When Pahlisch Homes first proposed the Petrosa development to the city of Bend in 2020, it sold its plan as a walkable community on the northeast side of Bend. There would be multi-family homes, parks, an elementary school — and a commercially zoned property set aside for a local market.

But last October, Pahlisch listed the Petrosa commercial area for sale, prompting questions from Petrosa residents. Would Kevin and Linda Spencer and Jerry and Jeannette Freund, who purchased the 16.1 acre property for $8 million, according to Compass Commercial Real Estate Services who brokered the sale, stay faithful to Pahlisch’s original vision?

“I feel as though the community has been given the bait-and-switch,” said Bend resident Derek Smith. “Living in the neighborhood across the street, we had been excited to hear that there would be a community market and potentially other amenities. We are now disappointed that it appears that plan is in serious jeopardy.”

Pahlisch tells a different story, insisting that selling the commercially zoned property was always the plan.

“The plan for the Petrosa CG (commercial) parcels was always to partner with a reputable and experienced commercial developer,” said Jessica Seidel, marketing senior director with Pahlisch. “The search took longer than we had hoped due to changing market conditions, but we believe we have found the right partner and look forward to seeing the land put to its highest and best use.” Karen Swenson, a senior planner with the city of Bend, said the sale changes nothing from the city’s perspective about how Petrosa will get developed. It might be a comfort to residents, she explained, that along with the sale, the new property owners also inherited any commitments Pahlisch made to the city.

“We always know there’s a possibility that the master developer may no longer be there,” Swenson said. “But that’s why those (master plan) standards are so important because that will apply no matter who is developing the property.”

At the center of those standards is determining what the commercially zoned lot can be used for. As an example, Swenson explained that the new developers wouldn’t be able to build a lot full of drive-thrus or a giant Costco because the master plan limits the types of businesses that can operate there and the amount of traffic flowing through the area.

Put simply, the city — and Pahlisch — place safeguards into the Petrosa master plan that would prohibit any new developer from drastically changing the vision of what amenities will be available to Petrosa residents, Swenson said.

That doesn’t mean the new owners aren’t able to ask the city to amend those regulations, said Swenson, but any amendment to the master plan would need to be approved by city planners and Bend City Council.

“Pahlisch Homes’ vision for Petrosa has always been centered on creating a complete community with intentional places where neighbors can gather as friends — a place with paths, parks, and

amenities that add to a fulfilling life for residents,” said Seidel.

Residents within the Petrosa development will be kept up to date on the progress made by the new commercial developers, Seidel said.

The new owners did not respond to The Bulletin’s request for comment.