The Owens II is a 50-unit complex planned next to the Owens-Adair Apartments near downtown.

The Northwest Oregon Housing Authority has received a green light from the city to proceed with affordable housing at 16th and Exchange streets in Astoria, but an appeal from neighboring property owners will further delay the project.

The debate over the Owens II, a 50-unit apartment complex for low-income seniors and people with disabilities next to the Owens-Adair, has stretched on for two years. After the project received design approval from the Historic Landmarks Commission and the City Council turned down an appeal from neighbors, the housing authority and the city have gone back-and-forth over the issuance of a grading and erosion control permit.

In January, the city denied the housing authority’s permit, arguing that the site sits at the toe of a historic landslide and that excavation — especially steep cuts needed for construction of a subgrade basement for parking — would destabilize the hillside.

The housing authority appealed that decision to the Planning Commission, which unanimously rejected the appeal in March.

Rather than continue the appeal process to the City Council and the state’s Land Use Board of Appeals, the housing authority embarked on a significant redesign of the project, including, most notably, replacing the subgrade parking garage with a utility basement requiring minimal excavation.

The redesigned project satisfied the city’s demands, and the housing authority, after signing a memorandum of understanding with the city in April, was issued a grading and erosion control permit in July.

The redesigned building no longer has a designated parking garage — in line with Gov. Tina Kotek’s comprehensive housing package, which allows developers of affordable housing projects to request adjustments to code requirements on issues such as parking.

“What the state has recognized is that housing is a critical resource, and sometimes parking can be an issue going forward with a project,” City Manager Scott Spence said in April.

However, last week, Brian and Margarita Colonna appealed the city’s decision on the permit, arguing that the redesigned project still does not adequately minimize the risk of landslides and damage to neighboring properties.

The Colonnas own the historic Capt. John Merriam residence and have been vocal opponents of the project. The couple, along with Bob and Cindy Magie, appealed a decision by the Historic Landmarks Commission in 2023 to approve design plans for the project.

That appeal was rejected by the City Council in a 3-2 vote.

“We’re not getting any kind of meeting of the minds here on how our properties would be protected in a development this size,” Brian Colonna told The Astorian.

The Colonnas’ appeal will be heard by the Planning Commission on Aug. 27.

Hsu-Feng Andy Shaw, the executive director of the housing authority, said he is optimistic the Planning Commission will agree with the city’s ruling that the project is safe.

“In reading the city’s final decision, we basically met all the criteria,” Shaw said. “So I am hopeful that the planning commissioners will see that we’ve done our due diligence and homework, in meeting what the city asked us to do.”