Interstate Corridor

Interstate Corridor Urban Renewal Area Advisory Committee Meeting
OAME – 4134 N. Vancouver

MEETING NOTES
January 26, 2004 at 6:30 pm – 9:30 pm

Welcome & Introduction

Co-Chair Walter Valenta welcomed everyone and said tonight had a strong priorities theme. He encouraged public input.

Public Comments & Announcements

Lisa Horne introduced Scott Jensen from The Community Association of Portsmouth as a new ICURAC member (replacing Elizabeth Humphrey).

ICURA Quick Updates & Feedback

Economic Development: A handout memo was distributed. Colin Sears gave an update on Storefront and the feedback received in December to save funds for Interstate with the exception of a minor amount for a Killingsworth project with bids in. On finance, a total of $481,000 has been loaned to businesses in the Interstate, leaving $14,000 remaining this fiscal year.

Redevelopment: DOS projects Lois Cortell presented a redevelopment update noting that there are 16 open DOS pre-development grant project, and another 7 applications in. A list was distributed. She said there is still money available though and encouraged applications. Mark Kirchmeier asked if there were any timing restrictions. Lois said clients just need to get the application in and we’ll work with you. On the Kenton Study, a draft study will be available in a couple of weeks. A summary was distributed. Carol Herzberg is coordinating and initiating outreach shortly; interested parties should sign up. The market study might suggest why some areas are improving more quickly than Kenton. It should also help direct funding ideas for redevelopment in FY 04-05. Larry Mills expressed enthusiasm to see the study.

Community Livability: Carol said the Parks IGA is moving forward and there is a project list in the meeting packets: Trenton Park will replace playground equipment – there is a slight delay because there hope that Parks levy funds will match TIF; others are Bridgeton Trail research; Humboldt Greenspace at Albina and Prescott; lighting in the parks; Overlook & Kenton would like to improve the playground equipment. Betsy Radigan commented that there was a very smooth transition of the new park staff and the new PDC staff. She went on to say that the Park Bureau did commit to two things: 1) Ongoing committee meeting process. They meet the third Thursday of the month at the Kenton Firehouse. 2) Working with the committee. All nine committee members re-upped for another year

Ms. Radigan said they have three main goals: Improve existing parks – none of the parks are in working order and some are bare land; build trail connections; acquire land. There are 40 high priority projects to bring parks up a notch. Ten projects represent work to be started on immediately. Mr. Valenta commented that we need to determine if we need to fund the park studies, then fund one improvement at a time or if we should fund one study, then the improvement.

As was in the Bulletin, the Historic Home Paint Project is underway through agreement with Jennie Portis; she asked Cathy Galbraith to comment. There was a handout distributed. Ms. Galbraith said the NE Workforce will take applications in three different pools: 1) Designated city landmarks, 2) Properties on the City’s list of potential historic properties, 3) Property identified as architecturally historic. Cornerstones and other resources are used. Ms. Galbraith said that the address is what makes a property eligible and they still need now to identify homeowners who are really in need for the painting project.

Lenny Anderson asked if there is an upper limit. Ms. Portis said this contract is up to a little over $4,000 per house, trying to get about 8 houses chosen and completed over the next year or so. The project allows a pilot opportunity to test how it works and get kinks out of the process. Ms. Portis said there has been a lot of interest in this project and she will keep everyone informed of the progress.

Transportation: Art Pearce at PDOT said the Transportation Sub-Committee will meet before the 25th. Traffic calming projects are moving forward; at the December open house there was good involvement.

A handout was distributed on the Killingsworth project. Art said there was exciting news on the Killingsworth Streetscape Plan – that PDOT had heard the push to find money and move on the Plan (street and sidewalk improvements, lights) at council and is willing to put in $500,000 to augment. If ICURA invests more, the plan could get all the way from Commercial west to the IMAX station. Ms. Radigan asked what happened at Metro with NMTP funds. This is a backup project if any of the other projects don’t come through but it isn’t likely. PDOT will reapply to NMTP for the second phase of Killingsworth from Commercial east to MLK Jr. Blvd.

Kurt Haapala said the Humboldt N.A. is clearly very supportive of the project getting funded. The ability to leverage the huge PCC investment will transform the entire streetscape. It will make Killingsworth a real lifeline to Interstate. Carl Flipper seconded that. Kay Newell commented that this is an extremely important project and a great use of leverage, a key strategy goal.

Larry Mills expressed frustration that Killingsworth Streetscape is being considered for funding before Denver. Lois Cortell noted that Killingsworth consistently comes up as a priority, cross cutting many strategies and goals. There will soon be a budget presentation, with time for questions and input, and input will continue in February. Mr. Anderson said the Transportation Committee put all the FY 03-04 design money into Killingsworth to get it going. Mr. Haapala asked if we could talk about this again in a month.

Housing: Home buyer assistance is available. Humboldt Home Repair already has applications enough to exhaust the current budget. There was a handout for the project. Leah Halstead announced PDC had selected a project called “Killingsworth Station” for development on the Killingsworth Block with a development team comprised of KemperCo LLC, Peninsula Community Development Corporation, and Innovative Housing Inc. Leah stated the project was recommended by a selection committee made of up community members, including members of the ICURAC which went through a long, hard process to come to a final recommendation.. Lisa Horne of Peninsula CDC introduced her teammates, Tom Kemper with KemperCo, LLC and Sarah Stevenson of Innovative Housing Inc. Mr. Kemper described the project and gave an overview of the initial design plan. He said there will be a lot of housing, significant architecture and provide homeowner opportunities and shop owner opportunities. They are proposing a five-story building with the top four stories consisting of affordable rental housing over one story of retail. There will also be a seven unit row house development on Maryland, a six story loft condominium project and a two-level parking lot. The rental building will target singles and small families. The loft building will use a good amount of glass and create ownership opportunities. Tom said they would like to sell for an average of $125,000 for a 630 square foot unit. They’re trying to keep the dollars down so units are affordable. There seven townhomes will be 1,300-1,400 square feet with three bedrooms. There was a question about how to design around TriMet’s substation. Mr. Kemper agreed it was important and said they will try to get the air rights over TriMet. They would also like to create a large sign that reads “Go by MAX”.

Maxine Fitzpatrick asked why the unit count was so high in comparison to the Station Area Strategy. Doug Hartman said there was a very heavy housing priority on the committee; also that they were confined by the dollars and cents of making it work. Mr. Hartman responded that we had to get the density to make the dollars work.

Ms. Holden asked exactly what the purpose of the committee was. Mr. Hartman said it was to determine guidelines and policies, and determine how we prioritize needs to do the project right and set high standards for the community. Ms. Fitzpatrick asked how the project addresses the needs of today’s North Portland residents and requested a market study. Co-Chair Walter Valenta said they tried to make every single group happy, including the Overlook neighborhood.

Ms. Fitzpatrick expressed frustration about working on the Station Area Strategy for so long, that there was a perception its recommendations were ignored. Leah said we received five very good proposals, it was not an easy choice; she confirmed the strategy was used as guide. Ms. Holden expressed concern that the project should address displacement. Leah said they will be looking into how the project can best do that.

Ms. Holden asked if there were any requirements to notify the committee when the scope of work changes. Leah said they received guidance from the urban renewal plan and various strategies. She also stated that the selection was constrained by proposals with 9% low income housing tax credits which could be delayed three or four years; the committee and staff wanted to see the development built in the next two years. PDC is moving forward into negotiations, but remember that the K-Block will be in front of them again.

Alan Holzapfel asked what the parcel is zoned: CG to the south and RH to the north. It may all have to be changed to RH. Brad Halverson asked Mr. Kemper how he was planning to pay for parking, he answered that the rental portion will pay for parking. The ownership will not. Parking is the most difficult part of the project. Ms. Newell said thanks for putting retail on the main floor to keep the housing alive.

Mr. Mills commented that $600 per month for a studio doesn’t seem out of line and the size of the units reflects demographics going on today. He thought the size too reflected the demographics. Cathy Galbraith said no matter what the opinions are this is a large project and the input of the ICURAC is very important. Mr. Anderson asked if there is a relationship between the price and the number of units. Mr. Kemper replied that the cost should go down with more units because it lowers the land cost.

Ms. Fitzpatrick commented that it seemed there is a gap between minorities and that residents shouldn’t be disregarded. The Co-Chair acknowledged the very important points being raised. Mr. Kemper said they are just starting the process and will be back many times to discuss and show progress. They are exploring incentives for low income residents and down payment assistance. Ms. Portis suggested that there should be procedures for RFPs that allow better communication back to the group. Leah Halstead responded that we always welcome input, invited people to call her, that they will be back to discuss this with the community. Ms. Holden agreed with determining how to communicate potential changes and criteria back to the committee.

ICURA FY 04/05 Budget Outreach. Lois introduced Nancy McClain, Chief Financial Officer of PDC. Nancy suggested we take a short break due to the length of the meeting.

After the break Nancy introduced herself, said she is new to PDC but she’s been a finance officer and worked in this area for about 30 years. Nancy explained that tonight the numbers are preliminary. It’s difficult to balance limited funds with the desire for projects. Nancy had a power point to describe accomplishments for the Interstate area. Her presentation also covered the timelines and steps in PDC’s FY 2004-05 budget process, provided an overview of tax-increment financing, and included data on the URA’s tax increment collections and maximum indebtedness capacity. A draft five-year budget projection was distributed. Nancy requested feedback be received by February 27.

Ms. Holden said that there was $6 million of TIF funds to be accessible to use (from the HOPE VI agreement) and asked where she would find that on Nancy’s sheet. Nancy referenced a note on the bottom of the sheet, but responded that she will research the issue and have an explanation at the next meeting to make sure everyone understands where it is and why.

Mr. Flipper asked if they needed to make cuts. The budget will need to be balanced and a determination will be made later in the spring on what the roll over from this year will be. There was a question about what to do with this information. Nancy responded that she is looking for feedback. Ms. Holden said the decision makers are the Commissioners but the ICURAC still has the ability to influence them.

Ms. McClain said she was very impressed with the presentations tonight and all the leveraging. Commissioners will look at committee priorities. Mr. Flipper asked about the overhead costs. Nancy explained it is the allocation of indirect costs needed to implement PDC’s projects and programs. These costs might not be the same for the out years in the projection.

Mr. Haapala commented that Killingsworth Streetscape requests funds in FY04/05, nothing in FY05-06, and then $1M in FY06-07 to get completed. Mr. Halverson asked how TIF can go down in FY08-09. Nancy replied that it is just a projection, perhaps showing the HOPE VI agreement. Nancy said she could be back if wanted, and her presentation would be on PDC’s web site.

Ms. Holden said they would be meeting on February 25 to discuss the budget again. Mr. Mills asked if the information could be simplified. Mr. Anderson said they should think big. Ms. Newell commented that our dreams have been big and we can do it with leverage. Pauline Bradford asked why she didn’t see Russell Street on the sheet. There was a comment that the $1M in 08/09 transportation could be Russell and/or Denver.

Christine Egan (with PDC Public Affairs) said it was very useful to get comments back on Nancy’s presentation and urged everyone to fill out the comment sheet, which was distributed. She said it help know what issues to address.

TriMet Updates: Ann Becklund, Jillian Detweiler, and Claudia Steinberg - Safety campaign, Opening events, and Savings update. Introductions were made. There are only three months left until the opening of Interstate MAX on May 1st. In March they will have preview rides.

There was discussion about the savings. Two detailed handouts were distributed. TriMet has heard various safety and security restoration ideas, also station area/transit oriented development opportunities to increase ridership. A list of scope items to be restored was distributed; others ideas can be sent to Ann, the IMAC will meet in March to continue discussion. Ms. Newell explained they will now be getting signage on Shaver and Failing so people know which way to go to get to the MAX. Claudia added that they will be posting safety posters in English and Spanish that trains are running. Ms. Holden asked if the trains would be on any kind of a predictable schedule during the preview period. Claudia responded that they were working with the schools in the area to educate the students. She went on to say the trains will be running from 9:15 am until midnight and they would have security along the route.

Housing Authority of Portland, Sheila Holden, Co-Chair Update. There was no signed agreement between HAP and the N/NE Alliance yet. They met in July and HAP felt it was too expensive so there was a new proposal. There may be a need to call in an arbitrator; hopefully by February 25th she will come back with a deal. Mr. Hartman asked for clarification on whose contract. The co chairs said none of country’s Hope VI projects delivered what was desired by the local folks, so the N/NE Alliance would be hired by HAP to act as a watchdog.

Ms. Horne said she was disappointed that there was no contract after seven months. Ms. Holden said that at least because of N/NE Alliance intervention, HAP went out and re-let a bid. Mr. Mills said the ICURAC really doesn’t have the authority to do anything like prevent payments etc. Mr. Flipper asked how the relationship to HAP and the CDCs was. Ms. Fitzpatrick said it has impeded our ability to function. There was a comment that it sounds like HAP has reneged on the deal by not putting the homeownership units out for bid in a manner that CDCs could be competitive in. Julie Metcalf-Kinney said the inability for CDC to participate in these projects is impacting they ability to continue to do business, as well as new neighbors who move in and see low income housing as an eyesore and complain to the city resulting in citations.

Ms. Fitzpatrick said there is too much stuff on the Agenda. It’s making meetings too long and not giving each item the time it deserves. There was agreement and a suggestion to start at 6:00 pm; to consider more meetings. Mr. Flipper a motion that the ICURAC goes on record as expressing deep concern on HAP and the N/NE Alliance dealings and that we need to reach closure. It was seconded and passed.

There was a recommendation that HAP stay on the Agenda until it is resolved. That we get more information on how the homeownership lots were RFP’d and if they truly were put out to bid contrary to what was in the MOU (i.e. geared to larger developers). HAP staff attended the meeting and requested that there be time in the meeting to allow HAP to respond to issues raised at the ICURAC meeting.

Proposed New Seasons Market, Walter Valenta (Co-Chair of the ICURAC) Update.
Walter Valenta (co-chair of the ICURAC) told the group that Mr. Rohter of New Seasons Market was back from the October ICURAC meeting with his plans. Email correspondence with concerns raised by Kurt Haapala were distributed. Mr. Rohter said he has lots of plans to show the committee and asked if the committee wanted to have him come back at another time since it was so late. Some left but there was general consensus to stay until 10:00 pm.

Mr. Rohter began the presentation by saying that they do not own the property and it is tough or even impossible to put a building adjacent to Portland Blvd. and Interstate Ave. There was a question about how the development standards could be followed if there were a parking lot on the corner. Mr. Rohter said he thought the bike pavilions addressed this.

He explained that PDC had hired an outside architect with grocery store design expertise to come up with other options that put the building on the corner, these were distributed. Mr. Rohter said he didn’t think these options met his needs. Mr. Rohter said parking is critical: the 33rd & Killingsworth business has 2.5/1 (2.5 parking places per 1,000 square feet of retail space), Hillsboro has 5/1 and this store is planned at 2/1. He said that 85’ is too narrow a store.

Ms. Holden said it was getting late and she would like Mr. Rohter to show us what he wanted to propose that will work. Mr. Anderson asked if they had looked at how far someone would have to walk from the northbound station back to the store. Mr. Anderson commented that he will be deeply disappointed if the first project on Interstate Ave. ends up being laid out like a motel, said we will miss a profound opportunity, that this is a suburban model.

Pam Arden commented that she thought people would walk, that they want a New Seasons. Mr. Holzapfel agreed. Ms. Horne said they do want the building on the corner, so then they can showcase the store and not the parking lot. Ms. Horne said she drives a distance to the 33rd Street store because the staff is awesome, the store has a great layout and the level of service is wonderful. Ms. Newell commented that we should try to keep traffic out of the residential neighborhood, that she really likes the bicycle idea. Mr. Hartman added that parking is a critical factor in the success and viability of the business.

Ms. Fitzpatrick asked how they were going to meet the no net housing loss requirement. Mr. Rohter responded that they were negotiating with the City on how to address that. Mr. Valenta mentioned that there may be a dozen code adjustments the city will have to grant to allow the building to move from the corner. Mr. Rohter said that the city routinely grants adjustments.

Mr. Halverson said that he wants the store in the area, however, the site is looks tight and if it doesn’t work – don’t do it. Ms. Radigan said that as our first project it would set a very strong precedent as to the type of business we want to draw. Piedmont is feeling like promises are coming through if a New Seasons is interested in the area. Mr. Mills commented that Fred Meyer has a mezzanine floor, not a second story, that New Seasons could do that. Mr. Rohter said they only put non-grocery items on their second floor.

Ms. Holden noted that people are getting up and leaving (because of the late hour). Do we need to take a position on this tonight? Response that it is just informational.

Mr. Mills asked if small kiosks would be an option, he mentioned the 33rd store. Mr. Rohter said they didn’t own the land so they don’t control it. He added that they want to have enough space for parking to accommodate shoppers. Mr. Mills asked about putting the bike rake screening on Interstate too. Ms. Holden asked what the time frame is. Mr. Rohter responded that they are making application this week if possible to start the lengthy process of zoning changes.

Mr. Holzapfel asked where the entry is. Mr. Rohter said there are two entries; one in the parking lot and one on Interstate. Mr. Holzapfel asked Mr. Rohter how they propose to screen the east wall from residents. Mr. Rohter replied he thought that the neighbors don’t like “dead space” behind their homes, so they will create a wall as pleasing as possible with a trellis and ivy. Mr. Holzapfel asked how many jobs this store would create. Mr. Rohter responded 105 full time equivalent positions. Sheila asked how many full time jobs and how many part time jobs. Mr. Rohter explained that he only had the equivalent figures and he would get back to her with specifics. Mr. Holzapfel said Arbor Lodge will do everything possible to support New Seasons, that he will confirm this with his association. He said ample parking is essential. Mr. Rohter asked that the notes reflect this comment.

Scott Jensen said he was one of the thousands of people who wrote to New Seasons saying he wants them to come to the area. He asked if they offer health benefits to their employees. Mr. Rohter responded that they do offer health benefits for full-time and part-time employees. Ms. Horne asked if they could do more screening along Interstate. Mr. Rohter said they are looking at that option and will talk to TriMet; that they want to shelter pedestrians. Mr. Rohter said he could be reached at (503) 292-1987 x101 and that he does return messages and would be happy to hear input.

Final Public Comments & Adjourn

There were no additional comments. The meeting was adjourned at 10:30 pm

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