Eugene Riverfront Redevelopment Paused, Prevailing Wage Ruling Stalls Projects
A Nov. 18, 2025 report by the Oregon Journalism Project republished on Lookout explains redevelopment of former EWEB riverfront parcels in Eugene has largely stopped after the Oregon Bureau of Labor and Industries determined privately funded portions of the project are subject to prevailing wage rules tied to public infrastructure investments. The decision threatens thousands of planned housing units, could raise construction costs by an estimated 10 to 20 percent, and has immediate consequences for Lane County housing supply and local development plans.
Redevelopment activity on the former EWEB riverfront parcels in Eugene largely halted after the Oregon Bureau of Labor and Industries issued a determination that privately funded portions of the project may be subject to prevailing wage requirements because they are connected to public infrastructure investments. The ruling, described in a Nov. 18, 2025 report by the Oregon Journalism Project republished on Lookout, prompted developers to pause work and seek clarification from BOLI.
Developers and their attorney have argued that BOLI's interpretation treats the entire effort as reliant on public funds, effectively expanding prevailing wage obligations beyond the portions that are publicly financed. They contend that prevailing wage rules could add 10 to 20 percent to total construction costs, a level of increase they say would render privately funded housing infeasible in the current rental market. The projects on the riverfront were expected to produce thousands of new housing units that local officials hoped would help alleviate supply pressures in Eugene and across Lane County.
The central dispute concerns whether BOLI should issue a split determination that separates clearly public infrastructure work from purely private construction. Local developers seek such a split determination to confine prevailing wage obligations to the publicly financed portions. BOLI said it is reviewing a reconsideration request, leaving the projects in limbo while regulators and private partners weigh legal interpretations and cost implications.
City officials have expressed concern about the delays and the potential loss of housing capacity in Eugene. With the parcels seen as one of the larger opportunities for new development along the Willamette River, a pause could slow the pace of housing delivery at a time when many residents face tight rental markets. Developers warn that the additional labor cost burden will be difficult to absorb given current rent levels and financing conditions, and that some proposals may be abandoned if the ruling stands as written.
Beyond Lane County, the case carries statewide implications for public private partnerships and mixed finance projects that combine public infrastructure work with private development. If BOLI's approach becomes the norm, other projects across Oregon that rely on public infrastructure investments could face similar reclassification and cost pressures, potentially chilling private investment in housing tied to public improvements.
For now, the timeline hinges on BOLI's review of the reconsideration request and any subsequent legal or administrative appeals. The outcome will shape whether privately financed parcels can proceed without prevailing wage requirements, or whether the projects must be restructured or delayed, with direct effects on housing supply and development economics in Eugene and throughout the state.
