Starbucks proposed at Madras gateway property

Published 3:00 pm Thursday, March 25, 2021

The gateway to Madras could soon become a Starbucks coffee shop.

Ertle Development Partners, an Arizona-based development company, submitted a proposal to build a 2,000-square-foot Starbucks with a patio and drive-thru on the vacant “South Y” gateway, where vehicles traveling north on U.S. Highway 97 enter a split into a one-way street through downtown Madras.

Jake Ertle, who runs the company with his father, Rusty, said the plan needs to be negotiated with Jefferson County, which bought the property from the Oregon Department of Transportation for $205,629 with the intent to sell the space for immediate development.

The development company’s proposal is to buy the property for $210,000 and complete the coffee shop within 16 months. A second phase would include building a 3,375-square-foot retail building for a brewery or restaurant.

Madras has a Starbucks inside Safeway on the north end of the city, but no free-standing location with a drive-thru. Starbucks estimates about 150,000 customers would visit the new location each year, according to the development proposal.

Ertle said he expects to reach a sales agreement with the county by next week.

“I would like to see this get going sooner rather than later,” Ertle said Thursday. “I wanted to start a year ago.”

Ertle has experience developing properties in Central Oregon. His company is building a Starbucks in the former Platypus Pub location on Third Street in Bend. And the company built the Redmond Town Center at the corner of U.S. Highway 97 and Veterans Way.

The visibility of the Madras property as a southern gateway along Highway 97 drew Ertle to the property, he said. The 38,000-square-foot property, which includes a 2,000-square-foot building, is the first sight of the city from the south for more than 15,000 travelers each day, according to city data.

The site at 813 SW Highway 97 has been vacant for about six years since ODOT used the property for a highway realignment project. Before ODOT owned the property, it was an administration office for the Crooked River National Grassland.

“I think it’s an excellent piece of property,” Ertle said. “It’s arguably the best piece of property that is left in Madras. From a real estate perspective, it checks a lot of boxes that developers look for.”

Kelly Simmelink, Jefferson County commissioner, said he was disappointed the county did not receive any other proposals for the “South Y” property when it put out a request earlier this year.

But he is excited to work with a developer that plans to build immediately and not leave the property empty.

“To me, it is just a wonderful location,” Simmelink said. “I think it has a lot of potential with the current person that has put in a request.”

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