Waterfront homes, condos, restaurants and hotel planned in Pasco. Work about to start

The first two apartment buildings will begin taking shape at Pasco’s Osprey Pointe as soon as this summer.

JMS Development, led by Meredith and James Sexton, has applied for permits for the first phase of a $450 million package of projects that will bring nearly 1,000 homes, commercial businesses, a hotel, marketplace and amphitheater to east Pasco.

Work on the project, called Osprey Place Marketplace, could begin as early as this summer, but certainly by the end of the year, said James Sexton. The first two apartment buildings will bring a combined 32 units, all with three bedrooms, two bathrooms, two parking spots in an underground parking garage.

The three-bedroom configuration reflects demand for larger units. If they don’t lease, JMS will consider selling them as condominiums.

Osprey Pointe is a 55-acre low-bank waterfront property at the Port of Pasco, at East Ainsworth and South Oregon avenues.

The port chose JMS to develop the empty acres around its headquarters in early 2020, after its 2018 development agreement with Eaty Gourmet fizzled.

The COVID-19 pandemic slowed progress and JMS revised its plans a dozen times. Along the way, the city adapted three dozen codes to reflect the ambitious plan.

Now, the port and the Sextons say, the oft-delayed project is truly approaching the starting line. Last week, the port’s elected commission voted to extend the agreement until July while the two sides hammer out final details. Randy Hayden, executive director, confirmed there’s “good progress.”

The Sextons confirm they’ve applied for building permits, including environmental review, and are on the cusp of raising money from investors.

Project funding

JMS has applied for building permits for the first phase and submitted the project for review under the Washington State Environmental Protection Act or SEPA.

They aim to raise up to $97 million through a tax advantaged fund, Osprey Pointe OZ Holdings II LLC.

The project is in Pasco’s Opportunity Zone, a federal designation that rewards private investors with tax breaks. Most of east Pasco is in that zone. The minimum investment will be $50,000.

The Sextons, who are veteran developers, said they never considered stepping away or pivoting to projects with shorter time frames.

They estimate they’ve spent $2 million to bring the vision this far and will use conventional bank loans, as well as investor dollars.

“You only get one time to do something this big,” James Sexton said.

Applying for building permits, seeking review under SEPA and raising money all signal significant progress toward physical construction.

Thursday, June 1, is the deadline to comment on potential environmental impacts. The city’s SEPA review office will issue a decision about what if any steps are required to mitigate them after the deadline passes.

James Sexton, a lifelong Tri-Citian, and Meredith Sexton of Prosser are longtime fans of Pasco’s east side and are eager to see it claim its place as a thriving destination.

“East Pasco is Pasco,” James Sexton told the Herald.

Land deal

JMS will buy the land from the port in parcels as it proceeds through the development phases. It could take up to 10 years, though the couple hope strong interest will speed up development.

When fully built, Osprey Pointe will have more than 1.5 million square feet of commercial and residential space. That includes 986 homes, including 256 rentals.

The rentals include a 220-unit high-rise apartment for those 55-and-over. All but one of the multistory buildings will have ground-level retail space, including restaurants.

The Sextons said they are finalizing an agreement with a hotel operator for a seven-story hotel with 350 rooms and a rooftop bar.

Nearby, Osprey Pointe Market will have ample performance space, including an indoor venue that will seat 6,000 and an outdoor amphitheater that will seat 35,000 on 10 acres.

Event parking will be off site, with buses and possibly water taxis ferrying guests to and from the property.

Meredith Sexton dreams of securing the Foo Fighters as the opening act. The band’s bassist is a Hanford High grad and she is asking for help making a connection on the project’s Facebook Page. “I just need someone to tell them of my plans tho,” she said.

The hotel and concert venues will be built in future phases. Residential and retail construction will come first.

3 beds and 2 baths

The first phase will bring water and sewer lines to the property and the two, four-story apartment buildings, which will have street-level space for retailers and restaurants.

Pasco Burger Company and Wild Olive’s Charcuterie Kingdom have agreed to lease two of the commercial spaces. Pasco Burger Co. recently debuted at Pasco Specialty Kitchen.

The next three buildings will be eight-story buildings with a mix of studio, one-, two- and three-bedroom condominiums, priced starting at $150,000.

The first phase includes building the first of 70 detached homes priced at $250,000-$350,000, which Sexton told the port will be the lowest price per square foot in the Tri-Cities.

Future-proofing

The entire property will be governed and maintained by a home owners association, including the detached homes.

The HOA will own the land and all residents and property owners and tenants, including businesses, will not only pay dues, but be subject to design standards no matter how often individual homes are sold.

Preserving the vision in the future is a priority for the port’s elected officials, though it acknowledges that at some point, it loses control of the property it currently owns.

The Sextons intend to retain ownership of the commercial properties, which they will place in a trust for future generations.

Development will follow a north-south zigzag pattern, snaking between Ainsworth Avenue and the shoreline. The approach ensures that once the residential units are complete on the west, they will be isolated from active construction to the east.

The primary roads will run north-south at South Maitland, Oregon (aka Osprey Pointe Avenue) and east-west in a rough grid, according to plans in the SEPA file..

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