergreen parking structure, at Main and Fir streets, have not been fully maintained by the Medford Urban Renewal Agency. MURA officials said they understood they could not use their main source of revenue — tax-increment financing — for maintenance work.

City Manager Mike Dyal, however, said Thursday the city's attorney has found no state statutes that would prevent MURA from maintaining a building with tax-increment dollars that are specifically designed to fight blight and improve urban areas.

"If you ignore maintenance, you are contributing to blight, which is one of the purposes of the urban renewal agency in the first place," he said.

The tax-increment financing used by MURA and other urban renewal districts creates operating revenue from new property taxes resulting from improvements or construction within the districts.

The city discovered the maintenance problems in the parking structures during negotiations to take over a downtown parking district from MURA.

The city and MURA are in negotiations over who will foot the bill for the structures and are continuing to discuss whether tax increment money can be used for maintenance.

"There is a difference in interpretation," City Councilman Chris Corcoran said.

A sump pump has been placed in the basement of the Evergreen parking structure to keep it dry as water seeps through the walls.

Councilman Dick Gordon said, "The concrete on the top level is cracking and coming up."

The Evergreen parking structure at Main and Fir streets was originally designed as the center of a Bella Vita mixed-use complex that was stalled by lawsuits and the economic downturn. Problems with the structure exist in part because an outside layer of residential and commercial units was never built.

The city could offset some of the costs of repairs by performing much of the work with city crews, but the repairs will still be an expense that someone will have to pay, said Dyal.

"We need to get an understanding," he said. "We're going to look to them to provide the remedy or assist with the remedy, to say the least."

Scott Henselman, a MURA board budget committee member, said he was surprised at the maintenance costs, particularly on the Evergreen structure.

"How can you have repairs of that magnitude on a brand new structure?" he said.

Henselman said he has never encountered any deferred maintenance issues with commercial properties based in the Middleford complex. Henselman owns a commercial real estate management company.

Jackie Rogers, MURA executive director, told the City Council Thursday that tax increment money could not be used for maintenance. She could not be reached for further comment after the meeting.

Deputy City Manager Bill Hoke said, despite the damage, both parking buildings appear to be structurally sound.

Most of the maintenance includes such items as sandblasting, repainting, restriping and crack filling, he said.

"This stuff needs to be done to prevent any further degradation," he said.

The moisture in the basement of the Evergreen parking structure could be the result of the original design of the structure, which was intended to have another building wrapped around it containing residential and commercial space, Hoke said.

Hoke said the city is in negotiations with Ray Kuratek and Jeff Holzman, developers from Bend, to build a residential complex around the Evergreen parking structure.

Hoke said the negotiations are in their early stages, but he expects the developers likely will consider a building of four to six stories in height.

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.

October 29, 2009 - Skipping School Could Mean A Fine In Jackson County

By Damian Mann

Mail Tribune

MEDFORD — Youths could be fined or face community service for chronically skipping school under a new ordinance passed Wednesday by Jackson County commissioners.

Educators say the ordinance will give them more leverage in cracking down on students who refuse to go to school.

"This is really a tool of last resort," said Angela Curtis, director of the Jackson County Commission on Children and Families.

Unanimously approved on the first reading by county commissioners, the ordinance could take effect at the beginning of 2010.

Under current law, officials can fine only the parents if their children fail to show up at school.

The new ordinance allows attendance officials to seek citations in juvenile court against truant children ages 12-18. The citation could lead to a contempt order if the youth continues to skip school.

Attendance at many schools in Southern Oregon hovers at 90 percent or less, according to the Oregon Department of Education; 92 percent is required by the No Child Left Behind act.

Under the ordinance, chronically truant students may be required to perform community service, including serving at a neighborhood school or a nonprofit. Stronger penalties include a $500 fine or detention, which are considered measures of last resort, said Curtis.

"In some instances it takes a little bit more encouragement for the youth to return to school," she said. "This provides a mechanism to hold that youth directly accountable if the parents are doing all they can."

Schools, the county Commission on Children and Families and the District Attorney's Office will be part of a coordinated effort behind the truancy ordinance, which is expected to reduce juvenile crime and the dropout rate.

The program is based on a similar effort in Klamath County that has cut down on truancy there, Curtis said.

Before any actions are taken against students or parents, attendance officials assess the student, looking at economic, mental health and family issues.

Sometimes a student just needs a new pair of shoes as encouragement to get to school, Curtis said.

If a truant needs more encouragement, the ordinance will allow educators to send him to select nonprofits and schools for community service. Curtis said these organizations would also offer some kind of education to help the student as well.

Educators are estimating the program will lead to about 10 percent of truant students receiving citations and 3 percent getting contempt orders, Curtis said.

The ordinance shouldn't cost schools more money, but will be incorporated into the work already done by truancy officers and attendance officials.

J. Adam Peterson, deputy district attorney, said the new law shouldn't overburden the justice system.

"As a matter of fact, it should have the opposite effect," he said. "It should lessen the burden on the District Attorney's Office."

Last year, 55 parents were cited for failing to get their children to school, he said.

Some of the parents made every effort to get their children to school by driving them there, dropping them off and watching them go through the door.

"Then the parents have to go to work, and then the kids skip out," Peterson said.

Continuing to go after the parents is futile at this point, so the ordinance will provide a new avenue that might compel many students to go back to school, he said.

It will be up to attendance officials to decide the best course of action, which might include contacting Peterson's office to take the legal steps.

Peterson and Jackson County Circuit Court Judge Lorenzo Mejia drafted the ordinance, he said.

Betsy Mathas, who helps track down truant students for five local school districts and works for the Southern Oregon Education Service District, said she expects the ordinance to help bring many students back to school.

She said students she sees are often defiant because they don't face repercussions if they skip school, often saying it's their parents' problem.

"They will be accountable for their actions," she said. "It will help some of them straighten up."

Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.