North Macadam

North Macadam Urban Renewal Area Advisory Committee Meeting
Thursday, June 3, 2004
Portland Development Commission
Commission Conference Room
8:30 – 10:00 a.m.
Meeting Minutes

Committee Members in Attendance: Steve Gray (Rodda Paint), Nicole Peterson for Homer Williams (Williams & Dame Developers, Inc.), Lois Davis (OHSU), Pasquale Pascuzzi (Pascuzzi Investments), Abe Farkas (PDC), Vince Sheridan (Equity Office), Scenna Shipley (Pac/West Communications), Dee Walsh (REACH), Jerry Ward (CTLH), Ron Balash (Multi-Services), Glenn Taylor (NCNM), Bob Durgan (ZRZ Realty, Andersen Construction Co.)

Committee Members not in Attendance: Jay Kenton (PSU), Barbara Walker (Portland Resident)

1. Welcome & Opening Comments

Steve Gray opened the meeting at 8:40 a.m. and welcomed the committee and members of the public to the meeting. He asked the committee members to introduce themselves and state any conflict of interest.
Steve Gray – no conflict
Nicole Peterson – no conflict
Lois Davis – no conflict
Pasquale Pascuzzi – no conflict
Abe Farkas – no conflict
Vince Sheridan – no conflict
Scenna Shipley – no conflict
Dee Walsh – no conflict
Jerry Ward – no conflict
Ron Balash – no conflict
Glenn Taylor - no conflict

2. Review & Approval of May 6, 2004 Meeting Minutes

Meeting Minute Modifications:

1. Jerry Ward noted that he made a motion on behalf of CTLH neighborhood that their eight concerns are addressed: traffic/transportation, height of buildings, density of development, Tram impacts/costs including unfunded Gibbs Street mitigation, under-funded Greenway, under-funded neighborhood parks, unfunded pedestrian connections to Lair Hill from Macadam, and under-funded affordable housing. The motion was not seconded. Rick Saito suggested that a note be added that “Jerry Ward requested that urban renewal area funding address CTLH concerns that are located within the urban renewal area boundary”.
2. Steve Gray requested that the minutes correct the spelling of Rodda Paint.

3. Transportation Planning Update

Stacy Bluhm and Art Pearce from the Portland Office of Transportation (PDOT) presented an update on transportation planning projects for the District.

Macadam Avenue Interim Improvements:

• The end of the off-ramp from I-5 onto Macadam Avenue will be signalized at Curry Street. Curry and Gaines will be one-way streets, signalized at Macadam.
• Hood Avenue will be decreased to one lane of traffic near Bancroft Street so that a left from Bancroft Street onto Macadam Avenue will be easier and safer since drivers will not have to yield to traffic from Hood Avenue.
• It was recommended that PDOT coordinate with Tri-Met regarding the Hood Avenue modification to one lane of traffic.
• The Macadam Avenue and Hood Avenue/Bancroft Street improvements are currently scheduled for completion at the end of 2005.

Long-term improvements:

• A ramp from I-5 would connect directly to the District at Curry Street.
• Traffic going out of the district heading north would need to access Macadam Avenue north at Bancroft Avenue.
• These improvements are not funded at this point.

Art Pearce (PDOT) talked about planning efforts underway for the south end of the District to solve some of the transportation system limitations.

• PDOT will work with property owners at the south end of the District to understand their development proposals and capacity needs.
• The goal is to provide certainty to south property owners to allow them to proceed with their development planning.
• A concern was expressed about the street grade of the proposed south end connection. Otak will be working on defining this street grade to improve the safety of this proposed connection.
• Two committee members commented that PDOT also needs to focus on the north end of the District to provide greater connectivity for the District.

Art Pearce (PDOT) also reported that the Tram Report is available. The City Council hearing on the Tram is scheduled for June 10th at 3:30 p.m.

4. Streetcar Alignment Update

Vicki Diede, (PDOT)

• Streetcar is expected to be completed to Gibbs Street by December 2006.
  • Alternative A has a double-paved track in the Moody right-of-way.
  • Alternative B uses the Moody right-of-way but with a single track. Two auto lanes would also be provided on Moody Avenue. There are still some issues with this option in terms of sewer and water lines.
  • Alternative C uses the existing rail right-of-way adjacent to Moody Avenue. This rail right-of-way is owned by a consortium of local governments. This alignment provides an exclusive lane for Streetcar on the street to Sheridan Avenue, then Streetcar would cross the intersection and enter the rail right-of-way. The construction would be concrete tie and ballasts. The rail right-of-way would be built to the grade of improved Moody Avenue. This alternative is more cost-effective (including all fill required) and allows Portland Streetcar to purchase another car. Portland Streetcar has been directed by their Board to explore this alternative and talk with several stakeholder groups about this option.
• The new northerly terminus of the Willamette Shore Trolley is Bancroft Avenue.
• The currently planned Streetcar stops include one at River Parkway and another at Gibbs Street.
• As development occurs, stops can be added in response. Additional stops can be provided at no additional expense to the property owners currently participating in the LID.

5. South Waterfront Central District Project Development Agreement Third Amendment

Abe Farkas (PDC, Development) opened the Central District Development Agreement Amendment Three presentation by noting that the Third Amendment reflects many months of negotiating with developer and other parties on several key issues. The only Amendment that will not be discussed today is the Workforce Strategy since additional work is required.

Jane Blackstone (PDC, Development) presented a PowerPoint on the South Waterfront District to provide context to committee members and meeting attendees on the Central District Development Agreement Amendment Three discussion.

The South Waterfront Plan

• Calls for 10,000 jobs, 3,000 housing units, 788 affordable housing units, exemplary greenway, integrated parks system, sustainable development/habitat restoration, and multi-modal transit.

The Central District Development Agreement

• Executed on August 22, 2003.
• Goals: Economic development (5,000 jobs, OHSU stimulus, taxable development), market rate and affordable housing, urban revitalization, greenway and neighborhood park, multi-modal transit, LEED, M/W/ESB
• Key DA obligations: 1.5M sf of OHSU research, clinical and institutional space, 2,600 housing units – 430 affordable, garage/development podium, hotel, commercializable research space, streetcar to Gibbs Street, aerial tram to Marquam Hill, streets/utility infrastructure, and greenway and parks projects.
• DA Accomplishments: 8 Basic Contingencies satisfied or waived, public and private development moving forward, state/federal support received, neighborhood park acquisition underway, contracting results are 21.4 % M/W/ESB participation to date and the Workforce Diversity Strategy is in development.

DA Third Amendment

• Key elements: Funding & Financing Plan (F&FP) and related updates – anticipated in DA, schedule adjustments, PP&L tower relocation project, miscellaneous revisions/clarifications.

F&FP Update

• All Parties increase their financial support to keep Phase 1 public improvements on schedule.
• Updated plan to address funding gaps in: Affordable housing, neighborhood park acquisition and initial improvements, PP&L tower relocation, tram.

New Funding Commitments

OHSU	$7M additional tram LID
PDC	$6M new TIF from FY 2008-2009
PDOT	$1.5M new SDCs/Other
NMI	Add’l project/payment obligation
State	$2M grant for Macadam Ave. $2M Energy Tax Credits
Private	$2.8M for PP&L tower relocation (OHSU, NMI, PacifiCorp)

Affordable Housing

	8/03	6/04
TIF	$3.0M	$4.0M
Federal Committed	0	$0.4M
Federal Requested	$7.0M	$5.6M
Project Total	$10.0M	$10.0M

Neighborhood Park

8/03 Acquisition/initial imps estimate	$6.0M
8/03 Available resources (SDCs)	$1.0M
Total Gap:	$5.0M
New resources: TIF	$5.0M

PP&L Tower Relocation

New Project Cost Estimate	$3.0M
New Resources
NMI/RCI	$1.3M
PacifiCorp	$1.5M
TIF Shift	$0.2M
Total	$3.0M

Tram

8/03 F&FP Cost Estimate & Funding	$15.5M
6/04 Revised F&FP Revised Cost Estimate & Funding Total	$28.5M
Total:	$13.0M
New Resources
OHSU	$7.0M
Additional LID (other SW property owners)	$2.5M
State Energy Tax Credits	$2.0M
City	$1.5M
Total	$13.0M

*No new TIF to Tram Project

Other Provisions of the Third Amendment

• Extend Basic Contingency schedule through 9/04
• External funding agreement
• Affordable housing credit formula
• Additional payment obligation (NMI)
• M/W/ESB and prevailing wage
• Workforce Diversity Strategy
• Other minor revisions/clarifications

Next Steps

• Scheduled Approvals:
  • June 9 Commission Meeting – DA Third Amendment
  • June 9 Commission Meeting – Neighborhood Park Final Actions
  • June 10 City Council Meeting – DA Third Amendment

A question was asked about the MTIP contingent funding. PDC is being asked to identify $20M (total for all urban renewal areas) for Tri-Met light rail projects. The $10M is contingent upon PDC’s willingness to provide a total of $20M.

• The DA assumed a $6M acquisition for the neighborhood park. The SDC revenues will not be in place to fund this acquisition, nor will Parcel J be sold prior to acquisition. This requires that additional TIF cover the funding gap, with the expectation that the future SDCs and the Parcel J sale funds be directed back to the District.
• The PP&L Tower relocation will cost $3M. The Tower is proposed to be relocated to the north end of the Central District, within the Greenway.
• The Tram revised cost estimate is now $28.5M, which is a $13M increase. OHSU has increased their LID obligation, an additional $7M, to cover a significant portion of this project cost increase. The amount of the proposed Macadam Avenue LID have been shifted to this project, since ODOT is now paying for the Macadam Avenue improvements; this means that the total Tram LID has increased and the Macadam Avenue LID has been removed.
• The DA Amendments will require an amendment to the Urban Renewal Area budget.

Other Provisions

• Extend the Basic Contingency schedule through 9/04.
• External funding agreement – OHSU will take the lead on pursuing additional State and Federal funding. A formula has been prepared that allows OHSU to keep a certain amount of these funds for economic development and allocate a portion of the funds for District projects.
• Affordable housing credit formula – If NMI sells land within the District to PDC for affordable housing then NMI receives a credit for the affordable housing that will be created on that site. The affordable housing could be developed by a for-profit developer or by a non-profit. This land would likely be used to build housing for the lower end of the affordable housing range. The terms of the deal have not yet been negotiated, but the expectation is that the land will be sold to PDC for the same price that the developer parties paid for it.
• Additional payment obligation – NMI will be required to make additional payments if they do not generate the TIF that they have committed to generate.
• M/W/ESB and Prevailing Wage – A provision was in the original development agreement, but the Amendment clarifies the provision. The change allows the developer parties to not pay prevailing wage if it prohibits meeting the M/W/ESB goals.
• Workforce Diversity Strategy – More information will be shared on this provision.
• Other minor revisions/clarifications – One example: the Greenway overlook improvements will be delayed since access to the Greenway will not be possible given construction scheduling.

Other Discussion:

• The PP&L Tower solution is considered interim. The Ross Island Bridge option was explored, but due to technical problems and funding issues, this option was not viable. The Greenway option is hoped to be as high quality as possible.
• A question was asked about the costs for the street improvement project fill. Jane Blackstone offered to meet with Jerry Ward and other concerned stakeholders to discuss this further. Jane clarified that the additional fill required for the streets to address FEMA issues is in the budget for the project and is being covered by the private developer parties.
• A question was asked about whether all property owners are supporting the LID. Art Pearce (PDOT) responded that most property owners are in support, but that Matt Brown (PDOT) has been working more closely with the property owners and could better address the question.
• A request was made for a map showing the LID tiers.
• A concern was expressed about the location of the affordable housing project since the number of units could create further traffic congestion within critical areas in the District.

Cheryl Twete (PDC, Development) asked the committee members to send any additional comments that they may have to her or to Jane Blackstone.

Steve Gray said that the committee has not had enough time to review the documents to make a recommendation to the Development Commission. Cheryl Twete requested that the committee members send emails to Kristina Hannon via email (hannonk@ pdc.us) by end of the day on June 4th. PDC will compile the comments, prepare responses and send out the information to the URAC distribution list.

6. Public Comments & Discussion

(none)

7. Closing Remarks

Cheryl Twete told the committee that unless a meeting is needed, a vacation from meetings is typically taken during the summer months; therefore, the next meeting date is yet to be determined.

The meeting was adjourned at 10:00 a.m.

Next meeting: TBD

 

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