Salem – 01/24/12 – Governor John Kitzhaber has appointed Coni Rathbone as a public member of the Oregon Real Estate Board.

Ms. Rathbone is an attorney and shareholder of Zupancic Rathbone Law Group in Lake Oswego. She has practiced exclusively in real estate and corporate law for over 23 years, 20 years of that at Davis Wright Tremaine. Ms. Rathbone’s practice focuses on real estate, corporate, LLC and securities law, mergers and acquisitions, and general business transactions.

Ms. Rathbone has written numerous articles for local and national publications on the subjects of tenants-in-common (TIC) workouts and real estate transactions. She regularly makes presentations to real estate groups and is a certified continuing education provider for real estate licensees. Ms. Rathbone was named one of “America’s Leading Lawyers for Business” in Real Estate (Oregon) by Chambers USA and Super Lawyers, for several years running. She is a member and 2011 President of the Oregon Chapter of the Counselors of Real Estate (CRE), member of the Portland Chapter of Commercial Real Estate Women (CREW) and serves on the board of the Oregon chapter of the Certified Commercial Investment Member (CCIM) Institute.

Ms. Rathbone is a native Oregonian and is married to Dr. Gail F. Ott. In her free time, she enjoys spending time with her husband, children and grandchildren and relaxing at their lake house.

The Oregon Real Estate Board consists of seven industry members and two public members. Meetings are held a minimum of six times a year. Board members are appointed by the Governor for four-year terms; however, the members serve at the pleasure of the Governor and members’ terms may be extended until the Governor replaces them.

Board duties include providing advice to the Real Estate Commissioner and the Governor’s office regarding real estate industry matters, reviewing proposed rulemaking, approving experience waiver requests of real estate licensing applicants, and overseeing the license examination process.

by Lindsey O’Brien
February 8, 2012

Jason Glenn of Northwest Earthmovers works on the $18.5 million Stafford Hills fitness Club in Tualatin. (Sam Tenney/DJC)

Construction of an $18.5 million fitness club is finally under way in Tualatin, after financing hurdles were cleared and neighboring residents’ concerns were addressed.

The Stafford Hills club will cater to well-heeled locals, and offer seven professional-grade tennis courts, a solar-heated swimming pool and state-of-the-art fitness equipment. Attorney and developer Jim Zupancic is hailing the 90,000-square-foot, two-building facility as a first-class center long missing in the metro area.

“People are yearning for a real five-star experience, and that’s what we’ll be providing for them,” said Zupancic, whose Lake Oswego firm, Zupancic Rathbone Law Group, is leading the project on the five developable acres of a 16-acre parcel near Legacy Meridian Park Medical Center.Early plans for the site, on Southwest Nyberg Lane, called for building 130 condo/apartment units. But that changed in late 2008, when the developers noticed a shift in the housing market.”We actually developed this concept, which we think is far superior to anything we could’ve come up with on the housing side,” Zupancic said. “There hasn’t been a new tennis facility built in the Portland area in the last 35 years, and there is really nothing in the area that will be comparable, except perhaps the Multnomah Athletic Club.”

But some residents of the surrounding Fox Hill neighborhood contended that the project would bring too much traffic to Nyberg Lane, decrease property values, and lessen privacy of housing nearby.

Several residents in 2010 appealed to Tualatin City Council after the city’s Architectural Review Board approved Myhre Group Architects’ design of the club. The council upheld the board’s approval; however, several compromises were made in response to residents’ concerns,

“We made some pretty slight changes,” Myhre Group principal Ray Yancey said. “Parking was a big concern they had, so we added some parking spaces to the west side of the site, away from the neighborhood.”

City Council also required the design to include translucent glass in the windows facing houses to the east.

Many people in the area have supported the project since plans became public. Approximately 400 people preregistered for club memberships online, according to Stafford Hills’ director of project management, Maggie Creps.

The 90,000 square foot Stafford Hills facility is being developed by attorney Jim Zupancic. (Rendering courtesy Myhre Group Architects)

“The initial rush to sign up was back in February 2010, and most of them stuck with us,” she said.The facility was initially slated to open In mid-2010, but now the grand opening is scheduled for November.”It’s exciting, considering how long that initial phase took to get to this point,” Creps said.

The seven indoor tennis courts are surrounded by large, roll-up doors so that fresh air can flow in on nice days, And because the club is surrounded by wetlands, wooded areas and a park, the design also incorporates warm colors, stonework and trellis features.

A Leadership In Energy and Environmental Design silver rating is being targeted for the project, which will include 50,000 watts of rooftop photovoltaic panels, two electric vehicle charging stations and wetland restoration,

Tualatin-based Todd Construction Is the project’s general contractor, Crews this week are pouring footings and foundations, and working on a large retaining wall on the south side.

“We have visited projects all the way from Melbourne, Australia to New England and Incorporated what we think are some of the best practices throughout the world,” Zupancic said. “Stafford Hills will bring something to this area that has never before been introduced in the Pacific Northwest.”

The developers are still looking for restaurants to sign on. Therapeutic Associates has signed a lease and will provide physical therapy services at the club. Players Racquet Shop, a Portland-based tennis gear retailer, has signed a letter of intent, according to Zupancic, who will also serve as the chairman of the club once it opens.

Published in the Portland Business Journal
August 19, 2011

An $18 million tennis-centered health club at the intersection of Tualatin, Tigard, Lake Oswego and West Linn is the brainchild not of a developer, but a law firm.

Zupancic Rathbone Law Group, P.C. a five-attorney firm in Lake Oswego, is using its real estate expertise to develop Stafford Hills Club, a 93,000-square-foot facility catering to well-heeled westsiders with a blend of fun and fitness.

The club will offer seven professional-grade tennis courts, a swimming pool that invites lingering and other health club amenities. The two-building project is tied up in a sustainable, high-tech package.

Site work has started. It’s slated to open in mid-2012.

Stafford Hills is a highprofile debut for Zupancic Rathbone Law Group. Attorneys Jim Zupancic and Coni Rathbone formed the firm in 2010 when Rathbone left Davis Wright Tremaine LLP to join her old partner in Lake Oswego. The resulting firm combines a full-service legal practice with a business development mission.

The approach is serving the firm well. It was Oregon’s 16th fastest growing private company in 2010 with about $2 million in revenue, marking the first time a law firm appeared on the annual list compiled by the Portland Business Journal.

It will move to a new 7,060- square-foot suite at 4949 Meadows Road this fall. Developing real estate and launching businesses is nothing new for Zupancic, who has married entrepreneurship and law his entire career. Rathbone is a new comer to the entrepreneurial law model.

Stafford Hills marks her de but as a developer and investor and sets the stage for the firmto recruit like-minded attorneys to the firm.

Zupancic began working on the Stafford Hills project more than three years ago when he secured the 16-acre site near Legacy Meridian Park Hospital. He initially contemplated building condominiums and jokes that, it was better to be lucky than smart, a reference to the collapse in demand for condominiums.

The inspiration for a tenniscentered project struck when his wife returned froma tennis match complaining about the “lousy” facility.

Avid tennis players, the Zupancics confirmed a shortage of high-quality courts in Portland. There have been no new indoor facilities constructed in 35 years with the exception of courts added at Sunset Athletic Club prior to the recession.

TennisPortland.com lists 14 public and private tennis clubs offering a total of 110 courts in the metro area. Zupancic’s research identifies about 70 indoor club courts.

While supply stalled, demand soared as baby boomers discovered the fitness and social aspects of tennis.

The number of active tennis players in the U.S. increased 25 percent to 3.1 million between 2003 and 2009, according to Taylor Research and Consulting Group Inc., a Portsmouth, N.H., firm that conducts an annual survey for the United States Tennis Association and the Tennis Industry Association. Despite growing demand for court time, Zupancic and Rathbone said the club needed other features to attract dues-paying members.

The club will include a 25- yard pool, fitness facilities, conference rooms, a poolside cafe and social groups catering to member interests.

Therapeutic Associates, a Seattle-based physical therapy firm with numerous clinics in Portland, will move its Tualatin clinic to the club.

Steve Anderson, president of Therapeutic Associates, also is an equity investor. Anderson said the club’s marriage of health and wellness aligned with his own mission.

“It’s just a fabulous idea for a facility. As physical therapists, it’s near and dear to our hearts,” he said. The market research paid off when Zupancic approached lenders, said Ken Griggs, president of Norris, Beggs & Simpson Financial Services.

Griggs, who arranged the permanent financing with Portland-based Standard Insurance Co., said Stafford Hills offered a compelling case.

“Outside of the Multnomah Athletic Club, there really isn’t an upscale tennisaquatics facility in Portland. Jim has been very thorough about his research,” Griggs said.

The project is fully permitted and is financed with 40 percent equity from Zupancic, Rathbone and a small group of supporters.

Umpqua Bank is providing the construction loan and Standard Insurance Co. will provide a $6.5 million permanent loan when the club opens. Other partners include Myhre Group Architects, Fabiano Designs, and contractor Todd Construction.

The project aims to earn a LEED Silver or higher designation from the U.S. Green Building Council. Green elements include restoring degraded wet lands, a rooftop solar system and electric vehicle charging stations.

Stafford Hills Club Details

Location: 5916 S.W.NybergLane, Tualatin
ProjectManager: MaggieCrepps
Budget: $18million
Employees when completed: 80
Expected members: About 5,000
Reservations: http://staffordhills.com
Fees for a full familymembership: $270monthly, plus initiation

Downloadable PDF

We are honored to be Ranked 16th Among Oregon’s 100 Fastest Growing Companies by the Portland Business Journal.  ”We credit our success to our great clients who put their trust in us to provide them with exceptional legal advice and positive results.” says Jim Zupancic. 

We were also ranked 5th in employee growth.  “Our dedicated staff have made these rankings possible and have allowed us to contribute to Oregon’s job growth in this challenging economy.”  says Coni Rathbone.

 POSTED: Tuesday, April 26, 2011 at 08:24 AM PT BY: Jim Zupancic and Neil Olsen

Jim Zupancic and Neil Olsen

TriMet’s Portland-Milwaukie light-rail project could cost $1.5 billion. Work is expected to involve the addition of 17 to 20 new light-rail vehicles, 10 new stations, 7.3 miles of new track and one new bridge across the Willamette River.

On the ground, though, these relatively abstract numbers have real effect. Armed with more than $200 million in property acquisition money, TriMet will acquire by agreement or condemnation more than 200 properties or parts of properties for the project’s right-of-way and other purposes. These acquisitions or takings will displace approximately 20 homeowners and more than 60 businesses.

The impact to property owners and businesses contrasts starkly against TriMet’s last light -rail project, which was built along Interstate 205. That project affected a few more homeowners, but only a handful of businesses. TriMet was able to work with the Oregon Department of Transportation and the Federal Highway Administration to take advantage of the existing I-205 right-of-way. This extension, however, requires TriMet to cut through a relatively dense, industrialized area as it works its way through inner Southeast Portland to Milwaukie.

With these numbers and impacts in mind, it is without question that the Portland­Milwaukie light-rail project is rolling forward. The Federal Transit Administration has approved what it calls a “mega project,” which has a total price tag greater than $1 billion. Armed with this approval, TriMet’s board of directors has authorized the transit agency to move forward with acquisition of property for the project, through condemnation if necessary. TriMet also has authority to begin project construction.

TriMet has wasted no time exercising this authority. It has formally hired construction contractors and acquired several properties, and is in the process of making offers on many more properties through its right-of-way agent, Universal Field Services. Based upon the “need date” – driven primarily by construction scheduling requirements – for each property, TriMet will continue acquiring or taking them through condemnation as necessary. It will start bridge construction this summer, start rail construction next winter, and is aiming to begin operations by September 2015.

As the project moves forward, and property acquisitions and takings continue, business owners will not only be wrestling with TriMet over the correct valuation of their real property, but also be facing fundamental challenges to the continued viability of their businesses. Though state and applicable federal laws allow for relatively small relocation reimbursements to certain businesses, they do not directly provide for compensation of loss in business value – the value, for example, of a business being in a certain location for the last 30 years.

In addition, property owners are facing a sustained downturn of historic proportions in the commercial real estate market. This market distortion will not only affect the ability of appraisers to find adequate comparable sales used to determine the fair market value

In addition, property owners are facing a sustained downturn of historic proportions in the commercial real estate market. This market distortion will not only affect the ability of appraisers to find adequate comparable sales used to determine the fair market value of real property, but in many cases will also impact what remains after a mortgage holder is satisfied from the condemnation proceeds.

If the property owner is sufficiently “under water” on the property, the condemnation proceeds may not even cover the outstanding mortgage. Combined with recession-worn balance sheets, some business owners will be lucky to get out in one piece, much less find and obtain financing for adequate replacement property in which to continue their business and provide jobs to their employees.

Not all is doom and gloom, however. Thanks to the framers and amenders of the United States and Oregon constitutions, property owners ultimately have the right to just compensation as determined by a jury of their peers. And, at least in the authors’ experiences, juries tend to understand what justice requires.

Jim Zupancic and Neil Olsen are eminent domain, real estate and land use attorneys with Zupancic Rathbone Law Group PC. Contact Jim at 503-941-9623 or jim@zupgroup.com. Contact Neil at 503-941-9622 or neil@zupgroup.com.