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01/09/2019 - PacketTOWN CENTER ADVISORY COMMISSION AGENDA – January 9, 2019 City of Tigard | 13125 SW Hall Blvd., Tigard, OR 97223 | 503-639-4171 | www.tigard-or.gov | Page 1 of 1 City of Tigard Town Center Advisory Commission Agenda MEETING DATE/TIME: January 9, 2019 – 6:00 to 7:10 p.m. (Business meeting) 7:10 to 7:30 p.m. (Light dinner and introductions) 7:30 to 9:00 p.m. (Goal Setting/Retreat) MEETING LOCATION: Red Rock Creek Conf. Room, 13125 SW Hall Blvd., Tigard, OR 97223 1. CALL TO ORDER Kate 6:00 2. CONSIDER MINUTES Kate 6:05 3. PUBLIC COMMENT Kate 6:10 4. UNIVERSAL PLAZA UPDATE Kenny Asher 6:15 5. PROPOSED CITY CENTER URBAN RENEWAL PLAN AMENDMENTS: Action Item Sean 6:30 6. COMMENT ON DRAFT URBAN RENEWAL FINANCIAL IMPACT REPORT Sean 6:40 7. LIAISON REPORTS Kate 6:50 8. NON-AGENDA ITEMS All 6:55 9. NOMINATIONS AND OFFICER ELECTIONS All 7:00 10. ADJOURN BUSINESS MEETING Chair 7:10 *EXECUTIVE SESSION: The Tigard City Center Advisory Commission may go into Executive Session to discuss real property transaction negotiations under ORS 192.660(2) (e). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. LIGHT DINNER AND INTRODUCTIONS 7:10 to 7:30 PM TCAC RETREAT AND GOAL SETTING 7:30 to 9:00 PM Upcoming meetings of note: Tuesday, February 5, 6:30 p.m., TCDA-TCAC Joint Meeting, Town Hall Wednesday, February 13, 6:30 p.m., Regular TCAC Meeting, Red Rock Creek Conf. Room Page 1 of 2 CITY OF TIGARD TOWN CENTER ADVISORY COMMISSION Meeting Minutes January 9, 2019 Members Present: Chris Allen, Lucas Brook (Vice Chair, arrived after item 5), Angeline Chong, Chris Haedinger, Scott Hancock, Renette Hier, Hemendra Mathur (Alternate), Tom Murphy, Tim Myshak, Gloria Pinzon Marin (Ex Officio), Kate Rogers (Chair), Ryan Ruggiero, and Faez Soud. Members Absent: N/A. Staff Present: Community Development Director Kenny Asher, Redevelopment Project Manager Sean Farrelly, and Administrative Specialist Joe Patton. Others Present: Council TCAC Liaison Councilor John Goodhouse. 1. CALL TO ORDER Chair Rogers called the meeting to order at 6:00 pm. The meeting was held in the Red Rock Creek Conference Room, at 13125 SW Hall Blvd. Joe recorded the roll call. 2. CONSIDER MINUTES The December 12, 2018 TCAC Minutes were unanimously approved. 3. PUBLIC COMMENT – N/A. 4. UNIVERSAL PLAZA UPDATE Kenny gave a brief background and update on the Universal Plaza. The site chosen is owned by the TCDA and the current tenant has a lease option until 2024. The City has been working on negotiating an earlier date for them to vacate. He encouraged Commissioners to share their opinions and feedback on the Universal Plaza with staff and TCDA. 5. PROPOSED CITY CENTER URBAN RENEWAL PLAN AMENDMENTS Sean noted that the amendments were housekeeping items to reflect purchase and disposition of purchased properties and the public restroom project and briefly discussed each. Commissioners unanimously approved a motion to recommend approval of the proposed amendments to TCDA and Council. 6. COMMENT ON DRAFT URBAN RENEWAL FINANCIAL IMPACT REPORT Sean discussed the draft Financial Impact Report included in the agenda packet. Commissioners gave positive feedback. 7. LIAISON REPORTS Carine Arendes emailed a TTAC meeting report to Commissioners. The next PRAB meeting is on Monday, January 14 but there are no topics on the Agenda related to the urban renewal areas. City Center Urban Renewal Plan Amendments The following are amendments to the adopted City Center Urban Renewal Plan. AMENDMENT NUMBER: 1 PURPOSE: Section V: Add Real Property Acquisition and Real Property Disposition as Projects under the Plan. Add Burnham Street Property, Taxlot ID 2S12AC-00202 as a property to be acquired. RESOLUTION NUMBER: Council 14-19 EFFECTIVE DATE: April 6, 2014 AMENDMENT NUMBER: 2 PURPOSE: Section V: Add taxlots 2S102AD02800, 2S102AD02900, and 2S102AD03000 to the list of acquired properties under Project H: Real Property Acquisition and the list of properties to be disposed of under Project I: Real Property Disposition. (Burnham and Ash Avenue Properties). RESOLUTION NUMBER: Council 15-13 EFFECTIVE DATE: April 14, 2015 AMENDMENT NUMBER: 3 PURPOSE: Section V: Add two Main Street Properties TAXLOT IDS 2S102AB02000 AND 2S102AB02100 (12533-12537 SW Main Street) to the list of acquired properties under Project H: Real Property Acquisition. RESOLUTION NUMBER: Council 15-51 EFFECTIVE DATE: November 24, 2015 AMENDMENT NUMBER: 4 PURPOSE: Amend the City Center Urban Renewal Area boundary, adding 37.7 acres. SUBSTANTIAL AMENDMENT ORDINANCE: Council 16-25 EFFECTIVE DATE: December 13, 2016 APPROVED BY VOTERS: May 16, 2017 AMENDMENT NUMBER: 5 PURPOSE: Remove 1.6 acres of right-of-way from urban renewal area. MINOR AMENDMENT TOWN CENTER DEVELOPMENT AGENCY RESOLUTION 18-01 EFFECTIVE DATE: February 2, 2018 AMENDMENT NUMBER: 6 PURPOSE: Section V: Add two Main Street Properties TAXLOT IDS 2S102AB02000 AND 2S102AB02100 (12533-12537 SW Main Street) to the list of properties to be disposed under Project I: Real Property Disposition. RESOLUTION NUMBER: Council 18-27 EFFECTIVE DATE: May 8, 2018 Agenda Item 5 AMENDMENT NUMBER: 7 PURPOSE: Add an area of land adjacent to 12562 SW Main Street and a strip of land adjacent to 9270 SW Maplewood Drive to the list of properties to be acquired under Project H: Real Property Acquisition and the list of properties to be disposed of under Project I: Real Property Disposition RESOLUTION NUMBER: EFFECTIVE DATE: AMENDMENT NUMBER: 8 PURPOSE: Under the requirements of Section F: Public Facilities, the public restroom at Rotary Plaza public space is found to benefit the City Center Urban Renewal Area. MINOR AMENDMENT: EFFECTIVE DATE: ii | Urban Renewal Plan Proposed Amendment #7 to City Center Urban Renewal Plan EXHIBIT A Proposed new text is shown in double- underline V. URBAN RENEWAL PROJECTS Urban renewal projects authorized under the Plan, which may be undertaken by the Agency, are described below and shown in Figures 2 to 7. To preserve and enhance the Area' s natural resources, projects will be designed and implemented with consideration for ecologically sensitive areas and to minimize the impacts of development on the environment. Property acquisition may be required for these projects. Further, some of the projects described herein will require participation of other public agencies. In addition, real property acquisition and disposition are Projects under the plan as described in Section V, paragraphs H and I. H. Real Property Acquisition. In addition to acquisition of real property, or any interest in real property, in conjunction with the Projects identified in paragraphs A through G., real property may be acquired as determined by the Agency to be necessary to further the Goals and Objectives of the City Center Renewal Plan and as provided in Section VIII, paragraph A. This includes acquisition of real property from willing sellers to support development or redevelopment of retail, office, housing and mixed use project within the Area. 1. Burnham Street Property, Taxlot ID 2S12AC-00202 will be acquired. 2. Burnham and Ash Street Properties, Taxlots 2S102AD-02800, 2S102AD-02900, and 2S102AD-03000 will be acquired. 3. An area of land adjacent to 12562 SW Main Street will be acquired. 4. A strip of land adjacent to 9270 SW Maplewood Drive will be acquired. I. Land Disposition The Agency may dispose of property acquired under the Plan by conveying any interest in property acquired pursuant to Subsection VIII A. Property shall be conveyed at its fair reuse value. Fair reuse value is the value, whether expressed in terms of rental or capital price, at which the urban renewal agency in its discretion determines such land should be made available in order that it may be developed, redeveloped, cleared, conserved or rehabilitated for the purposes specified in such plan. Because fair reuse value reflects limitations on use of the property to those purposes specified in the Plan, the value may be lower than the property’s fair market value. Property disposition may be required to support development of retail, office, housing and mixed use projects within the Area. Proposed Amendment #7 to City Center Urban Renewal Plan 1. Taxlots 2S102AD02800, 2S102AD02900, and 2S102AD03000; Burnham and Ash Avenue Properties 2. Taxlots 2S102AB02000 and 2S102AB02100, Main Street" Saxony Properties" 3. An area of land adjacent to 12562 SW Main Street 4. A strip of land adjacent to 9270 SW Maplewood Drive Amendment #8 (Minor amendment) F. Public Facilities The Plan includes the following public facilities. Prior to the expenditure of tax increment revenues for any of these projects, the Agency will be required to adopt a Minor Amendment to the Plan (as provided in Section XII) explaining how the facility serves or benefits the Area, and further stating the proportion of the benefits of these facilities that will accrue to the Area and finding that the amount of the expenditure is proportional to the amount of benefit to the Area. Design and development will be a part of all proposed public facilities projects identified in the Plan. 1. Performing Arts Center The design and construction of a performing arts center in downtown Tigard is a project under the Plan. This project, which is recommended in the Tigard Downtown Improvement Plan, will provide new entertainment and recreation opportunities that will attract residents and out-of-town visitors to downtown. 2. Public Parking Facilities The design and construction of new public parking facilities is a project under the Plan. As new shopping, recreational and entertainment uses, including the proposed performing arts center and public market, are established in the downtown area, new public parking facilities will be needed to accommodate the anticipated increase in parking demand. 3. Post Office Relocation The relocation of the existing downtown post office is a project under the Plan. 4. Public Market Area The development of a public market area in the proposed public use area near Fanno Creek is a project under the Plan. 5. Public Restrooms The provision of public restrooms in public gathering spaces is a project under the Plan. A minor amendment is necessary to spend funds on the Public Restroom to be constructed in Rotary Plaza/ Tigard Street Heritage Trail. The following findings will be included in the TCDA Board resolution: 1) How the area is benefitted. The provision of a public restroom in the Rotary Plaza portion of the Tigard Street Heritage Trail will benefit the City Center Urban Renewal Area. The public restroom will be an amenity for visitors to downtown Tigard and will make the Tigard Street Heritage Trail and Rotary Plaza more practical for public events (like street fairs and farmers markets.) A farmers market currently operates six months out of the year off of Main Street. This, plus at least five annual events draw thousands of visitors to the City Center Urban Renewal Area. Currently the closest public restroom is located a half mile away near the Jim Griffith Memorial Skate Park. (2) Proportion of benefits to the area: The public restroom will be located just off Main Street the most important commercial street in the City Center Urban Renewal Area. Since all users of the public restroom will be visitors to the City Center URD, 100% of the restroom will benefit the area. (3) That the amount expended is proportionate to the benefit: It is appropriate that 100% of the Public Restroom will be funded by urban renewal, since 100% of the benefits accrue to the area. FINANCIAL IMPACT REPORT Urban Renewal FY 2018-19 Agenda Item 6 Section 1: Urban Renewal (Overview) What is Urban Renewal? Urban renewal is a powerful funding tool currently in place in over 75 communities across Oregon. It is used to help areas that are not performing well and/or lack public infrastructure by funding projects that fix identified problems and spur private investment that would otherwise not happen under normal market conditions. What Does Urban Renewal Do? Urban renewal uses property taxes from within an area to fix identified problems in that same area. It often focuses on improving an area’s transportation and utility infrastructure since these kinds of improvements can unlock an area’s development potential. Urban renewal funding can also be used to attract and retain small businesses, support affordable housing, and develop public spaces such as parks, plazas, and trails. Why is Urban Renewal Needed? Urban renewal is needed to fix infrastructure deficiencies and support catalytic development not supported by market conditions. Urban renewal, and the funding it brings, can help get pioneering projects off the ground with incentives, partnerships, and financial or technical assistance. Urban renewal also signals to the development community that the city is committed to investing in the area. In emerging mixed-use areas, private investment typically follows this kind of public commitment. How Does Urban Renewal Work? Urban renewal is funded through Tax Increment Financing (TIF). When an urban renewal area (URA) is established, the County Assessor determines the current assessed value of all property within the area and freezes that tax base. Tax revenue from this “frozen base” continues to go to taxing districts annually for the life of the URA. Tax revenue on any increase in property value that would occur anyway – from new development and/or appreciation – is allocated to the Urban Renewal Agency for projects in the URA. This increase above the frozen base is called the “increment.” When the urban renewal area expires, the frozen base also expires, and the local taxing districts resume receiving taxes on the full assessed value of the properties. How Does Urban Renewal Af fect Taxes? With urban renewal and the use of tax increment financing, there is no net change on Tigard property tax bills. New property taxes are not created as a result of urban renewal. Tax revenues are generated from the increase in property values multiplied by current tax rates. These revenues pay for urban renewal under Oregon law. What Are the Benefits of Urban Renewal for Tigard? • Improves Tigard’s Long-Term Financial Health By bringing in new businesses and development, urban renewal increases Tigard’s tax base over time which, in turn, helps fund future city services for all of Tigard residents. • Provides a Stable Funding Source By creating a stable, long-term funding source (without creating a new tax), the city can build or fix infrastructure that it may otherwise delay, or never be able to afford. • Steers Investment Toward an Area Ready for Change By focusing on areas already zoned for mixed-use commercial and residential density, urban renewal steers investments toward parts of Tigard that are the most ready for change. • Furthers Tigard’s Walkability Goal Urban renewal can help further the city’s goal of becoming a more walkable, interconnected and healthy community by transforming auto- oriented districts with no or limited sidewalks into pedestrian-friendly areas with a diverse mix of destinations and activities. • Supports Travel by Alternate Modes By fostering the creation of a complete community – one which has jobs, housing, services, and transit – urban renewal can make travel by alternate modes (travel by foot, bike, or transit) feasible. City Center Urban Renewal Plan Tigard has two urban renewal districts: 1. City Center (Downtown) Urban Renewal District 2. Tigard Triangle Urban Renewal District Tax increment financing expenditures in both districts are guided by their respective urban renewal plans, detailed on this page. These urban renewal plans are administered by the Town Center Development Agency, which was established by the Tigard City Council as the City’s Urban Renewal Agency. The City Center Urban Renewal Area boundary is show in red Size: 228.96 acres Duration: 20 years Maximum Indebtedness: $22 Million Approved by voters in 2006, the City Center Urban Renewal Plan is a blueprint for the revitalization of the City Center (Downtown) Urban Renewal Area.The purpose of the plan is to use the tools provided by urban renewal to attract private investment and facilitate the area’s redevelopment. The Plan has a duration of 20 years, meaning no new debt will be incurred after Fiscal Year 2025/2026. The maximum amount of indebtedness (to fund projects and programs) that can be issued for the Plan is $22 million. The City Center (Downtown) Urban Renewal Plan has 5 Distinct Goals: Goal 1 Revitalization of the Downtown should recognize the value of natural resources as amenities and as contributing to the special sense of place. Goal 2 Capitalize on Commuter Rail and Fanno Creek as catalysts for future investment and development. Goal 3 Downtown’s transportation system should be multi-modal, connecting people, places and activities safely and conveniently. Goal 4 Downtown’s streetscape and public spaces should be pedestrian- friendly and not visually dominated by the automobile. Goal 5 Promote high-quality development of retail, office and residential uses that support and are supported by public streetscape, transportation, recreation and open space investments. Section 3: City Center Urban Renewal Plan: Accomplishments to Date Accomplishments to Date Take a walk down Tigard’s Main Street and it may be difficult to remember how it looked just a few years ago. Restored and improved storefronts, new landscaping, LED streetlights and unique public artwork are just a few of the amenities that invite people downtown to shop, dine, walk the dog, or meet up with family and friends. Urban renewal has played a pivotal role in downtown Tigard’s transformation. The next few pages provide a snapshot of how urban renewal has helped reshape downtown Tigard. Completed Projects Attwell off Main Completed in 2017, Attwell off Main brought over 300 residents to downtown Tigard. Attracting new residents to downtown is a goal of urban renewal and the City’s strategic plan. Downtown residents can take advantage of a short walk to Main Street businesses, the Tigard Public Library, the Westside Express Service (WES) commuter rail and the 11 bus lines that serve the nearby Tigard Transit Center. Attwell off Main would not have occurred without urban renewal. In 2015, the Tigard City Center Development Agency (TCDA, Tigard’s urban renewal agency) signed a developer agreement with developers Capstone Greenlight and DIG Tigard. Through the agreement, the developer team purchased the TCDA- owned development site for its appraised value of $1.65 million. The TCDA invested the $1.65 million purchase price into partially offsetting the nearly $2.8 million in system development charges incurred by the project’s construction. This public investment resulted in private investment of over $30 million into the mixed-use project. Symposium Coffee In 2013, the TCDA awarded a matching grant to Symposium Coffee to renovate the vacant front half of the Tigard Chamber of Commerce building. The grant awarded $24,800 in funding toward a total project budget of $90,159, leveraging nearly three times the grant amount in private investment. Since opening, Symposium Coffee has played a leading role in the revitalization of downtown Tigard, attracting new customers to Main Street and serving as a community gathering space. Main & Burnham St. Improvements Urban renewal has helped pave the way for improvements to two of downtown Tigard’s most prominent streets. Although only a small amount of urban renewal funds were invested in these projects, the urban renewal plan guided their design. Completed in 2011, the $7 million reconstruction of Burnham Street helped close sidewalk gaps and improve street surface condition. The Burnham Street project added 10-18 foot sidewalks to encourage strolling, safer pedestrian crosswalks, LED streetlights, underground utilities, on-street parking, a center turn lane, and built a new section of Ash Avenue. Completed in 2014, phase 1 of Tigard’s Main Street Green Street project rebuilt the southern half of Main Street, from Pacific Highway/99W to the railroad crossing near Commercial Street. Funded largely by a Metro grant, the project provided safer pedestrian crossings, green streetscape planters that help remove pollutants from storm water, new sidewalks, streetlights, benches and bike racks. City Center Urban Renewal Plan : Completed Projects Jim Griffith Memorial Skate Park Streetscape Improvements Ash Avenue Dog Park Fanno Creek Trail Undercrossing Lights Ash Avenue Connection Downtown Public Art Burnham St. Parking Lot Facade & Interior Improvement Grants Section 4: City Center Urban Renewal Plan: Current & Proposed Projects Urban Renewal Improvement Program Opportunity Fund The Urban Renewal Improvement Program Opportunity Fund provides matching grants for existing businesses and property owners in the City Center Urban Renewal District to make improvements to the exterior of their building. The program also funds interior improvements for restaurants, cafes, bakeries or similar businesses that move into vacant commercial spaces. This program has previously supported renovations to projects at Max’s Fanno Creek Brew Pub, Tigard Taphouse, Under Water Works, Sherrie’s Jewelry Box, Symposium Coffee, Jeffrey Allen Gallery, and many others. Grant-funded projects have strengthened participating businesses and improved Main Street’s position as a walkable commercial district. Main Street at Fanno Creek Development The TCDA is actively engaged in redeveloping this key site where Main Street meets Fanno Creek. The TCDA purchased the property and then used $400,000 in grant funding from the U.S. EPA Brownfield Cleanup program to mitigate contaminants found on the property and prep the site for redevelopment. Cleanup has been completed and the TCDA is working with a developer on a mixed-use building that will bring added vitality to Downtown. Tigard Street Heritage Trail & Rotary Plaza The Tigard Street Heritage Trail will provide a safe off-street biking, walking and skating commuter route along a three-quarter-mile inactive railroad right-of-way parallel to Tigard Street. The trail will include lighting, landscaping, trail amenities and art/cultural components. Once completed, the Tigard Street Heritage Trail will be a unique cultural resource and a pedestrian friendly corridor that will connect the community to downtown Tigard. The project also features an urban renewal funded public space- Rotary Plaza- that will be used for community events. Universal Plaza Preliminary design work has started on Downtown’s Universal Plaza, proposed to be built on Burnham Street adjacent to Fanno Creek Park. Conceptual plans feature a splash pad, tree canopy maze, artwork and tool sharing pavilion. Final design and engineering may be completed in the next two years. Section 5: Tigard Triangle Urban Renewal Plan The Tigard Triangle Urban Renewal Plan: Existing Problems: • Dirt roads/lack of sidewalks • Areas with no sewers/ sewers needing repair • Red Rock Creek erosion • Flooding • Traffic congestion Proposed Projects: • New streets and sidewalks • New trails and parks • Major sewer line repairs • Red Rock Creek restoration • Intersection improvements • Small business support Area Size: 548 acres Plan Duration: 35 years Maximum Indebtedness: $188 million The Tigard Triangle (roughly the area bordered by I-5, Highway 217 and Highway 99W) has a lot to offer. It also has significant infrastructure needs. Approved by Tigard voters in 2017, the Tigard Triangle Urban Renewal Plan includes projects that will improve walkability, address transportation issues, and help businesses grow. Approved by Tigard voters in 2017 The Tigard Triangle Urban Renewal Plan’s 5 goals outline its basic intents and purposes: Goal 1 Encourage meaningful involvement by citizens, interested parties, and affected agencies throughout the life of the urban renewal district to ensure it reflects the community’s values and priorities. Goal 2 Provide a safe and effective multimodal transportation network that provides access to, from, and within the Area and supports mixed-use and pedestrian-oriented development. Goal 3 Provide public utility improvements to support desired development. Goal 4 Create a clear identity for the Area as a fun and diverse place to live, work, shop, eat, and play by building upon existing unique and desirable features. Goal 5 Provide financial and technical assistance to new and existing businesses and housing developments that contribute to the Area’s diversity and vitality and help it transform into a mixed-use and pedestrian-oriented district. Development Assistance for Affordable Housing The first investment of Tigard Triangle urban renewal funds went towards Red Rock Creek Commons, a much-needed affordable housing development to be built by Community Partners for Affordable Housing. The development assistance helped close the funding gap in the project. Urban Renewal Implementation The City of Tigard was awarded a Metro Community Planning and Development Grant in November 2017 for the Tigard Triangle Equitable Urban Renewal Implementation Strategy. The goal of the project is to develop a strategic public investment plan that supports and catalyzes equitable development in the Triangle including housing for people with a range of incomes and employment options for a workforce with a range of skills. Section 6: Tigard Triangle Urban Renewal Plan Current Projects Insert Audited Financial Impact Information-----------------------