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TCDA Packet - 02/22/2022 ' City of Tigard Tigard Business Meeting —Agenda TIGARD CITY COUNCIL & TOWN CENTER DEVELOPEMNT AGENCY- Revised on 2/16/2022 to remove language regarding "remote controlled devices" in the Item 5 Agenda Item Summary and attachment. MEETING DATE AND TIME: February 22, 2022 - 6:30 p.m. Business Meeting MEETING LOCATION: Remote participation only. See PUBLIC NOTICE below. PUBLIC NOTICE: In accordance with the City of Tigard's Emergency Declaration related to COVID-19 and Oregon House Bill 4212, this will be a virtual meeting where Council and staff will participate remotely. There will be no in-person public testimony during this meeting. How to comment: Written public comment may be submitted electronically at www.tigard-or.gov/Comments. All comments must be submitted before noon the day of the meeting. If you prefer to call in,please call 503-966-4101 when instructed to be placed in the queue. We ask that you plan on limiting your testimony to three minutes SEE ATTACHED AGENDA VIEW LIVESTREAM ONLINE: https://www.ti�y-ard-or.gov/boxcast CABLE VIEWERS: The first City Council meeting of the month may be shown live on Channel 28 at 6:30 p.m. The meeting will be rebroadcast at the following times on Channel 28: Thursday 6:00 p.m. Sunday 11:00 a.m. Friday 10:00 P.M. Monday 6:00 a.m. a City of Tigard a Tigard Business Meeting—Agenda TIGARD CITY COUNCIL&TOWN CENTER DEVELOPMENT AGENCY- Revised on 2/16/2022 to remove language regarding "remote controlled devices" in the Item 5 Agenda Item Summary and attachment. MEETING DATE AND TIME: February 22,2022 - 6:30 p.m. Business Meeting MEETING LOCATION: Remote participation only. 6:30 PM 1. BUSINESS MEETING A. Call to Order B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 2. PUBLIC COMMENT A. Follow-up to Previous Public Comment B. Public Comment—Written C. Public Comment—Phone-In 3. PROCLAMATIONS AND RECOGNITION 4. TOWN CENTER DEVELOPMENT AGENCY- CONSIDERATION OF A DEVELOPMENT ASSISTANCE AGREEMENT WITH REACH CDC 6:45 p.m. estimated time 5. LEGISLATIVE PUBLIC HEARING: CONSIDER ORDINANCE AMENDING TMC CHAPTER 7.52 TO PROHIBIT FIRES IN PARKS 7:00 p.m. estimated time 6. RECEIVE UPDATE ON TIGARD ECONOMIC DEVELOPMENT 7:15 p.m. estimated time 7. CONSIDER TIGARD CARES 6 - BUSINESS ASSISTANCE/COVID RECOVERY PROGRAM 8:15 p.m. estimated time 8. RECEIVE UPDATE ON TOTAL TYLER PROJECT 8:30 p.m. estimated time 9. NON-AGENDA ITEMS 10. ADMINISTRATIVE REPORT 11. EXECUTIVE SESSION: The Tigard City Council will go into Executive Session to discuss labor negotiations,under ORS 192.660(2) (d).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. 9:10 p.m. estimated time 12. ADJOURNMENT 9:30 p.m. estimated time SUPPLEMENTAL PACKET FOR -02.1 _ (MEETING DATE) < AGENDA ITEM NO. -� ^ 1f f w i �� City v_/Tig;tra E I `. COVID-19 Victims and Survivors Memorial Day WHEREAS, COVID-19 (SARS-CoV-2) is an illness caused by a virus that can transmit from person to person and has spread across the world, creating a global pandemic that is having catastrophic effects on human life, our community, our economy; and i WHEREAS, local and state governments, health departments, and public servants have taken bold actions to protect residents, support struggling local economies, and find innovative ways to provide services; and ;r WHEREAS, the City of Tigard continues to work with community partners to ensure residents have important information about local, state and federal resources to help ` individuals and local businesses significantly impacted by the COVID-19 pandemic; and WHEREAS, in response to rapid spread of COVID-19 and stay-at-home orders, essential workers continue to be extraordinarily dedicated to providing critical services to help protect our communities and save lives, sacrificing their own health and safety; and r WHEREAS, COVID-19 has had a disproportionate impact on low-income communities and communities of color, exacerbating inequities already prevalent in our systems that we must address; and }: WHEREAS, public health guidance and policies targeted at prevention, such as social distancing, wearing masks in public, and staying home help mitigate the spread of COVID-19, prevent illness, and lessen the burden on individuals and society; and WHEREAS, the Oregon Health Authority reports Washington County has 82,681 .. :. confirmed cases, with 490 deaths as of 2/17/22; each life lost to COVID-19 mattered .. and leaves a hole in the hearts of loved ones and family members and ripples throughout our community. NOW THEREFORE BE IT RESOLVED the City of Tigard City Council does hereby proclaim its support for designating the first Monday in March as, COVID-19 Victims and Survivors Memorial Day in remembrance of those who have lost their lives and in honor of those who are t forever marked by COVID and continue to suffer from the impact of this virus. Dated this day of February, 2022 IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Tigard to be affixed. „w, AIS-4817 4, Business Meeting Meeting Date: 02/22/2022 Length (in minutes): 15 Minutes Agenda Title: TOWN CENTER DEVELOPMENT AGENCY- Consideration of a Development Assistance Agreement with REACH CDC Presented By: Redevelopment Project Manager Farrelly Item Type: Resolution Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE The Board of the Town Center Development Agency(ICDA) will consider a resolution authorizing the Executive Director to sign a Development Assistance agreement with REACH CDC. The agreement sets the terms for$1 million in TIF funding toward the 85-unit affordable housing"Dartmouth Crossing North" project,paying for certain systems development charges incurred. This action fulfills priorities of A New Tigard Triangle: Planning for Equitable Development. Representatives of REACH will make a presentation. ACTION REQUESTED Staff requests the Board approve the resolution. BACKGROUND INFORMATION REACH Community Development (REACH), a non-profit affordable housing developer, has applied for$1 million in development assistance to construct affordable housing in the Tigard Triangle. Dartmouth Crossing North,located at SW Clinton and SW 69th Avenue,will provide 85 regulated apartments affordable to households making 60% of AMI (Area Median Income.) The unit mix will be one studio, twenty-nine 1-bedroom, forty-five 2-bedroom,and ten 3-bedroom apartments. Project amenities include a public plaza, public mural, solar panels,interior courtyard, community room, classroom for resident education and resident services, and bike storage rooms on the lower floors.The estimated completion date is early 2024. REACH is planning a second phase to be built across the street with additional affordable units and a commercial/service ground floor. The project will construct street improvements on SW Clinton Street and SW 69th Ave. In addition,the Agency and REACH are exploring potential partnerships to construct offsite street improvements to improve pedestrian mobility in the Triangle. Affordable housing funding was identified as a top priority in the recently completed TIF implementation plan (A New Tigard Triangle:Planning for Equitable Development).The primary method to advance this goal is through affordable housing financial assistance. The Development Assistance process has the following steps: 1.Applicant/developer submits an application and the assistance request (limited to 10%of project cost or $1 million-whichever is lower). 2.Agency teammates make a funding level and approval recommendation 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 an Agreement, subject to approval by the Board of the Town Center Development Agency. Staff finds that REACH's Dartmouth Crossing North meets the development assistance program's criteria. The TCDA's development advisor reviewed the project pro forma and concluded the project is properly structured and appropriately leveraged. REACH has several funding sources including federal Low Income Housing Tax Credits (LIHTC) and Oregon Housing and Community Services LIFT funds. There are smaller amounts from Metro TOD,Washington County, and OHCS Weatherization funds. The balance of the project will be funded by loans. The initial Metro Housing bond funding round had been allocated prior to REACH's project. REACH is considering applying for the second round of funding. If awarded, these funds would pay for additional services for their tenants with disabilities. Absent the $1.OM TCDA grant, the project would have a funding gap. REACH would be unable to close this gap with additional commercial debt or additional LIHTC equity and would need to seek an alternative grant funding source to make the project financially feasible. As a$36.3 million project,a$1M investment represents 2.75 percent of the project budget. In addition to providing much needed affordable housing, the project furthers many other Triangle goals by providing a public plaza,promoting placemaking,and helping to activate this priority area of the Triangle. At its December meeting,the Town Center Advisory Commission unanimously recommended approval. The grant would be applied to the System Development Charges the project will incur. The City of Tigard exempts affordable housing from Park and local Transportation SDC's,but approximately$1.2M in Water and Sewer SDC's and Washington County Transportation Development Tax will be due. Attorneys representing the TCDA and REACH completed a Development Assistance Agreement (Exhibit A to the resolution) setting out the terms of the grant. ALTERNATIVES The Board could direct staff to renegotiate provisions in the Development Assistance Agreement,however that could impact the project timeline. ADDITIONAL RESOURCES •Resolution with Development Assistance Agreement •PowerPoint •A New Tigard Triangle:Planning for Equitable Development Fiscal Impact Cost: $1,000,000 Budgeted (yes or no): Yes Where Budgeted (department/program): TCDA Additional Fiscal Notes: Assistance would be paid in FY 22-23. Sufficient funds are proposed in the FY22-23 TCDA Budget. i Attachments Attachment 1-Resolution Exhibit A (Revised) REACH Presentation CITY OF TIGARD, OREGON TOWN CENTER DEVELOPMENT AGENCY RESOLUTION NO. 22- A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR OF THE TOWN CENTER DEVELOPMENT AGENCY TO SIGN A DEVELOPMENT ASSISTANCE AGREEMENT WITH REACH COMMUNITY DEVELOPMENT TO CONSTRUCT THE DARTMOTH CROSSING NORTH PROJECT WHEREAS, the Tigard Triangle Urban Renewal Plan includes Objective 5.4 to assist in the development of affordable and workforce housing; and WHEREAS, A New Tigard Triangle:Planning for Equitable Development, the implementation strategy for the Tigard Triangle Urban Renewal Plan, sets support for affordable housing as a top priority; and WHEREAS, the Town Center Development Agency budget for FY 2022-23 includes an Affordable Housing Development Fund to make grants and loans that support affordable housing;and WHEREAS, REACH CDC submitted an application for$1,000,000 in development assistance to assist in the development of the Dartmouth Crossing North project with 85 regulated apartments affordable to those making 60% of AMI (Area Median Income) and meets the criteria for funding; and WHEREAS, the Town Center Advisory Commission has recommended approval of the assistance to the TCDA Board; and WHEREAS, the Development Assistance Agreement sets out the terms and conditions for the Agency to make a $1,000,000 grant to pay down System Development Chagres the Dartmouth Crossing North project Will incur. NOW, THEREFORE,BE IT RESOLVED, by the Tigard Town Center Development Agency that: SECTION 1: The Executive Director is authorized to execute the Agreement,in substantially the form attached as Exhibit A, subject to final legal review. SECTION 2: The Executive Director may approve editing or similar changes to Exhibit A that do not materially alter the rights or responsibilities of the parties. SECTION 3: The Executive Director is authorized to take such further steps as TCDA Resolution No. 22- Page 1 reasonably necessary to effectuate the Agreement SECTION 4: This resolution is effective immediately upon passage. PASSED: This day of 2022. Chair—City of Tigard Town Center Development Agency ATTEST: Recorder—City of Tigard Town Center Development Agency TCDA Resolution No. 22- Page 2 EXHIBIT A SUPPLEMENTAL PACKET FOR d�-- 0"1'- DEVELOPMENT '- DEVELOPMENT ASSISTANCE AGREEMENT (DATE OF MEETING) THIS DEVELOPMENT ASSISTANCE AGREEMENT ("Agreement") is made this 1 kern y day of 2022 by and between the Town Center Development Agency, an ORS Chapter 457 urban renewal agency ("TCDA") and REACH Community Development,Inc., an Oregon nonprofit public benefit corporation ("REACH'S.TCDA and REACH may be referred to in this Agreement jointly as the"Parties" and individually as a"Party." RECITALS A. REACH shall form a limited partnership of which REACH,or an entity wholly controlled by REACH,is the general partner (the "Partnership).The Partnership intends to develop property located at the intersection of SW Clinton Street and SW 69`x'Avenue in the Tigard Triangle area ("Property's with an 85-unit apartment building affordable to those making 60% or below the Area Median Income ("Project'D. B. TCDA has determined that the Project furthers many of its goals for the Tigard Triangle area because it provides affordable housing and provides a public plaza, furthering placemaking and helping to activate a priority area of the Tigard Triangle area. C. TCDA has identified funds it will make available to developments like the Project and REACH qualifies for the receipt of such funds. D. The Parties desire to enter into the Agreement for TCDA to provide development assistance to REACH for the development of the Project and,specifically,to assist REACH with the payment of the City of Tigard's system development charges applicable to the Project. E. The completion of the Project according to the terms of this Agreement is a material inducement to TCDA to enter into this Agreement. NOW,THEREFORE,in consideration of the public benefits to be created by the development drthe Project and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: AGREEMENT 1. DEFINITIONS Certificate of Occupancy means the Certificate of Occupancy issued for the Project by the City of Tigard Community Development Department. City means the City of Tigard, a municipal corporation of the State of Oregon. OHCS means the State of Oregon acting by and through its Housing and Community Services Department. URA means the Tigard Triangle Urban Renewal Area. Page 1 Development Assitance Agreement EXHIBIT A 2. REACH PROJECT DEVELOPMENT 2.1 Subject to events and circumstances outside of REACH's reasonable control,REACH will use commercially reasonable efforts to begin and to complete development of the no later than June 30, 2025. 2.2 This Agreement is not intended to be a contract providing for construction of the Project by TCDA either directly or through a contractor and REACH is not developing the Project for or on behalf of TCDA or the City. REACH is solely responsible for selecting a construction contractor for the Project. The rights and responsibilities of REACH,the general construction contractor and any subcontractors, shall be provided for in separate contracts to which ICDA is not a parry. 3. TCDA FINANCIAL ASSISTANCE 3.1 TCDA shall pay to REACH up to $1,000,000.00, to cover the actual cost of the system development charges ('SDCs'} applicable to the Project. For administrative convenience, TCDA shall make the payment directly to the City. Payment will be made when the SDCs are due and payable, as provided in Tigard Municipal Code 3.24. Notwithstanding the foregoing, the payment made to the City shall be considered financial assistance to REACH for the benefit of the Project. REACH shall use such financial assistance to make a subsequent loan or capital contribution to the Partnership for the payment of the SDC fees. 3.2 In the event the City's SDCs applicable to the Project are less than$1,000,000,TCDA shall pay to the City only the amount of the SDCs applicable to the Project and TCDA shall have no further financial obligations under this Agreement. 3.3 As a condition to payment,REACH shall provide TCDA with evidence that the apartment units in the Project will be subject to one or more regulatory agreements which will make the Project (at Certificate of Occupancy) affordable to those making 60%or below the Area Median Income,as adjusted for household size, as determined by OHCS. 3.4 Subject to Section 2.1 above,this Agreement expires on December 31, 2025, after which time TCDA has no financial obligation to REACH unless the Parties extend the term of this Agreement in writing. 4. REPRESENTATIONS,WARRANTIES,AND COVENANTS OF REACH To induce TCDA to enter into this Agreement,REACH represents,warrants, and covenants as follows: 4.1 Existence. REACH is a nonprofit public benefit corporation, duly organized and validly existing under the laws of the State of Oregon. REACH shall keep in force (or cause the IPage 2 Development Assitance Agreement EXHIBIT A Partnership to keep in force) all licenses and permits necessary to the proper conduct of its ownership and operation of the Project. 4.2 Compliance with Laws. REACH will comply with, or cause the Project to comply with,all laws, ordinances, statutes,rules, regulations, orders,injunctions,or decrees of any government agency or instrumentality applicable to REACH, the Project,or the operation thereof,including (a) all applicable health and safety, environmental, and zoning laws, (b) all federal and state tax laws, and (c) all restrictions on the use,occupancy or operation of the Project. 4.3 Authority. REACH has full power and authority to conduct all of the activities that are now conducted by it or proposed to be conducted by it in connection with the Project and as contemplated by this Agreement,and to execute, deliver, and perform all obligations under this Agreement;and the person executing this Agreement on behalf of REACH has the legal power, right and actual authority to bind REACH to the terms and conditions of this Agreement. 4.4 Title. REACH owns and holds (or will own and hold) good and marketable fee simple title to the Property. Upon conveyance of the Property to the Partnership, REACH will cause the Partnership to hold good and marketable fee simple title to the Property. 4.5 Development Issues. REACH is aware of no identifiable issue(s) that would preclude development of the Project or REACH's ability to cause the Partnership to obtain sufficient financing for the construction or permanent ownership of the Project. 4.6 Binding Agreement. This Agreement and all documents required to be executed by REACH are and shall be valid,legally binding obligations of and enforceable against REACH in accordance with their terms. 4.7 No Conflict with Other Agreements. Neither the execution and delivery of this Agreement and documents referred to herein,nor the incurring of the obligations set forth herein,nor the consummation of the transactions herein contemplated,nor compliance with the terms of this Agreement and the documents referred to herein conflict with or result in the material breach of any terms,conditions,or provisions of,or constitute a default under any bond,note or other evidence of indebtedness,or any contract,indenture,mortgage, deed of trust,loan,partnership agreement,lease,or other agreements or instruments to which REACH is a party. 4.8 Indemnity. REACH shall indemnify and hold TCDA,its directors,officers, employees and agents harmless from and against any and all liabilities, claims,losses, damages, or expenses (including attorney fees and title costs and expenses) which any of them may suffer or incur in connection with (a) the inaccuracy of any of the representations and warranties made herein, (b) any transaction contemplated by this, and (c) the construction or operation of the Project, except to the extent such liabilities, claims,losses, damages, or expenses arise solely from the gross negligence or willful misconduct of TCDA. Page 3 Development Assitance Agreement EXHIBIT A 4.9 Additional Acts. From time to time,REACH will execute and deliver all such instruments, provide such additional information,and perform all such other acts as TCDA may reasonably request to carry out the transactions contemplated by this Agreement. 4.10 Environmental Indemnity. REACH will hold TCDA and its directors, officers,employees, agents, successors, and assigns harmless from,will indemnify them for, and will defend them against any and all losses, damages,liens, costs, expenses, and liabilities directly or indirectly arising out of or attributable to any violation of any Environmental Law or the use,generation, manufacture,production, storage,release, threatened release, discharge, disposal, or presence of a Hazardous Substance on,under, or about the land,including without limitation the costs of any required repair, cleanup,containment,or detoxification of the land, the preparation and implementation of any closure,remedial, or other required plans, attorney fees and costs (including but not limited to those incurred in any proceeding and in any review or appeal), fees,penalties, and fines. 4.10.1 For purposes of this section,"Environmental Law"means any federal, state,or local law, statute,ordinance,or regulation pertaining to Hazardous Substances (as defined below),health, industrial hygiene,or environmental conditions,including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended (42 USC §§ 9601-9675), and the Resource Conservation and Recovery Act of 1976 (RCRA), as amended (42 USC % 6901-6992k). 4.10.2 For purposes of this section, "Hazardous Substance"includes without limitation any material, substance,or waste that is or becomes regulated or that is or becomes classified as hazardous, dangerous,or toxic under any federal, state,or local statute, ordinance,rule, regulation, or law. 5. EVENTS OF DEFAULT The occurrence of any one or more of the following shall be an event of default ("Event of Default") under this Agreement: 5.1 Failure to Disclose Material Facts. REACH deliberately fails to disclose any fact material to TCDA's provision of financial assistance,or upon discovery by TCDA of any misrepresentation by, or on behalf of,or for the benefit REACH. 5.2 Non-Compliance with Governmental Regulations. REACH fails to show evidence of full or substantial compliance with any lawful,material requirement of any governmental authority having jurisdiction over the Project or the Property within thirty days after notice in writing of such requirement is given to REACH by TCDA or, if such compliance cannot be completed within such thirty (30)-day period through the exercise of reasonable diligence, the failure by REACH to commence the required compliance within such thirty(30)-day period and thereafter to continue such compliance with diligence to completion. Page 4 Development Assitance Agreement EXHIBIT A 5.3 Other Material Breach. REACH otherwise materially breaches any term,covenant,condition, provision,representation,or warranty of under this Agreement and fails to cure such breach within thirty(30) days after notice in writing of such breach is given to REACH by TCDA or,if such breach cannot be cured within such thirty (30)-day period through the exercise of reasonable diligence, the failure by REACH to commence the required cure within such thirty (30)-day period and thereafter to continue such cure with diligence to completion. 6. DISPUTE RESOLUTION AND REMEDIES If a dispute arises under this Agreement,including an Event of Default,the Party claiming the existence of a dispute or Event of Default shall provide written notification of the dispute or Event of Default to the other Parry.A meeting will be held promptly between the Parties, attended by representatives of the Parties with decision making authority regarding the dispute or Event of Default to attempt in good faith to negotiate a resolution of the dispute or Event of Default. If the Parties are not successful in resolving a dispute or Event of Default within twenty-one (21) days, the Parties may pursue relief in a court of competent jurisdiction. Venue will be in the Washington County Circuit Court. 7. ASSIGNMENT AND TRANSFER PROVISIONS 7.1 Restrictions on Assignments. Except as provided in this Section 7, REACH shall not partially or wholly transfer REACH's interest in this Agreement without the prior written approval of the TCDA,which may be withheld in TCDA's reasonable discretion. 7.2 Approved Transfers. Notwithstanding Section 7.1 above, and provided that REACH provides TCDA with copies of all agreements related to the transfer,TCDA hereby consents to: 7.2.1 An assignment of REACH's rights under this Agreement to any entity in which REACH or an affiliate thereof owns a direct or indirect interest. 7.2.2 The collateral assignment of rights under this Agreement to any mortgagee. For purposes of this Section 7.2.2, "Mortgagee" means the holder of any mortgage,deed of trust,or instrument securing debt or equity obtained to finance the construction of the Project, together with any successor or assignee of such holder. TCDA will cooperate with REACH and enter into commercially reasonable amendments to this Agreement if and as required by any lender, equity provider or financier providing equity or debt to the Project. 8. MISCELLANEOUS 8.1 Counterparts. This Agreement may be executed in any number of counterparts, and any single counterpart or set of counterparts signed,in either case,by all the parties hereto shall constitute a full and original instrument,but all of which shall together constitute one and the same instrument. Page 5 Development Assitance Agreement EXHIBIT A 8.2 Notice. Any notice required or permitted under this Agreement shall be in writing and shall be deemed effective; (1) when actually delivered in person, (2) one business day after deposit with a commercial courier service for "next day" delivery, (3) two business days after having been deposited in the United States mail as certified or registered mail, or (4)when transmitted by facsimile answer back or receipt confirmed), addressed to the parties as follows: If to REACH: REACH Community Development,Inc. 4150 S. Moody Ave. Portland, OR 97239 Attn: Alma Flores If to TCDA: Town Center Development Agency of the City of Tigard 13125 SW Hall Blvd Tigard, Oregon 97223 with a copy to: City Attorney City of Tigard 13125 SW Hall Blvd Tigard, Oregon 97223 8.3 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective permitted successors and assigns. 8.4 Governing Law. This Agreement shall be governed by and construed under Oregon law. 8.5 Modification; Prior Agreements;Headings. This Agreement may not be modified or amended except by an instrument in writing signed by the Parties.This Agreement reflects and sets forth the entire agreement and understanding of the Parties with respect to the subject matter hereof,and supersedes all prior agreements and understandings relating to such subject matter.The headings in this Agreement are for the purpose of reference only and shall not limit or otherwise affect any of the terms hereof. 8.6 Validity; Severability. If any provision of this Agreement is held to be invalid, such event shall not affect,in any respect whatsoever, the validity of the remainder of this Agreement, and the Page 6 Development Assitance Agreement EXHIBIT A remainder shall be construed without the invalid provision so as to carry out the intent of the parties to the extent possible without the invalid provision. 8.7 Time of Essence. Time is of the essence of this Agreement. 8.8 Waivers. No waiver made by either Party with respect to the performance, or manner or time thereof,of any obligation of the other Party or any condition inuring to its benefit under this Agreement shall be of any force or effect unless in writing, shall be construed to be a continuing waiver, and shall be considered a waiver of any other rights of the Parry making the waiver 8.9 No Partnership. Nothing contained in this Agreement or any acts of the Parties hereby shall be deemed or construed by the Parties,or by any third person,to create the relationship of principal and agent,or of partnership, or of joint venture, or any association between any of the Parties other than that of independent contracting parties. 8.10 Non-Waiver of Government Rights. Subject to the terms and conditions of this Agreement, by making this Agreement,TCDA is specifically not obligating itself,the City,or any other agency with respect to any discretionary action relating to development or construction of the Project,including,but not limited to,permits or any other governmental approvals which are or may be required, except as expressly set forth herein 8.11 No Third-Parry Beneficiary Rights.No person other than a Party is an intended beneficiary of this Agreement, and no person other than a Party shall have any right to enforce any term of this Agreement. IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first above written. Executed in multiple counterparts as of the day and year above written. TOWN CENTER DEVELOPMENT AGENCY, an ORS 457 Urban Renewal Agency, By: Steve Rymer,Executive Director of the Town Center Development Agency of the City of Tigard Signed: APPROVED AS TO FORM: By: Page 7 Development Assitance Agreement EXHIBIT A Shelby Rihala, City Attorney REACH Community Development, Inc. By: Signed: Page 8 Development Assitance Agreement Dartmouth Crossing Phase 1 City of Tigard - City Council February 22nd 2022 William Alexander Aleman Housing Development Project Manager Dartmouth Crossing—Tigard Triangle REACH Community Development Community Engagement Desired uses Feasibility Analysis How mcch will it cost to ,`� delver the space? e G� Operator Provided Funding Gap P (rnore information intne Funding Funding Scirces Research chapter on page 261 Develcorent cost=_--a--,)e Excess dedeloo•rent costs:l-at caerator s ab a afford ny require c.itsice funcing sources tnemselves beyond operator prviced fund rc D p TRIAN6 'A ."' . 1 PHASE II r w ,w Y Transit Oriented Development 5REACH Community Development 4 BEAVERTON •'' PORTLAND METZGER 1010 A •, �' r Cep. �• � s f / LAKE OSWEGO TIGARD / s. •. KRUSE WAY .y r/ r/ /r as rr rr r � / w � e SHERWOOD WILSONVILLE TIF Programmatic Criteria = REACH ✓ Improves Multimodal Transportation ✓ Provides Equitable Economic Participation ✓ Mitigates Environmental or Stormwater Issues ✓ High Quality, Pedestrian Friendly Urban Design ✓ Provides Public Amenities ✓ Placemaking and Local Identity Equitable Economic Participation 5REACH Community Development ■ Project aims to exceed 30% DMWESB participation ■ Project Advisory Committee (PAC) comprised of local organizations that provide insight into resident needs and project design elements. ■ Locational advantages include high opportunity retail and living wage jobs within a 10- mile radius ■ Bringing forth community economic development efforts in PHASE 2 will provide a comprehensive affordable community with amenities like a recreational community center, international public market hall, affordable child-care, and affordable office space. Multi-Modal Design 5REACH Community DwelopLEGEND0 � �; � �, Mobility and Access ir'ilJ nrk� �— • Bike Storage on 1St _ 3rd floor -JAA� .�'�- v Partnerin with Forth Mobilit g Y �;�� to bring a vehicle that residents o can sign up for and utilize ��s�` � �i: Walking distance to bus lines �, � !i and future Max line '"s'-+'� � l� Convenient distance to grocery stores, city center, community ==_��► q�' college and jobs. - -1l. . ' #j 0 0 0 0 wwvv.reacf�cdc.org Mitigates Environmental and Stormwater Issues :. REACH Community Development 'I INTCN ST:�FCT Af " r ' ," ► , Alf it if Iro � vx 04 . �._ BORAIPLACE bits t p p _ s �a' 1 W"l eachc c.oig i_ tl � v4 yt {y4 i v .. WT 40 lky www.reacf-icdc.org �� Urban Design REACH Community Development r F F1 71 1 e , n n a � { 9 , 11 r` Ak Dartmouth Crossing 5REACH Community Development tv w r. y r y' e u 9915 Urban Design 5REACH Community Developr fr' t t � - +� it� w - y� � _♦ .�«, r x wv�rw.reacr�cdc.org Place Making aREACH Community Development 1 www.t ea C-1-1c dc.org X44 r M �r, Mitigates Environmental and Stormwater Issues REACH Community Development BREEZEWAY OOKIN%WESTIIROUGIIBR_CZEV:AYFRO`•' T-CP^F STAIR ,a i� h� F} yyy m MACH CSC j DARTMOUTH CROSSING J!W PLACE + r r, ✓ y1 " +V w. i www.reachcdc.org Dartmouth Crossing 5REACH Community Development FINAL DEVELOPMENT PROGRAM USES The final,ground floor development program consists of four complimentary uses 1 Corranunity Center with recreational space and classrooms(similar to a YMCA or Boys and Girls Club) 2 Ctdldcare Facility ideally catering to low-income families with multi-cultural programming available 3 office Space:deafly with affordable monthly rates 4 Market Nall vilh food-oriented uses and spaces for entrepreneurial activities (similar to Rockwood Rising's market hall) Q� 1 11 0 1 Phases' and 2 of Dartmouth Crossing traverse Clinton Street,and a goal is to create a weicorning pedestrian environment connecting both sides of the project.This will be done through streetscape design and active ground floor uses provided by the market hall StI�pLENIENZ'AL PACE i AIS-4838 FOR 01a� 5• Business Meeting GATE OF MEETING) Meeting Date: 02/22/2022 i-)r(V' Length (in minutes): 15 Minutes Agenda Title: Legislative Public Hearing: Consider Ordinance Amending TMC Chapter 7.52 to Prohibit Fires in Parks Authored By: Brian Rager Public Works Item Type: Ordinance Public Hearing Yes Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Consider amending Tigard Municipal Code (TMC) Chapter 7.52 to prohibit fires in parks. ACTION REQUESTED Adopt an ordinance amending TMC 7.52 to prohibit fires in parks. BACKGROUND INFORMATION Current City code is silent regarding the use, or the building of, fires within City park property. Considering the dryness of the last several summers and the continued challenge associated with camping activities in parks and open spaces,there is increasing concern and risk of wildfires resulting from open camp or warming fires. The proposed ordinance would prohibit fires within all City park properties except for designated areas such as City-owned fixed-in-place barbecue grills at picnic shelters. ALTERNATIVES Council could choose to not amend TMC 7.52, leaving the code silent on the use of fires, or could propose alternative amendments. ADDITIONAL RESOURCES Attachments AIS Ordinance Amending TMC 7.52 CITY OF TIGARD, OREGON SUPPLEMENTAL PACKET TIGARD CITY COUNCIL FOR -11 - ORDINANCE NO. 22- DATE OF MEETING) 1�evv+ 5 AN ORDINANCE AMENDING TIGARD MUNICIPAL CODE CHAPTER 7.52 TO PROHIBIT FIRES IN PARKS WHEREAS, Chapter 7.52 of the Tigard Municipal Code (TMC) contains regulations regarding conduct in City parks; and WHEREAS,the safety and security of park and trail users are a high priority for the City; and WHEREAS,the threat of wildfire is increasing around the region and fires in parks can pose a safety risk to the community; and WHEREAS,the City wishes to prohibit the use of unauthorized fires in parks and trails. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Section 7.52.230 is added to the Tigard Municipal Code to read as follows: 7.52.230 Fires. A. Fires are prohibited on all park property except in areas designed and set aside for such purposes. Fires on park property must be confined to City-provided barbecue stands or fireplaces. B. Portable propane cook stoves or gas grills may be used if confined to established picnic areas where fires are allowed. Portable charcoal grills are not allowed. C. No fires on park property may be left unattended and every fire must be extinguished by the user before leaving park property. D. Dropping, throwing, or otherwise scattering any burning material, including lighted matches, cigarettes or cigars, tobacco paper, or other flammable material within any park or on any highway,road,or street abutting and contiguous to any park is prohibited. E. The Park Manager may restrict or prohibit fires further than provided in this section when fire hazard conditions are high. SECTION 2: This ordinance shall be effective 30 days after its passage by the council, signature by the mayor,and posting by the city recorder. PASSED: By vote of all council members present after being read by number and title only,this day of ,2022. Carol A. Krager, City Recorder ORDINANCE No. 22- Page 1 APPROVED: By Tigard City Council this day of 2022. Jason B. Snider,Mayor Approved as to form: City Attorney Date ORDINANCE No. 22- Page 2 AIS-4838 5, Business Meeting Meeting Date: 02/22/2022 / Length (in minutes): 15 Minutes Agenda Title: Legislative Public Hearing: Consider Ordinance ending TMC Chapter 7.52 to Prohibit Fires in Parks and the Use of Re e-Controlled Devices Authored By: Brian Rager Public Works Item Type: Ordinance Public Hearing Yes Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE Consider amending Tigard Municipal Code (TMC) Chapter 7.52 to prohibit fires in parks and the use of remote-controlled devices. ACTION REQUESTED Adopt an ordinance amending TMC 7.52 to prohibit fires in parks and the use of remote-controlled devices. BACKGROUND INFORMATION Current City code is silent regarding the use, or the building of, fires within City park property. Considering the dryness of the last several summers and the continued challenge associated with camping activities in parks and open spaces, there is increasing concern and risk of wildfires resulting from open camp or warming fires. The proposed ordinance would prohibit fires within all City park properties except for designated areas such as City-owned fixed-in-place barbecue grills at picnic shelters. The other code amendment in this ordinance would prohibit the use of remote-controlled devices in parks and along trails. These devices create a public safety risk, and the noise from these devices is an increasing concern. Drone use in particular is highly-regulated, but the City has limited means of enforcement. Many drones have cameras, raising privacy concerns in addition to the safety risks. ALTERNATIVES Council could choose to not amend TMC 7.52,leaving the code silent on the use of fires and remote-controlled devices, or could propose alternative amendments. ADDITIONAL RESOURCES Attachments AIS Ordinance Amending TMC 7.52 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL ORDINANCE NO. 22- 000 /2-f v /Se al AN ORDINANCE AMENDING TIGARD MUNICIPAL CODE CHA 52 TO PROHIBIT FIRES IN PARKS AND THE USE OF REMOTE-CONTROL DEVIC WHEREAS,Chapter 7.52 of the Tigard Municipal Code (TMC) contains regulations regarding conduct in City parks;and WHEREAS,the safety and security of park and trail users are a high priority for the City;and WHEREAS,the threat of wildfire is increasing around region and drone use is highly regulated and can create a safety and security risk to other park and trail users;and WHEREAS,for safety and security reasons,the City wishes to prohibit the use of unauthorized fires in parks and trails as well as the use of remote-control devices such as drones,airplanes,and cars. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Section 7.52.200 is added to the Tigard Municipal Code to read as follows: 7.52.200 Remote-Control Devices. No person may operate a remote-control device in any park. For purposes of this section, a remote-control device refers to any device controlled remotely by an operator using a hand-held radio transmitter, including but not limited to, a drone, remote-control airplane, or remote- control car. SECTION 2: Section 7.52.230 is added to the Tigard Municipal Code to read as follows: 7.52.230 Fires. A. Fires are prohibited on all park property except in areas designed and set aside for such purposes. Fires on park property must be confined to City-provided barbecue stands or fireplaces. B. Portable propane cook stoves or gas grills may be used if confined to established picnic areas where fires are allowed.Portable charcoal grills are not allowed. C. No fires on park property may be left unattended and every fire must be extinguished by the user before leaving park property. D. Dropping, throwing, or otherwise scattering any burning material, including lighted matches, cigarettes or cigars, tobacco paper, or other flammable material within any park or on any highway,road,or street abutting and contiguous to any park is prohibited. E. The Park Manager may restrict or prohibit fires further than provided in this section when fire hazard conditions are high. SECTION 3: This ordinance shall be effective 30 days after its passage by the council, signature by the mayor,and posting by the city recorder. ORDINANCE No. 22- Page 1 PASSED: By vote of all council members present after being read by number and title only,this day of 52022. Carol A.Krager,City Recorder APPROVED: By Tigard City Council this day of 12022. Jason B. Snider,Mayor Approved as to form: City Attorney Date ORDINANCE No. 22- Page 2 AIS-4849 6. Business Meeting Meeting Date: 02/22/2022 Length (in minutes): 60 Minutes Agenda Title: RECEIVE UPDATE ON TIGARD ECONOMIC DEVELOPMENT Authored By: Lloyd Purdy Community Development Item Type: Update, Discussion, Direct Staff Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE In alignment with the City of Tigard's strategic vision, the economic development team has created and launched a range of programs focused on equity, entrepreneurism, and economic mobility.This adds to the existing portfolio of business support programs. The City's Strategic Plan outlines eight focus areas for economic development: •Build a resilient local economy in which residents' health and the health of local businesses increase together. •Locate and grow businesses to support walkability,connectivity and accessibility. •Build mixed-use development inclusive of housing, shopping, employment, services, and integrates transportation options. •Ensure all businesses can connect to resources that help them grow and add value to the community. •Capitalize on Tigard's business mix, central location and access to the region's talent to support a healthy economy that provides employment opportunities for residents. •Blend land uses to support a range of commercial and employment opportunities within and in proximity to neighborhoods. •Support a balanced, diverse mix of business sectors and employment opportunities. *Advance equitable economic opportunity. The economic development team is working to achieve these Strategic Plan objectives through land use policy and business support programs that meet the needs of entrepreneurs, micro enterprise,larger businesses, and Tigard's workforce. The economic development team completes this work through an equity lens,including a focus on programs that improve the economic mobility of Tigard residents. This presentation to Council provides an overview of 16 of the City of Tigard's economic development programs. ACTION REQUESTED Review and discuss economic development strategy, programs, and priorities. BACKGROUND INFORMATION The City of Tigard's economic development program fosters equity, cultivates entrepreneurism,and improves economic mobility-- even with constrained supply of employment lands,limited financial resources,and a highly mobile workforce. City of Tigard Economic Summary •54,000 residents live in Tigard. •24,000 Tigard residents participate in the regional workforce. •45,000 employees work in Tigard. •Less than 20% of the city is zoned for employment activity. *More than 3,500 businesses operate in the city •2,500 "micro enterprise" firms (with 10 or fewer employees) operate in Tigard. Since its creation in 2013, the City of Tigard's economic development program has managed a comprehensive portfolio of innovative programs and partnerships. To date, this work has leveraged more than $14,000,000 of outside investment to build economic resilience,improve economic mobility,and increase the prosperity of residents. Recently,during the COVID-19 pandemic, the City of Tigard's economic development team led the region in creating innovative business assistance programs through partnerships with Community Development Financial Institutions (CDFIs) Craft3 and Micro Enterprise Services of Oregon (MESO). These programs distributed more than$4,000,000 in financial aid to local businesses. Central to the success of this work was a commitment to equity, entrepreneurism,and economic mobility—especially for historically underserved entrepreneurs. These equity, entrepreneurism, and economic mobility priorities and partnerships continue to serve the City of Tigard in advancing equitable economic opportunities. Dates of Previous and Potential Future Considerations Previous Council consideration of economic development initiatives include: •August&September 2021 –Business needs summary •August 2021 –ARPA funding update •July 2021 -Tigard MADE briefing •February 2021 –Business license fee waiver program •October 2020–Tigard CARES funding/contracting authorization Public Involvement In September 2021, the economic development team,with support from other departments, conducted a citywide business survey to assess business needs as a point-in-time check on local economic conditions. Ongoing public involvement includes a monthly business-focused e-newsletter, a monthly (virtual) meet-and-greet with new businesses,welcome packets mailed to new businesses, a quarterly (virtual) open house for business owners, and a bi-monthly business webinar. Each of these programs are an opportunity for business owners to share their challenges, successes, and experiences with staff. During COVID-19, the economic development team's Bankers,Brokers,&Builders network was replaced by one-on-one interviews with development professionals from these business sectors as part of the public engagement process for Tigard MADE. This network is a good source of information about future business and development trends. Tigard's economic development manager also reviews economic trend data and meets monthly with the Tigard Chamber of Commerce,business support organizations, and economic development staff from neighboring cities to better understand the constantly evolving local and regional economic conditions. Im acts Economic development in the City of Tigard currently includes both development of policy recommendations through Tigard MADE and other related land use planning initiatives and business support through the creation and implementation of equity-focused projects.A summary of these projects and their impact is included in the attached memo. ALTERNATIVES The City of Tigard's economic development strategy centers on equity, entrepreneurism, and economic mobility. By creating a supportive business environment, the City of Tigard can help businesses grow and improve the lives of residents. The guiding principles of this work are enumerated in the city's Strategic Plan. Council may consider alternative economic development policies and strategies. ADDITIONAL RESOURCES See attached memo. Attachments EcDev Program Memo Presentation e City of Tigard Memorandum To: Honorable Mayor Jason Snider and Tigard City Council; Steve Rymer, City Manager From: Lloyd Purdy, Economic Development Manager Re: Economic Development Strategy&Programs Date: February 1, 2022 Economic development in the City of Tigard includes both development of policy recommendations through Tigard MADE and other related land use planning initiatives and business support through the creation and implementation of equity-focused projects. Sixteen major economic development initiatives are summarized in this memo. Policy Projects The three projects summarized in this section result in recommendations to Council and help align the City of Tigard economic development policy with partners. Tigard MADE Tigard MADE is a major overhaul of the land use regulations that guide development in Tigard's employment lands. This project focuses on fostering innovation and next-generation job opportunities in a land-constrained environment. The project also brings strategic vision priorities into a land use framework. Tigard MADE will update the development code to encourage blending of commercial, industrial, and residential activity. It will also improve walkability and increase the overall density of development. Setting land use policy is a fundamental responsibility of the City and will define how the local economy evolves over the next twenty years. Economic Development Practitioners Meeting Since late 2019, Tigard's economic development manager has been meeting and coordinating with economic development staff from all the cities in Washington County. This has created a regional approach to sharing best practices and collaborating on locally relevant issues. Due in part to this regional forum, the City of Tigard was able to secure a portion of Washington County's 2020 federal CARES funding for use as financial aid to businesses impacted by the COVID-19 pandemic. This group of economic development professionals continues to be a resource for upcoming topics of local interest including workforce development, broadband, Community Development Block Grant funding, and regional employment land supply. Page 1 of 5 Electric Mobility Strategy In collaboration with the City of Tigard's Senior Transportation Planner, the economic development team is leveraging an ODOT Transportation Growth Management grant to investigate implementation actions to encourage equitable adoption of electric mobility solutions for residents. The project will identify and elevate the needs of underserved and marginalized residents to ensure the impending e-mobility transition benefits not just early adopters of technology, but also people who have been negatively impacted by past transportation-related decisions, or are at risk of being left behind during the e- mobility transition. Tigard's electric mobility strategy will create a roadmap with actions to advance the e-mobility transition and aid in reducing transportation-sector greenhouse gas emissions citywide. Economic Foundation Programs The following five programs set a foundation for economic development, commercial development and business growth. Tigard-Lake Oswego Enterprise Zone Tigard's economic development team manages the Tigard-Lake Oswego Enterprise Zone, which offers a three-to-five year property tax abatement for traded-sector firms that increase employment and make a capital investment. Five firms are enrolled in this program and meeting their annual performance measures. Vertical Housing Development Zone Tigard's Vertical Housing Development Zone (VHDZ) continues to support and encourage the development of ground-floor pedestrian-oriented commercial spaces in new mixed-use buildings. Three VHDZ-certified projects are complete with one more apartment building currently under construction. The result is 677 new housing units and over 25,000 square feet of new commercial space. Downtown Tigard and the Tigard Triangle are the geographic areas of focus for this economic development program. Tax Increment Finance Districts Tigard's two Tax Increment Financing (TIF) Districts focus investments on areas targeted for economic growth. TIF programs and capital projects support economic development both indirectly and directly. The Town Center Development Agency (TCDA) supports public infrastructure investments like Universal Plaza($4.2M in TIF) and Main Street Green Street Phase 2 ($1.2M in TIF). Since 2016,the TCDA directly invested$4.4 million in TIF funds in much needed housing developments that add to the local customer base for TIF district businesses. The TCDA also annually invests TIF funding($175K in FY21-22, $225K proposed in FY 22-23) in small businesses through matching grant programs. Page 2 of 5 City Center Building Improvement Matching Grants Tigard's Tax Increment Finance (TIF) district matching grants provides funds for existing businesses in Downtown Tigard. Existing businesses can use funds to make improvements to the exterior of their business.New catalyst businesses moving into vacant downtown spaces may use the funding to make interior upgrades. The maximum grant award is $50,000 for restaurants and up to $25,000 for catalytic retail businesses. Since its creation, this program has supported renovation projects for 29 downtown businesses including Symposium Coffee, Jeffrey Allen Gallery, and Senet Game Bar. Tigard Triangle Business Opportunity Fund The Triangle Business Opportunity Fund supports entrepreneurs by providing matching grants for construction costs associated with building renovations. Grants provide a 50%match to help fund the cost of interior or exterior renovations for businesses moving into vacant ground floor commercial spaces in the Tigard Triangle. The maximum grant award is $50,000 for restaurants and up to $25,000 for all other businesses. This program is currently being shared with businesses through the economic development team's ecosystem of business advising organizations to help reach micro enterprise and historically underserved entrepreneurs in order to increase business diversity in the Tigard Triangle. Entroreneurism Economic Mobility, and Equity Focused Programs The eight programs outlined below support entrepreneurs, micro enterprise, and residents in the workforce by building business capacity and access to resources especially for entrepreneurs of color and historically underserved entrepreneurs. Opportunity Cafe Tigard's new entrepreneur incubator, the Opportunity Cafe, was created in partnership with Micro Enterprise Services of Oregon(MESO). It launched in October 2021. This economic mobility program uses the cafe space in the Tigard Library to support historically underserved entrepreneurs with their first brick-and-mortar location. The first entrepreneur to participate in the program, Israel Martinez, opened El Cuadrilatero through this program with on-going business advising and coaching from MESO. Launch Pod The success of the Opportunity Cafe entrepreneur incubator set the stage for a more ambitious economic mobility program that will support more micro enterprise and local entrepreneurism in Tigard. Launch Pod is a mobile business incubator that will utilize two City of Tigard-owned food carts. City American Rescue Plan Act funds,Washington County funds, and funding from an AARP grant cover the majority of this program's start-up cost. New-to-market entrepreneurs will be able to lease a cart for a limited time and develop the business background needed to Page 3 of 5 launch their business. Entrepreneurs renting the space will also receive ongoing business advising and coaching from one of 12 business support partners. Los Empresarios de Tigard With support from business advising partner Adelante Muieres, the economic development team is reintroducing this Spanish-language business network to the community as a tool for entrepreneurs interested in opening their business or growing their business in Tigard. This program provides educational resources and business-to-business networking for LatinX and Hispanic entrepreneurs. Business Advising/Coaching The economic development team manages a referral network of twelve regional nonprofits that support micro enterprise, entrepreneurs of color, and small businesses through programs ranging from business coaching to commercial lending. The city's economic development team created a business grant/scholarship program to cover a portion of training costs for these programs. All Tigard-based businesses and Tigard residents who are business owners are eligible to participate. Additionally, the economic development team currently manages two business advising contracts and are working on a third contract with a new business advising partner. Upon completion of these programs, the three business advising partners working under contract are expected to provide support to 25-35 entrepreneurs of color. Advance Tigard Workforce Development This new workforce development program covers the cost of professional development and skills training. These workforce training grants/scholarships are available to any Tigard resident working for a Tigard business. The goal of this program is to advance Tigard residents' skills so they can advance their careers with their existing Tigard employer and reduce labor challenges for Tigard firms. The economic development team is working with Immigrant Refugee Community Organization(IRCO) due to their previous success with the Northwest Promise (a similar workforce development approach pioneered by the region's healthcare providers). The economic development team is currently sharing this program with Tigard's business community and residents. Missing Middle Revolving Loan Fund In support of housing and economic security, the economic development team is collaborating with affordable housing experts and CDFI partners to apply $1.5M in ARPA funds to the creation of a new Missing Middle Revolving Loan Fund(RLF). This RLF will facilitate private- sector development of missing middle and affordable housing in Tigard. Traditional lending institutions are hesitant to lend to this untested and unproven housing product. In order to make middle housing development viable and financeable, incentives and strategic market interventions like this program are a necessary community investment. Page 4 of 5 Community Investment Trust Working with Unite Oregon and the Southwest Equity Coalition,the economic development team is exploring the feasibility of a Community Investment Trust(CIT) in Tigard. The CIT is an economic mobility program pioneered by Mercy Corps NW. Over time, ownership of a local CIT property is transferred from an investment entity into the hands of local resident-investors. This local real estate tool provides an affordable and approachable mechanism for residents to invest in commercial property and build generational wealth. When successful, a CIT helps bridge the racial wealth gap, increases commercial affordability for BIPOC entrepreneurs, invites community ownership of neighborhood scale commercial space, and increases economic prosperity for residents. Tigard CARES Round 6 Continuing the success of the Tigard CARES business assistance program, the economic development team is preparing for a new round of financial aid for businesses using a portion of the City of Tigard's ARPA funds. These grants will be disbursed consistent with ARPA requirements, which allow funding for entrepreneurs from low-income households; micro enterprise; and businesses in the travel,tourism, or hospitality sectors. Eligible firms must document a loss of revenue that resulted from the COVID-19 health pandemic. The application process will include a needs-based review. Staff are working with MESO to administer this program. The 16 economic development programs summarized above welcome new businesses, support existing business, and advance equity, entrepreneurism, and economic mobility in the City of Tigard. Page 5 of 5 c R Updat -. � +. . J•�Y� �lam-•-,'"�`-Yb��Y �',�yjT S � ects for 2022 � Tigarr d . w Strategic Vision & Community Promise Alignment STRATEGICPLAN • Build a resilient local 2020-2025 economy. q I rI i `ftw b • Connect businesses to ' ELM resources. , « r • Blend land uses. • Advance equitable Eight Strategic Plan focus areas for economic development. economic opportunity. Tia"ard The 5 E's- Tigard's Community Promise:Equity. Environment. Economy• Engagement• Excellence `� Economic Development , Focus • Eq u ity • Entrepreneurism & � Micro Enterprise • Economic Mobility .r More than sixteen programs support micro enterprise,business growth,and workforce. "a OF g The 5 E's—Tigard's Community Promise:Equity. Environment. Economy• Engagement•Excellence Ti The Tigard --- :, Economy 54,000 residents • 3,500 businesses • 2,500 micro enterprise • 45,000 employees ' f n pl gnu nr 1_and. _ � Tigard's employment lands cover about 20% of the city. Tia"ard The 5 E's-Tigard's Community Promise.Equity• Environment.Economy• Engagement• Excellence IT Tigard's Workforce H - Inflow + Outflow J Roel 3,699 residents live and ' � �� • r work in the Cit of Tigard. / t City g `� 41,3►7,0 TW* 24,663 247 24,663 residents commute ' w� out of the city for their job. ° `� .690` �-�"'• Leke Osweg< workers commute Source:U.S. Census,2019 41 ,310 ,i`DWI— into the city. Tigard has morejob opportunities than residents to fill thosejobs.. im Tia"ard The 5 Es- Tigard's Community Promise:Equity• Environment.Economy• Engagement• Excellence `� Size of Businesses in Tigard (2020) Firm Size ' Average Firm Size Average WageIsM Wage 0-10 $57,796 21-50 �"�■ $9,066 Employees Employees Number of Firms Number of Employees Total Payroll Number of Firms Number of Employees Total Payroll 2,686 7,212 $416,821,436 250 7,920 $547,000,476 Firm Size Average Firm Size , Average Wage Wage 11-2004U #10 $56,904 51+ $71,297 Employees top Employees Number of Firms Number of Employees Total Payroll Number of Firms Number of Employees Total Payroll 361 5,204 $296,126,340 155 17,842 $1,272,087,913 Source:Oregon Employment Department(2020) CITY OF el Tigard The 5 Es—Tigard's Community Promise:Equity.Environment•Economy. Engagement•Excellence Number of Firms by Sector in Tigard (2020) 63% 21 % 17% LffmTm Technical& Manufacturing& Retail&Consumer Professional Services Skilled Trade Services 2,15.3 712 577 Source:Oregon Employment Department CITY of d The 5 E's— Tigard's Community Promise:Equity• Environment• Economy•Engagement•Excellence Tigard Employment by Sector in Tigard (2020) 60% 13% 26% X' T 7 Technical& Manufacturing& Retail&Consumer Professional Services Skilled Trade Services 20,546 4j542 81920 Source:Oregon Employment Department CITY OF enTigard The 5 E's—Tigard's Community Promise. Equity. Environment e Economy• Engagement• Excellence Number of Firms in Tigard (2010-2020) 35% +29% 30% 25% 20% 15% +13% 10% 5% +1% 0% Manufacturing & Retail &Consumer Technical & Skilled Trade Services Professional Services Source:Oregon Employment Department " " Tiaard _ The 5 E's- Tigard's Community Promise:Equity. Environment e Economy. Engagement. Excellence `� Average Annual Wage by Sector (2020) $80,000 $75,612 $74,466 $70,000 $60,000 $50,000 $40,000 $34,546 $30,000 $20,000 $10,000 $0 Manufacturing& Retail&Consumer Technical& Skilled Trade Services Professional Services Source:Oregon Employment Department . ' Tigard The 5 E's—Tigard's Community Promise:Equity. Environment a Economy.Engagement•Excellence Connecting with Businesses • Business Update e- r- : newsletter ,� ■ ,�; �- • New business " welcome meetings k r Ey' ; • Bankers, Brokers, & Builder interviews { Hadeil eujezia and Reem Tamour, of Zanjabiel Mediterranean Catering. • Data analysis " P1. Tigard The 5 Es—Tigard's Community Promise:Equity. Environment. Economy. Engagement. Excellence -40;r 9 Three Ec. Dev. Program Categories • Policy Development •.' h R F • Economic Foundations -a • Equity i Focused u t Ti,ard's economy is powered by solo entrepreneurs, micro enterprise, and large businesses. CITY OF ° Tigard The 5 E's— Tigard's Community Promise:Equity• Environment• Economy• Engagement•Excellence Economic Development Policy • Tigard MADE G g � �► a g C ❑ ❑ 0 0 L ea i o , .❑ III • Regional Partners • Electric Mobility TIGARD MADE Strategy Maintain, Advance & Diversify Employment • Downtown Reimagined Updating employment (and zoning for a modern economy. CITY OF Tigard The 5 Es—Tigard's community Promise:Equity.Environment. Economy. Engagement. Excellence Economic Foundation •w� M��.< 'ii - wyx • Enterprise Zone ' VH DZ fifie ,. • TIF Capital Investment • TIF Grants '4 r r These programs create the places and spaces entrepreneurs need to start and grow their businesses. CITY OF Tigard The 5 Es—Tigard's Community Promise:Equity• Environment. Economy• Engagement•Excellence Tigard- Lake .a WashingtonSquare _.. Oswego Enterprise .Y °-=CentrShopping ,- Comer Zone Tigard Five firms receiving a property + &. Ilowd TrwnpI* ..... tax abatement on new capital •� - • • investment for 3-5 years due to at least a 10% increase in ,,_ ' R° " PacTrustPark Oregon Mh,g me.�.�w CttY/ Business Park ♦# employment. Op w� Covering Tigard and a portion of Lake Oswego. CITYOF Tigard The 5 E's—Tigard's Community Promise:Equity• Environment. Economy. Engagement• Excellence " J Vertical Housing - e Development Zone ' W _ aW i Partial property tax abatement to encourage commercial ground .0p,r,%UT ST 1� floor as part of a mixed-use y 1 �r Tigard 227_ development. Z- OAARDE ST MCDONALD ST BONITA RD 3 projects completed 1 in ° m process, resulting in 677 DURHAM RD housing units and 25,OOOsf of commercial space. ° Intensifies and mixes uses pairing commercial with residential. . q Tigard _ The 5 Es— Tigard's Community Promise:Equity. Environment. Economy. Engagement• Excellence TIF District _ Investments • Public infrastructure • Downtown buildings • Tigard Triangle - y buildings - g $5.6M in TIF investment in new public infrastructure in 2022/23. d CITY OF Tigard The 5 E's—Tigard's Community Promise:Equity. Environment• Economy. Engagement. Excellence TIF District Matching Grants +' _. 29 downtown properties have received matching grants for building improvement. x ' r r r r �a+�i�w�`• � ' �6 2.6:1 ratio of private to public investment in matching _- = �• grants. The 2022/23 downtown grant max is $50,000. CITY OF Tigard The 5 E's— Tigard's Community Promise. Equity• Environment•Economy• Engagement• Excellence Triangle Ti and g Business Opportunity Fund 1' Launched in 2022 with $50,000 for eating/drinking establishments and up toOFF $25,000 for other eligible businesses Goal: Increase business diversity in the Tigard Triangle. CITY OF Tigard The 5 E's— Tigard's Community Promise:Equity. Environment. Economy. Engagement. Excellence `� Entrepreneurism, Economic Mobility, U & Equity Focus � <. � Mfr ._ Opportunity Cafe • Launch Pod • Los Empresarios de Tigard • Business CoachingWell !5� Good Open tDFLICIOUS DISH • Advance Tigard Missing Middle RLF , • Community Investment Tru st Blaine Masser owner of Well and Good with his daughter Brittanie. • Tigard CARES Round 6 " " Tiaard The 5 E's-Tigard's Community Promise:Equity. Environment. Economy. Engagement. Excellence `� • / � ,,. .. _$B Opportunity Cafe & Launch Pod • Entrepreneur n e u r p - _ µ incubator • Partnership with -� _= MESO • Economic Mobility µ • Responds to community request Israel Martinez opened E( Cuadrilatero at the Opportunity Cafe. el Tia'TY ard The 5 E's—Tigard's Community Promise:Equity• Environment. Economy• Engagement• Excellence Los Empresarios de Tigard • April - How To Do Business in co es Tigard • May — Cocinemos (for food focused entrepreneurs) EMPRISARIUS • June — Sustainability & Triple Bottom Line fie ad • August - Business Management & Process Improvement • October — Networking/Sales Spanish language business support network with Adelonte Mujeres. Techniques CITY OF Tigard The 5 E's—Tigard's Community Promise:Equity. Environment. Economy. Engagement.Excellence r.;: `� Business Coaching 4. AA & Advising • ADELANTE MWERES CRAFT 3 contracts for organizations working with underserved MERCY PBDG entrepreneurs. WCORPS NORTHWEST PROFESSIONAL BUSINESS DEVELOPMENT GROUP $3,000 reserved for business a nn E-- RICA support scholarships with 12 M ESO SEDC, partner Organizations. OREGON Tigard The 5 E's—Tigard's Community Promise:Equity• Environment• Economy• Engagement• Excellence Advance Tigard Workforce Development o + Working with IRCO to improve °C economic mobility of Tigard ' residents working at Tigard firms. ADVANCE .- • Skills training Reduces hiring challenges for ., employers _ Improves career prospects for residents. CITY OF .. �. . � Tigard The 5 Es-Tigard's Community Promise:Equity• Environment• Economy• Engagement•Excellence Housing and Economic Security Loan Fund ars us J oil Working with 3 CDFI & affordable housing partners to r fill a gap in commercial lending with $1 .5M in ARPA funds.: : , i;, ■ Creating a construction loan fund to increase housing supply. CITY OF Tigard The 5 E's—Tigard's Community Promise:Equity• Environment• Economy• Engagement• Excellence „ `� Community Economic Prosperity Financial inclusion offers economic Investment Trust ' I � ' security & connectivity. • Unite Oregon & SWEC • Neighborhood scaleBridge the Racial • COMMUNITY $ $ Wealth Gap commercial space • INVESTMENT More people of color build wealth TRUST through ownership. • Investment tool • Transfers ownership 00, ,WEI • BIPOC Business Leaders over time Increase options for affordable commercial space. OF Tigard The S Es— Tigard's Community Promise:Equity• Environment• Economy• Engagement. Excellence `� Tigard CARES Businass Impact of TI�ARD Round 6 CARES Relief for Economic Stability In partnership with MESO, using $3.5 a needs-based application and � ahrc�ra9h 591 business grant awards building on 5 previous rounds of + $ 00• 00 m business assistance loans business-focused financial aid $4.2M in total business assistance totaling more than $4.2M. Grants to rn,nor,ty G vantS to women Grants to er1repseneurs entrepse^.curs small tsusrness CITY OF Tigard The 5 E's— Tigard's Community Promise:Equity. Environment. Economy. Engagement. Excellence tze WFAW 2022 Econo ent Programs Equity + Ent Council Discussion an ti Lloyd Purdy, MPA/MLA Economic Development Manager Tig " ��. a raid _ ...,,...:.. Vis,_...,,.—�..�__ ....._�.... ' •.. +RS ••. ry , _.� ..:: AIS-4850 7. Business Meeting Meeting Date: 02/22/2022 Length (in minutes): 15 Minutes Agenda Title: CONSIDER TIGARD CARES 6 - BUSINESS ASSISTANCE/COVID RECOVERY PROGRAM Authored By: Lloyd Purdy Community Development Item Type: Update,Discussion,Direct Staff Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE The COVID-19 pandemic continues to impact the local economy. In the early stages of the pandemic, workers lost their jobs as customer-facing businesses were forced to close.Through 2021 the overall unemployment rate began to recover. Recent reports indicate most of the jobs lost during the depths of the pandemic have been recovered-- overall. Not every business sector has benefited from an equal employment recovery. From an employment perspective, the five most slow-to-recover business sectors in Washington County since February 2020 are: •Private education and health services with a 5.9% loss in employment •Government&Public Education with a 5.8%loss in employment •Leisure and hospitality with a 5.6%loss in employment •Professional and business services with a 4.8%loss in employment •Personal and other services with a 2.1%loss in employment Pandemic-related uncertainty and ongoing labor challenges continue to place a strain on local customer-facing businesses. Additionally,while overall consumer spending is up,changes in consumer purchasing patterns have reduced in-person shopping and decreased the amount of discretionary income residents spend at local businesses (in favor of increased online purchases). The COVID-19 pandemic amplified inequities in the workforce ecosystem and brought to the forefront emerging economic trends. In general,industries most acutely impacted by the pandemic are those customer-facing firms most reliant on in-person attendance or services.Workers in industries, such as in leisure/recreation, travel/tourism, and hospitality,lost employment practically overnight, and those jobs are still challenging to refill. Because these jobs tend to have lower wages, these job losses exacerbated the gap between people with access to opportunity and residents living paycheck to paycheck. Local customer-serving businesses now grapple with unprecedented workforce/labor challenges, changes in consumer spending,the resurgence of COVID through the Omicron variant, and concerns about future COVID variants.This confluence presents an opportunity for the City of Tigard to create a new financial aid program to support local businesses. ACTION REQUESTED Authorize the creation of Tigard CARES round 6 to support local firms impacted by COVID and the resulting labor-market constraints.Allocate an initial $500,000 of American Recovery Plan Act (ARPA) funding for a financial assistance program to support businesses.Authorize the City Manager to increase that amount up to $750,000 (in total funding) if sufficient need is identified in the local economy. BACKGROUND INFORMATION At the height of the COVID-19 pandemic in 2020, the City of Tigard's economic development team secured more than$3,500,000 in funding and distributed financial assistance through more than 590 grants to businesses impacted by COVID-19. This funding was primarily Federal CARES dollars distributed initially to the State of Oregon and Washington County. Locally, this financial aid program was called Tigard CARES. The City of Tigard can build upon the first five rounds of Tigard CARES by restarting the program using ARPA funds and following ARPA's business support guidelines. Federal ARPA rules allow cities to use ARPA funding to support business sectors that have experienced a negative impact due to COVID-19.At this point in the pandemic,most business sectors in the economy have experienced some form of negative impact. ARPA financial assistance guidelines include requirements to demonstrate COVID impact including decreased revenue, financial insecurity,and increased cost. ARPA guidelines also define specific impacted industries eligible for funding including travel,tourism,and hospitality.ARPA guidelines also identify firms that are disproportionally impacted due to their small size (micro enterprise). Micro enterprise includes firms with fewer than 10 employees.ARPA rules require that a firm must have been in business prior to the pandemic to be eligible for financial aid,and the rules for nonprofits are different than the rules for businesses. In 2020,the City of Tigard partnered with Micro Enterprise Services of Oregon (MESO) a mission-driven nonprofit Community Development Financial Institution (CDFI) to administer the Tigard CARES grant program. MESO helped ensure vulnerable entrepreneurs with limited access to other financial assistance programs including entrepreneurs of color,historically underserved entrepreneurs, and underbanked entrepreneurs who could not access federal aid were able to receive funding from the City of Tigard. Based on experience gained through five previous Tigard CARES funding rounds and guidance from the city's business support partners; the economic development team is developing a needs-based application for businesses.The goal is to reduce the time burden on businesses, simplify the application review process, collect sufficient documentation, and use the results of the application process to determine which firms are eligible for financial assistance based on need. Once this need is assessed, the dollar amount of awards will be determined. A needs-based assessment for financial aid will include several factors like the following general business information: 1.Amount of decreased business revenue due to COVID. 2.Amount of increased business expenses due to COVID. 3.Size of business by employee head count, and changes in staffing. 4.Staffing level at full operation. 5.Changes to owner's household income. 6.Proximity of fine to socially vulnerable neighborhoods. 7.Other COVID-related assistance the business received in the last 12 months. 8.How the business will use this funding. These eight points are examples of criteria which will be considered,and added to,as part of a complete Tigard CARES round 6 application process. In addition to any documentation,reporting,or use-of-funds requirements the City of Tigard places on eligible applicants, the City of Tigard will also have to confirm businesses receiving financial assistance meet ARPA and other federal requirements. Dates of Previous and Potential Future Considerations Previous Council consideration of financial aid for businesses includes: •August&September 2021 —Business needs summary •October 2020—Tigard CARES funding/contracting authorization Public Involvement In September 2021,the City of Tigard's economic development team,with support from other departments, conducted a city-wide business survey to assess business needs as a point-in-time check on local economic conditions. Ongoing public involvement includes a monthly business-focused e-newsletter, a monthly (virtual) meet-and-greet with new businesses,welcome packets mailed to new businesses, a quarterly (virtual) open house for business owners,and a bi-monthly business webinar series. Each of these programs are opportunities for business owners to share their experiences and challenges with staff. Tigard's economic development manager also reviews economic trend data and meets monthly with the Tigard Chamber of Commerce,business support organizations, and economic development staff from neighboring cities to better understand the constantly evolving local and regional economic conditions. The economic development team will share this business support opportunity with firms through the business update e-newsletter, Cityscape, direct email, social media, and a network of business advising partners. Impacts Previous rounds of Tigard CARES grants in 2020 drew upon$3,500,000 in funding to help businesses suffering from COVID-19 impacts. •41% of grant awards were made to minority entrepreneurs. •51% of grant awards were made to women entrepreneurs. •97% of grant awards were made to businesses with fewer than 25 employees. These summary statistics from previous rounds of Tigard CARES represent the ownership of the predominantly customer-facing firms impacted by government mandated closures,labor shortages and changes in spending patterns. Data collected through the Tigard CARES round 6 application will help us measure impact of this program for a final report to Council. With a minimum of$500,000 in ARPA funding available for financial aid,the City of Tigard can help between 125 and 250 businesses with grants ranging from $2,000 to $4,000 based on business need and COVID impact. ALTERNATIVES For a successful round of financial aid to businesses, staff requests Council make a minimum of$500,000 in ARPA funding available and authorize the City Manager to increase funding up to $750,000 in total available funding,if there is sufficient need. Unexpended funds will be returned to the City of Tigard's ARPA allocation. An alternative to grant making with $500,000 in ARPA funds is to use that funding to establish a loan fund or a partially forgivable revolving loan fund to: •Deliver financial aid to businesses. •Improve a business owner's credit score. •Provide business coaching as a condition of partial loan forgiveness. •Recirculate the City of Tigard's initial investment. *Multiply the city's investment and support more businesses over time. In 2020, the City of Tigard dedicated city funds to two business loan programs with CDFI partners Craft3 and MESO. Very early in the pandemic, using$100,000 in city funds as a loan loss reserve, Craft3 made 12 loans totaling $462,500 to businesses impacted by State of Oregon operating restrictions and the health pandemic.Those loans are still in repayment. MESO's smaller loan program, the MESO 40/60 Forgivable Loan delayed its start until 2021,while MESO finished administering the city's grant program. With $46,250 of city funding as underwriting, so far MESO has made three loans totaling$28,644 to entrepreneurs of color who meet the 40/60 Forgivable Loan fund criteria. Each of those entrepreneurs completed their initial training and is repaying their loan. They are on track for 40% forgiveness of their principle if they continue to meet their repayment and training benchmarks. As these loans are repaid, those funds become a loan loss reserve to support subsequent lending to other entrepreneurs in Tigard. Because a portion of these loans are forgiven,like a grant, this program has a declining fund balance. CDFI partners like MESO and Craft3 would be used to administer this type of financial assistance program due to their expertise in micro-lending. This alternative provides a more long-term support system to businesses and ensures funds are more likely to be used to cover expenses that improve a business operation. ADDITIONAL RESOURCES Fiscal Impact Fiscal Information: Requesting council authorization of$500,000 up to $750,000 in ARPA funds. Funding not used for business assistance will be returned to the ARPA fund. MESO's administrative fee for this program is 7.5%.The City has $3,064,833 of the $7,499,726 in ARPA funds that has not been allocated. Attachments PowerPoint JAAL T*igard CARES Financial Aid for Businesses through ARPA Funding Lloyd Purdy MPA/MPA Economic Development Manager Tigard Improving but Unequal Recovery FRED — RealFerwnal Consumption Eependlture t Ij Consumer 8 12.000 spending p g 11,000 c us up . I0.0cJ 9000 2.004 2006 2008 2010 1012 2014 2016 2018 2020 Shaded areas indican US re[esvons Source.U S.Bureau of Economic Analysts rrryf.red/g/L0NI CITY OF . ; Tigard The 5 E's—Tigard's Community Promise:Equity. Environment• Economy 0 Engagement 0 Excellence Improving but Unequal Recovery Unemployment Trend (Dec 2001 to Dec 221) 16% —Portland MSA ----Washington County 14% 12% 10% 8% 6% 4% 2% 0% Dec-01 De"2 Dec-03 Dec-04 Dec-05 Dec-06 Dec 07 Dec-08 D-09 Dec-10 Dec-11 Dec-12 D-13 Dec-14 D-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 CITY OF " Tigard The 5 E's—Tigard's Community Promise:Equity. Environment. Economy. Engagement a Excellence Improving but Unequal Recovery Oregon's Difficult to Fill Job Vacancies Remained High in Fall 2021 110.000 100.000 Loss in Jobs by Sector in Washington County ■DrHicult to Fill Not Difficult to FII 90.000 80.000 • Private education and health services - 5.9% 70.000 • Government and public education - 5.8% 60.000 50.000 • Leisure and hospitality - 5.6% 40000 • Professional and business services -4.8% 30.000 20.000 • Personal and other services - 2.1% 10.000 u MAW&M Winter Spring Summer Fall 2016 Winter Spring Summer Fall 2021 2013 2014 2015 2018 2019 2020 SoUrte Oregon Employment Oeparmenr Oregw zon vacancy sunny r • CITY OF The 5 E's- Tigard's Community Promise:Equity 9 Environment.Economy 9 Engagement• Excellence Tigard Improving but Unequal Recovery Google "Mobility Trends" for Oregon Retail 6 recreation Grocery S pharmacy F'arks -14% compared to baseline -6% compared to baseline +38% compared to baseline a .30% •80% •aaw •.loss ..to% !aanelil a Basrlr ��1 ` @aselbft A °ti40% j -4u% f -eon -3a� Sal.:sc:': fiat.Jar' Sat.Feb 5 Sat bec 15 Sw,,dxn 95 Sal. et 5 Sad.Dec t5 Sal..41IK :»L�_aC 5 CITY OF " Tigard The 5 Es—Tigard's Community Promise:Equity e Environment• Economy• Engagement• Excellence Improving but Unequal Recovery Structural Changes to the Economy • More consumer spending, but less local spending. • Labor challenges for employers. • Supply chain challenges for all sectors. CITY OF " Tigard The S E's—Tigard's Community Promise:Equity• Environment. Economy. Engagement. Excellence `� Financial Aid for Businesses in 2022 ARPA Guidelines: Grants or loans to business in sectors that have suffered a COVID impact including: • Micro Enterprise ( 10 or fewer employees) • Hospitality, Travel, and Tourism Sectors • Other sectors as identified • In business prior to the pandemic CITY OF � Tigard The 5 E's—Tigard's Community Promise:Equity•Environment•Economy• Engagement'* Excellence Financial Aid for Businesses in 2022 Tigard CARES Round 6 Needs-Based Application Process 1. Decreased business revenue due to COVID. 2. Increased business expenses due to COVID. 3. Size of business by employee head count. 4. Decrease to business owner's household income. S. Location of firms in socially vulnerable neighborhoods. 6. Acquisition of debt to sustain business. CITY OF _ Tigard The S E's—Tigard's Community Promise:Equity. Environment•Economy. Engagement. Excellence lit Businoss Impact of TIGA►RD Tigard CARES CAREE Commercial Assistance 8 * Five rounds of financial aid to Relief (vr Economic Stability date as grants and loans. $3.5M through 591 bu5rnessgrant awards . In 2020 Federal CARES funds +$700,000 in business assistance loans for grant making. $4.2M in total business assistance • Partnered with MESO to administer and deliver funding. u�anis to rn)nor+ty GIan%to*Qrnm Grant,to entr enours entre ar Curs Srnalt bus nug5 CITY OF The 5 E's—Tigard's Community Promise: ° ' Tigard Equity. Environment. Economy. Engagement. Excellence For Council Consideration • Authorize staff to create Tigard CARES round 6 to support local firms impacted by COVID. • Allocate $500,000 of American Recovery Plan Act (ARPA) funding in financial assistance. • Authorize the City Manager to increase that amount up to $750,000 (total) if sufficient need is identified. • Grant or revolving loan program? The 5 E's—Tigard's Community Promise:Equity.Environment.Economy•Engagement•Excellence �►, " Tigard" AIS-4745 Business Meeting F_e5ehe tju I- Meeting Date: 02/22/2022 Length (in minutes): 30 Minutes Agenda Title: Total Tyler Update Authored By: Preston Beck Finance and Information Services Item Type: Update,Discussion,Direct Staff Public Hearing No Legal Ad Required?: Publication Date: Information EXPLANATION OF ISSUE This is the second in a series of briefings on the Total Tyler Project. ACTION REQUESTED This briefing is for informational purposes only. No actions are requested. BACKGROUND INFORMATION The City of Tigard is 15 months into a 4-year implementation of Tyler Technologies enterprise software replacement of core business systems throughout the city,including finance,permitting,payroll/HR,court, utility billing,work orders,asset management,and document management. This briefing is part of a bi-annual update to Council on the status of the `Total Tyler Project.' Executive Summary: Key activity since March 2021 Council update: •3 Phases are under way: Munis core financials,HR Payroll, and EAM-enterprise asset management •2 Phases are in kick-off state,including Utility Billing and EnerGov (permitting) •A 311 module within EAM is also underway *To date, approximately$564,000 spent of the total $6.4 mil contract *To date, approximately 13,100 hours of teammate time have been spent on the Tyler project •A technical training coordinator position has been filled to assist during key training phases and ensure a comprehensive and unified transition to the new system for teammates •Work on modular training facility currently underway, targeting for use by April 15th to coincide with application training of Tigard teammates. *Two modules (Utility Billing and EnerGov) have had their start date delayed due to turnover and resource availability within departments •Given position vacancies and teammate turnover,and 100% of the implementation occurring online, there have only been minor schedule adjustments •Teammate turnover,extended position vacancies, and recruitment challenges represent the largest risk to maintaining the project schedule as planned Background: The city's departments currently utilize aged`best of breed' enterprise systems that are over a decade old. Many of these systems are either relying on software customizations that restrict the ability to upgrade and create further enhancements to support city operations,or require expensive vendor supported changes for enhancements and modifications. In addition,these independent systems do not have the ability to properly report and analyze data across platforms,making data informed decisions on initiatives such as the Strategic Plan nearly impossible, and if so with a high likelihood of inconsistent and improper data. Many recent initiatives,including the Performance Audit and the IT Strategic Plan,have identified the need to replace all currently used enterprise systems with modern technologies that allow for standardized efficient workflows,data sharing and reporting,heightened system security,with enhanced services and transparency to the people who live,work, and visit Tigard. This project aligns the city's need for integrating information, strategic priorities, Council goals, and performance audit measures. This enterprise,unified system will allow the city to: •Use informed data for reporting and new initiatives •Combine systems and reduce integration issues •Have better data quality and consistency across enterprise systems *Provide cross-departmental workload efficiencies •Modernize its enterprise system *Utilize Lean process efficiency improvements •Implement solutions that help with performance audit recommendations •Provide 311 and digital engagement portals for citizens,vendors, and employee access to core services •Tell its story to the community In September 2020, Council approved the $6.4 mil contract with Tyler Technologies. It included implementation, data conversion,project management, and 10 years of SaaS (Software as a Service) and will replace aging software that the city will stop paying for as the transition occurs to the Tyler Technologies platform. The one-time implementation contract costs are paid through the Central Service Fund reserves that are set aside for this purpose. The ongoing support costs represent an increase of approximately $150,000 annually over the current software costs and are anticipated in the city's forecast. Community Benefits: Over time, deployment of the different Tyler modules will provide improvements for the community. In general, any citizen interaction with the business systems will have a much improved and streamlined customer interface including access portals. There will also be vendor online capabilities to eliminate paper processes and reduce the need for in-person visits to conduct business. Furthermore, the public will eventually have access to a centralized 311 solution to submit various non-emergency concerns. The 311 solution will significantly improve our ability to intake, track, and respond to community concerns. Additionally,with a single ERP (Enterprise Resource Planning) solution,it will be possible to consistently address metrics and reporting on initiatives such as the City Strategic Plan with heightened accuracy and confidence. Employee Impacts: The Total Tyler solution is a huge undertaking by the IT project team and departments involved with the implementation. There are employee implications both for implementation and after implementation periods. The IT division has responded to the enterprise system shift by 1) developing and staffing the Project Management Office (PMO),2) adding additional teams 3) forming an applications team,as well as staffing database support and 4) adding a technical training coordinator position. The implementation period of the project is an extremely labor-intensive period in terms of teammate's involvement in analysis sessions,review,testing,and go-live. To better plan for the surge in need for employee participation,IT has developed an evaluation tool to aid departments to identify potential resource demands for potential back-fill positions. Some departments have chosen to back-fill positions during the implementation of the modules so that staff can focus on the project-white having some of their duties performed with the back-fill positions,and other departments have opted to use contract services. The Total Tyler project will help create an immense shift in the city's ability to analyze and report on finance, asset management, customer service,permitting,utility billing,and other core business lines. As capable as the new system will be,it is still not a push-button action to perform analysis,develop and obtain custom reports,metrics and benchmarks. Teammate resources will still be needed to understand the system,the data, and how to configure it for optimal reporting needs especially for initiatives such as the Strategic Plan, department work plans,master plan,and to city plans or routine reporting. It will be many years before Tigard will be able to realize the full efficiencies,data analysis, and reporting capabilities within the Total Tyler system. The teams primary focus and resources are being dedicated to the long-term vison throughout the implementation processes to ensure the goals are met and delivered. The result of these efforts are scarce and highly limited resources from the core team implementing Total Tyler to assist with the reporting and metric needs during the project implementation. The responsibility for maintaining the current and newly developed metric reporting remains at the department/ division level utilizing existing disparate enterprise systems. Community Impacts: In the next 6 months and run up to going live,no disruption in city services for the public are anticipated. At go live, some online services such as vendor self-service and counter credit card transactions processes will be activated,however these systems will not create significant interruption for the public. Impacts to the public in the next 6 months will be minor including credit card transaction fee changes and how vendors interact online with the city. The project team will be coordinating with the Communications Team to coordinate the appropriate messaging for impacted external users of the system. Budget Cost Sections: Total costs for the Total Tyler program are comprised of two parts 1) Tyler Contract Costs ($6.4 mil) and 2) soft/operational costs which are built into and approved in the department annual budgeting process. Both parts are combined to calculate the total implementation project costs, and ongoing costs for the Total Tyler Program. This is important because the total costs to implement and ongoing maintenance of the Tyler program far exceed the September 2020 contract amount approved by Council. To improve project financial transparency,IT and Management Partners are working to put together a forecasting model for the soft/operational costs so they can be combined with Tyler Contract costs for a complete financial picture of the Total Tyler program. As we learn more through the implementation processes IT is refining tools used for data collection and modifying procedures to ensure the data being reported is accurate. •Tyler contract ($6.4 mil) approved September 2020. oThe Tyler contract includes 10-years of Software as a Service SaaS costs ($4.8 mil) and implementation and data conversion service costs ($1.6M) oThrough 2021 we have spent$564,000 of the $6.4 mil contract. •Soft/Operational Costs oCost of Employee's time dedicated to implementing Total Tyler oTemporary training facilities oBackfill positions and contracted professional services to assist departments during implementation. o Ongoing IT and departmental teammates dedicated to the maintenance and continuous improvements of the Tyler platforms.This ensures the Tyler program grows with the city needs as they develop. oThrough 2021 we have spent approximately$520,000 of teammate time dedicated to the Tyler project. Optional Components:Tyler Technologies has a robust suite of software solution built for government applications that could directly impact nearly all city departments.While only major enterprise systems were selected for implementation in the initial Tyler contract,we were able to secure pricing for optional add-on services to replace small department level systems at the time of contracting.Tigard can amend the original contract for up to 3-years to add on these additional services if we choose to do so. The optional components Tigard is interested in purchasing include: Tyler Component Tigard Legacy System Meeting Manager Agenda Quick Content Manager Ente rise Laserfiche E-ticketing APS E-Ticketing Parks and Recreation ActiveNet API Services Integration with non-Tyler systems By adopting the Total Tyler solution methodology,Tigard is positioned to be able to take advantage of built-in data availability within the Tyler system across all modules. Adding additional components into the Total Tyler package inherently creates seamless integrations and data availability to assist in driving business decisions. The implementation of Tyler components allows Tigard to evaluate current processes and adjust to best match the technology improving efficiency and higher data quality standards. You will see information in future project update on how we are progressing on folding as many systems as possible into the Total Tyler program that will benefit Tigard operations and be the best use of city funds. Project Risks: To better manage risks that inevitably come with a project of this magnitude over an extended time period, the Tigard project team worked with the Tyler project team to develop a Risk Register. This register is updated quarterly by the project team and inventories risks, evaluates probability of the risks occurring,impact of the risks to the project,and then scores them with a response action for each. Higher scored risks that warrant attention are flagged as Priority,whereas lower score risks are flagged as Watch List. The Priority Risks generally include risks that have a high impact associated with the project costs or project schedule. The current Priority Risks list includes: •Employee turnover and difficulty of refilling vacant positions •Physical resources (e.g.,not having enough training space) •Resistance to change and unavailability of teammates to complete tasks in between sessions •Scale of project The project team relies on the response action for each of the catalogued risks in order to mitigate its impact on cost and/or schedule. In addition, the project team communicates routinely with the Tyler steering committee and flags the issues to also alleviate the risks to the project. Upcoming: The next 12 months will be extremely labor intensive for Tigard teammates. Of the 7 phases in the overall schedule 5 will be actively underway. These include: Munis,HCM (Human Capital Management/ Payroll / Risk / HR), and EAM (Enterprise Asset Management /Assets and work orders), Utility Billing,and Energov (permitting). In July, the core financials HR/payroll is scheduled to go live followed by EAM in September. The Total Tyler project requires a considerable amount of time from teammates assigned to the different phases, especially at the very beginning and at the end near testing and go-live. The project team has been very upfront to the Steering Committee about employee expectations and the need to have the right teammates available at the right time to keep the project schedule on track. This May and June will be the most challenging period because a larger number of teammates will be introduced to the system through final testing, training, and then during the adjustment at go live in July. Even after this initial go live of some systems, there will continue to be intense project work remaining as HR systems come online and Energov and Utility Billing roll out. It is clear the next 12 months will be the most resource intensive,and most critical part of the entire project. Keeping this project on task, on time, and on budget during this overlap time will be a commitment from Council, City Manager's Office,and Leadership Team to ensure the proper amount and correct team resources are dedicated to this project's success. ALTERNATIVES ADDITIONAL RESOURCES Attachments Feb 2022 Council Update Feb 2022 Council Update PPT AgendaQuick©2005-2022 Destiny Software Inc.,All Rights Reserved ISSUE This is the second in a series of briefings on the Total Tyler Project. STAFF RECOMMENDATION / ACTION REQUEST This briefing is for informational purposes only. No actions are requested. KEY FACTS AND INFORMATION SUMMARY The City of Tigard is 15 months into a 4-pear implementation of Tyler Technologies enterprise software replacement of core business systems throughout the city,including finance,permitting, payroll/HR,court,utility billing,work orders,asset management, and document management. This briefing is part of a bi-annual update to Council on the status of the `Total Tyler Project' Executive Summary: Key activity since March 2021 Council update: • 3 Phases are under way: Munis core financials, HR Payroll, and EAM -enterprise asset management • 2 Phases are in kick-off state,including Utility Billing and EnerGov (permitting) • A 311 module within EAM is also underway • To date, approximately$564,000 spent of the total $6.4 mil contract • To date, approximately 13,100 hours of teammate time have been spent on the Tyler project • A technical training coordinator position has been filled to assist during key training phases and ensure a comprehensive and unified transition to the new system for teammates • Work on modular training facility currently underway, targeting for use by April 15'to coincide with application training of Tigard teammates. • Two modules (Utility Billing and EnerGov) have had their start date delayed due to turnover and resource availability within departments • Given position vacancies and teammate turnover, and 100% of the implementation occurring online,there have only been minor schedule adjustments • Teammate turnover, extended position vacancies, and recruitment challenges represent the largest risk to maintaining the project schedule as planned Background: The city's departments currently utilize aged `best of breed' enterprise systems that are over a decade old. Many of these systems are either relying on software customizations that restrict the ability to upgrade and create further enhancements to support city operations, or require expensive vendor supported changes for enhancements and modifications. In addition, these independent systems do not have the ability to properly report and analyze data across platforms, making data informed decisions on initiatives such as the Strategic Plan nearly impossible, and if so with a high likelihood of inconsistent and improper data. Many recent initiatives,including the Performance Audit and the IT Strategic Plan, have identified the need to replace all currently used enterprise systems with modern technologies that allow for standardized efficient workflows, data sharing and reporting,heightened system security,with enhanced services and transparency to the people who live,work,and visit Tigard. This project aligns the city's need for integrating information, strategic priorities,Council goals, and performance audit measures. This enterprise,unified system will allow the city to: • Use informed data for reporting and new initiatives • Combine systems and reduce integration issues • Have better data quality and consistency across enterprise systems • Provide cross-departmental workload efficiencies • Modernize its enterprise system • Utilize Lean process efficiency improvements • Implement solutions that help with performance audit recommendations • Provide 311 and digital engagement portals for citizens,vendors, and employee access to core services • Tell its story to the community In September 2020, Council approved the $6.4 mil contract with Tyler Technologies. It included implementation, data conversion,project management, and 10 years of SaaS (Software as a Service) and will replace aging software that the city will stop paying for as the transition occurs to the Tyler Technologies platform. The one-time implementation contract costs are paid through the Central Service Fund reserves that are set aside for this purpose. The ongoing support costs represent an increase of approximately$150,000 annually over the current software costs and are anticipated in the city's forecast. Community Benefits: Over time, deployment of the different Tyler modules will provide improvements for the community. In general, any citizen interaction with the business systems will have a much improved and streamlined customer interface including access portals. There will also be vendor online capabilities to eliminate paper processes and reduce the need for in-person visits to conduct business. Furthermore, the public will eventually have access to a centralized 311 solution to submit various non-emergency concerns. The 311 solution will significantly improve our ability to intake, track, and respond to community concerns. Additionally,with a single ERP (Enterprise Resource Planning) solution, it will be possible to consistently address metrics and reporting on initiatives such as the City Strategic Plan with heightened accuracy and confidence. Employee Impacts: The Total Tyler solution is a huge undertaking by the IT project team and departments involved with the implementation. There are employment implications both for implementation and after implementation periods. The IT division has responded to the enterprise system shift by 1) developing and staffing the Project Management Office (PMO),2) adding additional teams 3) forming an applications team, as well as staffing database support and 4) adding a technical training coordinator position. The implementation period of the project is an extremely labor-intensive period in terms of teammate's involvement in analysis sessions, review, testing, and go-live. To better plan for the surge in need for employee participation, IT has developed an evaluation tool to aid departments to identify potential resource demands for potential back-fill positions. Some departments have chosen to back-fill positions during the implementation of the modules so that staff can focus on the project-while having some of their duties performed with the back-fill positions,and other departments have opted to use contract services. The Total Tyler project will help create an immense shift in the city's ability to analyze and report on finance, asset management, customer service,permitting,utility billing, and other core business lines. As capable as the new system will be, it is still not a push-button action to perform analysis, develop and obtain custom reports, metrics and benchmarks. Teammate resources will still be needed to understand the system, the data, and how to configure it for optimal reporting needs especially for initiatives such as the Strategic Plan, department work plans, master plan, and to city plans or routine reporting. It will be many years before Tigard will be able to realize the full efficiencies, data analysis, and reporting capabilities within the Total Tyler system. The teams primary focus and resources are being dedicated to the long-term vison throughout the implementation processes to ensure the goals are met and delivered. The result of these efforts are scarce and highly limited resources from the core team implementing Total Tyler to assist with the reporting and metric needs during the project implementation. The responsibility for maintaining the current and newly developed metric reporting remains at the department / division level utilizing existing disparate enterprise systems. Community Impacts: In the next 6 months and run up to going live, no disruption in city services for the public are anticipated. At go live, some online services such as vendor self-service and counter credit card transactions processes will be activated, however these systems will not create significant interruption for the public. Impacts to the public in the next 6 months will be minor including credit card transaction fee changes and how vendors interact online with the city. The project team will be coordinating with the Communications Team to coordinate the appropriate messaging for impacted external users of the system. Budget Cost Sections: Total costs for the Total Tyler program are comprised of two parts 1) Tyler Contract Costs ($6.4 mil) and 2) soft/operational costs which are built into and approved in the department annual budgeting process. Both parts are combined to calculate the total implementation project costs, and ongoing costs for the Total Tyler Program. This is important because the total costs to implement and ongoing maintenance of the Tyler program far exceed the September 2020 contract amount approved by Council. To improve project financial transparency, IT and Management Partners are working to put together a forecasting model for the soft/operational costs so they can be combined with Tyler Contract costs for a complete financial picture of the Total Tyler program. As we learn more through the implementation processes IT is refining tools used for data collection and modifying procedures to ensure the data being reported is accurate. • Tyler contract ($6.4 mil) approved September 2020. o The Tyler contract includes 10-years of Software as a Service SaaS costs ($4.8 mil) and implementation and data conversion service costs ($1.6M) o Through 2021 we have spent$564,000 of the $6.4 mil contract. • Soft/Operational Costs o Cost of Employee's time dedicated to implementing Total Tyler o Temporary training facilities o Backfill positions and contracted professional services to assist departments during implementation. o Ongoing IT and departmental teammates dedicated to the maintenance and continuous improvements of the Tyler platforms. This ensures the Tyler program grows with the city needs as they develop. o Through 2021 we have spent approximately$520,000 of teammate time dedicated to the Tyler project. Optional Components:Tyler Technologies has a robust suite of software solution built for government applications that could directly impact nearly all city departments. While only major enterprise systems were selected for implementation in the initial Tyler contract,we were able to secure pricing for optional add-on services to replace small department level systems at the time of contracting. Tigard can amend the original contract for up to 3-years to add on these additional services if we choose to do so. The optional components Tigard is interested in purchasing include: Tyler Component Tigard Legacy System Meeting Manager Agenda Quick Content Manager Enterprise Laserfrche E-ticketingAPS E-Ticketing Parks and Recreation ActiveNet API Services Integration with non-Tyler systems By adopting the Total Tyler solution methodology,Tigard is positioned to be able to take advantage of built-in data availability within the Tyler system across all modules. Adding additional components into the Total Tyler package inherently creates seamless integrations and data availability to assist in driving business decisions.The implementation of Tyler components allows Tigard to evaluate current processes and adjust to best match the technology improving efficiency and higher data quality standards. You will see information in future project update on how we are progressing on folding as many systems as possible into the Total Tyler program that will benefit Tigard operations and be the best use of city funds. Project Risks:To better manage risks that inevitably come with a project of this magnitude over an extended time period, the Tigard project team worked with the Tyler project team to develop a Risk Register. This register is updated quarterly by the project team and inventories risks, evaluates probability of the risks occurring, impact of the risks to the project, and then scores them with a response action for each. Higher scored risks that warrant attention are flagged as Priority,whereas lower score risks are flagged as Watch List. The Priority Risks generally include risks that have a high impact associated with the project costs or project schedule. The current Priority Risks list includes: • Employee turnover and difficulty of refilling vacant positions • Physical resources (e.g.,not having enough training space) • Resistance to change and unavailability of teammates to complete tasks in between sessions • Scale of project The project team relies on the response action for each of the catalogued risks in order to mitigate its impact on cost and/or schedule. In addition, the project team communicates routinely with the Tyler steering committee and flags the issues to also alleviate the risks to the project. Upcoming: The next 12 months will be extremely labor intensive for Tigard teammates. Of the 7 phases in the overall schedule 5 will be actively underway. These include: Munis,HCM (Human Capital Management / Payroll / Risk / HR), and EAM (Enterprise Asset Management / Assets and work orders),Utility Billing, and Energov (permitting). In July, the core financials HR/payroll is scheduled to go live followed by EAM in September. The Total Tyler project requires a considerable amount of time from teammates assigned to the different phases, especially at the very beginning and at the end near testing and go-live. The project team has been very upfront to the Steering Committee about employee expectations and the need to have the right teammates available at the right time to keep the project schedule on track. This May and June will be the most challenging period because a larger number of teammates will be introduced to the system through final testing,training,and then during the adjustment at go live in July. Even after this initial go live of some systems, there will continue to be intense project work remaining as HR systems come online and Energov and Utility Billing roll out. It is clear the next 12 months will be the most resource intensive, and most critical part of the entire project. Keeping this project on task, on time, and on budget during this overlap time will be a commitment from Council, City Manager's Office, and Leadership Team to ensure the proper amount and correct team resources are dedicated to this project's success.