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CCDA Packet - 04/01/2014 A- a City of Tigard CCDA City Center Development Agency Board - Agenda TIGARD CITY CENTER DEVELOPMENT AGENCY BOARD MEETING DATE AND TIME: April 1,2014- 6:30 p.m. MEETING LOCATION: City of Tigard -Red Rock Creek Conference Room 13125 SW Hall Blvd.,Tigard,OR 97223 PUBLIC NOTICE: Times noted are estimated. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for City Center Development Agency Board meetings by noon on the Monday prior to the City Center Development Agency Board meeting. Please call 503-639-4171,ext. 2410 (voice)or 503-684-2772 (TDD- Telecommunications Devices for the Deaf). Upon request,the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments;and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers,it is important to allow as much lead time as possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling: 503-639-4171,ext. 2410 (voice) or 503-684-2772 (TDD -Telecommunications Devices for the Deao. SEE ATTACHED AGENDA CiriT of Tigard -% A LCA City Center Development Agency Board - Agenda TIGARD CITY CENTER DEVELOPMENT AGENCY BOARD MEETING DATE AND April 1,2014- 6:30 p.m. TIME: MEETING LOCATION: City of Tigard-Red Rock Creek Conference Room- 13125 SW Hall Blvd., Tigard,OR 97223 6:30 PM 1. CITY CENTER DEVELOPMENT AGENCY BOARD MEE'T'ING A. Call to Order-City Center Development Agency B. Roll Call C. Call to Board and Staff for Non-Agenda Items 2. APPROVE CITY CENTER DEVELOPMENT AGENCY MINUTES 6:35 pm estimated time •February 4,2014 CCDA Minutes •March 4,2014 CCDA Minutes 3. UPDATE FROM CITY CENTER ADVISORY COMMISSION 6:40 pm estimated time 4. PREVIEW DOWNTOWN PUBLIC SPACE PRESENTATION 6:50 pm estimated time 5. UPDATE ON TARGETED IMPROVEMENT PROGRAM FUNDED PROJECT 6:55 pm estimated time 6. DISCUSS PROCEEDING WITH A VERTICAL HOUSING DEVELOPMENT ZONE 7:05 pm estimated time 7. NON AGENDA ITEMS 7:35 pm estimated time •EXECUTIVE SESSION: The Tigard City Center Development Agency will go into Executive Session to discuss real property 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. 8. ADJOURNMENT 8:00 pm estimated time AIS-1716 2. CCDA Agenda Meeting Date: 04/01/2014 Length (in minutes): Consent Item Agenda Title: -approve Cite Center Development ;Agency Board Nfinutes Submitted By: Cathy Wheatley, Administrative Services Item Type: Motion Requested Meeting Type: Consent Agenda - Approve Minutes Public Hearing: No Publication Date: Information ISSUE N/A STAFF RECOMMENDATION / ACTION REQUEST N/A KEY FACTS AND INFORMATION SUMMARY Approve City Center Development :\gency Minutes for: January 7, 2014 OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Februan,4, 2014 CCDA Minutes March 4, 2014 CODA Nfinutes AIS-1702 3. CCDA Agenda Meeting Date: 04/01/2014 Length (in minutes): 10 Minutes Agenda Title: Update from City Center Advisory Commission Submitted By: Sean Farrelly, Community Development Item Type: Update, Discussion, Direct Staff Meeting Type: City Center Development Agency Public Hearing: No Publication Date: Information ISSUE The Chair of the City Center Advisory Commission will introduce new CCAC members to the Board and talk about his view of the potential impact of Ballot Measure 34-210 on Downtown. STAFF RECOMMENDATION / ACTION REQUEST No action is requested. KEY FACTS AND INFORMATION SUMMARY Two new voting members (Richard Shavey and Henry March) and one alternate (Lynn Scroggin) were appointed to the City Center Advisory Commission on March 11. These members have been invited to the CCDA Board meeting to be introduced. The Chair of the CCAC, Tom Murphy, will also talk about his view of the potential impact of Ballot Measure 34-210 on Downtown plans. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS City Center Urban Renewal Plan DATES OF PREVIOUS COUNCIL CONSIDERATION March 11, 2014, Council appointment of new CCAC members Attachments No frle(s)attadmd C� q/, April 1, 2014 Abbreviated Bio for Henry (Hank) March Residency: Oregon resident for thirty-seven years. Family residents of Tigard, since 2003. Education: Graduate University of Oregon, B.S. Public Affairs & International Development. Occupational Background: Communications Superintendent United States Air Force. Retired. Foreign Service Communications Officer, American Embassy, Oslo,Norway. Program Manager of Washington County's Office of Community Development providing federal assistance to unincorporated county areas, cities and nonprofit service organizations. During tenure fifty million dollars($50M) of federal funds invested in County/City projects. Retired 2000. Post retirement: Consulting, grant writing and technical assistance to local governments and non- profit agencies. Current & Volunteer Memberships Current: Tigard Police Chief's Citizen Advisory Committee; Tigard CCAC; American Legion Tigard Post 158; and, Member Hearing Loss Association of America, Portland Chapter. Prior: Grant Evaluator, Oregon Community Foundation; Board Member, Good Neighbor Center; Board Member, KOMAK, a non-profit providing financial assistance to cancer patients; Co-Founder, President and Board Member of the Northwest Association of Community Development Managers. AIS-1701 4. CCDA Agenda Meeting Date: 04/01/2014 Length (in minutes): 5 Minutes Agenda Title: Preview Downtown Public Space Presentation Submitted By: Sean Farrelly, Community Development Item Type: Update, Discussion, Direct Staff Meeting Type: City Center Development Agency Public Hearing: No Publication Date: Information ISSUE Preview May 6 Downtown Public Space Presentation by Michele Reeves. STAFF RECOMMENDATION / ACTION REQUEST Provide feedback on proposed presentation outline. KEY FACTS AND INFORMATION SUMMARY On May 6, advisor Michele Reeves is scheduled to give a presentation and lead a discussion with the Board of the CCDA titled "Public Spaces: It's Not Just "Build It and They Will Come!" The presentation will be highlighted throughout with examples of successful and unsuccessful public space implementation from across the country, particularly focusing on small downtown, commercial, and Main Street settings. The proposed outline for this presentation is as follows: I. What Is Public Space? II. What Makes Public Space Successful? III. Review Mechanics of Plazas and Squares IV. Review Mechanics of Green Spaces V. Review Mechanics of Hybrid Spaces VI. Impact of Public Spaces in Commercial Districts VII. Phasing Public Space Development VIII. Leveraging Public Space for Economic Development Goals The presentation will reflect current activities in Downtown and also touch on the potential for public space and trail connections in an area adjacent to Max's Fanno Creek Brewpub. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS City Center Urban Renewal Plan Council 2014 Goal: Downtown: Continue Downtown Plaza Site acquisition and design approval (contingent on site acquisition). DATES OF PREVIOUS COUNCIL CONSIDERATION August 9, 2011 Attachments No frle(s)attached. AIS-1700 5. CCDA Agenda Meeting Date: 04/01/2014 Length (in minutes): 10 Minutes Agenda Title: Update on Targeted Improvement Program Funded Project Submitted By: Sean Farrelly, Community Development Item Type: Update, Discussion, Direct Staff Meeting Type: City Center Development Agency Public Hearing: No Publication Date: Information ISSUE Receive Update on Targeted Improvement Program Funded Project-Jeffrey Allen Home & Garden STAFF RECOMMENDATION / ACTION REQUEST No action requested, progress update KEY FACTS AND INFORMATION SUMMARY On August 20, 2013 the Board of the City Center Development Agency awarded a matching Targeted Improvement Grant to Jeffrey Allen Horne & Garden, a unique small business with a strong commitment to good urban design and an ability to attract new customers and visitors to Downtown. Urban Renewal investment includes the $75,000 TIP matching grant and a $25,000 facade improvement matching grant.Jeffrey Allen estimates their investment to be at least $330,000. The prospect of having this one-of-a-kind business relocate to Downtown Tigard advances many of the city's economic development and redevelopment goals. The Jeffrey Allen project had an extended timeline for relocation in order for the business to complete the lease at their present location (the WinCo shopping center). The business plans to open the new location at 12460 SW Main Street in mid-July 2014. Significant progress has been made on the project, including interior framing, electrical, HVAC, and plumbing. Site work for a 700 foot sunroom addition and a fenced outdoor display area is underway. The final facade work including new awnings, signage and artwork is scheduled to be completed in the next couple of months. OTHER ALTERNATIVES No action requested. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS City Center Urban Renewal Plan DATES OF PREVIOUS COUNCIL CONSIDERATION August 20, 2013: Resolution awarding'Targeted Improvement Program grant to Jeffrey Allen Attachments Jeffrey Allen Facade Plans August 30, 2013 PROJECT DESCRIPTION I This building facade improvement includes window modifications,awnings,paint,signage,exterior lighting, a jEFF steel fence,gates,and a CMU wall. v DEC09 f' lift PROJECT CONTACTS 20 - 7 OWNER 7295 SW Dartmouth St Peter Luong Portland,OR 97223 jeffreyallenhgOfrontieccom — (503)969-7199 C ' CITY OF TIGARD COMMUNITY DEVELOPMENT 13125 SW Hall Blvd Sean Farrelly Tigard,OR 97223 sean*tigard-ocgov (503)718-2420 FACADE IMPROVEMENT ARCHITECT DECA Architecture Inc. Shem Harding 935 SE Alder St. harding@deca-inc.com CONCEPT •• •• Portland,OR 97214 (503)239-1987 GENERAL NOTES 1. Illustrations and drawings provided for reference only,field verify all dimensions and conditions 2. Contractor responsible for obtaining all required permits and approvals including building permit and design review approval 3. Clean and adequately prepare all surfaces to be painted 4. New paint at locations noted 5. Provide paint color draw downs and brush-outs of each color on the building for owner review prior to painting TIGARD- JEFFREY ALLEN FACADE IMPROVEMENTS dee& ARCHITECTURE INC O aoYc._A_ �•_ �I��.� .� I�.E��I•�al��p��,��,�.��.,e ��e i�:�� I�I��n�h�o0��r��9.�1��1� 'P CONCEPT RENDERING-VIEW FROM WEST 1—� ■ JEFFREYFACADE IMPROVEMENTS ■ • d August 30,2013 Halo back-lit aluminum New pre finished metal channel letters pinco ping,P-1 mounted to facade FINISH SCHEDULE Metal downspout to be CODE DESCRIPTION JEFFAluminum channel letters, • painted-P-1 P-1 Base,Coping,Steel Columns typ. Mount to canopy Color:Benjamin Moore,Color Preview,2112-10,mink Steel canopy beyond,P-2 ASIAN0 •. ARTIFACTS P-2 Canopies Steel canopy,typ,P-2-see Color:Sherwin Williams,7069,Iron Ore canopy detail a a a a a a a a Boom . 3 000130000 a NOTE:proposed improvements require Building base to be a a II a a a a d engineering analysis painted,P-1 II E a R Modify storefront-remove —Steel columns and base to dashed mullions as shown. be painted-P-1 Vfy w/owner A NORTH ELEVATION New pre finished metal New aluminum channel New halo back-lit aluminum Buddha statue, Steel framed support platform coping,P-1 letters,typ. Mount to channel letters pin mounted caner,beyond w/pre finished metal fascia& canopy to facade metal roofing panels-will require Steel canopy beyond, EL struct'I engineering design,P-2 P-2 — OR ARTIFACTS OR 'loss a a a a a a Building base to be -%0`7 painted,P-1 New wall sconce,typ.-see Steel columns to be Steel canopy,P-2-see New wall sconce,typ.-see Dashed line represents new cutsheet painted,typ-P-1 canopy detail cutsheet fence beyond B WEST ELEVATION SCALE:1/8"=1'-0" 0' 4' 8' 16' TIGARD- JEFFREY ALLEN EXTERIOR ELEVATIONS d•Ca ARCHITECTURE INC August 30,2013 Property Line 8'-0"high painted CMI wall w/precast concrete topper,vfy style& construction w/owner- Sun room structure to `NEW PARKING LOT BY be designed by others CITY OF TIGARD 7 EXISTING BUILDING Custom steel gate to match fence-may need to swing out. Vfy w/ code official GARDEN RETAIL AREA 7 la a` New concrete wall with metal fence above, a fence elevation c J m a 2 ata and portal built by Property Ling owner (E)SIDEWALK (E)TREE WELL ❑❑ SW BURNHAM ST E)TREE WELL A PARTIAL SITE PLAN SCALE:3/32"=1'-0" NORTH �1 0' 4' 8' 12' TIGARD- JEFFREY ALLEN SITE PLAN docs ARCHITECTURE INC O August 30, 2013 s FFREY ALL--N Mr • Building beyond CONCEPr RENDERING-VIEW FRWEST Tapered copper fence —New portal frame by owner Powder coated steel fence post caps,typ w/3/4"sq.pickets,2-112" sq.posts and 1-1/2"rails, IT P2 .................. .................. .................. 0 n� I—ME P-1 Lighting provided by New gate provided by X-0"high concrete wall,P-1 owner,typ owner WEST ELEVATION h SCALE:1/4"=1'-0" 0' 2' 4' 8' TIGARD- JEFFREY ALLEN FENCE ELEVATION deea ARCHITECTURE INC O AIS-1693 6. CCDA Agenda Meeting Date: 04/01/2014 Length (in minutes): 30 Minutes Agenda Title: Vertical Housing Development Zone Submitted By: Lloyd Purdy, Community Development Item Type: Update, Discussion, Direct Staff Meeting Type: City Center Development Agency Public Hearing: No Publication Date: Information ISSUE The City of Tigard's economic development program focuses on Groundwork, Business Assistance and Innovation to encourage private sector investment in the City of Tigard. Groundwork includes working with partners - like private sector developers and the State of Oregon - to create the places that well serve Tigard's businesses,workforce, and our residents. Business Assistance includes the creation of relationships, projects and programs that encourage and leverage private sector investment by entrepreneurs and business owners in order to grow Tigard based businesses, increase employment, and showcase a business friendly environment. Innovation includes problem solving using a range of tools. A Vertical Housing Development Zone (VHDZ) is an economic development tool that is consistent with the fundamentals of our economic development strategy. It leverages and induces private sector investment. A VHDZ results in development that supports commercial activity for restaurants, retailers and professional offices along with housing for residents (our workforce), and it requires collaboration with state and private sector partners. The Board of the City Center Development Agency will consider the creation of a Vertical Housing Development Zone (VHDZ) in the Urban Renewal District and potentially the Tigard Triangle. If the Board is in favor of the program, the City Council can designate a zone through formal resolution at a subsequent meeting. A proposal will then be made to the state's Housing and Community Services office. STAFF RECOMMENDATION / ACTION REQUEST A Vertical Housing Development Zone encourages private sector investors and developers to add residential capacity above first floor commercial uses in targeted parts of the City. This results in a mix of commercial and residential activities that can be mutually supportive. A VHDZ is one tool used with other programs like an urban renewal district and existing land use classificaitons to incentivize early phase mixed-use projects in designated areas of the City. Staff recommends authorization of the designation of a Vertical Housing Development Zone consistent with state requirements that encompasses downtown Tigard and includes the Tigard Triangle. KEY FACTS AND INFORMATION SUMMARY State enabling legislation allows municipalities to adopt a Vertical Housing Development Zone to encourage the private sector to build higher-density mixed-use development (first floor commercial with residential above) in targeted areas of a city. The reduction of a portion of property taxes for a defined period of time can improve the financial feasibility of a mixed use project -- particularly in markets where lower rents might not support the cost of new construction. The City may designate a Vertical Housing Development Zone by applying to the State of Oregon Housing and Community Services Department (OHCS). Qualified new development projects within a Vertical Housing Development Zone are eligible to receive a 10-year property tax abatement on the value of new construction for up to 20% per residential floor (for the first four floors above a commercial ground floor). Total property tax abatement of the new construction is limited to no more than 80%. •Projects are certified through State OHCS. •Tax abatements are applied only to the value of the building, not the land. •An additional partial property tax exemption on the land may be given if some or all of the residential housing is designated as affordable housing (80 percent of area median income or below). •The Zone must be in a qualifying area defined by the City, consistent with state criteria. •Each project is provided with the abatement for a maximum 10-year period if applications are approved before January 2016 (under current legislation). •Abatement applies to all taxing jurisdictions. Taxing jurisdictions have the option to "opt out" of the zone. Other communities (Hillsboro, Milwaukie, Gresham and Oregon City) have used VHDZ to encourage mixed-use residential development. The Fourth/Main Project nearing completion in downtown Hillsboro is an excellent example of how this tool facilitates mixed use development in urban infill real estate markets. OTHER ALTERNATIVES A Vertical Housing Development Zone, as an overlay on top of existing land use, can be combined with other programs like urban renewal tax increment financing to encourage private investment. A VHDZ is an additional tool in the City's economic development portfolio. COUNCIL GOALS, POLICIES, APPROVED MASTER PLANS A Vertical Housing Development Zone is consistent with the Center City Urban Renewal Plan, Comprehensive Plan Goal 15, as well as Goal 9 and 10 of the City's Comprehensive Plan. Downtown/Urban Renewal A Vertical Housing Development Zone works with existing land use and the City's urban renewal district to encourage development that supports downtown revitalization. The purpose of the City of Tigard's Comprehensive Plan Goal 15 (Downtown) is to facilitate the transformation of downtown into an urban village. Given existing land use and commercial activity, this will require the addition of both housing and space for new commercial activity located in a walkable context. Specifically, policy 6 notes the need for a range of new housing options to attract new residents to Downtown (who are both local consumers and part of our work force). Concurrently policy 2 encourages a mix of complementary land uses —higher density residential activity along with retail restaurant, entertainment and services. A Vertical Housing Development Zone is an economic development tool that encourages private sector development for both commercial and residential activity. Development projects successfully qualify as VHDZ projects because they locate commercial activity focused on goods and services with consumers and employees (residents). Like tax increment financing, a Vertical Housing Development Zone is a tool municipalities in the State of Oregon can use to influence the type of development in a targeted part of the City. Urban Renewal tax increment financing is a targeted tool focused on specific projects. A VHDZ is a more general tool encouraging a development pattern—higher density residential development with first story commercial activity. Combining residential use with commercial first story activity typically creates a more challenging and expensive development program. A VHDZ reduces in part, some of the expense of mixed use development over the early life (first 10 years) of a project. Tigard Triangle According to preliminary findings from the Tigard Triangle Strategic Plan, existing zoning in the Tigard Triangle is primarily composed of Mixed-Use Employment (MUE), which permits both commercial and multifamily residential development. Depending upon the results of the Tigard Triangle strategic planning process, this area may see the addition of between 900 and 2,900 potential new dwelling units. Future development in the Triangle is expected to include a mix of housing along with office, retail and/or other amenities integrated into a walkable neighborhood. This development pattern provides access to commercial services, housing, and employment within walking distance of one another, while providing access to public transportation and other non-auto modes of travel to minimize single-occupancy vehicle use. Office uses and residential projects will need amenities such as coffee shops,banks, restaurants, dry cleaners, hair salons, etc. to be viable. These amenities must be focused in areas with the greatest visibility and access to patrons (residents). Including the Tigard Triangle as part of a Vertical Housing Development Zone is one tool the city can use to induce private sector development consistent with the expectations highlighted above. Development that provides capacity for residential activity located above commercial activity creates a marketplace for economic activity, more efficient land use patterns, and "street activating" activity. In the Tigard Triangle, a Vertical Housing Development Zone may be a financial tool that aligns with changes to our land use and design code that encourages higher density residential development in an area of the City where historically regulatory and market forces, have not converged to support this type of private sector investment. Comprehensive Plan Goal 9 Objectives A Vertical Housing Development Zone supports the City of Tigard's Comprehensive Plan Goal 9 economic development objectives by: •Encouraging efficient development/redevelopment of underutilized commercial land. •Increasing business and employment opportunities through more intense use of existing commercially viable lands. •Encouraging retail and commercial activity in appropriately zoned portions of the city, preserving industrial zoned lands for industrial jobs. •supporting efficient regional multi-modal transportation for Tigard's residents in the work force and regional commuters employed by Tigard-based companies by building upon existing fixed rail infrastructure in downtown Tigard. •Increasing opportunities for higher density housing and employment downtown and in the Tigard Triangle. A Vertical Housing Development Zone encourages private sector investments that support our work force with housing for residents (employees), first story commercial spaces for businesses and a "market making" proximity that pairs consumers with providers of goods and services. Comprehensive Plan Goal 10: Housing A Vertical Housing Development Zone also supports the objectives of the City of Tigard's comprehensive Plan Goal 10. This goal includes providing for a variety of housing types in the City of Tigard. Recommended activities consistent with this goal highlight the importance of using financial incentives and programs administered by the State of Oregon to develop higher residential density in areas like Downtown and Tigard Triangle. These are priority areas for higher density housing because of their proximity to transit corridors that support employment opportunities and commercial services. A Vertical Housing Development Zone is intended to induce private sector developers to add higher density housing options in targeted parts of the City by reducing the initial financial barriers to a project. It is well suited to targeted areas of the City where market forces of supply, demand and financing have yet to create comparable projects for comparison. DATES OF PREVIOUS COUNCIL CONSIDERATION Vertical Housing Development Zone (introduction) presentation on October 1, 2013. Fiscal Impact Fiscal Information: A Vertical Housing Development Zone allows for a 10 year tax abatement on new buildings up to 20% per floor for the first four floors above ground floor commericial. The abatement can not exceed 80% of the value of the new building. The abatement applies to all taxing jurisdictions that do not opt out when the zone is created. After 10 years, the full value of the project is placed upon the tax roles. Property taxes on existing land, and at least 20°'o of the new construction, are preserved. For the City of Tigard, this is an issue of potentially foregoing some property tax revenue on new construction within a targeted area. Will market driven multi-story mixed-use development happen in targeted areas of the City without tools like this? Attachments Slide Presentation-Vertical Housine Development Zone IiA Of Respect and Care I D. Done } Tigard Verti" cal Developmentone Center City Development Agency ■ April 1, 2014 Citv of Tigard Overview / Designated by the State Oregon Housing & Community Services Department. / State enabling legislation allows municipalities to create a special district. Encourages investment and rehabilitation for: • Mixed-Use Development. • Residential above Commercial / Encourages higher density development in a targeted area. CitV of Tigard / Projects are certified through State OHCS. / Certified projects eligible for property tax abatement of up to 80% (20% per floor for first four floors of residential above commercial.) / Tax abatements are applied only to the value of the building not the land. / The Zone must be in a qualifying area of a city. Abatement for a 10-year period if applications are approved before January 2016. City of Tigard 91 •• i� �� CAD !!i! ii jj Original Empty • • • * • • Proposed Development with VHDZ Under Construction Example : Hillsboro, OR ,f l City of Tigard �• w lot Example : Milwaukie, OR North Main — Kemper 2007 q I PO 124 Example: Gresham, OR The Crossing — MyTrhre Group 2008 State Designation Criteria: / Contains property for which land-use comprehensive plan and local ordinances allow mixed-use development. ► Entirely within ahalf-mile radius of existing/planned light rail station or quarter-mile of fixed-route transit. Completely comprised by the core area of an urban center. District Analysis: Mixed Use Allowed Vertical Housing Analysis F.ligihihiv Requirements Mixed Use Zoning - - Q7,gard City Boundary ' - 40 ^t. J.J F City 1Tigard District Analysis: Mixed Use & Transit Vertical Himsing Anah,aiv F:ligibihty Requ--1111 Muted Use Zoning ® — - wrl Light Rad Station L�Tigard City Boundary k r. District Analysis: Light Rail/Transit Vertical Housing Analysis Ebgibilin,Regtnretnents QUrban Center -_l y Mixed Use Zoning ill r` 11 Light PW Stauon QTigard City Boundary J t{ o QM-. Sok l A N amen 0 0.125 025 - l WE o00 , I ossru tr.�..a.w.a�..•..rarr..n.c� � .w.w+Wr r w•.w n..w.. I M ww�•y�Y�l City of Tigard District Analysis: Town Center (Alternative) Vertical Housing Analysis Eligibility Requirements Lt Metro Town Center e �} `\{ -, hloeed Use Zoning �� ;�, _.;.,•�,.� .� - Light Rail Station j/ `� !• Tigard City Boundary f - 7 i I t I l _ I Sok N _ �.. 111m= �. 0 01x5 o ze 13 �- r.�..aa.rr..y...l.rs.,w.,e.. �u.r�MMM.ria Wwns�Iwior• -...��... .` — �_�_ •yrswe 1 I City of Tigard District Analysis: Mixed Use, Transit & Urban Center Vertical Housing Analysis Eligibility'Rcyuirclnrntx Metro Town Curter Urban Center Mixed Use Zoning Light Rail Station OTigard City Boundary =µ '` J i - 4 -' 1� is City of Tigard District Analysis: Downtown/Town Center Downtown Town Center Number of Properties 197 Properties 400 Properties Land Value $79.3M $187.8 M Value of Buildings/Structures $95.5 M $235.8 M Acreage 168 Acres 327 Acres M50 Assessed Value $96.9M $258.1 M Recommendation: Town Center Vertical Housing Analysis EhgibiUte Requirements Qhkrro Town Cenrer Mxed Use Zones Light Rail Station QTiga-d Crty Boundary fes' i I r 1 Z_J I Sok ON ME=miles ! I 0 0.125 025 0 i I-II I I I 000 00,0 awn .a City of Tigard Process and Next Steps / Approval to move forward with application to State to authorize a local VHDZ zone. / Adopt Resolution for Zone designation. / Notify overlapping taxing districts. / Meet with taxing districts as needed. / Complete and submit application. Wait for State approval. / State OHCS will notify County Assessor. a Iran Ck — eh�� /�e�, /V s > L411 l y 1061 4 eAilt STANDARD 8 PO O R•S C One California Street,31st Floor RATINGS SERVICES San Francisco.CA 94111.5432 tel 415 371.5000 McGRAW HILL FINANCIAL reference no. 40329413 March 26, 2014 City of Tigard 13125 SW Hall Blvd Tigard, OR 97223 Attention: Ms. Debbie Smith, Assistant Finance Director Re:City of Tigard, Oregon, General Obligation Bonds,Series 2011A Dear Ms. Smith: Standard&Poor's Ratings Services("Ratings Services")has reviewed the rating on the above- listed obligations. 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No person is intended as a third party beneficiary of any credit rating engagement or of a credit rating when issued. PF Ratings U.S. (02/16/13) La frou-nu- STANDARD 8 POOR'S RATINGS SERVICES ( � OA �h WGRAW HILL FINANCIAL RatingsDirect® ............................................................................................................. Summary: Tigard, Oregon; General Obligation Primary Credit Analyst: Chris Morgan,San Francisco(1)415-371-5032;chris.morgan@standardandpoors.com Secondary Contact: Daniel J Zuccarello,New York(1)212-438-7414;daniel.zuccarello@standardandpoors.com Research Contributor: Rushik Shah,CRISIL Global Analytical Center,an S&P affiliate,Mumbai Table Of Contents ............................................................................................................. Rationale Outlook Related Criteria And Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 27, 2014 1 1286331 1301908238 Y Summary: Tigard, Oregon; General Obligation Credit Profile Tigard GO bnds ser 2011A due 06/01/2031 Long Term Rating AA+/Stable Upgraded Rationale Standard&Poor's Ratings Services raised its long-term rating on Tigard,Ore.'s general obligation(GO)bonds to'AA+' from'AA'based on our local GO criteria published Sept. 12, 2013.The outlook is stable. The bonds are full faith and credit obligations of the city,including the obligation to levy ad valorem property taxes without limitation as to rate or amount. The rating reflects our assessment of the following factors for the city,specifically: • We consider the city's economy to be very strong.Tigard is located about 10 miles southeast of downtown Portland,and in our opinion,residents benefit from participation in the broad and diverse Portland regional economy.The local economy is very strong,in our view,with per capita market value at$142,000 and projected 2017 per capita effective buying income at 113%of the national average.The unemployment rate in its overlapping county was 7.1%in 2012,and preliminary 2013 data suggest that its unemployment rate edged down to 6.3%last year.After declining for four consecutive years,the city's market value grew by 3.7%in fiscal 2014. • We deem Tigard's management conditions strong,with good financial practices under our Financial Management Assessment(FMA)methodology,indicating financial practices exist in most areas,but that governance officials might not formalize or monitor them regularly. • In our view,the city's budgetary flexibility is very strong,with available reserves at 36.3%of operating expenditures in fiscal 2013.We do not expect the city's reserves will change significantly in fiscal 2014 based on management's projections. In fiscal 2013,the city's available general fund balance exceeded 30%for the first time in recent history, and we expect it will remain above 30%through fiscal 2015. • We view Tigard's budgetary performance to be strong overall,with a surplus of 8.7%for the general fund and a surplus of 9.5%for the total governmental funds in fiscal 2013.The city undertook various cost reduction measures in fiscal 2013,including staffing reductions,that totaled about$1.2 million,or about 4%of expenditures.We understand that the city is considering reversing these cuts in the coming years dependent in part on the pace of revenue growth.The city also increased its franchise fee(a form of utility tax)to the maximum allowed 5%to improve its financial operations,for an increase of about$560,000,or about 2%of expenditures.While the city expects to report positive operations in fiscal 2014,we believe that the city's financial performance is likely to moderate this year. • We believe very strong liquidity supports the city's credit profile,with total government available cash at 4x of total government funds expenditures and at 42x total governmental funds debt service. Based on past issuance of debt, we believe that the city has strong access to capital markets to provide for liquidity needs if necessary. • We view the city's debt and contingent liabilities profile as adequate.Net direct debt to total governmental funds revenue and total governmental funds debt service to total governmental fund expenditures are 71%and 8.5%, WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 27,2014 Z 1286331 1301908238 Summary: Tigard, Oregon; General Obligation respectively.The net debt to market value ratio is low,in our opinion,at 1.9%. Last year the city contributed its full annual required pension contribution.The annual pension and other postemployment benefits costs accounted for 3%of total government expenditures in fiscal 2013. • We consider the Institutional Framework score for Oregon cities as strong. See Institutional Framework score for Oregon. Outlook The stable outlook reflects our opinion of the city's very strong budgetary flexibility and liquidity,supported by strong management. In our opinion,city's participation in the Portland region provides additional stability to rating.We do not expect to lower the rating during the two-year outlook time frame unless the city's financial performance deteriorates significantly and the city makes major draws on reserves.We do not expect to raise the rating due to our view of the city's debt profile. Related Criteria And Research Related Criteria • USPF Criteria: Local Government GO Ratings Methodology And Assumptions,Sept. 12, 2013 • Ratings Above The Sovereign: Corporate And Government Ratings—Methodology And Assumptions,Nov. 19, 2013 Related Research • S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency,Sept. 12, 2013 • Institutional Framework Overview: Oregon Local Governments Complete ratings information is available to subscribers of RatingsDirect at www.globalcreditportal.com.All ratings affected by this rating action can be found on Standard&Poor's public Web site at www.standardandpoors.com.Use the Ratings search box located in the left column. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 27,2014 3 1286331 1 30/908238 Copyright©2014 Standard&Poor's Financial Services LLC,a part of McGraw Hill Financial.All rights reserved. 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