(The old Redmond skating rink is being replaced by a larger multi-use facility targeted for completion around Thanksgiving 2027 | Photo courtesy of Redmond Urban Renewal Agency)
When renovation efforts began on the SCP Hotel in 2017, “downtown Redmond was characterized by boarded-up windows, a ton of antique stores, and a tea shop with erratic hours,” said General Manager Tobias Colvin. “After 6pm or 7pm, it became a ghost town, with nothing to bring people into the area.”
It’s a very different scenario now, as Urban Renewal Program Manager Chuck Arnold can quantify, with downtown occupancy reaching a record 95 percent (as of May 2026) — up from three consecutive years of over 90 percent — and the opening of nine new businesses ranging from a screen print shop to a fitness gym, dog spa, and game room.
In addition, a mixed-use retail development project in the former Earth’s Art building at Fifth Street and Forest Avenue will house Handel’s Ice Cream, which has signed a ten-year lease in the existing 1,500-square-foot space for its third Oregon location. The lot is also expanding to feature two to three additional ground-floor units; a Mexican and Vietnamese restaurant have already committed to leases.
“Redmond has reached critical mass and is getting on the radar of companies scouting for new locations,” said Arnold. “It’s big enough, with a strong growth rate and well-documented successes.”
Natural Grocers Adds Redmond to Its 160 Locations
As an example, Arnold cites the building at 732 SW Sixth St., formerly occupied by JOANN fabric and craft store, which is being taken over by Natural Grocers. “The organic and natural grocery retailer is investing approximately $2 million into renovations, backed by a $500,000 forgivable grant from the Urban Renewal Agency,” he said. The 15,000-square-foot store is slated to open in the first or second quarter of 2027.
“In its 70-year history, Natural Grocers has very rarely closed any of its stores,” Arnold added. “It chooses new locations very thoughtfully and invests in them. In this case, the company is taking a shell of a 1970s building and setting it up for the next 50 years.”
Since the closure of Albertson’s a decade ago and the relocation of Grocery Outlet to the south side of town in 2021, “downtown has been a ‘food desert — with less square footage and more people shopping,” Arnold said.
Like other retailers, Natural Grocers was “just doing the numbers” or, in industry parlance, “looking at rooftops” in deciding that Redmond — which is growing at the rate of two to three new residents a day — “had reached the place where a new grocery store would work.”
Year-Round Ice Rink & Community Space Coming to Downtown
Sharing a block with the new 40,000-square-foot Redmond Library, a 5,000-square-foot multi-use facility is targeted for completion around Thanksgiving 2027. Featuring an ice rink during the winter months, it will be repurposed during the summer season as a park, event space, or roller rink, to be determined through the conceptual design process over the next few months. Occupying the old Redmond Police Department building, which will be demolished, the site consists of about an acre at the corner of Seventh Street and Deschutes Avenue.
As Arnold explained, the rink, in addition to having a shed roof and longer skating season, “will create active areas and a gathering space for families, and provide things for teens to do such as mini-golf, ping pong and gaming tables, markets, and movies. It represents a significant investment — estimated between $5 million and $6 million — that is being funded partially by property tax on new development within the urban renewal district itself.”
“The project aligns with urban renewal goals of having a year-round community space and will act as a catalyst for future development by drawing people downtown throughout the year.”
Working Toward Creation of a Complete Community
“The current urban development focus is on leveraging partnerships,” Arnold said. “Our team is constantly putting the word out there and talking to investors, trying to meet them with projects and incentives, and emphasizing our willingness to partner.”
He continued: “The goal is to expand the number of opportunities and places to gather as a community and enjoy our downtown — which increases the chances that businesses located there will be successful.”
“The City feels really strongly about the importance of working toward creation of a complete community that serves and represents the people who live here, and which they can be proud of,” Arnold said. “Our policymakers and the community want to grow smart, and do so with thoughtful engagement. As a result, we continue to evolve and are well on our way to being the best we can be.”
