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COSTA PACIFIC FINALIZES AGREEMENT WITH STATE FOR VILLEBOIS

Developer Moves Corporate Offices to Site of Former State Hospital

WILSONVILLE, Ore. - After several months of negotiations, Costa Pacific Communities officially entered into a Purchase and Sale Agreement on June 24th with the Oregon Department of Administrative Services for the site of the former Dammasch State Hospital in Wilsonville. Costa Pacific Communities, co-developer of Orenco Station in Hillsboro, was selected last October after a nationwide search, and will purchase the property for $15,850,000. The initial sale includes 198 acres, with ten of those acres retained by the Department of Mental Health Services for housing.

Costa Pacific is most widely known for co-developing the nationally renowned Orenco Station community in Hillsboro. After a nationwide search the company was recently selected to develop 500+ acres at the site of the Dammasch State Hospital in Wilsonville. The planning and architecture of this new community, named Villebois, will be inspired by the charming hillside villages of Europe.

"Our vision for the property is a European village of compact urban form," said Rudy A. Kadlub, Chief Executive Officer for Costa Pacific Communities. "We look forward to creating the next generation of good urban development." Costa Pacific will move its corporate headquarters to the site in the former state hospital administrative offices on July 1.

Costa Pacific has drawn on the area's rich French Prairie history to name the new community Villebois, which means 'village near the woods'. According to Kadlub, Villebois will be transit-oriented with connections to the proposed Westside commuter rail, have a mix of uses including neighborhood retail, and a variety of single-family and multi-family housing options.

The second in a series of informal community outreach meetings for residents was held last night at the Villebois site on June 24th. Kadlub and his team unveiled a preliminary conceptual plan, and addressed issues raised by residents at the first outreach meeting held on May 13th, which included topics ranging from design and housing types to open space and traffic. The next community outreach meeting is scheduled for July 29th at 7:00 p.m. at the site.

The planning process for Villebois will be in three phases:

• Until September, 2002, public input and market research leading to the preparation of a master plan

• September, 2002 to February, 2003 will be the master plan refinement stage

• The final planning phase will be from February, 2003 until June, 2003 and includes the master plan formal review and approval

Groundbreaking for Villebois will follow approvals by the City, which is targeted for June, 2003.



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