Auburn Commercial Property Owner Workshop - October 31, 2025

On October 31, 2025, the City of Auburn held a workshop with commercial property owners to discuss the persistent issue of vacant commercial buildings, particularly in Old Town and downtown. The workshop was facilitated by Economic Development Director Jonathan Wright, who noted that the city council had previously considered a vacant building ordinance with registration fees and reporting requirements, but asked staff to instead gather input from property owners to find collaborative solutions. The meeting included introductions from property owners, council member Alice Dallinkevy, and other stakeholders.

Public Comments & Testimony

• Property owners expressed frustration with the proposed vacancy penalty, with one attendee stating, "That just pisses me off royally that we've been talking about it." Another suggested the city should instead focus on beautification requirements like decorative window coverings for long-term vacancies.
• Several owners noted that the biggest challenges to renting spaces include high tenant improvement costs (e.g., splitting large spaces like the former bank building, estimated at $200 per square foot), lack of tenant capital, and high overhead costs such as property insurance (one owner reported a 62% increase in liability insurance) and sewer taxes.
• Parking was repeatedly cited as a major deterrent, with one owner saying, "Parking is the biggest thing" and noting that the Hillmont development has worsened congestion.
• The city manager and mayor were present and addressed questions about long-term plans, including annexation of the Bowman area for potential big-box development and the ongoing General Plan update.

Discussion Items

• Types of Vacancies: Jonathan Wright categorized vacancies into "never open" (e.g., Lee Photo Studio), "unavailable" (no for-rent sign, boarded up), "available but not attainable" (high rents or lease structures), and "available but never rented" (signs up for years). He emphasized that many vacancies are not actively marketed.
• Challenges Faced by Property Owners: Owners discussed the difficulty of finding qualified tenants with adequate capital, the high cost of building improvements (e.g., splitting a 4,500 sq ft building into smaller spaces), property insurance hikes, and the burden of city taxes and sewer fees. Some noted that rents are often above what local small businesses (e.g., coffee shops, art galleries) can afford.
• Potential Solutions: Ideas included creating a city-maintained list of available commercial properties, improving streetscapes (e.g., the approved High Street streetscape plan, which needs funding), requiring aesthetically pleasing window coverings for long-term vacancies, and partnering with the arts commission for window displays. The city offered to help with tenant-landlord negotiations and to streamline permitting for improvements.
• Parking and Streetscape: Multiple owners called for a parking structure and better lighting. The city noted that a parking garage plan exists but was previously shelved. Streetscape improvements on High Street have a plan but lack funding (a $3.8 million grant was applied for).
• Incentives vs. Penalties: Owners argued that the city should focus on incentivizing improvements rather than penalizing vacancies. Suggestions included fee deferrals for tenant improvements, relaxing paint color restrictions, and updating the zoning code to allow more flexible uses.

Key Outcomes

• No formal votes were taken; the workshop was a listening session.
• Jonathan Wright will present a summary of the discussion to the city council at the December 8, 2025 meeting.
• The city will consider creating a centralized list of available commercial properties in Old Town and downtown.
• Staff will continue to work on streamlining permitting and improving communication with property owners, including pre-application meetings with building and fire officials.
• The city will explore ways to fund streetscape improvements and address parking concerns, though no specific commitments were made.