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11/11/2020 - Agenda mCity of Tigard Town Center Advisory Commission Agenda MEETING DATE/TIME: November 11, 2020— 6:30 to 8:30 p.m. MEETING LOCATION: Members Remote via MS Teams Public— (971) 256-0577, PIN = 13125# 1. CALL TO ORDER Chair 6:30 2. CONSIDER MINUTES Chair 6:35 3. FOLLOW UP FROM PREVIOUS MEETINGS Sean 6:40 4. CITY CENTER PLAN SUBSTANTIAL AMENDMENT Sean/Elaine Howard 6:45 5. DEVELOPMENT ASSISTANCE CRITERIA Sean 7:05 6. REDEVELOPMENT ACTION PLAN Sean 7:25 7. DOWNTOWN VISION Sean 7:40 8. TCAC ANNUAL REPORT Kate 7:50 9. PROJECT UPDATES Sean 8:05 10. SW CORRIDOR-ELECTION RESULTS Sean 8:15 11. LIAISON REPORTS Chair 8:20 12. NON-AGENDA ITEMS All 8:25 13. ADJOURN BUSINESS MEETING Chair 8:30 *EXECUTIVE SESSION:The Tigard City Center Advisory Commission may go into Executive Session to discuss real property transaction negotiations under ORS 192.660(2) (e).All discussions are confidential and those present may disclose nothing from the Session.Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed.No Executive Session may be held for the purpose of taking any final action or making any final decision.Executive Sessions are closed to the public. Upcoming meetings of note: Tuesday,November 10,7:30 p.m.,City Council,MS Teams (Senior Housing DDA/Lease,AVA) Wednesday, December 9,6:30 p.m., Regular TCAC Meeting, MS Teams The City of Tigard tries to make all reasonable modifications to ensure that people with disabilities have an equal opportunity to participate equally in all city meetings. Upon request,the city will do its best to arrange for the following services/equipment: • Assistive listening devices. • Qualified sign language interpreters. • Qualified bilingual interpreters. TOWN CENTER ADVISORY COMMISSION AGENDA—November 11, 2020 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 1 oft Because the city may need to hire outside service providers or arrange for specialized equipment,those requesting services/equipment should do so as far in advance as possible,but no later than 3 city work days prior to the meeting.To make a request, call 503-718-2481 voice or 503-684-2772 DD-Telecommunications Devices for the Dea . CITY OF TIGARD TOWN CENTER ADVISORY COMMISSION Meeting Minutes October 14, 2020 Members Present: Chris Haedinger, Scott Hancock, Renette Hier,Tom Murphy (Vice Chair),Tim Myshak, Kate Rogers (Chair),Ryan Ruggiero, Elise Shearer, Faez Soud, and Justin Watson (Ex Officio). Members Absent:Angeline Chong, Hemendra Mathur, and Katlyn Prentice (Alternate). Staff Present: Redevelopment Project Manager Sean Farrelly, and Senior Administrative Specialist Joe Patton. Others Present: TCAC Council Liaison John Goodhouse, Elaine Howard (Elaine Howard Consulting, LLC),TriMet Community Affairs Representative Amparo Agosto,TriMet Urban Design Project Manager Fiona Cundy, and TriMet Senior Project ManagerJeb Doran. 1. CALL TO ORDER Chair Rogers called the meeting to order at 6:30 pm. The meeting was held remotely using MS Teams with a call-in number provided for the public. 2. CONSIDER MINUTES The September 9, 2020 TCAC Minutes were unanimously approved. 3. FOLLOW UP FROM PREVIOUS MEETINGS—N/A 4. CITY CENTER PLAN SUBSTANTIAL AMENDMENT The substantial amendment will fund a public parking structure contribution,new streets,public spaces, affordable housing assistance, and property acquisition. Elaine Howard discussed the timeline for the Tigard City Center Substantial Amendment.The goal is to place the issue on the May 2021 ballot. In order to increase higher than 20% of the original maximum indebtedness, agreement of three of the taxing jurisdictions (TVF&R,TTSD,Washington County, and City of Tigard) is required. 5. SW CORRIDOR TRIMET RESPONSE TO TCAC LETTER Jeb and Fiona gave a brief presentation on the SWC project including the Tigard focus topics. TriMet is looking to Transit Oriented Development(TOD) to help replace some of the jobs lost by the SWC alignment. Once the environmental issues are addressed more focus will be put on TOD. TriMet is required to meet the requirements of the Uniform Relocation Assistance and Real Property Acquisition Act for displaced property owners. They plan to use raised protected bike lanes which also allow improved pedestrian crossings as it narrows their exposure to traffic as well as a pedestrian island on Hall and Commercial. TriMet is working with Metro on their Blueprint for Urban Design project to help identify areas for improvement.The final Conceptual Design Report includes illustrations of the street designs. Sean will research if municipal Wi-Fi will be included in new development along the SWC alignment.Jeb will see if it's available on the rail cars. Page 1 of 2 TOWN CENTER ADVISORY COMMISSION October 14, 2020 6. UPDATED DOWNTOWN VISION Sean briefly discussed the updated Tigard Downtown Vision included in the packet. Commissioners suggestions included: include language about equity,add back natural resources and areas as an asset to the vision statement,more short sentences. In the graphic, keep the Civic Center redevelopment further away from the Fanno Creek corridor, and show surface parking. Sean will reword the vision statement and see if SERA Architects can alter the drawing. 7. 3RD QUARTER TCAC GOAL UPDATE Sean briefly discussed the update included in the packet. 8. LIAISON REPORTS —N/A. A. The TDA is holding a Halloween window decorating contest. Next week Tigard Drinks for Good is taking place a portion of the proceeds being donated to the Tigard Historical Society.There is a Tigard Downtown Alliance Stakeholder Meeting on October 15. B. Sean gave a presentation on the Universal Plaza to PRAB and will bring it to TCAC next month. C. There was a virtual meeting on the senior housing project next to the senior center. Parking and building height were areas of concern. NHA will look at parking and moving the rooftop view to face Fanno Creek rather than the surrounding neighborhood. D. Design Advisors for the Universal Plaza met on site to discuss the project. Youth advisors will be more diligently sought for input on the water feature and other potential aspects. 9. NON-AGENDA ITEMS A. Kate asked if a briefing on the potential new City Hall/Police Station could come to the TCAC for input. Sean will see if it can take place in December. B. Chris discussed Christmas lights for downtown trees and potentially the banner across the street. Sean noted the installation of permanent electrical outlets would be eligible for TIF monies,but the cost of installing temporary lights is likely not. Chris will talk to TDA about funding and Sean will explore other funding options with City staff. 10. ADJOURN BUSINESS MEETING The meeting adjourned at 8:45 pm. Joe Patton,TCAC Meeting Secretary Kate Rogers, Chair Page 2of2 o, A New Tigard Triangle Tigard Triangle Re/Development Assistance Program Date September 25, 2020 To Sean Farrelly, City of Tigard From Leland Consulting Group Introduction As captured in the 2015 Tigard Triangle Strategic Plan and the 2016 Tigard Triangle Urban Renewal Plan, the Tigard community envisions the Triangle as a place with equitable housing and employment options that increase opportunity and improve the quality of life for the full spectrum of the Tigard community. Recognizing that the Triangle's market and physical conditions' introduce barriers that sometimes make development that meets these criteria infeasible, the Tigard Triangle Urban Renewal Plan designates a significant portion of funding for"development assistance"—a program offering assistance to address feasibility gaps in the construction of housing and mixed-use developments that fulfill the goals and objectives of the Tigard Triangle Urban Renewal Plan. Re/Development Assistance is an authorized use of funds in the City Center Urban Renewal Area as it is in the Tigard Triangle.Three Re/Development Assistance grants have been made to-date,two in the Triangle (one market-rate and one affordable project),and one market-rate mixed-use development in the City Center.These grants have been made through standalone agreements with the developers and reviewed and approved by the Board of Town Center Development Agency. All three grants were agreements to pay a portion of System Development Charges (SDC). The Tigard Urban Renewal Agency("Agency') now wishes to formalize a Re/Development Assistance Program specific to the Tigard Triangle to incentivize and support private investment that furthers equity goals and maximizes community benefits. The Re/Development Assistance Program (RDAP) is for development and redevelopment projects rather than business assistance,which is a separate program. The RDAP is comprised of two separate grants: (1) the Development Assistance Grant, and (2)the Predevelopment Services Grant. Both are designed to be open on a first-come,first-served basis as funding allows. Details for both grants—including program elements,target recipients, eligibility guidelines (based on specific elements identified by the community), and the proposed application process—are described at length in this memo. ' Market conditions include increasing land prices, construction costs,and rent dynamics. Physical conditions include challenging topography,stormwater issues,and site dimensions. Page 1 Re/Development Assistance Program �A New Tigard.Triangle. Purpose of the Program The RDAP is intended to increase private and nonprofit investment in housing units, incentivize a higher quality of development than would otherwise occur without the grants,foster incremental development, and encourage a diversity of land uses in the urban renewal area. The RDAP is expected to help bridge financial project gaps to incent larger-scale and higher-quality developments than would happen without the program, as well as to increase opportunities for developers who may be lacking significant or traditional financial resources. Facilitating Equitable Development The RDAP is critical to furthering the City and community's equity goals and objectives in the Tigard Triangle.The RDAP builds on extensive input from community, business, and development stakeholders. In formalizing the RDAP,the City of Tigard will have a clear process and objective structure for administering grant funds that both enhance economic vitality and further the project's core equity values. Urban Renewal Project Evaluation Criteria A core element of the broader Triangle implementation project is the equitable evaluation criteria, which were developed by community stakeholders to help prioritize and phase the projects identified in the 2016 Urban Renewal Plan.The criteria are representative of the Triangle's identity, diversity, and community needs and are,therefore, integral to retaining equity as a central focal point of project implementation.These criteria are listed below.These equitable evaluation criteria are the foundation of the RDAP eligibility conditions described in the following section. • Improves Environmental Conditions and Infrastructure Capacity • Promotes Affordable Housing • Facilitates Multimodal Transportation • Provides Public Gathering Spaces • Mitigates/Decreases Risk of Displacement • Promotes a Regional and Diverse Destination • Provides Equitable Economic Opportunities Re/Development Assistance Program Process In addition to the criteria described above, community stakeholders provided critical input during a Town Center Advisory Committee (TCAC) Subcommittee meeting in June 2019 regarding potential eligibility conditions for the Re/Development Assistance Program.Applicants that successfully demonstrate meeting some or all of these conditions—thereby furthering the Triangle's equity goals and objectives— will be, in theory, rewarded with access to Program grants. Many possible building elements could satisfy these conditions. Some, but not all examples are listed below. • Provision of affordable housing and/or mixed-income housing. • Green building components, such as LEED certification, solar-generated electricity,AV-ready and/or charging stations, or other sustainability components. • Construction by minority/local/female-owned contractors and businesses. Re/Development Assistance Program Page 2 �A New Tigard Triangle • Provision of public space, peripheral trails, or recreational space. • Community space. • Transit-friendly or multimodal transportation components. • High-quality landscaping and seating areas. • Commercial/small business/incubator space. • Flexible building design, especially for structured parking. Recommended Triangle Re/Development Assistance Program This section outlines the various elements of the Re/Development Assistance Program, including its purpose, eligible participants and activities, requirements, program criteria, and the application process. The City Attorney will ensure legal compliance for all elements. Eligibility Requirements Eligible Participants Grant recipients may be the owner of the property(generally fee simple title; other evidence of ownership may be considered by the City); or a developer with a binding agreement with a property owner to develop the property. Tenants that have an executed lease and written consent from the property owner to proposed improvements may receive Predevelopment Grants but not Development Assistance grants. 'Recipient' includes all legal entities where the recipient has a controlling membership, shareholder, or ownership interest, and can be a non-profit or for-profit entity. Applicants must show they have the legal and financial capacity to complete the project, and also demonstrate prior project experience or partnerships with others with the relevant expertise. Eligible Work The Re/Development Assistance Program funds a range of activities within two grants— Predevelopment Services and Development Assistance—that fund different types and scales of activities. Predevelopment Services Grant. Grant funding of up to$100,000 is available for predevelopment services that help property owners explore the potential to reinvest in their properties by conducting a range of activities to identify and refine potential development concepts,test project feasibility, and conduct related due diligence activities. Specific eligible activities include: • Technical/regulatory code assistance • Development feasibility studies • Site clean-up/preparation • Building inspections • Site plans & architectural studies • Environmental assessments • Engineering studies • Project financial analysis Three tiers of grants are available based on the amount requested. Each tier carries a different funding match ratio. Page 3 Re/Development Assistance Program AN aw Tigard Triangle Tier 1: Less than $10,000. This tier requires no funding match requirement from the applicant and targets applicants who might not otherwise have the necessary funds for smaller predevelopment services, such as site studies and concept plans,to foster equitable and/or incremental development. Tier 2: $10,000 to $50,000.This tier requires a 1:1 funding match requirement, meaning the applicant must provide $1 for every$1 provided by the City of Tigard. Tier 3. $50,000 to $100,000.This tier requires a 2:1 funding match requirement, meaning the applicant must provide $2 for every$1 provided by the City of Tigard. Development Assistance Grant.This grant provides funding for up to 10 percent of the total project cost, up to a maximum grant amount of$1,000,000.The grant is available to eligible applicants for new construction, redevelopment, or significant rehabilitation of commercial, mixed-use, and multi-family housing projects. Eligibility Conditions Applicants must meet the following minimum conditions to be eligible to apply for grant funding. • The site must be located within the Tigard Triangle Urban Renewal District • Program participants must have site control (fee simple ownership preferred; contract to purchase, ground lease, or other will be considered) • The proposed project should provide significant increases in density and/or employment • Projects should be able to apply for a building permit and break ground within 3 years or less • Funds are available for eligible Program Participants on a first-come,first-served basis • Taxes or fees assessed by the City must be current Program Criteria Projects will be scored based on the attributes of their project, and particularly how each project's attributes compare to the equitable development goals established for the Tigard Triangle. The RDAP scoring matrix is shown below. Projects must earn a minimum of 200 points to qualify for the Development Assistance grant of up to$1.0 million. In the event that the City receives multiple applications simultaneously and cannot fund all projects at the maximum grant amount,the point system may be used to rank projects and allocate funds. The scoring criteria have been designed to reward a range of potential attributes that are connected to the Triangle Equitable Development goals,with the highest priority goal (for this program) of promoting affordable housing receiving the most points. Under this system, housing projects are awarded the most points and are most likely to receive grants. Projects that include both affordable and mixed-income housing units can secure a multiplier, meaning the total points accumulated for housing units is multiplied by 1.5. Market-rate housing-only projects can secure grants, but only if they provide a significant number of units and some "other' (non-housing- related) project benefits to get to 200 points.Therefore, mixed-use projects that provide public amenities or ground-floor economic opportunities are encouraged. Also, because market-rate housing can generate Re/Development Assistance Program Page 4 6 A New Tigard Triangle a maximum of 150 points, modest-scale projects, and incremental development—rather than larger-scale projects—are encouraged. Lastly, non-residential (retail, commercial, office, other) projects can qualify for RDAP grants if they provide project amenities that meet the "other'goals.These goals contain a mixture of objective and discretionary requirements, as described below. Table 1.Other Triangle Goals •ther"Triangle Goals Objective Discretionary Public Amenities VO High-quality Urban Design VO Equitable Economic Opportunities Placemaking and Local Identity Improves Multimodal Conditions Mitigates Env. or Stormwater Issues VO Located in a Triangle Priority Area V Definitions of the housing-related criteria and other Triangle goals are described further below. Page 5 Re/Development Assistance Program -i AN aw Tigard Triangle Table 2. Project Scoring Matrix Project Attribute/Criteria Points Description Housing and Housing Affordability Regulated affordable housing 10 Per unit, no max at 80%AMI or below Market rate housing 1 Per unit, max of 150 points Mixed-income project Multi- Mixed-income projects will receive 1.5 (At least 20% regulated affordable housing plier times the total number of points earned in and 20% market-rate housing) (x1.5) the regulated affordable and market-rate housing categories above. Other Triangle Goals For each of the following 35 Each Maximum of 200 For all Other Triangle Goals below Public Amenities Provide amenities above and beyond City standards, including public plaza. High-quality Urban Design Discretionary: landscaping, design. Equitable Economic Opportunities Employment, below-market rent. Placemaking and Local Identity Active frontage, art,wayfinding. Improves Multimodal Conditions Transit proximity, bike infrastructure, etc. Green building standards (e.g. LEED),green Mitigates Env. or Stormwater Issues infrastructure, capital projects. Located in a Triangle Priority Area Specific area requirements. Minimum Points to Qualify for RDAP 200 Other Triangle Goals In addition to affordable and market-rate housing,the RDAP Program Criteria above points to projects that provide benefits consistent with other adopted Triangle goals. These other goals, and applicable criteria, are summarized below: 1. Provides Public Amenities, includes a public plaza or gathering space of 2,000 square feet or more, or publicly accessible amenities that exceed the requirements of the Tigard development review process. 2. Promotes High-quality, Pedestrian-friendly Urban Design, including high-quality landscaping and architecture and/or other elements beyond what Tigard currently requires. Final determination of whether a project meets this criterion will be made at the staff's discretion and may be appealed to the Urban Renewal Agency. Re/Development Assistance Program Page 6 �A New Tigard Triangle 3. Provides Equitable Economic Opportunities, either at the project's completion or during construction (e.g., by employing at least 30 percent Minority, Women, and Small Business Enterprises). A project may also provide at least one-third of a project's total commercial space—but at least 1,000 square feet—at below-market-rate rent. 4. Contributes to Placemaking and Local Identity through art,wayfinding, or other relevant components. Projects may qualify if they are mixed-use developments that include a predetermined proportion of the building's frontage used for active commercial frontage Final determination of whether a project meets this criterion will be made at the staff's discretion and may be appealed to the Urban Renewal Agency. 5. Improves Multimodal Conditions through transit-oriented development or multimodal transportation and/or transit elements beyond what is required in the Tigard development review process. Generally, projects that provide amenities above and beyond "standard development practice" will qualify. Specifically, a project may be located within 0.5 miles of frequent transit, provide more than double the amount of bicycle parking required by the Tigard Lean Code, provide transit passes to residents and/or employees, and provide a predetermined proportion of all parking spaces for car share and electric vehicle charging. 6. Mitigates Environmental or Stormwater Issues in the Urban Renewal Area beyond what is required on the project site by achieving LEED BD+C Gold or better.The project may also advance a stormwater project as described in the City of Tigard's Capital Improvement Plan, with an investment of at least $100,000. Projects may also qualify with similar investments in green infrastructure stormwater mitigation, such as tree infiltration trenches, green roofs, porous pavement or pavers, or bioretention. 7. Located in a Priority Area of the Tigard Triangle. As determined by Tigard staff, specific areas of the Triangle are identified as priorities to incentivize development clusters and provide Tigard staff with another tool to market to developers.The priority area may rotate or change over time at the staff's discretion.The initial priority area is bounded by SW 72nd Avenue, SW Dartmouth Street,SW 68th Parkway, and Red Rock Creek. Mixed-Income Housing Subsidies and Programs For decades,the development of new housing projects in the Portland metropolitan region and nationwide has fallen neatly into two categories: market rate or affordable. Market rate development, which comprises the majority of all housing development, is generally built by private development firms and funded by a mix of equity capital and long-term debt provided by banks, insurance companies, and other institutions. "Regulated" affordable housing is built by both for-profit and non-profit developers and must be subsidized in order to be feasible since below-market-rate rents do not cover the costs of building construction and operation. By far the most common source of subsidy is the Low Income Housing Tax Credit (LIHTC) programs that are authorized by the federal government and allocated by the State. LIHTC and other public funding programs are generally most focused on encouraging housing for households earning 60% of area median income (AMI) and below.An exception is the 4% LIHTC program, which is described in more detail below. Page 7 Re/Development Assistance Program �A New Tigard Triangle Therefore,there are typically fewer programs available to help to fund new workforce housing affordable to households earning 60%to 80%of AMI. LCG recommends that the RDAP focus on this workforce housing segment, between 60% and 80% of AMI. Mixed-Income Defined. Mixed-income housing is historically less common.As used here, mixed-income means a housing project(one structure) that includes at least 20% regulated affordable units available to households of 80%AMI or below and at least 20% market-rate units. 20% is used as a threshold to ensure that a "significant" amount of each project is both affordable and market rate. Eighty percent is consistent with the City's current SDC exemption program. Regulated affordable units should remain affordable for 30 years or more, consistent with the State's rules for 4% LIHTC projects. Once the Agency determines it will provide RDAP funds to an applicant, the Agency should enter into a Development Agreement or other legally binding agreement that sets forth the project attributes, including the number of affordable and market-rate units, depth and duration of affordability, other project benefits, etc.The agreement should include certain remedies in the event that the applicant fails to adhere to the terms.These remedies may include liens, recoupment of dispersed funds, seeking punitive damages, discontinuation of City services, property foreclosure, or other remedies that are proposed by the City's legal counsel.' Mixed-Income Funding Programs. The primary programs in the region and State that have provided financial incentives for mixed-income housing are the City of Portland's MULTE program (Multiple-Unit Limited Tax Exemption) and its successor, Portland's Inclusionary Housing (IH) program, which came into effect in February 2017. The IH program is a set of development requirements and incentives, and the MULTE program is now one incentive within the IH suite of incentives. A key distinction is that the MULTE program was optional for developers, whereas the IH program is mandatory for all new projects in the City of Portland that include 20 or more housing units. The Multiple-Unit Property Tax Exemption (MUPTE, upon which Portland's MULTE program is based) is available to cities throughout the State. While MUPTE has been adopted in Eugene, Salem, and Newport, the tax abatement structure has funded far more mixed-income projects in Portland. Eugene and Salem MUPTE projects were not specifically reviewed for this report. See ORS 307.600 for details on MUPTE. Washington State's Multifamily Housing Tax Exemption (MFTE) program is similar to Oregon's MULTE and MUPTE programs and has been the most effective tool for encouraging mixed-income housing in Washington. However, it is not clear that the MUPTE program would encourage mixed-income or affordable housing in the Triangle since the area is one of the City's Vertical Housing Development Zones (VHDZ),through which both market-rate and affordable projects can already secure a partial 10-year property tax exemption. 'Also see the State of Oregon's 2019 LIHTC Qualified Allocation Plan, Remedies section, page 49: https://www.oregon.gov/ohcs/development/Documents/LI HTC/QAP/2019-QAP-Final.pdf Re/Development Assistance Program Page 8 6 A New Tigard Triangle Density and other zoning-related bonuses can be used to encourage mixed-income housing and are a part of Portland's Inclusionary Housing program.3 However, it is not clear these would be beneficial in the Triangle, either, as the area has already been zoned to accommodate significant density. Lastly, mixed-income housing projects are not well documented or tracked in the State, partially because there is no state-wide or nation-wide agreement on the definition of"mixed-income." However, the resources reviewed for this report indicate that, in the Portland metro region, outside of Portland's IH and MULTE programs, mixed-income projects remain rare. HUD's Low-Income Housing Tax Credit(LIHTC) property database includes few if any projects that would be considered mixed-income by the standards proposed here.According to Costar(private real estate database) data,virtually all recent mixed-income projects are located in the City of Portland. Mixed-Income Housing Subsidies.The amount of subsidy required to close the funding gap on a mixed- income project varies depending on multiple project attributes including the number of affordable housing units being provided,the depth of affordability(AMI %of households), length of affordability, construction typology/costs, and other factors.Therefore, it is impossible to generalize about the subsidy required across this entire category. A recent analysis conducted by the Portland Housing Bureau (PHB)and further analyzed by Leland Consulting Group (LCG) indicates that the average subsidy per unit of affordable housing (either within a 100% regulated building or mixed-income building) is approximately$147,000, assuming that the units are affordable to 50%AMI households on average.' LCG's analysis of development economics in the Triangle indicates that the required subsidy will be between $32,000 and $120,000 per unit,for an 80%AMI and 60%AMI unit, respectively.The average subsidy, assuming that the average unit is at 70%AMI, is estimated to be$75,000 in 2020 dollars. RDAP's Role in Encouraging Affordable and Mixed-Income Housing The Re/Development Assistance Program does not take place in a vacuum; rather, it is one of a suite of tools and incentives made available to developers and property owners in the Triangle by the City, other public agencies, and other entities. Because of the number of funds and programs available through the Re/Development Assistance Program, projects that take advantage of RDAP alone are likely to be small to medium scale projects. For example, an RDAP-funded project could subsidize 14 affordable units within a 71-unit project assuming a funding gap of$70,000 per unit. However, creative applicants can and should take advantage of the other incentives available to them. By combining a variety of funding sources/incentives, applicants should be able to assemble the gap financing necessary to fund larger and/or more challenging projects that offer affordable and mixed- 3 As of August 2020, Portland's IH program has been in effect for more than three years,during which time the city has permitted,or is in process to permit,a minimum of 700 Inclusionary Housing units from 97 development projects. Numbers are updated frequently. https://www.arcgis.com/apps/Cascade/index.html?a ppid=4396ccc2125f4e3lb39c74430cea3662 '2019 State of Housing in Portland, www.portIand.gov/phb/state-of-housing-report. Page 9 Re/Development Assistance Program �A New Tigard Triangle income housing, and public amenities.The list of development incentives available in the Triangle is shown below. City of Tigard (can be secured citywide) - SDC exemptions (City transportation and park SDCs only)for affordable housing units.5 - Construction Excise Tax(CET) Funds. The City of Tigard recently adopted a citywide CET that will generate funds from commercial and market-rate development to help provide gap financing for affordable housing projects. Approximately$2 million per year is expected to be available citywide assuming recent levels of development extend into the future. Tigard Triangle • Tigard Triangle Lean Code including fast-track clear and objective development approval.The lean code was established in 2017 in order to be easier to understand, be more flexible, and allow a wide mix of uses and streamline permit review. • Vertical Housing Development Zone (VHDZ): Partial property tax abatement. Components of the program are available to both market-rate and affordable units and thus the tax benefit is greater for mixed-income projects.6 • Opportunity Zone.The Triangle is one of three Opportunity Zones in Tigard.The zones offer investors the potential to reduce their capital gains taxes over time.' • Business Assistance Program, which provides incentives for new and expanding businesses that create or retain jobs in the Triangle. • Urban Renewal Agency public realm and infrastructure investments. The Agency will be making a range of investments via the Triangle planning processes.These improvements will increase the walkability, attractiveness, open space, and other features in the area, making it more desirable for residents and businesses and potentially offsetting some developer improvements that would otherwise be needed. • Southwest Corridor light-rail improvements.The Southwest Corridor proposes high capacity, high- frequency light rail service for the Triangle, along with right of way improvements and other investments. • Re/Development Assistance Program (RDAP), typically via: o Predevelopment Services Grants, up to$100,000. o SDC exemptions. Such SDC exemptions may be additive to the Citywide (affordable housing) program above, for example, SDCs may also be partially exempted for market-rate housing or commercial uses. o Additional funds such as grants or direct investment (should not exceed $749,000 as described below). 6 See Tigard Municipal Code 3.24.100.D and www.tigard-or.gov/city hall/SDC Exemption Affordable Housing.pdf 6 URL: https://www.tigard-or.gov/business/vhdz.php ' URL: https://www.tigard-or.gov/business/opportunity zones.php Re/Development Assistance Program Page 10 �A New Tigard Triangle Other Potential Funding Sources for Mixed-Income and Affordable Housing 4% Low Income Housing Tax Credit (LIHTC).The 4% LIHTC provides gap financing/equity for 100% regulated affordable or mixed-income projects.8 It is non-competitive and is managed by the State's Oregon Housing and Community Services (OHCS). OHCS may also manage other funding sources that could be applied to projects in the Triangle. o Philanthropic Funds& Impact Investors.This is a dynamic source of predevelopment and capital development funds, and like the RDAP itself, may not solve the funding gap inherent in affordable housing alone. However, such funds can help close the gap. For example, Meyer Memorial Trust is one example of local philanthropy with a housing affordability focus. Impact investing has become popular among both mission-driven and traditional investors in recent years;Turner Impact Capital is one example of many. o Regional Affordable Housing Bond (Metro Bond).This regional fund was approved by voters in 2018 and will be administered by Washington County in the Triangle.At least 80%of the funds will go towards households earning less than 60%AMI and therefore,these funds are probably best suited for 100% regulated projects. However, it is another source to consider. o Other sources are available for 100% regulated affordable projects; see the OHCS web site. Delivery of Funds and Prevailing Wage Rates The City should be aware that the way in which RDAP delivers funds to a project can impact the project's economics and financial feasibility. Specifically, when the public sector invests$750,000 or more of"funds of a public agency" in a particular project,the State of Oregon's Bureau of Labor& Industries (BOLI) considers that project to be a "public works project" and subject to prevailing wage rates (PWR)for construction.'While prevailing wage rates may provide fair compensation for construction professionals, they may also significantly increase a project's labor and overall construction costs (10%to 20% is a reasonable baseline assumption), and require additional documentation and verification by developers that some strongly prefer to avoid. Therefore, in some circumstances, an RDAP grant could cost project applicants more than it benefits them, particularly for projects with a base budget of more than $10 million (approximately 30 units or 30,000 square feet),whose costs would likely increase by$1.0 million or more. PWRs are less of a concern for affordable housing projects since they are often taking advantage of other funding sources that already require PWR. The following types of potential RDAP investments are generally considered to be "funds of a public agency" and therefore generally do trigger PWR: • Predevelopment costs such as studies, site preparation,surveys, and other services covered by the Predevelopment Services Grant (URA share only; applicant share not included). 8 Mixed-Income Housing: Definitions and Outcomes, University of Oregon, 2016. https://www.oregon.gov/lcd/UP/Documents/UO-Mixed Income Housing.pdf 'See Bureau of Labor and Industries,Chapter 839, Division 25, Prevailing Wage Rates on Public Works;and Background Brief on Public Contracting www.oregonlegislature.gov/lpro/Publications/201OPublicContracting.pdf Page 11 Re/Development Assistance Program New Tigard Triangle • Reimbursement for costs integral to the project • Grants and direct investments Thus,the City may provide a maximum of$749,000 under RDAP to projects within the above categories. For example, if a project receives$49,000 via the predevelopment services grant,then the City's maximum direct RDAP investment would be $700,000. The following types of potential RDAP investments are generally not considered to be "funds of a public agency' and therefore do not trigger PWR: • SDC Exemptions (Agency payment of SDCs to City transportation and parks departments) • Payment/waiver of other fees and charges • Land write-downs/land sale value adjustments • Some public staff assistance (check with BOLI as determinations vary) Therefore,the City may provide up to$1.0 million under RDAP via an Urban Renewal Agency payment of SDCs, other fees, City staff assistance, or if possible (in the rare case that land is publicly owned) by land value adjustment. Consistent with the City's past practices, and in recognition of BOLI rules,funding assistance is most likely to be via SDC payments. However, in situations in which the Agency seeks to provide more RDAP funds than can be provided through SDC waivers or payments,the Agency should consider other means, such as predevelopment cost reimbursements, and/or grants or direct investments.This could happen in small projects; for example, a 50-unit housing project would incur far less in City SDC payments than the $1.0 million RDAP investment threshold. Application Process The application process for both the Predevelopment Services Grant and Development Assistance Grant programs have defined guidelines in order to make the process easy to follow but focused on program criteria. It requires the applicant to provide basic contact information, a project description, identify program criteria met by the proposed project (if any), and a written explanation for how the project meets these criteria. If an applicant has a larger, more complex proposal for the Board to consider that does not fit within these parameters, more in-depth review and discussions would likely be required.These programs were designed for projects that are fairly straight forward and could be considered by the Board in a timely manner. Once an application is approved, a contractual Development Agreement between the City and the Applicant should follow.This agreement will provide the Applicant with an official document to present to lenders, in turn adding security to a project from an investment standpoint and potentially delivering a project to the Triangle sooner,thereby also providing community benefits sooner.This agreement should also outline the terms of the award to the Applicant in order for the City to ensure the project in question Re/Development Assistance Program Page 12 6 A New Tigard Triangle delivers the community benefit elements promised in the application. It should be noted that not delivering these elements will result in the withdrawal or reimbursement of awarded funds; additional remedies for affordable units are described above on page 5. Grant Requested ❑ Predevelopment Services Grant ❑ Development Assistance Grant Application Information • Contact information: name, owner/leaser, mailing address, phone number, email • Business information, if applicable: name of the business, a brief description of business activity, and business mailing address Project Information • Site Information:Address, Legal Description • Building planned use • Project type: residential/mixed-use (market-rate, affordable, or mixed-income), commercial, other. • Project description: number of units (if any), number of affordable/market-rate units (if any), square feet of development, amenities. Program Criteria &Goals • Mark all that apply to the project • Narrative description (up to two pages) of how specific Program Criteria are addressed by the proposed project Expected Project Costs • Item description and estimated costs • Proposed source of funding, including evidence of match (if applicable) Simplified Re/Development Assistance Application Review Process The recommended RDAP application review process is as follows: 1. Applicant/developer submits an application with the information listed above, and the assistance ask(limited to 10%of project cost or$1 million-whichever is lower) 2. Staff makes a recommendation on whether to approve the application and the level of funding to the Town Center Advisory Commission, which makes a formal recommendation to the Town Center Development Agency Board. 3. This grant amount and associated requirements are memorialized in a Development Agreement, which is then approved by the Town Center Development Agency Board. Page 13 Re/Development Assistance Program Tigard Downtown Development Strategy Updated Five-Year Action Plan Prepared for: City of Tigard Town Center Development Agency October 2020 Tigard Downtown Deveiopment Strategy Contents A 2020 Downtown Progress Report..................................................2 Development Opportunities and Constraints...................................4 MarketSnapshot.............................................................................10 Development Insights.....................................................................13 Development Strategy....................................................................14 Appendix A: Market Overview Appendix B: Interviews Summary Appendix C: Development Opportunity Studies i 'J. Source:City of Tigard City of Tigard—Town Center Development Agency 1 Tigard Downtown Deveiopment Strategy A 2020 Downtown Progress Report Significant transformation has occurred in Downtown Tigard since the adoption of = the Downtown Improvement Plan in 2005. The community and City leaders have pursued a dedicated course of incremental improvements through public and private development over the past fifteen years. Major completed and on-going II investments in streets, parks and trails have improved the public sphere,while major public/private development projects have brought hundreds of new residents to the -~ y Downtown and improved the business district. Major accomplishments include: _ - • Extensive street and streetscape improvements on Main and Burnham Streets. Source:SERA Architects • Public street art and at Downtown gateways. • Fanno Creek restoration and park improvements. • Attwell Off Main public/private partnership, brings hundreds of new residents in dense, mixed-use development. • The Knoll at Tigard brings affordable units for senior residents. • Storefront and tenant improvements to nearly thirty local businesses. • Main Street at Fanno site purchase, cleanup and development agreement for new development. • Tigard Street Heritage Trail, Rotary Plaza, and public restroom. • Tigard Skatepark. • Site purchase and planning for Universal Plaza. • New public parking lot. Many more projects are underway or in planning, including completion of Universal Plaza, potential major redevelopment of the current City facilities, on-going street improvements, incentivizing new private development, and plans to leverage the future Southwest Corridor light rail station to be located at Hall Boulevard. City of Tigard—Town Center Development Agency 2 Tigard Downtown Deveiopment StrategyI I Even as Downtown Tigard has benefited from this steady progress, the unpredictable Downtown Tigard Planning Timeline shifts of the economy and real estate market conditions have at times limited the - available resources and opportunities. Much remains to be accomplished to achieve the Downtown 2005 Plan Cit Downtown Vision and meet the goals set forth in the Improvement Plan and the City Improvementv Center Urban Center Urban Renewal Plan. The Downtown area needs continued development of a full Streetscape Design Plan 2006 Renewal Plan mix of residential, commercial, and civic/public land uses to continue to draw in new 2007 Downtown Comp Plan residents and businesses. More mixed-use and transit-oriented development (TOD) Fanno Creek and Plaza Chapter would best take advantage of allowed density, regional transit stations, and Downtown Master Plan 2008 Downtown 2009 Implementation Tigard's walkable, bikeable street network. Downtown Future Strategy Vision 2010 Development Code As the Downtown finds itself at this crucial juncture between what has been achieved Downtown 2011 Amendments and what remains to be done, the City Center TIF District is approaching the end of its Development Strategy 2012 planned 20-year duration. The district has not generated the amount of tax increment High Capacity Transit revenue forecasted at the outset, largely due to the economic crash that began soon 2013 Land Use Plan after adoption. That recession was led by the real estate and finance industries,and new 2014 development was cooled for many years following. 2015 As of 2020,the table has been set for increased progress towards the Downtown Vision. CCUR Substantial 2016SW Corridor Light Rail Tax increment revenue in the district has now built to a substantial annual amount to Amendment 2017 Project Design contribute to the remaining major projects,while the anticipated connection of regional 2018 SW Corridor Equitable Affordable Housing Housing Strategy light rail service in 2027 will enhance the attractiveness of the area for new transit- Implementation Plan 2019 oriented development. City Center Futures 2020 Downtown Tigard Projet Reimagined This Development Strategy discusses strategies and action items to pursue in the next few years to build on the successes in Downtown Tigard, and plan for the future of the TIF district. City of Tigard—Town Center Development Agency 3 Tigard I • • Deveiopment Strategy Development Opportunities and Constraints This section discusses some on-going opportunities and challenges that may impact Downtown development activity in the future, from both planning and market perspectives. The following map (Figure 1) shows the Downtown area, noting both recent public and private projects, as well as potential future projects. It also notes potential areas of planning focus. In comparison to the adopted Downtown Vision,the existing City Center TIF District remains underdeveloped as a fully integrated, self- sufficient mixed-use center. The area has significant remaining capacity for new development that can attract many more residents and employees to the district. Great strides have been made to enhance the public sphere, improve connectivity, and fully leverage the Fanno Creek natural area as a great livability amenity. These investments can attract more private investment to the area,while catalytic projects such as Attwell Off Main provide examples that mixed-use development works in Downtown Tigard. COMMERCIAL ENVIRONMENT: Walkable, urban-serving businesses are generally concentrated along SW Main Street, iw with more automobile-oriented storefronts, warehouses, industrial uses, spread throughout the area. SW Main Street is home to many successful small businesses, and investments to the public streetscape and building facades have revitalized the s corridor over the past decade. With this strong core, the street :F still contains gaps in development and could benefit from additional restaurants, shops, and gathering spaces to build a critical mass. Recent streetscape improvements along SW Main and SW - Burnham have helped improve connectivity and create a pleasant walking experience.Several recent housing projects, including Atwell Off Main (market rate apartments; map location "A") and The Knoll (affordable senior living; map location "B") have transformed previously sites and brought new clusters of residents to the city's core. City of Tigard—Town Center Development Agency 4 Tigard Downtown Deveiopment Strategy2020 Figure 1: Downtown Tigard Projects, Opportunities and Constraints RECENT I EXISTMr6 PROJECTS POTENTIAL PROJECTS EENBURG ppA Atwell Off Main d Hall BauL—nd Station and Area improvements READ The Knoll Potential New Civic Center I Exlsting Fire 5tatfon — Tigard Street HerEWJeTail 1 Rotary Plaza P.ennat Housl.tll Development Wisposl tion of current Civic Center) I Tigard Transit Cen[er uni—I N_ The Fields Apartments(Affordable) Mixed-use Development ® Tigard Senior Center R Potential Employment Areas ® Ttgard Public Literary Q Fire Station 9 / TIGARD itA�4E •••... s TRIANGLE 04 4Fa ri ELMHURST e STATION F s�D� Ji . urns. ...............r............... ....r�.n`'• _I DERRY `� ' J TL 8�.a`•o' ¢ rr DELLHALL _7 ri STATION @: r r F r A yQtf ` PdTLIi`NJTIA r a , EMPLOYMENT o ..........:.............. D :ARE,A/ ,a r. © I �i '•L, Mate-�¢ i FANHO CREEK PARK LEOEND a--> Needed Connections — Trail Network H 1onner6yity Barn'e's — On Street bikeways – �y u ❑ Opportunity Sites Vomit[Land Patortial Revita Btatlan C-1dors Exisll..a Ulbar W—ak Area N Existing Gateway ❑ Huniiker l ndustrlal Area 9 0.20 mi OAO rW f W ure Gateway Proposed Streat Reaiignmert 1 inch–0.20 miles(at Leiter size display) City of Tigard—Town Center Development Agency 5 The area near SW Hall and SW Commercial (map location "C") could become a secondary hub for small commercial businesses in the future as planned light rail service brings investment and foot traffic to the area. Numerous opportunities exist to transform this area for more active development,better street connections,open spaces,and public use opportunities particularly between the station area and SW Main. HOUSING: Adding new residents has been a key goal of the TIF District,to continue to increase vitality,support Main Street businesses, and take advantage of the strong transit connections. The Downtown is home to many older apartment complexes clustered on the east side of the district, on or near Hall Boulevard. These properties range in size from a few units to hundreds of units. Along with the nearby mobile home park property, these older apartments provide an important source of "market rate" affordable housing to the community,as they charge lower rents than newer properties, but without formal rent subsidies. Another term for this type of housing is "Natural Occurring Affordable Housing" or NOAH. As the district continues to attract new development and transition into a light rail station area, there may be increasing pressure on this stock of affordable rental properties to sell or redevelop. The "SW Corridor Equitable Housing Strategy" developed as part of the light rail planning project identified many of the dangers and potential remedies for the displacement of residents who rely on this NOAH housing in growing station areas. Strategies include encouraging and partnering on more affordable housing development, anti- displacement assistance to households, and programs for first-time home buyers. There are also examples of new housing in the District that exemplify the types of new development that can begin to join older housing in the Downtown area. The Attwell Off Main is an example of the type of new multi-story mixed use development that can occur with the partnership of the TIF District. This project brought 165 new higher-end market rate units to the area and takes advantage of the local walkability and connection to Fanno Creek Park. The Knoll is an example of non-profit subsidized housing that will ensure units remain affordable for the long term. The proposed mixed-use project at Main and Fanno Creek will bring more urban-style apartments to the city center. ZONING AND LAND USE:The Area is primarily zoned Mixed Use-Central Business District(MU-CBD),with adjacent areas of Commercial General near Highway 217 and Light Industrial to the southeast of the City Center. The MU-CBD zone is regulated by the Tigard Downtown Plan District,which includes development standards that encourage density and mixed uses, including minimum residential City of Tigard—Town Center Development Agency 6 densities, taller ground floor height requirements, reduced parking requirements, small maximum setbacks, and urban-feeling lot coverage and landscape requirements.The Atwell Off Main apartments were developed under these standards. The City is exploring options to relocate the City facilities currently located off SW Hall Blvd.to the City's public works site near SW Hall and SW Burnham (map location "D").This creates the opportunity both for modernized public facilities at a new City Hall and the reuse of the former City Hall site (map location "E")for large scale private development of housing and other uses. The northern part of the district includes many highway-oriented shopping centers facing Pacific Highway(99W)that don't fit the desired downtown character nearby. This could be a long-term redevelopment opportunity to provide better connectivity and a finer grained land use pattern. Over time,these properties will be higher valued as redevelopment sites than as aging shopping centers. TRANSPORTATION AND ACCESS: Pacific Highway runs along the northwest edge of the area and provides a regional connection for Tigard City Center.At the same time,this wide high-traffic corridor is a major barrier to connecting downtown to residential areas to the northwest and is uninviting for walking or biking. Highway 217 provides several interchange exits to the edges of the Downtown area for vehicle access.SW Hall Boulevard is a key north- south local collector street linking City Center to area neighborhoods. The Fanno Creek Trail is a quality local open space amenity and active transportation route that links walkers and bikers from Tualatin to Washington Square and south Beaverton to the north. The recently constructed Tigard Street Heritage Trail which intersects with SW Main Street (map location "F") provides another active connection(in addition to historically themed art and a small plaza.)The City Center overall is challenging to get in and out of other than via a few key streets; options are limited. New, safer crossings of Pacific Highway, Highway 217, and through Fanno Creek Park are some of the opportunities to better link downtown Tigard to the broader city and region. Downtown Tigard is a well-served regional transit hub. WES Commuter Rail links Tigard to Tualatin and Wilsonville to the south and Beaverton to the north with peak-hour commuter rail service. The Tigard Transit Center links WES service and numerous bus lines running directly to Beaverton, Portland, Sherwood, Wilsonville, and local destinations. Southwest Corridor light rail service is planned for a station at SW Hall/SW Commercial that will increase multimodal connectivity from Portland to Tualatin. City of Tigard—Town Center Development Agency 7 Tigard I • • Deveiopment Strategy .�rlJ � r�oPe GREEN SPACE AND PUBLIC USES: Fanno Creek to the southwest of downtown is an excellent open space amenity but is the only large natural park or open space in the Area. The planned Universal Plaza 3r. along SW Burnham (map location "G") will be a major expansion of public space. The Fields Natural Area provides another open space amenity to the south of Downtown. Additional green space and urban landscape opportunities exist through site development and streetscape projects in the future. to. KEY SUBAREAS AND CORRIDORS: Revitalization in Downtown Tigard is happening or planned across a group of subareas that still feel somewhat disconnected. These include the SW Main corridor with its mix of small businesses and offices (one site on SW Main near Fanno v x Creek is being explored for mixed-use development, map location "H"), a the possible redevelopment of City facilities at SW Burnham and SW Hall, a future light rail station at SW Commercial and SW Hall, and ry�y Ew,..rw IY. redevelopment along Burnham, Commercial and Hall.Another specific site being studied for redevelopment is the Tigard Transit Center(map —� .. location "J") which may become available as the station area is Fanno Creek Park Master Plan reconfigured with arrival of the light rail service. The need to connect these projects makes improvements along several key corridors all the more important.These include opportunities to bolster mixed-use and commercial development, public projects, and streetscape and connectivity improvements along: • SW Main between SW Scoffins and Pacific Highway - a pedestrian-oriented historic main street environment with continuous building frontages, ground floor businesses, and residential options. Significant streetscape investments have been completed in recent years along SW Main. City of Tigard—Town Center Development Agency 8 Tigard Downtown I - - • •ment StrategyI I • SW Burnham - medium-scale residential and mixed-uses, live-work, offices, retail, and civic uses. The streetscape along Burnham has been completely reconstructed in recent years, but development remains disjointed and constrained to auto-oriented uses. • SW Hall between Pacific Highway and SW Burnham -a blend of building types and land uses, including commercial and residential options, especially taking advantage of good accessibility near Pacific Highway and SW Hall. • SW Commercial between SW Main and SW Hall - higher density residential and employment uses including offices and retail businesses. • Potential Employment Areas(map location "K") -the warehouse and industrial areas northeast of the rail tracks, south of Highway 217, and approximately east of SW Hall Blvd and SW Knoll Drive could be targeted for more mixed employment, commercial, and flexible work space, especially to take advantage of potential incoming light rail at the nearby Hall/Commercial station. Similarly, the development of the Fields Apartments with 260 housing units (map location "L") helps to build residential density in the area. This area is not within the TIF district boundary, but the development of the properties near the light rail station will have complimentary impacts on the Downtown,and vice versa. JIM may : Y City of Tigard—Town Center Development Agency 9 Tigard I • • Deveiopment Strategy Market Snapshot The past decade has seen a strong rebound of economic growth from the 2008 recession. The Portland Metro area has fared even better than many regions by almost any measure, from population and employment growth, to income levels, to real estate development. The region has remained a popular and attractive destination for new residents, even throughout the recession, while benefiting from a strong and growing base of well-paying high-tech and professional jobs. Real estate development activity fell precipitously during the recession, but the need for new housing and particularly rental housing soon became apparent. Development returned first to the urban core and has spread over the past decade to suburban communities, including Tigard. Since 2010,Tigard has seen the development of over 3,300 new housing units, with an estimated 43% being multifamily. The Downtown area has seen the development of over 200 rental units in the Attwell Off Main, and the nearby Knoll at Tigard. Growth in the City of Tigard Population Households Med. Income 2020 (est.): 54,100 21,800 $81,700 0 0 0 0 0 00 a; l0 N ri 2010: 48,050 19,050 $62,100 ♦ City of Tigard—Town Center Development Agency 10 Tigard I • • Deveiopment Strategy Table 1 (next page) summarizes the market conditions for real estate Economic Impacts of Covid-19 development in the Downtown Tigard area in recent years and in to early 2020. (This analysis assumes that these conditions represent the long-term trends in the As of early 2020, the national and regional area and are likely to return over a five-year planning period, despite current economy was as strong as any period on record disruptions.) with record low unemployment, good job and income growth, a strong stock market, and continuing real estate development. By mid-2020, Conditions are supportive of continued growth in residential and commercial real the quickly appearing public health emergency of estate, and the development of denser building forms that support a mix of uses Covid-19 essentially forced much economic and take advantage of excellent nearby transit options. activity to be put on hold as the situation unfolds. The duration and long-term impacts of the crisis are yet to be seen. There is reason to believe that this is a temporary emergency, and economic activity may rebound well once residents and workers are able to return to more normal activity outside the home. Many .J r of the underlying conditions that supported a - _ charging economy at the beginning of the year are F - "� still resent. Since tannin efforts look at the _. � ' p planning N long-term,the safest assumption is that conditions - will return to something like the prior trend in coming years, even if the period of recession lasts one to two years. Source:Development study,SERA Architects City of Tigard—Town Center Development Agency 11 Tigard Downtown Deveiopment StrategyI I Table 1: Real Estate Market Conditions, Downtown Tigard Market C�� Moderate to strong: The use with the Strong: There is an estimated 5-year Good: Downtown Tigard is a good Four/Five-Story MFR or MU: Rental Apts strongest market potential currently, demand for roughly 1,500 new market rate location for rental residential use. Currently,the densest market- though increased supply in Tigard and apartment units,or 300 units per year,in The area combines walkable feasible development form is likely surrounding areas is putting downward the Tigard market. New demand is services,shopping and other to be a four-or five-story apartment pressure on rents.We regard the current concentrated in middle-income segments amenities,with a pleasant building served by surface or limited market potential to be moderate but among young households and seniors. residential character on adjoining tuck under parking.Structured expect strong conditions in 3-5 years. streets and neighborhoods.The parking is generally cost-prohibitive There is additional demand for regulated area further benefits from good in this market,though tuck under Current rent levels are generally affordable units,reflecting the shortage of regional access via 1-5 and Highway and parking podium approaches are supportive of new projects,especially at affordable housing in Washington County 217. feasible. sites in pedestrian-friendly areas with and the broader region. good regional/freeway access. Moderate: The market area has Moderate: There is considerable demand Good: Downtown is a good location Low-Rise or MU: Single-story retail Retail benefitted from low vacancy in recent for new retail space within a 3-mile radius of for small-to-mid retail uses, might be feasible on peripheral sites years,but most of the new demand has Downtown,estimated at more than 40,000 including eating/drinking places and along arterials with high traffic been for auto-oriented retail.Demand square feet per year over the next five years. commercial services.The area volumes. Mixed-use formats are a for pedestrian-oriented retail has been However,auto-oriented retail formats will already has an established cluster of more likely development form in dominated by eating and drinking places represent some of the demand. pedestrian-oriented amenities on pedestrian-friendly areas.In both and by professional and medical service Main Street,though capacity cases surface parking is most likely, providers. Nevertheless,a modest amount of remains for more. though some tuck-under parking pedestrian-oriented retail is feasible in areas may be possible in mixed-use Lease rates are highly dependent on that provide active urban environments. Additional critical mass may be structures.The need for easy-access access and visibility,and only sites with needed to attract the traffic and parking may limit the amount of good exposure can support new generate the rent levels needed for commercial space in mixed-use construction. development of sites with projects. secondary exposure. Moderate to weak: Suburban office Moderate to weak: Only limited demand Moderate to good: Downtown is a Low-Rise or MU: Standalone low- Office markets have struggled over the past growth is projected over the coming five good location for local population- rise office buildings are most likely to decade as demand has shifted to urban years(40,000 SF total),with net declines serving establishments of moderate be build-to-suit medical buildings. locations.The current vacancy rate in over the near term followed by gains 3-5 size and with limited parking needs. Other office uses generally do not and around Tigard is high,at 11.8%, years from now.Sites near existing Sites along arterials and near generate the lease rates needed for though most of the vacancy is at large commercial clusters and sites with retail-like established commercial clusters new construction.However,smaller business-park properties.Current exposure are best positioned to capture provide the best exposure to the ground-floor suites in mixed-use demand is primarily driven by smaller demand from population-serving users. local population.Sites without buildings are likely feasible at sites population-serving establishments in Ground-floor suites in mixed-use buildings visibility are more difficult to utilize. with good exposure. professional or medical sectors. may accommodate some of this demand. City of Tigard—Town Center Development Agency 12 MY Tigard I • • Deveiopment Strategy Development Insights Developers, real estate professionals,and other stakeholders shared their The Future Vision thoughts on Tigard's City Center as a development location,and its future. 0 The City must continue to embrace proximity to transit and sell Some key takeaways are summarized here. this vision to large developers and employers to locate in the district. In other locations rail has changed the achievable density, Development Fundamentals parking ratios,and pricing. • Downtown Tigard has made good strides as a submarket. It is creating In coming decades, Downtown Tigard should plan bigger,allowing a sense of place and is building a critical mass of residents and businesses. But more is still needed to achieve its potential. for taller buildings,and high density. Reaching a critical mass of residents and businesses is key. • At current rent levels,target development forms(dense, mixed use, transit-oriented)are close to feasibility. Unfortunately,costs have • Fanno Creek is a huge amenity. There should be connections to the creek throughout the district. This amenity can be leveraged. kept pace. 2020 may see a moderation in construction costs. • After 2020, businesses, owners and employees who do not have to • To make catalytic change,someone needs to control enough land be in central Portland every day will have more options. They can go to have a big impact and set the standard at the beginning. This to part time commuting,flex options,or move to more distant office may start with the City properties. The site should be master locations. This can benefit suburban markets like Tigard. planned with careful eye to its impact on the rest of the district. • National developers and businesses may need more education on • The goal should be to create lasting stability and diversity over Tigard's place in the Metro area. time. 2020 has been a challenge, but also an opportunity to look at the systems for equity we want to build for the future. It has • The trick in Downtown Tigard is finding land that works. Some sites exposed many cracks in the current system. may need City improvement or investment. Uses of TIF and Other Resources • Zoning needs to allow high density,so that development can • Infrastructure is very important. The city can contribute to street, accommodate enough units to justify construction. utilities,water and sewer and get properties served so they are • Parking is still the challenge. A development can use a hybrid of ready to develop. tuck-under and surface. Lower density"walk up"apartments with • However,the City must put thought into how avoid triggering surface parking will not yield enough units to pencil. The parking prevailing wage. Prevailing wage can be the difference between ratio can go down as the district matures as a station area. feasible and infeasible projects. The City should employ strategies • Investors will want certainty that the light rail station area is going to to avoid this,as it has in the past. be built. Development will not move too early in anticipation of it. 0 Effective approaches are strategic land acquisition,gap funding, and complimentary programs like the Vertical Housing Development Zone tax abatement,and Opportunity Zone. City of Tigard—Town Center Development Agency 13 Tigard Downtown Deveiopment Strategy Development Strategy '' The purpose of this Development Strategy is to prioritize actions and projects in the City Center TIF District over the next five years to attract new private development activity and achieve the Downtown Vision. The Development Strategy is an update of prior strategies (2007, 2008, 2011) that helped guide decision making on the most productive use of the community's available resources of funding, time, and effort. ; This strategy presents four main categories of actions,based on these a• prior planning efforts and the current needs of the district in 2020:R !l III liq , . . � . Seek opportunities to invest in public and private development that attract new residents and businesses to the Downtown,catalyze other development,and provide examples of affordable, mixed-use and transit oriented develop (T.O.D.) building types. Facilitate making sites available to accommodate these types of development. Assist owners to improve and rehabilitate Downtown properties. . IR I M- We . - Finish the public access improvements and restoration of natural areas in Fanno Creek Park, as the central open space amenity in the Downtown. The Park is envisioned as the "Green Heart" of the district, creating a network with other public plazas and walkable streetscapes. The Universal Plaza will serve as a key neighborhood attractor and gathering space for events in the Downtown. City of Tigard—Town Center Development Agency 14 Tigard Downtown Deveiopment StrategyMI&LDevelI I . . Comprehensive Street and Circulation Improvements Downtown Provide well designed streets that promote walking, biking and use of transit to attract development to the Downtown. A well-connected multi-modal street grid helps the district function as an integrated place for residents,workers,and visitors. Well-designed connections between Main Street and transit stations will help incentivize development on those corridors. Pursuing most of these strategies is dependent on the resources available to undertake projects. One key to meeting Downtown development goals in the next five years and beyond will be to determine the future plans for the TIF district itself and adopt changes if necessary. Table 2 presents a matrix of potential Action Items and Projects to undertake in coming years. Recommendations are organized based on the four strategy categories shown above. This matrix includes a preliminary assessment of priority for discussion. City of Tigard—Town Center Development Agency 15 I I A) ENCOURAGE AND FACILITATE REDEVELOPMENT PROJECTS DOWNTOWN Public Facilities Description In Progress Planning Not Started A.1 Public Works Site(Civic Center and Parking) Continue planning efforts to redevelop current Public Works property at the corner of SW Burnham and Hall, which may include:City functions consolidated on this site in modernized facility;Shared parking structure near new X LRT station; potential additional public plaza or open space. A.2 Redevelop Current Civic Center Site The Public Works project will potentially free the large Civic Center site for redevelopment with a mix of uses that will help achieve the Downtown Vision. These may include X hundreds of housing units and new businesses. Complete master planning and a disposition strategy to ensure this property is fully utilized. A.3 Main St. at Fanno redevelopment Continue development agreement implementation to ensure that the future mixed-use development takes full advantage of this key site and meets public goals. Facilitate X near-term action on this development. A.4 Acquisition and Redevelopment of Tigard Transit Plan for the eventual reuse of this large key site located on Center Commercial Avenue near Main Street. X A.5 Other Property Acquisitions, Public-Private Acquire property from willing sellers in order to assemble Partnerships land for redevelopment. Prioritize key sites and residential X and transit-oriented development. City of Tigard—Town Center Development Agency 16 Tigard I • • I - - • • • - • , A) ENCOURAGE AND FACILITATE REDEVELOPMENT PROJECTS DOWNTOWN(Cont.) Public Facilities Description In Progress Planning Not Started A.6 Public Parking Facilities Search for additional opportunities to provide public X parking in Downtown area. A.7 Public Restrooms Provide additional restrooms in public areas. X A.8 Post Office Relocation Relocate the existing Post Office to create a X development opportunity. A.9 Community Center, Performing Arts Center Performing arts center will provide new X entertainment and recreation opportunities Planning and Development Assistance Description On-Going Planning Not Started A.10 Rehab/Redev. Grant/Loan Program Loans and/or grants for property rehabilitation and beautification, includingfa4ade improvement grants. X A.11 New Dev Grant/Loan Program Loans and/or grants for new development,focused on desired types such as new housing, mixed uses or X T.0.D. A.12 Technical Assistance Program Technical assistance including development opportunity studies market studies,feasibility analysis, engineering and design related to X development of property. May focus on desired development types,or key areas/corridors. A.13 Affordable Housing Assistance Grants and technical assistance to encourage new regulated affordable housing, and preservation of X naturally occurring affordable housing. A.14 Update Downtown Zoning Consider updates to the Downtown zoning code to facilitate more transit oriented development, including reassessment of allowed densities and X heights. (Agency and Council.) City of Tigard—Town Center Development Agency 17 Tigard I • • I - - • • • - • , B) IMPROVE FANNO CREEK PARK AND DEVELOP AN OPEN SPACE SYSTEM IN DOWNTOWN Parks Description On-Going Planning Not Started B.1 Fanno Creek Park Improvements Complete improvements to Fanno Creek Park,including X trails,access points,and natural restoration. B.2 Fanno Creek Park/Main Street Connection Finish design and begin construction of new Fanno Creek X Trail connection and small public space near Main Street Public Spaces Description On-Going Planning Not Started B.3 Universal Plaza Complete planning and undertake construction of the X Universal Plaza. B.4 Plazas/Urban Green Spaces Finish design and begin construction of additional X Downtown public space. C) DEVELOP COMPREHENSIVE STREET AND CIRCULATION IMPROVEMENTS DOWNTOWN Street Improvements Description On-Going Planning Not Started C.1 Ash Ave. Ext.,Scoffins to Burnham,w/RR Complete improvements to Ash from rail to Scoffins. X Crossing Complete rail crossing. C.2 Scoffins St./Hall Blvd./Hunziker Re-Alignment Realignment of Scoffins and Hall,at Hunziker in X coordination with LRT station construction. C.3 Implement Downtown Connectivity Plan Build new streets identified in the Downtown Connectivity X Plan,including public/private partnerships C.4 Center Street Improvements Improve Center Street from Commercial Park to Greenburg Road. X Streetscape Improvements Description On-Going Planning Not Started C.5 Main Street Complete Green Street Phase II X C.6 Commercial Street Landscaping,street trees,sidewalk,street furniture X C.7 Ash Avenue Landscaping,street trees,sidewalk,street furniture X C.8 Scoffins Road Landscaping,street trees,sidewalk,street furniture X C.9 Center Street Landscaping,street trees,sidewalk,street furniture X City of Tigard—Town Center Development Agency Tigard I • • I - - • •ment Strateg C) DEVELOP COMPREHENSIVE STREET AND CIRCULATION IMPROVEMENTS DOWNTOWN (Cont.) Bike/Pedestrian Facilities Description On-Going Planning Not Started C.10 Hall Boulevard Improved sidewalk, crossings, and bicycle facilities X C.11 Scoff ins Street Improved sidewalk, crossings, and bicycle facilities X C.12 Tigard Street Improved sidewalk, crossings, and bicycle facilities X C.13 Highway 99w Improved sidewalk, crossings, and bicycle facilities X C.14 Center Street Improved sidewalk, crossings, and bicycle facilities X C.15 Tigard Street/Grant Bike/Ped Crossing Improved sidewalk, crossings, and bicycle facilities X C.17 Tigard St. Heritage Trail-South Continue Tigard Street Heritage Trail from Main Street south to Hall Blvd X DETERMINE THE FUTURE OF THE CITY CENTER TIF DISTRICT TI F District Actions Description On-Going Planning Not Started D.1 Conduct TIF District Feasibility Study Complete a feasibility study of a substantial amendment to the CCUR Plan to increase maximum X indebtedness. D.2 Extend Plan duration, adopt new projects The TCDA may remove reference to Plan duration and update the TIF project list by resolution, and approval by City Council. This could be done concurrently with X the Plan amendment. D.3 Update TIF District Plan and Report Prepare a substantial amendment to update the City Center TIF District Plan for adoption and voter X approval. D.4 Plan Amendment Educational Campaign Prepare a public information campaign to explain the substantial amendment, prior to seeking voter X approval. City of Tigard—Town Center Development Agency 19 City Center Futures Vision Statement 2004-5 Tigard Downtown improvement Plan "Our vision of Downtown Tigard is a vibrant and active urban village at the heart of our community that is pedestrian oriented, accessible by many modes of transportation, recognizes and uses natural resources as an asset, and features a combination of uses that enable people to live, work, play and shop in an environment that is uniquely Tigard." DRAFT CITY CENTER FUTURES VISION STATEMENT-OCTOBER 2020-Revised Our vision of Downtown Tigard is an equitable,yibFa"t, adiv^walkable,and welcoming city center at *h^ h^^rt^'^•-r.carom,-^�* . It integrates natural resources and provides accessible transportation, recreational, residential housing and business economic opportunities that--;;rp aceessible*^ everyone. Clean version- Our vision of Downtown Tigard is an equitable,walkable, and welcoming city center. It integrates natural resources and provides accessible transportation, recreation, housing and economic opportunities. 11/5/20 Urban Renewal Project Updates City Center URD 1. Main Street at Fanno project • AVA is ready to close • 4t"Amendment extends closing to January 7 to allowing recording of lot line adjustment and easement documents at Washington County 2. Universal Plaza • Concept being refined and costs estimated • Design Advisory Group to meet December 10 • Site will be open in December(with COVID restrictions)to allow people access to temporary art installations 3. Main Street Green Street Phase 2 • Presentation from Public Works at December TCAC meeting 4. Senior Center Affordable Housing • DDA and lease finalized to be considered by Council on November 10 5. Urban Renewal Improvement Grants • Grant made to Shawn Gardener Dancing • Communicated with brokers representing vacant properties on fund availability 6. Nick Wilson Fanno Creek Overlook • Design to start in summer/fall 2021 7. City Center Futures Project • Project wrap up 8. Substantial Amendment • Meetings being scheduled with taxing districts • TCDA Board meeting-December 15 • Planning Commission-January 4 Tigard Triangle URD 1. A New Tigard Triangle • Phase 2 wrapped up 2. Red Rock Creek Commons • Lease-up has started 3. The Overland (Dartmouth and 72nd Mixed Use) • Construction has started 4. Mixed Use Path over Highway 217 • Waiting to hear on US DOT grant application 5. Affordable Housing • Viewfinder project under construction-91 units • REACH interested in pre-development grant funding 6. Parks • City representative is making inquiries on potential properties iTigardProject StatusEA Only � loon Pre-application son Building Permit milli Serious Interest Tigard Triangle Plan District Updated:10/29/20 MIN G Project# Project Name Location Description #of Units Year EA Meeting BLIP? BLIP# Land Use Case Project Status 1 Compass Oncology 12123 SW 69th Ave Medical clinic 0 2018 2018 Yes BUP2019-00003 ADJ2018-00017 Building Permit 2 Hermoso Law Office 7460 SW Hermoso Way Convert house to law office 0 2018 01/04/2018 No No EA Only 3 69th Ave Office 11905 SW 69th Ave Covert house to office 0 2018 01/11/2018 No No EA Only 4 Elmhurst Multifamily 7085 SW Elmhurst Multifamily development 2018 01/11/2018 No No EA Only 5 Atlanta Vet Clinic 6860 SW Atlanta Street Convert house to vet clinic 0 2018 04/10/2018 No No EA Only 6 Base Camp LLC Senior Housing 2S101BA00300 Senior housing 198 2018 05/08/2018 Yes BUP2019-00250 No Building Permit 7 CPAH Affordable Housing 11090 SW 68th Ave Affordable housing 48 2018 07/12/2018 Yes BUP2019-00081 ADJ2018-00020/ADJ2019-00004 Building Permit 8 Baylor Street Townhomes 6870 SW Baylor Street Townhouse development 2018 07/12/2018 No No EA Only 9 Baylor Street Mixed-Use 6870 SW Baylor Street Mixed-use development 2018 10/02/2018 No No EA Only 10 Baylor Street Office 6870 SW Baylor Street Office/warehouse building 0 2018 11/13/2018 No No EA Only 11 Hermoso Adult Foster Care 7420 SW Hermoso Way Adult foster home 2018 11/15/2018 No No EA Only 12 72nd Apartments 11740 SW 72nd Ave Mixed-use development 38 2018 2018 Yes BUP2019-00231 ADJ2018-00001 &00002/ADJ2018-00007 C of O 13 Community Development Partners NE corner of SW Baylor and SW 72nd Multifamily development 2018 12/4/2018 No No EA Only 14 Baylor Street Taphouse 6870 SW Baylor Street Taphouse 0 2019 01/03/2019 No No EA Only 15 72nd Ave Mixed-Use 1S136DC04402/1S136DC04000-4300 Mixed-use development 219 2019 01/31/2019 Yes BUP2019-0346 ADJ2019-00020/ADJ2020-00007 Building Permit 16 69th Multifamily 1S136DD07600/1S136DD04500 Multifamily development 2019 02/14/2019 No No EA Only 17 PAM Rehabilitation Center 2S101DA02300 Rehabilitation Center 0 2019 03/14/2019 No No EA Only 18 69th Mixed-Use 11905 SW 69th Ave Mixed-use development 2019 04/18/2019 No No EA Only 19 Elmhurst Redevelopment 7085 SW Elmhurst Commercial development 2019 04/18/2019 No No EA Only 20 72nd/Elmhurst Multifamily 2S101AB00200/2S101AB00101 Multifamily development 250 2019 05/16/2019 No PRE2019-00039 Pre-application 21 72nd/Baylor Affordable Housing 7175 SW Baylor/11580& 11550 SW 72nd Ave Multifamily development 80 2019 5/23/2019 No BUP2019-00343 PRE2019-00019 Building Permit 22 Daycare 11700 SW 67th Ave Daycare 0 2019 6/25/2019 No No EA Only 23 PedcorAffordable Housing 1S136DD02900/3001/3100/6100/6200/6300/6600 Multifamily development 2019 8/6/2019 No No EA Only 24 Clinton Street Mixed-Use 6960 SW Clinton/11875 SW 69th Commercial or residential 42 2019 9/5/2019 No EA Only 25 Mixed-Use Development 6960 SW Clinton/11875 SW 69th Mixed-use development 42 2019 12/3/2019 No ADJ2020-00010/LLA2020-00004 EA Only 26 AutoZone 7805 SW Dartmouth Street Autozone retail store 0 2020 N/A Yes SIT2020-00014 ADJ2020-00006 Building Permit 27 Hermoso Mixed-Use 7460 SW Hermoso Mixed-Use 28 2020 7/9/2020 No No EA Only 28 Development 1S136DD02900/3001/3100/6100/6200/6300/6600 Development 2020 716//2020 No No EA Only 29 Mixed-Use Development 1S136DD01700/ 1S136DD01500 Mixed-Use 45 2020 2/18/20 No No EA Only 29 Mixed-Use Development 1S136DC00101/ 1S136DC00200 Mixed-Use 45 2020 2/18/20 No No EA Only 30 TL401 Housing 2S101BA00401 Multifamily development 182 2020 3/26/20 No No EA Only 31 Hampton Inn 11799 SW 69th Ave 152-Room Hotel 2017 N/A Yes BUP2017-00254 SDR2017-00003 Building Permit 32 Development 12625 SW 69th Ave Development 2020 101/2020 No No EA Only 33 Landmark Ford 2S101AA00101 Commercial Addition 0 2020 10/8/2020 No No EA Only