Interstate Corridor

Portland Development Commission
Interstate Corridor Urban Renewal Area

Advisory Committee Meeting
October 20, 2003
6:30 PM – 8:30 PM
Mississippi Rising Ballroom – 4000 North Mississippi Avenue

Meeting Summary

Committee Members: Lenny Anderson, Pam Arden, Pauline Bradford, Maxine Fitzpatrick, Warren Fluker, Kurt Haapala, Brad Halverson, Sheila Holden, Lisa Horne, Carol Jones-Williams, Mark Kirchmeier, Jerry Lindsay, Julie Metcalf-Kinney, Larry Mills, Kay Newell, Jennie Portis, Betsy Radigan, Walter Valenta

Other Interested Parties: Edward Blum, Jonath Colon, Jillian Detweiler, Jon Joseph, Judi Pitre, Brian Rohter, Sarah Stevenson, Margaret Van Vliet, Bruce Watts, Tuck Wilson

PDC & City Staff Members: Larry Brown, Lois Cortell, Leah Halstead, Carol Herzberg, Art Pearce, Colin Sears, Samantha Snyder

Welcome & Introduction:

Sheila Holden welcomed the committee members and attendees and introduced Lois Cortell as the new Development Manager of the Interstate Corridor Urban Renewal Area.

Public Comments & Announcements:

Margaret Van Vliet of the Housing Authority of Portland (HAP) introduced Judi Pitre and gave an update on the progress of the HAP Columbia Villa project. Relocation and other important work have been completed. Judi described relocation as the most daunting phase of the project so far. She reported that all 382 households have been moved, approximately 80% of them to Section 8 housing. Most families stayed in North/Northeast Portland, and 5 families moved east of Portland. She stressed that HAP did not want the Columbia Villa project to be like other HOPE VI projects and had hired four coordinators to work with all members of the relocated families.

Lenny Andersen commented on the series of workshops on I-5 Delta Park to Lombard Design being held during the week by the Oregon Department of Transportation (ODOT). He encouraged meeting attendees to go to one of the sessions or learn more about the project generally. He expressed concern over the removal of the bottleneck and the impact on the community. He said that he anticipated impacts on community livability and air quality and was under the impression that ODOT was not intending to complete an Environmental Impact Statement (EIS).

ICURA Quick Updates & Feedback

Lois summarized the new format for the meeting which consists of short staff and subcommittee updates on projects, issues and initiatives, followed by opportunities for feedback.

Housing

Killingsworth Block Project: Leah Halstead gave an update on the progress of the Killingsworth Block Project RFP selection process. The selection committee has met a number of times and has narrowed the five proposals down to a short list of three teams. They are seeking more information on the project timeline, mixed-use development, and the project budget. The selection committee is planning to work with the three teams over the next two months and hopes to have a selection made by the end of the year. Walter Valenta added that the RFP Selection Committee was learning a lot and involved in defining the direction of the selection. Leah said they would hope to present a team and a plan at the next ICURAC meeting in January of 2004.

Home 24 Program: Leah then gave an update on the Portland Housing Program, Home 24. This program allows potential home buyers to lock into the currently low interest rates and then gives them 24 months to work on their credit rating, savings, etc. With this program, many people who think buying a home is out of reach, may realize they are closer than they think.

Outreach: Leah passed out an Orientation Schedule that listed the dates and location where people can sign up for the Home 24 Program. She said that PDC was specifically targeting the Interstate Corridor and Lents Town Center Urban Renewal Areas.

Leah said PDC has done additional outreach on PDC homebuyer programs and urban renewal through workshops sponsored by Fidelity National Title as well as by meeting with realtors to make them aware of the various programs available to homebuyers.

She also gave an update on the Boise-Humboldt Home Repair Program which is working in cooperation with the Northeast Workforce Center. She said current home repair projects will likely exhaust the BHHRP budget for this year but that they are already working on next year. Home Repair Loan dollars are still available for other home repairs.

Leah also let the group know she is working with Lenny Anderson to introduce homebuyer programs and resources to workers on Swan Island. They are hoping to get a METRO grant to do outreach to workers encouraging them to live close to work, thereby limiting the number of workers who would have to commute by car and increasing workforce stability. They are looking for renters currently in the area who work on Swan Island and encouraging home ownership among this group. Leah stressed that PDC is not always the best community based organization for outreach of this type and asked meeting attendees to keep partnerships like the Swan Island model in mind and contact her with any ideas.

Redevelopment

Kenton Market Study: Lois announced that the Kenton Market Study was underway. The study is being performed by Steve Ferrarini and is examining the strengths, weaknesses, and barriers to development in the Kenton neighborhood. He is open to talking with citizens and property owners of Kenton, and they should feel free to contact him. Lois hopes to discuss a draft report at the January ICURAC meeting.

Predevelopment “DOS” Projects: Lois provided a handout showing the properties in the Interstate Urban Renewal Area that have taken part in the Development Opportunities (DOS) Program. She gave a basic description of the program and what it offers to property and business owners. Walter said that the list of grant recipients shows what development is in “the pipeline” for the area. Lois emphasized that the program is often a foot in the door for property owners who then take advantage of other PDC programs such as the Storefront Improvement Program or Business Loans. Walter explained that the program is especially helpful for first-time developers and the assistance can be as “hands-on” or “hands-off” as the participant requires. Lois mentioned that there is a presentation PDC staff gives at neighborhood and business association meetings on a regular basis and encouraged meeting attendees who participate in those associations to schedule a time if they thought it would be helpful.

Website: Lois also addressed the Interstate Corridor Urban Renewal Area website. She and other PDC staff are working to get the website up-to-date and post useful information and meeting minutes. She thanked the members for bringing the problem to our attention.

Project Mapping: Lois then presented the preliminary project map for the area. She indicated that one goal for the project map is to show where significant investment has and has not been made in the area as a tool for future strategic implementation planning. Another goal is simply better communication of activities. The map is going to show taxlots that have received public funding as well as areas where transportation improvements, streetscape improvements, and/or various studies were conducted. There was a recommendation for the legend to distinguish project types and funding sources.

Community Livability

Carol Herzberg introduced herself and expressed her excitement about working in the Interstate Urban Renewal Area. She explained that the Community Livability Budget had been divided among three specific projects: Parks, the Interstate Firehouse Cultural Center, and the Historic Home Painting Project.

Parks Projects & Activities Update: Carol mentioned that Betsy Radigan had recently mailed out the Interstate Parks Needs Assessment which had identified the highest priority improvements needed in the parks within the area. Victoria West will be the staff person at Portland Parks & Recreation assigned to the projects. Carol reminded attendees that tours of all the parks are currently underway and invited anyone who might be interested to join in them. PDC and Parks are finalizing the scope of work and will enter into an IGA shortly. Carol thanked Betsy and the Parks subcommittee members for their help and hard work and asked if they wanted to add anything.

Historic Home Paint Project: PDC is also negotiating a grant funding agreement with the Northeast Workforce Center on the historic home painting project which would provide free painting services to low income residents in historic homes. The Northeast Workforce Center would be doing the work and the Bosco-Milligan Foundation is identifying the historic homes. She encouraged meeting attendees to spread the word and said Cathy would provide more information at the next meeting.

IFCC: The Interstate Firehouse Cultural Center has received bids on painting, brick work, and plaques. The grant they have received is meant to build upon the Storefront Improvement grant already in progress.

Lenny Anderson also mentioned that he has been speaking with the Bureau of Environmental Services regarding a series of trail opportunities on Swan Island, especially near the lagoon. Some of these opportunities were identified in the Parks Needs Assessment.

Economic Development

Business Retention & Recruitment Activities: Colin Sears gave an update on a project on Swan Island. Kroger Swan Island Dairy is remaining on Swan Island and retaining 81 jobs and adding approximately 20 new jobs, most of which will be unionized positions. They are using the Enterprise Zone tax abatement program managed by PDC as they modernize and expand the dairy. The project is expected to be finished by Christmas.

Storefront Improvement Program: The Storefront Improvement Program was allocated $200,000 for Fiscal Year 2003-04, $100,000 of which was designated for use only on Interstate Avenue. To date, $136,000 has been encumbered; the money available off Interstate is completely committed, with $64,000 available on Interstate. This money was slated to become available to the entire Urban Renewal Area on November 1st.

Sheila asked Bruce Watts from Tri-Met if there had been any joint outreach done to the business on Interstate Avenue. Bruce replied that there had been and that Claudia Steinberg was the staff person specifically assigned to outreach. Larry Mills suggested bringing the program up at the Interstate Avenue Business Association meeting. Warren Fluker motioned that the money designated for business along Interstate be extended until March, 2004. Mark Kirchmeier seconded Warren’s motion. Julie Metcalf-Kinney proposed adding Denver Avenue to the designated area. There was confusion expressed regarding whether the business’ address had to be on Interstate Avenue or if the property only had to abut Interstate Avenue. Sheila summarized the committee’s concerns: what outreach had been done/needed to be done, what opportunities would exist if the money continued to be designated past the established deadline, and what were the criteria a property had to meet in order to qualify for the “on Interstate” money. Because a consensus had been reached to extend the deadline generally, it was suggested that the Economic Development Subcommittee make a final decision on the specifics of the deadline and resolve the issue of site location. Lois suggested that the Storefront manager provide information on the non-Interstate businesses that would be impacted by the recommendation.

Transportation

Small Projects List: Art Pearce of PDOT explained that the Transportation Subcommittee was preparing their small projects list for Fiscal Year 2004-05 and was holding an open house on December 4th to discuss the list. Small projects are defined as those costing less than $35,000. The subcommittee is planning on updating their current list and researching new projects. Art asked for suggestions of groups or associations who would be interested in contributing to this list.

Russell Streetscape Plan: The Russell Streetscape Plan will be presented to Portland City Council on November 19th at 9:30 AM. Interested ICURAC members were encouraged to attend. The plan includes sidewalk improvements on Russell between Williams and Interstate. The effort is focused around creating a historically appropriate streetscape.

Killingsworth Streetscape Plan: The Killingsworth Streetscape Plan was presented to and approved by City Council on August 7th. Art reported that the project is gaining momentum and they are trying to secure money for the project. ICURAC help has been invaluable to date.

Brad Halverson suggested a project involving the I-5 soundwall. Lenny Anderson suggested a project involving redesigning Failing Street. There was an update on the City Repair Project.

Proposed New Seasons Store at North Interstate & Portland Blvd., Brian Rohter

Brian Rohter introduced himself as the president of New Seasons Market. He spoke of New Seasons interest in opening a new store at the corner of North Interstate and Portland Boulevard. New Seasons signed a lease with the property owners on September 1st and the project is moving forward.

The first pre-application meeting went very well and there is an obviously high demand for a grocery store in the area. The project is somewhat complicated by zoning issues with three different residential zonings on the project. This needs to be rezoned to commercial to accommodate New Seasons. Because of the city’s No Net Loss policy, New Seasons must locate an equivalent number of new housing units (approximately 40) to make up for the ones lost if the site is rezoned, whether on paper or otherwise. The first pre-application meeting went very well. New Seasons is hoping to do a swap with the Killingsworth Block or other sites in order to make up the lost housing units from the zone change.

Locating the store on the site has also proven to be complicated. The store building will be approximately 61,000 square feet comprising two levels. New Seasons would like to locate the building on the southern portion of the site. Parking would be accessible from Portland Blvd. and Interstate Avenue. PDOT has expressed that they would like a retail presence on the corner of Portland and Interstate. There have been suggestions to put a retail pad or some kind of corner treatment in at the corner. Some of these suggestions may be acceptable to all parties. Neither pedestal nor underground parking was found to be financially feasible. Lenny Anderson thought it would be useful to see if METRO had a TOD grant that might make more options available.

A number of ICURAC members had questions. Brian explained that 140 jobs would be created by opening the grocery store and he explained New Seasons’ benefits policy. When asked about the timing, Brian said ideally zoning would be complete in the next 7 months, permitting would take 4 months and it would take approximately 8-9 months to construct the building.

Brian listed his contact information: 503.292.1987 x101 or e-mail and encouraged feedback from the group.

Tri-Met Update, Bruce Watts

Bruce began by speaking about the fact that the Interstate MAX construction is ahead of schedule and under budget. There is a significant amount of money left in the project budget, 72.5% of which must be returned to the federal government if not spent. Although additional projects can be funded, they must be ones that were included in the original scope of work. He said there would be a process of citizen involvement to identify ways to utilize the extra money and introduced Jillian Detweiler.

Jillian Detweiler spoke more to the specifics of the project budget. The project currently is $25 million under budget. However, $20.1 million is slated to go back to the federal government. Tri-Met would receive $2.75 million and $2.15 million would go back to the City of Portland. Jillian expressed that the savings was not due to over estimation when planning the project or by cutting corners on construction and implementation. A large portion of the savings came from cutting 10 rail cars out of the project and putting them into the contingency plan. In order to buy additional cars, congressional approval will be necessary. The use of the remaining funds is constrained by the contents of the Full Funding Grant Agreement. Possible areas of spending are: cameras on all platforms, station area development, safety, operations reliability and efficiency (i.e. when the MAX is extended to Vancouver, slowness on the Steel Bridge). There will be a meeting of the Citizens Advisory Committee in January to discuss possible uses.

Jon Joseph is the Tri-Met staff person in charge of coordinating the grand opening of the new MAX line. The goal is to involve a number of different people and Tri-Met is interested in what the community would like to see in the celebration. Tri-Met is planning on using a series of posters similar to the “See Where it Takes You” campaign. These will highlight the art at the station platforms, the trees at the Rose Quarter station, the mosaic at the Lombard station, the Japanese gates at the Expo station, the bronze vines, and totem poles. The goal is to recognize three key areas. The first is an environmental event. Tri-Met is hoping to organize a beautification event on April 24th, shortly after Earth Day and soon before the IMAX opening on May 1st. The second is a celebration dinner/party recognizing the disadvantaged business enterprises which will take place approximately two weeks prior to opening. The third is an event highlighting the art along the alignment, also taking place approximately two weeks prior to opening. There are plans to have an opportunity to meet the IMAX artists at their respective stops followed by a gathering at IFCC. In addition, the Oregon Road Runners are hoping to coordinate a half marathon with the opening of the IMAX. Tri-Met has suggested collaboration with the African American Health Coalition to plan a run/walk/stride event.

On May 1st, the train will run starting at the Expo stop and heading south, picking up VIPs at each stop and ending at the Rose Quarter for the ribbon cutting ceremony. Free service will continue on opening day with community events at the Albina/Russell, Overlook, Lombard, Kenton, and Expo stations.

Brad Halverson posed the question of what would happen to the local match funds if the federal government reclaimed their portion. Jillian said the funds have to be spent or returned in the same ratio as they came in, and that the CAC would be reconvened.

Lenny Anderson proposed extending the grand opening to include free service on Monday so workers in the area could celebrate too.

Larry Mills asked if right of way and infrastructure improvements in the station areas could be eligible for funding from the budget surplus. Jillian answered that within 1100 feet of the station, these types of improvements could be covered in the savings.

A suggestion was made that the dignitaries should be from the community and the grand opening should be held somewhere along the line and not at the Rose Quarter.

Warren suggested that some of the budget surplus could be used for a public health study, lighting, or an environmental assessment. Jillian answered that lighting would certainly be eligible for funding and that specifics will go to the Citizens Advisory Committee, the appropriate forum to secure the details of how the extra funds should be used. There was general agreement to return as little money to the FTA as possible. The co-chairs pointed out that the majority of the LRT CAC members were also ICURAC members o their interests are represented. There is no rush on this, Westside savings took many years to spend.

Lisa Horne stressed that the local portion of the money should not be returned to the City’s General Fund and there was a consensus that a letter should be sent to Tri-Met, the City, and the Citizens Advisory Committee instructing that the funds be returned to PDC for the Interstate Urban Renewal Area.

New Columbia/HOPE VI Project Update

Sheila began by explaining the MOU (agreement between the Alliance and HAP) with HAP establishes a monitoring agreement to ensure a local benefit for business and residents. The official agreement is still being negotiated, and a counter proposal from HAP is being reviewed. The importance of effective and credible monitoring was emphasized. The Alliance intends on working with HAP on projects and bids to insure minority and local businesses and residents. Sheila mentioned that HAP had done a good job at encouraging small business participation on the deconstruction portion of the project. She expressed hope that the agreement would be signed by the next ICURAC meeting in January. Maxine Fitzpatrick volunteered to represent the ICURAC at the next negotiation.

Larry Mills asked if the money contributed from TIF funds was to remain the same. Sheila answered that the contribution from the Urban Renewal Area is not changing and the only amount that hasn’t been determined is how much will be paid for the monitoring. HAP has agreed to work with the Alliance to decide how much the consulting fee will be. Brad Halverson asked if HAP would return to the City to ask for more money if the fee was higher than expected. Margaret answered that HAP would find other ways to fill the gap.

The co-chairs update on New Columbia was ended and public comments were invited.

There was a brief update given by HAP on the progress of their bidding process. Bidding for a $17 million infrastructure construction contract is set to close in mid November. HAP passed out information about a bid to construct 92 off site replacement units. Larry understood that contracts went to developers who could afford to construct on 15-20 lots and was wondering about how smaller developers could be involved. HAP clarified that a minimum of 7 lots could be purchased, but there was an opportunity for partnering/mentoring. This RFP was scheduled to be released on October 23.

Sheila commented that the Alliance knows there are major issues that need to be resolved regarding the process. HAP has responded to some of these issues, but the bid process itself is the problem and it needs to be addressed at the start of the process. The information being passed out had not been reviewed yet for accuracy.

Larry pointed out that there is often a disadvantage to small businesses that don’t have the time to insure compliance with the stated regulations. Sheila responded that the Alliance helped to design the bid packages, especially on the architectural piece and made sure the packages were sized appropriately so that local small business could participate.

HAP is holding a pre-bid conference on October 23rd and 24th for the infrastructure bid which will provide time for adjustments and clarifications.

Sheila thanked the attendees of the meeting and the meeting was adjourned.

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