CCDA Minutes - 03/06/2012 0
City of Tigard
City Center Development Agency
CCDA March 6, 2012, Meeting Minutes
1. CITY CENTER DEVELOPMENT AGENCY BOARD MEETING
A. Director Buehner called the meeting to order at 6:30 p.m.
B. Roll Call
Name Present Absent
Chair Dirksen ✓
Director Buehner ✓
Director Henderson ✓
Director Wilson ✓
Director Woodard ✓
Also present: City Center Advisory Commissioners Bush, Craghead, Devaney,
Murphy and Shearer
Staff Present: City Manager Wine,Redevelopment Project Manager Farrelly,Assistant
City Manager Newton,Community Development Director Bunch, and City Recorder
Wheatley
C. Call to City Center Development Agency and Staff for Non-Agenda Items: None
> CITY CENTER DEVELOPMENT AGENCY ORGANIZATIONAL CHART REVIEW
Track 1
City Center Development Agency meetings from this point forward will be scheduled on the
first Tuesday of each month rather than on the same evening as the Tigard City Council
meetings.
Redevelopment Project Manager Farrelly reviewed a copy of the organizational chart, a
description of the City Center Development Agency's role,and a description of the City
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Center Advisory Commission's role. Copies of the above-referenced documents are filed
with the meeting materials. Also advisory to the City Center Development Agency is the
City Center Development Agency Budget Committee;members are the same individuals
who serve on the City of Tigard Budget Committee.
2. RECEIVE FINANCIAL IMPACT REPORT OF THE CITY OF TIGARD'S URBAN
RENEWAL PLAN FOR FISCAL YEAR (FY) 2010-11 Track 2
Redevelopment Project Manager Farrelly advised this is an informational item. The state
requires this report be compiled and published in a local newspaper. The report was
published last month in The Tigard Times.
Redevelopment Project Manager Farrelly reviewed the tax increment financing procedures
for funding projects in the Urban Renewal District.
• In fiscal year 2010-2011, the expenditures were $280,000. Of this amount, $200,000 was
for Burnham Street.
• The tax increment for last year was $328,000.
• Since 2006,$761,000 has been generated in tax increment and interest and$649,000 has
been expended on capital projects (70 percent was for Burnham Street;the remaining
amount was spent on the facade improvement program, development opportunity
studies, circulation plan and various other consultant projects).
• The Urban Renewal Agency has paid back to the City of Tigard General Fund$249,000.
Technically the agency was not required to repay the General Fund for ten years,but
given the state of the city's budget, the decision was made to make an early payment.
The total amount owed to the City of Tigard General Fund is $743,000.
City Manager Wine advised the board more information will be available in April (for the
city and CCDA budget discussions) on the debt service issue. The agency has relied on
funding from the Tigard General Fund,but she said the mix will shift to include some
funding from private financing. Council President Buehner reminded those present that the
agency's funds are to be used to pay debt. In response to a question from Councilor Wilson,
Redevelopment Project Manager Farrelly said that he has been working with Finance and
Information Services Department Director LaFrance. They have prepared a list of several
banks to approach for financing to purchase properties.
3. DISCUSS TARGETED RETAIL AND RESTAURANT INCENTIVE
PROGRAM (TRRIP)
End of Track 2/Track 3
Redevelopment Project Manager Farrelly advised staff is looking for City Center
Development Agency input to finalize the program details. The general outline of this
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program was reviewed by the City Center Advisory Commission last month. Final details
will be before the City Center Development Agency in May.
One of the City Council goals is to begin a cooperative effort to secure tenants that will
contribute to the vitality of downtown. The proposed program is one way to accomplish the
goal. The objectives of the program are to fill vacancies, and attract active retail and food
service businesses that will lend vitality to the district.
The facade improvement program is running,Redevelopment Project Manager Farrelly will
bring an update to the CCDA next month.
Interviews were conducted with property owners and brokers of those properties in the
downtown that have been vacant for a long time. The reports are that there has been no
shortage of people who are interested in leasing buildings;the roadblock has been that
property owners are reluctant to make tenant improvements for small,untested and
independent businesses. The older buildings often do not have the type of floor plans that
businesses are looking for and the lending environment is not particularly friendly to smaller
businesses. As a result,buildings have stayed vacant or filled with businesses that do not
require much in the way of tenant improvements;i.e.,insurance agencies.
Programs around the country similar to the TRRIP were examined. From that, some
interesting options were reviewed by the CCAC. Generally, the CCAC suggests there be a
grant program,rather than a loan program. Loans are more complicated to administer and
are not always a popular choice.
In response to a question from Director Buehner,Redevelopment Project Manager Farrelly
said he thinks the preference would be to make the grant available to the property owner
rather than the tenant so the improvement will remain at the property. Director Buehner
suggested a loan would be possible, since the property owner has the equity for security on
the loan. She noted her preference for a loan program. Redevelopment Project Manager
Farrelly explained CCAC's suggestion for a grant program was based on the experience by
others in that there were not many takers for loans when offered. Director Buehner
expressed concern that a grant program for the downtown would place other property
owners that are not downtown at a disadvantage;there must be a balance to avoid
discontent and hurting other businesses. Redevelopment Project Manager Farrelly agreed
with Director Buehner,but pointed out that there was a commitment made to do special
efforts through the urban renewal program;i.e., the facade improvement program. While it
is up to the CCDA to determine how to proceed, there is a rationale for instituting programs
such as the TRRIP.
Community Development Director Bunch agreed that this is a CCDA policy decision to
determine whether the urban renewal district represents a significant area for enhancements
or incentives for businesses versus the rest of the area. Director Wilson said he did not
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think that simply by helping one business,you would be hurting another. There would be
the chance of harm if the businesses were competing directly;however, the more people
drawn to a business will mean more customers for everyone.
City Manager Wine noted that there is a council goal to do some targeted work to attract
businesses to Main Street vacancies. By adopting that goal, the council was implicitly asking
for this balance and the focus on filling the vacancies in the downtown,relative to other
economic development priorities across the city,is more important. The hope was to begin
to put more definition around ways we could attract retail and restaurant businesses to
downtown.
Director Woodard asked Director Buehner if she wanted the focus to be shifted to include
more businesses throughout Tigard. Director Buehner said no and that she understands the
goal of improving downtown. Some property owners in downtown have let their properties
deteriorate over the years; she is reticent to reward business owners who have neglected their
property without some kind of expectation of return to the city. City Manager Wine pointed
out that the big picture issue as it relates to the urban renewal district,is that it is in the
improvement of the properties and the growth of the increment that the return occurs.
Director Buehner said that until property owners are ready to invest significant amounts of
money in their property or sell for redevelopment,we will not see the kind of increase in the
increment that we were hoping. The district was formed in 2006 and while the economy has
affected the district to some degree, the amount of growth has been much less than
anticipated with few property owners stepping up. One exception was the liquor store.
Director Woodard said he was unsure about how much he should participate in the
discussion noting his father is a property owner in the downtown. He commented on a
variety of offerings that might work for property owners overall noting that some businesses
would likely opt for a grant rather than a loan.
Redevelopment Project Manager Farrelly explained the TRRIP would function similarly to
the Facade Improvement Program. He reviewed the grant program approach,which is
explained in the agenda item summary in the meeting file.
Redevelopment Project Manager Farrelly went over questions still to be settled with regard
to a TRRIP grant program:
• Should grant proceeds be paid directly to contractors so that the business owner
does not need to provide equity for the full cost of improvements? Redevelopment
Project Manager Farrelly suggested staying with the Facade Improvement model of
reimbursing the property or business owner,because if the agency directly paid the
contractor,this could raise some issues or unintended consequences. Community
Development Director Bunch added that the property owner needs to make a
commitment to follow through. Director Woodard agreed,noting the liquor store
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received a$25,000 grant for the fagade improvement,but the total work cost
$100,000. He noted that people will likely contribute additional dollars over and
above the grant amount. There was discussion that a match by the property owner
might be a good idea. City Manager Wine said the proposal is constructed so that
there will be a 50 percent contribution from the property owner. Redevelopment
Project Manager Farrelly said the final decision in the Facade Improvement Program
grant award is made by a joint committee of the CCDA and CCAC. One of the
considerations for grant award might be whether someone is "bringing more money
to the table."
Councilor Wilson proposed consideration of a more targeted option. He suggested a
request-for-proposals process where dollars are set aside to recruit specific types of business;
i.e., a coffee shop that could be located in one of several locations. Property owners could
compete for the funding. He has similar concerns with the TRRIP that he has had with the
Facrade Improvement Program in that the agency has little control over what happens and
the results can be disappointing. He would like to quickly get a significant business installed
in the downtown. His preference would not be for a start-up business,but rather attract
someone with experience who knows the formula for success in their type of business.
Director Wilson noted that the TRRIP recommendation is to exclude national chains and he
questioned this—national chains will draw customers as would smaller successful chains
with experience.
Redevelopment Project Manager Farrelly said local chains would be considered. The
rationale for excluding national franchises was that they have access to financing. Director
Wilson acknowledged a national chain would not select downtown Tigard because they
would locate at sites where there is already a huge amount of traffic. There must be an
incentive for them.
Director Buehner recalled the time that Powell's Book Store was going to move from the
Cascade Shopping Center—it would have been a great business for the downtown.
Community Development Director Bunch referred to his work for the City of Gresham
when recruiting for specialty restaurants and grocery stores. There was an attempt to recruit
Trader Joes,but this business has specific criteria for siting an outlet. In the end,what were
successful were local entrepreneurs,i.e.,an individual who built a specialty food store in the
first floor of an apartment building to specifically serve the people in the building. This type
of venture is catching on. He also referred to successful restaurants in the Gresham district,
including an Asian restaurant and a couple of breakfast businesses. Community
Development Director Bunch suggested a successful business might be identified through
the requirement of a business plan.
Community Development Director Bunch added that the Fagade Improvement Program is
making some headway in creating a more attractive downtown. In response to Community
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Development Director Bunch's question about whether the directors want staff to
investigate a more targeted program,Director Wilson said he would rather see,initially, one
successful business rather than businesses that turn over every couple of years. City
Manager Wine summarized the more proactive approach proposed by Director Wilson for a
targeted recruitment of businesses through an RFP process using many of the principles
crafted by the CCAC. Director Wilson proposed offering a larger sum of money to attract
one successful, substantial business every year for several years.
Director Buehner agreed with Director Wilson's comments. She said she was concerned
and disappointed in the number of business property owners that have used the Facade
Improvement Program. Perhaps a more proactive approach is needed. One idea would be
to attract full-service ethnic food stores to the area.
City Manager Wine said staff will take the guidance received tonight to redirect the program
design (potential target and the mechanism to implement).
Director Woodard noted he appreciated the discussion and the proposal that was brought
forward. He noted his preference for home-grown businesses. Usually if a business owner
has a good business plan and the experience specific to their niche, success follows. He said
the agency is still developing the process to determine how to target and encourage
businesses that are likely to be successful. This is a good stepping stone and encouraged the
CCAC and staff to keep offering up similar good ideas.
Community Development Director Bunch spoke about a small venture capital operation run
out of Portland State University. Businesses are targeted and they require well developed,
thought-out business plans. The discussion tonight is getting to the testing of this type of
operation.
Director Buehner noted some business owners outside the district have expressed some
resentment about the urban renewal efforts,which they see as a detriment to their
businesses. She said she wanted to make sure the agency stays sensitive to this issue. There
was some discussion on a non-aggression agreement with regard to some types of
businesses.
Director Woodard opened up the idea of a co-op strategy;i.e.,a butcher shop, coffee shop,
delicatessen, sub shop, and a yogurt shop all within one space. Assistant City Manager
Newton said there is a co-op similar to this in downtown Bellingham in an old Safeway
store. Redevelopment Project Manager Farrelly said he has talked to an individual interested
in an indoor farmers market but it was not proving out because he was only planning to be
open three days a week. Community Development Director Bunch said there is a whole
new range of micro industries which are significantly resetting the model of providing
business services. He said we need to require business plans,need to think broadly, and
need to protect the public investment.
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Commissioner Shearer asked the CCDA to consider using grant funding for lease subsidies
for the upfront leasing costs.
Commissioner Devaney referred to the economy and the struggle people are having to pay
rent. She noted maintenance and repairs her landlord has invested;however,there are some
property owners who cannot afford to do the needed maintenance and not raise rents. She
said her point was that property owners along with merchants are facing difficult times.
City Manager Wine proposed to the CCDA board that the staff take the ideas discussed
tonight and re-craft the proposal into a new one for board review. Redevelopment Project
Manager Farrelly said he should be able to return with a new TRRIP draft next month.
Track 4
4. DISCUSS MAIN STREET GREEN STREET PROJECT'S PUBLIC ART
COMPONENT
Redevelopment Project Manager Farrelly presented the staff report.
Public art is planned as part of the Main Street Green Street project and CCDA input is
requested on the proposed project. Key facts and an information summary are contained in
the staff report in the meeting file.
Redevelopment Project Manager Farrelly presented slides during his presentation on this
agenda item;copies of the slides are in the meeting file. The slides depict examples of
"green" art and a variety of art styles, some of which also offer a functional use;i.e.,bike
racks.
The goal is to have art in place with the construction of the Green Street next summer.
The CCAC was asking for input from the CCDA.
Director Wilson referred to the desire to concentrate resources at the crossing of Main Street
and the creek. Many people do not realize they are crossing a creek when on Main Street
because of the type of bridge structure. The Walker Macy Master Plan for the Plaza showed
some type of columns at the corners of the bridge and Director Wilson would like this idea
explored along with some way to make it look more "bridge like."
Director Wilson noted the city's plan shows the storm water pipe stopping 10 feet before the
outfall. He suggested it would be nice if this could be turned into a visible water feature. A
permit will be needed. Because the bridge is part of the Main Street Green Street project
(federal/Metro) that Oregon Department of Transportation is administering,
Redevelopment Project Manager Farrelly said staff recommends waiting to address bridge
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aesthetics until after the project is completed. The Main Street Green Street project will be
discussed with the City Council at its March 20 meeting.
Redevelopment Project Manager Farrelly reviewed areas (slide) to locate the public art.
Redevelopment Project Manager Farrelly reviewed the concept plans for the southwest and
northeast gateway areas (slides). One stumbling block is that both of these areas contain
Oregon Department of Transportation (ODOT) right of way. An Intergovernmental
Agreement with ODOT has been drafted for consideration by the City Council regarding
these areas.
Director Buehner commented that tall tree plantings might not be desired because they
would obscure sight into the beautified downtown. Commissioner Shearer advised that at
one point, the art subcommittee talked about the fact that part of the gateway was outside
the urban renewal district and could the city annex that portion of the gateway into the
district. Redevelopment Project Manager Farrelly said he did some additional research on
this and he found out money could be spent outside the district if the expenditure would
directly benefit the district.
In response to a question from Director Wilson, Redevelopment Project Manager Farrelly
advised the Green Street dollars are for the construction and the urban renewal dollars
would be for"betterments,"i.e.,public art and gateways.
Redevelopment Project Manager Farrelly on behalf of the CCAC and the art subcommittee
requested City Center Development Agency guidance:
• Purchase art--rather than lease or borrow for temporary display. Art is relatively
inexpensive at this time,which supports the idea of purchasing art. The amount set
aside for this project is 2 percent of the $3.7 million cost of the Main Street project
($75,000). In response to a comment by Councilor Buehner regarding expending
dollars for art during the current state of city finances,City Manager Wine explained
this funding would come from the urban renewal budget. Additional information
regarding budget and balancing fiscal priorities will be discussed next month.
Director Woodard commented that$75,000 for art does not seem like a lot of
money for art purchases. Ideas were discussed regarding how to purchase art.
Director Buehner suggested a fund raising effort. Director Woodard noted the
Rotary Club wants to make a contribution toward a clock tower sometime in the
next two years. Estimates on the cost of a clock tower have been$150,000 -
$200,000. A number of community groups might be willing to help with some
projects.
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• CCAC recommends that about 80 percent of the $75,000 be spend on the gateways,
in addition to the $120,000 already budgeted for the gateway features.
Director Wilson said he sees the gateways as a way to facilitate a public relations
effort for the downtown,noting 50,000 cars a day pass by. He agreed with the
emphasis by the CCAC on the gateways;pedestrian-oriented art in the downtown
could be accomplished later. Director Buchner and Director Woodard agreed with
Director Wilson.
In response to a question from Community Development Director Bunch, Director
Wilson agreed that artwork for the streetscape should be considered;however,he
said the sidewalks are narrow so artwork will need to be well placed. Director
Buchner commented that ADA considerations should be observed.
City Manager Wine said during the Main Street Green Street discussion, the staff will
bring forward information to balance art,pedestrian circulation,green street features
and parking.
Commissioner Shearer said Engineering Manager McMillan has commented that
materials to be purchased for bike racks and pedestrian benches are available in many
artistic options.
Community Development Director Bunch,in response to a question from Director
Woodard,said staff could provide photos or illustrations of art,including art that is
displayed on pedestals. Community Development Director Bunch also said art
could be embossed into the sidewalk. Lighting options as art were discussed briefly.
Track 5
5. RECEIVE UPDATE ON BURNHAM STREET PARKING LOT
Redevelopment Project Manager Farrelly noted the parking lot planned for two city-owned
lots on Burnham Street. A commitment was made to Main Street businesses to have this
project done before the start of the Green Street project next summer to mitigate
construction impacts and the loss of a few parking spaces. The city engineering division has
designed a layout for 24 spaces on the two city lots. The design leaves open the possibility
of connecting parking lots at the back of Main Street properties. Many of these property
owners are open to the idea of connecting the parking—it still needs to be determined who
should pay for what.
Redevelopment Project Manager Farrelly said the proposed design is functional and could be
built this summer. The lot will not be a permanently surfaced parking lot and could play a
part in a structure for parking 10-15 years in the future.
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Director Buchner recalled previous discussion on the circulation plan and that having the
alley go through behind the properties would not only provide an opportunity for delivery
trucks off Main Street,but also provide some circulation allowing people to get around.
Redevelopment Project Manager Farrelly said one idea was to leave spaces for trucks and
parking spaces.
Discussion followed on how truck deliveries are being made in the area. Some are using the
commuter rail parking lot to access businesses and at least one delivery truck parks in the
middle of Main Street while making its delivery.
Redevelopment Project Manager Farrelly advised that one of the desires of the downtown
businesses is for a through-truck route. One proposal is for a partnership with the city for
improvements to accommodate truck traffic and some parking.
The "Hobby Shop" at 12400 SW Main Street was discussed,which is currently being rented
at$300 a month. Redevelopment Project Manager Farrelly,in response to a comment from
Director Wilson, suggested negotiations specific to this property might be worthwhile to
find a way to accommodate an improved parking lot layout.
Director Buehner referred to Mayor Dirksen's idea for the urban creek. Redevelopment
Project Manager Farrelly referred to a drawing for a segment of the urban creek. Director
Wilson described some potential phasing scenarios for residential buildings facing the urban
creek. Redevelopment Project Manager Farrelly said the design proposed by Director
Wilson is an exciting design;however,it would greatly complicate the plan to build this
summer. The engineering division's design respects the location of the utility lines. Moving
utilities would mean undergrounding them,which is expensive.
Construction of the Green Street project is scheduled for summer of next year. Director
Woodard noted this was a narrow window of time to get the parking design completed and
commented he was unsure whether there was enough parking planned.
Director Wilson shared his observations about parking in general. He said today at 9:30 a.m.
and then again at 3:30 p.m., he counted the number of empty parking stalls on Burnham and
Ash Street—there were about 30. It is always this way. Director Wilson said there is more
than enough parking downtown. The problem with the parking is that much of it is private
and unavailable. It is not a quantity problem,it is a permission problem. Director Buehner
has heard that a lot of the downtown business employees park in front of the business rather
than saving those spaces for customers. She suggested a commitment from the business
owners that if the city spends money for the parking lot, the employees would park in the
lot.
Director Woodard noted a concern with not knowing how the Green Street project will
proceed, that at certain periods of time,parking along Main Street will not be possible,but
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people will need to park along Burnham Street or the parking lot. This makes it imperative
that the parking lot be in place.
There was discussion on parking and how far customers will walk to patronize businesses.
While some business could be lost if the parking is inconvenient, Director Wilson suggested
there are options to manage this without spending a lot of money. He suggested leasing
parking from vacant buildings or disrupting the street during construction one section at a
time and identify temporary parking as you construct. Director Wilson advocates that the
parking lot not be anything that is too short term but instead gets things done correctly for
the longer term.
Community Development Director Bunch said the city has been working with the
downtown property owners for a long time. Parking is a concern of all downtown
merchants. Some parking will be lost to get a nice pedestrian street designed to introduce
vitality in the downtown. Replacing the lost parking on the city property is part of the deal
made. Director Wilson said we should keep the promise;however, there might be other
ways to accomplish the same thing.
City Manager Wine suggested if the board wanted to open the discussion with the merchants
and owners for the idea of a leased or parking management program, staff could expend
efforts to have that conversation.
Director Woodard said that if leased space does not work out, then a temporary parking lot
might be a solution.
Redevelopment Project Manager Farrelly advised that if construction is to begin in the
summer, things must be put in motion within the next couple of weeks. He asked, "Do we
want to have a functional plan as engineering has come up with, or do we want to take a
little more time with it and do something more along the line that Director Wilson has
suggested. Possibly another big design feature can be incorporated into a parking lot that
does not require relocation of utilities or other acquisition of properties..."
Director Wilson asked if the Development Code provided for a temporary lot? Community
Development Director Bunch said staff will investigate this. He said he thinks the temporary
solution is that there might be a potential for leased parking or for a temporary parking lot
for other types of uses.
Redevelopment Project Manager Farrelly said staff will investigate the possibility of a
temporary lot as allowed by the code.
Director Wilson suggested if there was public access to a larger lot behind the Brew Pub,
public access to the Dolan lot and public access to the strip along the alley behind some of
the businesses,most of the parking problems would be resolved. Director Buehner offered
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that we should spend some time acquiring easements to many of the privately owned
parking areas to make it work more efficiently.
Community Development Director Bunch said looking at parking opportunities over the
long term and engaging the businesses in the conversation about parking to develop a
rational, logical parking arrangement that is flexible over time represents the next stage of
the project. Staff is making good progress on a current work plan, so having a logical
arrangement for parking is important for the downtown. City Manager Wine said a fully
designed and built 24-space lot is one set of costs,while planning an option to expand
parking will also have cost. Community Development Director Bunch said the option could
be explored;however,the city will still want to be able to meet its commitment to the
businesses. The Directors agreed with Community Development Director Bunch. Director
Wilson said the conversation might be reopened to suggest some minor adjustments.
6. NON AGENDA ITEMS: None.
> Director Buehner read the statement for the CCDA to meet in an Executive Session.
• EXECUTIVE SESSION: The Tigard City Center Development Agency went into
Executive Session at 8:30 p.m. to discuss real property transactions,under ORS 192.660(2)
(e).
Executive Session concluded at 8:43 p.m.
> CCDA Board members concurred that they preferred meeting in this format with a separate
meeting date to consider City Center Development Agency matters.
City Manager Wine outlined the topics for the City Center Development Agency April
Meeting:
• City Center Advisory Commission members have been invited to hear the City
Attorney's recap of executive session rules and ethics.
• City Center Development Agency budget;borrowing and lending—what's coming up.
• Facade Improvement Program update
• Redrafted tenant improvement/incentive program.
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7. ADJOURNMENT
The meeting was adjourned at 8:37 p.m.
(1i
Catherine eadey,City Recorder
Attest:
Lvo
6q!6,&figard City Center Development Agency
Date: / 3 , '-Ac)/ ;�'
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