The Bulletin reports today that the City of Bend could be on the hook for up to several million dollars should it not succeed in finalizing a deal (Disposition and Development Agreement) with Juniper Ridge Partners, with whom it has been working on the master-planning of Juniper Ridge.

Although the City has long referred to the Memorandum of Understanding they signed with the developers a year ago as a "handshake agreement" the document has one paragraph that is binding, within which the following is written.

The City and The Agency agree not to solicit any other proposals or negotiate with any other private developer regarding the Property during the Exclusive Negotiation Agreement. If developer negotiates in good faith but a DDA is not executed and the Exclusive Negotiating Agreement is terminated, the City will reimburse developer and investor 75% of their masterplanning, design, legal, marketing and related expenses, up to a maximum reimbursement of $2,500,000. (emphasis ours)

The Source Weekly actually beat the Bulletin to the punch on this one (here). Either way, the news has left many who have questioned the city on its approach to Juniper Ridge to wonder if the city's actions are reasonable.

For example, the City - also in the MOU - pledged to do everything in its power to bring all (or nearly all) of Juniper Ridge into the UGB during the ongoing expansion process, knowing full well that attempting to do so may fly in the face of statewide land use guidelines governing UGB expansions. What happens if the city can't pull it off? The answer is that it might very well cost the city - and ultimately taxpayers - up to $2.5 million.

Undoubtedly this will leave a lot of people talking.