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CCDA Minutes - 05/06/2014 a CCDA Joint Tigard City Center Development Agency & City Council Meeting May 6,2014 1. CITY CENTER DEVELOPMENT AGENCY MEETING/TIGARD CITY COUNCIL MEETING A. Chair/Mayor Cook called the meeting to order at 6:31 p.m. B. City Recorder Wheatley called the roll: Name Present Absent Chair/Mayor Cook ✓ Director/Council President Henderson ✓ Director/Councilor Buehner ✓ (by speaker phone) Director/Councilor Snider ✓ Director/Councilor Woodard ✓ C. Call to Council and Staff for Non Agenda-Chair Cook asked the CCDA Board and staff for any non-agenda items. Director Woodard advised he would be absent next week;Council President Henderson would attend the PRAB meeting in his absence. 2. APPROVE CITY CENTER DEVELOPMENT AGENCY MINUTES • April 1,2014 CCDA Minutes • H Motion by Director Buehner,seconded by Director Snider to approve the April 1,2014 CCDA minutes. The motion passed by a unanimous vote of CCDA board members present: TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 1 of 18 Chair Cook Yes Director Henderson Abstained;he did not attend the 4/1/14 meeting. Director Buehner Yes Director Snider Yes Director Woodard Yes 3. PRESENTATION BY CONSULTANT MICHELE REEVES-DOWNTOWN PUBLIC ® Redevelopment Project Manager Farrelly introduced Consultant Reeves. Ms. Reeves' presentation was based on the fact that one of the goals of the City Center Urban Renewal Plan is to develop public spaces and parks in the downtown. Public spaces have a potential to encourage a broader range of activities,recreational uses and to attract more residents and visitors to the area. The voter-approved 2010 Parks Bond included up to$1.3 million to be spent for a downtown park purchase. Those funds remain available. Several properties have been investigated for public space,but due to a variety of issues,none have been purchased yet. Staff is currently focusing on some smaller public spaces opportunities in the downtown,including a potential small plaza where the Tigard Street Trail meets Main Street. They are also taking a look at the opportunity for a public space fronting Fanno Creek,near the brew pub. More information will be presented to the CCDA in the next couple of months. Redevelopment Project Manager Farrelly reminded everyone of the work Ms. Reeves did in 2011 in downtown (courtesy of a Metro grant). This work created a lot of excitement about downtown revitalization. She held some well-attended workshops and hosted a field trip to Mississippi Avenue in Portland. Ms. Reeves'presentation tonight will be on general principles of good public spaces and how they encourage successful downtowns. (City Recorder's Note: Ms. Reeves'presentation is video recorded and will be made available on the internet or a copy of this presentation can be made upon request.) Ms. Reeves of Civilis Consultants reviewed PowerPoint slides throughout her presentation. A copy of this presentation is filed with the record copy of the meeting packet. ® Highlights of the presentation included: • How to leverage public spaces for successful Main Streets and downtown districts. • She spent time reminding meeting participants about how far the Tigard downtown has come along since her last presentation in 2011. o People are now talking to each other;having important conversations. o People have signed up for storefront improvement programs. TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 2 of 18 o A coffee shop is now open from 6 a.m. to midnight. o A downtown story is now being shared with the community. o There are regular,consistent events in the downtown. o She uses the Tigard downtown as an example in her presentations around the country to illustrate how quickly a district can start to change. She stressed the importance of relationship for this change to take place. Topics covered: • How Mixed-Use Districts Evolve o It is important to understand where you are in the evolution so you are applying the right tools for improving economic performance. o Three basic states of district growth: ■ Emerging—to describe an emerging district,"It looks like a place that used to be a place. It is not one anymore." There is a little amount of redevelopment of existing buildings. It is not a retail district with high foot traffic counts and it is not a destination district from surrounding neighborhoods. These areas exhibit low levels of retail execution; national chain stores are not located here. The district cannot support market-rate ground floor new construction and ground floor uses tend to be vacant or inward facing(office or industrial uses). ■ Transition—these are districts that are starting to thrive and change with some of the retail stores carrying higher-priced items;luxury goods. The district is starting to develop a brand identify. People think of the district in a larger context. In later stages,transition districts are starting to attract the attention of national chains because they are generating a lot in sales per square foot. Ms. Reeves reviewed photos illustrating the types of businesses in transition districts. • The stock of existing buildings in these districts is largely redeveloped. • It is becoming a destination district with brand identity. • Foot traffic is still unpredictable,but generally growing. • Ground floor uses are active and outward facing. • There is a mix of retail concepts (destination and impulse). • Improved level of retail sophistication in general. • The tenant mix remains primarily local. ■ Mature—these districts are characterized by high foot-traffic counts, which mean more sales per square foot are generated. • Patrons develop regular buying patterns. • ® There are high levels of retail execution. It is a great place to walk around,interact and look at things. • The districts are densely populated with commercial or residential or both. TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 3 of 18 • There is a lot of foot traffic. • The district supports market-rate new construction in various forms. • There are steady and predicable retail patterns. • Chains and national-credit tenants are more prevalent in this district. • The district becomes the destination, not the store. • She referred to North Mississippi Street in Portland. o As the downtown grows and improves economically, these stages should occur. o When the district is in the late-transition stage, then you will likely receive a lot of pressure from national-credit tenants to come in. The community may like and want to stay in this stage so a decision on how to deal with this will need to be made. o She reviewed the types of businesses that can succeed in these districts,and who starts them. It is important to attract businesses that can activate the district. The most important characteristic of a new district is to bring life and activity. You will also want someone who can stay in business. ■ Destination businesses (part of a planned trip) include: • Restaurants (Coffee,Bakery,Brew Pub) —Most important, because people cross cultural boundaries to patronize and this is the only business concept that encourages us to "hang out." It gives a multi-sensory experience that makes us happy. • Fabric/Knitting Store • Specialty Paper/Printing Store • Eyeglass/Optometrist Store • Music/Instrument Store • Bird Feed/Yard Supplies • Manufacturer/Retailer • Wholesaler/Retailer o Ms. Reeves commented on the last two types of destination businesses in the bulleted list above. These include an operation where someone is importing or making/manufacturing something interesting and"selling it out the back door"—this is how they make most of their money. This could be a product that creates a great showroom and will create activity and something interesting in the front;however, they are making most of their money selling out the back door. TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 4 of 18 Ms. Reeves gave an example of a manufacturing/retailer as a distillery that is manufacturing out the back door but also has a tasting room and something interactive in the front. Local people start these businesses who tend to be"fiom the neighborhood." Demographically these business owners are usually between the ages of 25 to 50 and they are starting their first business. They care about price and charm. They have a business plan and they have an amount that they can pay per month;they are looking for affordability. They want to like the space—charm. The quality of the space inspires the quality of the retailer. To take advantage of attracting these types of businesses,the community should leverage its existing buildings. This is why revitalization happens from existing building stock—you can typically renovate it for less than building new. You want a tenant with active destination businesses. Anyone who starts a business downtown needs to think about how they are having a conversation with the sidewalk. You want to focus on local entrepreneurs who are doing interesting things all throughout Tigard and bring them downtown. • The only time it is possible to leap-frog the steps of an emerging mixed-use district is when there is the presence of high educational attainment and high income numbers and really high density numbers. This is what national-credit tenants and banks care about. • Ms. Reeves reviewed what construction goes with each stage. An emerging district means that you are looking at redeveloping your existing buildings and you are doing a great job at that. When you are in a transition district,you want to figure out how to encourage small infill. The first new construction project or two that you do in an early transition district will not make sense from a market- study perspective—these people will be"putting themselves out there" --they are creating the comparables that will later bring larger infill construction. • The quickest and easiest way to determine the stage of a district is to ascertain the presences of people: How many people are on the sidewalks? People and the cross-pollination among businesses is how downtowns make money. They do not make money if a person drives up makes a purchase and leaves. • Public Space Overview Different types of public spaces: TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 5 of 18 o Streets—these are the"aisles"in the downtown and the area is like a store in this sense. Your streets should tell a great story: Drive slowly....this is a special place. It should welcome walkers,bikers and cars. She acknowledged the difficulty during the construction phase. The downtown should impart a dramatically different story from what is present on Highway 99. o Sidewalks—There is no best sidewalk width;rather,it is what is located next to the sidewalk. She said she wants to know what is going on with a community as demonstrated by what they are showing her at the sidewalk. Tell a story on the sidewalk next to a store entrance—this story should convey the experience you will have if you enter the store. ■ She showed a slide of an outside hotel entrance outfitted with music,a glass-wall installation,plants,comfortable seating and a fire feature. It gives a multi-sensory experience—a fantastic experience even though you have not stepped foot into the hotel. This public space is being used very effectively. o Alleys—she showed a photograph of an alley at the entrance to a parking facility. Along the way,there are storefront windows,water fountains and art/statues,which contributes to sales per square foot. • ® Plazas—Ms. Reeves showed a series of slides showing public spaces that were unused or used only when events were scheduled—the spaces did not activate the area as envisioned by contributing to life and activity. ® Activity is required to have economic success. • Green Spaces ® Ms.Reeves showed a series of slides depicting green spaces that did not activate the area as envisioned. She said,"It is not as simple as `you build public space and people come."' • Public Space Success ® Ms. Reeves showed a series of slides depicting successful public spaces. o Public space is successful if it attracts people throughout the year—not just when there are planned events. o Successful public spaces are not necessarily"fancy." Often these spaces start out small;i.e., food trucks. ® Ms. Reeves talked about attributes of successful plazas: • Pedestrian friendly and people-scaled. Primarily served by foot traffic. Used for formal and informal gatherings. • Streets and plazas are similar in that they are defined by what frames them. TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 6 of 18 • Plaza is a public gathering place that is like an open-air room—you need"walls." Framing with"walls"of nearby buildings or other structures contributes to define the space; set the boundaries. Without framing the space can feel vast and uncomfortable. • The ideal size of a public space is "whatever size you can activate with people." This translates to a smaller size than people often contemplate. She cited information from a book,A Pattern Language as she reviewed successful elements for plazas. Plazas should have a shortest access point of not more than 70 feet. Again,she referred to scale,size and framing. • Plazas need activity to be successful. If there is nothing on the edge that is active and successful, the plaza will not be active and successful. It should be a place to see and be seen. • ® A Pattern Language recommended the number of people needed per square foot for success: About one person per 300 square feet for a plaza to feel comfortably activated. So, for a 100,000 square foot plaza,the presence of 300 people is needed for the space to feel comfortable;it would be infrequent for 300 people to gather in one location in the downtown of a mid-size downtown district. Therefore a 100,000 square foot plaza would not contribute to the success of a mid-size district. ® Ms. Reeves referred to the example of the Mississippi Plaza in Portland,which is 3,100 square feet,entirely surrounded by restaurants and shops. This space needs ten people to feel active. The Mississippi Plaza contributes to the success of the district nearly every day. Activation is the single most irtant element. wGrade • changes contribute to the"see and be seen"elements when considering plaza design. Another design consideration is to create a focal point in the middle of the plaza. • Urban green spaces offer a place to"commune and connect with nature"—these provide a respite from the hustle and bustle of being in the city. Consideration is needed for green space framing, frequency,size and design. Green spaces are most successful when near dense residential or mixed-use districts because people use parks when they are about a three-minute walk away. • A Pattern Language recommends that green spaces be about 60,000 square feet in size; however,Ms. Reeves thinks they can be smaller. The key is they have to be designed in a way to provide respite. She cited Tanner Springs Park in Portland(NW 10`h and Overton) as a smaller,but successful green space with a significant amount of activity and provides a sense of being in a natural-area habitat. • Ms. Reeves referred several times to Jamison Square Park(810 NW 11`h Avenue) as an example of a hybrid public space -- part green space and part plaza. http://www.12ortlandoregonggv/parks/finder/index.cfm?&propeMdd=1140&action=Vie wPark she spent time reviewing this park's framing,size and activation attributes. • Public S ace and Commerce o Ms. Reeves referred to Lake View Village in Lake Oswego,which is a successful plaza because it has great framing with buildings on one side and a view of the lake on another. Activity along the edge is simply a large expanse of seating area for TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 7 of 18 restaurants in the area. This space attracts national tenants because it is in a high- income suburb. This ability to attract these types of tenants is usually difficult for emerging and transition districts. o Lake View Village,even though it is beautiful and useful for immediately adjacent restaurants,has not been hugely successful in assisting the downtown area because the plaza is disconnected (visual/psychological and actual barriers) from the downtown. o ® Ms. Reeves showed slides illustrating her points about lack of interesting visuals a shopper experiences when leaving a downtown Lake Oswego business. There are no enticements to encourage a person to remain shopping as store entrances exit onto a parking lot. There is no"cross pollination"among businesses. Plaza space is not a"magic bullet"—care is needed for plaza placement. o Having great regular events in public spaces does not necessarily mean that everyone's businesses immediately improve. She said the worst business day for downtown business is usually on Farmer's Market day. It takes hard work to leverage an event like the Farmer's Market. Increasing visibility and adding sidewalk interest can increase walk-in traffic. One Lake Oswego business converts customer parking spaces next to the building into an outdoor market on Saturdays to take advantage of the presence of the Farmer's Market crowd turning this day from a slow business day to one of the busiest days of the week. o Public space emerging and transition districts should focus on: ■ Activate the sidewalks... "we want to see people—that is how we know a place is safe and that is how we know we have a successful district." ■ "Show,don't tell!" Show what the business and the district are about;don't rely on a sign to"tell." Show by emanating a feeling with landscaping, architecture and art. Show you will"take care" of the customer and that you value craftsmanship. Other attributes: outdoor seating,tables. Outdoor spaces can tell the story of what a business is about even when the business is closed. Offer a multi-sensory experience—Ms.Reeves referred to a store in Gresham that popped popcorn and the owners would walk around the area distributing samples for people to try. ■ Start small with offering public spaces. Remember the rule of one person per 300 square feet. Make sure the space is "on the edge of something active..." The space should be additive by contributing to other things around it. ■ Get creative with parking lots. Are there things that can be done to"lived' them up? Examples: greenery,community garden (showing a connection to community), seating areas,and artwork/sculptures. Ms. Reeves showed slides where there were areas of the parking lot with small putting greens and art images created with plant materials. ■ Program the public space to keep it active. Ms. Reeves said Tigard needs to start practicing this on Main Street so people start thinking of the downtown as a place to come for events. She referred to activities such as a large-size outdoor chess set, fountains,outdoor restaurant and outdoor light show at TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 8 of 18 night. Another idea was a guided bike ride in the area with different businesses sponsoring a theme for certain segments of the route. Hold outdoor dance lessons at the dance studio. "Do things in the downtown that get people here and think of it as event space." Council questions/comments: • ® Councilor Woodard asked Ms. Reeves what she thought about flash mob events to activate space. Ms. Reeves said different communities have used"cash mobs,"—people descend upon a business and spend a certain amount of cash. Success for this type of activity is a community-by-community situation;there are some communities that are not interconnected or have an age demographic to make this an effective event. • Mayor Cook referred to Ms. Reeves'recommendations to start small and to activate spaces. The downtown plan calls for a larger plaza space but he understood it might be a good idea to start with some smaller spaces and build up to the larger plaza. Mayor Cook cited the large Tualatin space that appears to be active. Ms. Reeves said she is not very familiar with the Tualatin plaza—she said she would be curious to find out how active it is. She defined the plaza space as creating an atmosphere in an urban environment that contributes to the cross-pollination of businesses and foot traffic. Tigard does not have a lot of activity in its downtown. It is rare for a Main Street or a small downtown business environment to introduce a large plaza space without activating the sidewalks. • ® Mayor Cook noted the caution of placing a plaza that is behind the business fronts because it does not activate as well. Ms. Reeves said to concentrate on what you want to plaza to do. She used Mississippi Avenue as an interesting example,which uses a string of smaller public spaces. As the spaces were created they complimented one another in style and then as new construction came in,it mirrored the style—the sum total has been to create a vibrant environment. Now,a larger public space in the area might be successful. • ® Ms. Reeves noted the Tigard downtown is not immediately surrounded by a lot of residential development. A lot of the businesses are"9 to 5." Tigard is still working on having a sense that"downtown is a place where we go to hang out and you are still working on creating sidewalk life and activating your sidewalks." She said,"I think you do want to start small...you have enough space now to start programming it and starting making that a reality for your community without adding big spaces." • ® In response to a comment from Councilor Snider,Ms.Reeves said sidewalk activation is a way of indicating how your community is engaging the public realm in the downtown. This is not happening very much. If a public space was introduced into the district,then"you will have to work really hard to program it." You have to decide if you are going to introduce this public space whether you have the funds to pay for someone to do the program work. She said she would look for more opportunities to introduce public space along the edges of thin that have the most activity now. • Councilor Woodard noted the presence of a fairly good trail system. He referred to Tigard's Neighborhood Network and suggested the city might work to fully engage this network to communicate andromote events. Ms. Reeves described a recreational albik a share TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 9 of 18 program with stations where people could check out bikes to ride the trails. She said, "I want you to think about what are the things you can put into downtown...and what are the ways businesses can tie into these things";i.e.,offering boxed lunches and easy-to-eat on the go foods. • ® Councilor Snider commented that he has been in the Lake Oswego downtown a number of times over the last few years and he did not realize there was a plaza in the area. He agreed the lacement of the plaza is very important. • WCouncil President Henderson noted his appreciation for Ms. Reeves'comments about the sidewalks. He agrees with the need for activation. • ® Councilor Woodard commented on the presence of spectators and participants. He talked about ideas to activate the area and to include all ages. • ® In response to Councilor Woodard's ideas,Ms.Reeves described an interactive night light BMX/skateboard course projected in an empty parking garage in the evening. What can you do with parking lots—determine a dual-use purpose. • ® Mr. Richard Shavey (CCAC Commissioner) suggested the downtown might be able to accommodate several small plazas rather than a large plaza. He also suggested installing water features. • ® Councilor Buehner suggested the urban creek be used to attract people to the downtown. • ® Ms. Reeves cautioned against establishing a theme too early. She agreed different small plaza spaces all over the downtown were a good idea. Downtown Tigard is still"figuring out who it's going to be." • ® Councilor Snider asked Ms. Reeves about her impression on Tigard's direction for public art. Ms. Reeves said she has not seen the proposals for the public art,but was supportive of adding art to the district—it's a good start. • Ms. Elise Shearer suggested activating the roof tops of the downtown which are visible from traffic on 99W;i.e., flags and artwork. Ms. Reeves referred to her"show,don't tell" advice she gave earlier in the presentation and reminded those present that people do not find signs interesting. Create a street that"is the absolute opposite of Highway 99—a respite from this wide,busy arterial..." She commented on living wall installations (plant life,greenery) —hint at the lush environment of the green street in the downtown. Note. Agenda Item Nos. 4 through 8 are business items that will need either City Center Development Agency(CODA)Board consideration or City Council consideration. The agenda title reflects whether this is a Board or a City Council action item. Chair Cook explained this portion of the meeting will require alternate actions by the CCDA Board and the City Council. TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 10 of 18 4 Redevelopment Project Manager Farrelly presented an overview of the agenda items before the City Center Development Agency and the City Council: o The following actions represent a major milestone in the short history of urban renewal in the City of Tigard. o Property will be purchased for eventual redevelopment by the Urban Renewal Agency (aka City Center Development Agency). o Several actions are required: ■ Amend the Urban Renewal Plan (requires action by the City Center Development Agency and the City Council). • CCDA Board will authorize the Executive Director of the CCDA Board to complete the purchase of the property. • Two items require approval to finance the property purchase: ✓ The CCDA authorizing indebtedness through an Intergovernmental Agreement with the City of Tigard. ✓ The City of Tigard authorizing the purchase. ❖ Redevelopment Project Manager Farrelly summarized the property purchase: o The property under consideration for purchase is the"Miller"property at 9110 SW Burnham Street,also known as the Ferguson Plumbing property. The purchase price is $1.3 million,which is also the amount of money available in the Parks Bond fund for the downtown. o The property was appraised for$1.2 million. o The acquisition will be financed by a ten-year loan that will be secured by the city's full faith and credit and repaid with tax increment financing funds generated in the district. o The purchase of this property will impact the CCDA budget for FY 14/15 at half the level of funding for programs because of debt-service payments. o ® Income will be generated by the property because of a lease that is in place. o Due diligence prior to considering the purchase of this property included: • The agency commissioned environmental site assessments,Phase 1 and Phase 2. There was some groundwater and shallow soil contamination by pesticides. The consultant and city attorney (who specializes in environmental issues) have said this is a low-risk liability and does not have to be addressed until redevelopment and the soil is disturbed. o Property management: There is a lease in place and the current lease goes to 2018. The tenant,Ferguson Plumbing,has the right to extend the lease for two additional three-year lease terms. The lease will remain;however,there might be opportunity in the future to work with the lessee to relocate. Redevelopment Project Manager Farrelly stressed it is up to the company to determine if it would like to relocate or renew the lease. ■ The lease is triple net,so the lessee will pay for all of the building and property maintenance. ■ Revenue generated to the agency from the lease will be about$86,000 per year and this can be used to augment the urban renewal budget. TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 11 of 18 ■ H The lease specifies insurance requirements for a$1 million liability policy,which is below Oregon tort limits,but there is no way to increase this amount with the current lease. Staff will be looking into landlord coverage. ■ The structure was inspected and there was some minor cracking found in the back wall of the structure. A structural engineer also inspected and advised the cracking was not a � P g major concern. o The property is versatile;it is a good size and fronts on Fanno Creek Park near Main Street. Redevelopment Project Manager Farrelly advised the property will be a great future redevelopment site. Determination of what eventually is built at this site will depend on what happens in the district in the next few years and whether the tenant chooses to stay for the entire nine years. o With the purchase of this property,the money invested in Burnham Street will be leveraged. o As the district is maturing,it is important for the district to begin assembling and controlling property to assure the downtown vision is implemented through redevelopment. > Director Snider asked if the insurance questions have been answered with regard to adequacy given the Oregon tort limits. He said he does not necessarily need an answer to this at this meeting;however,he said the correct amount of insurance should be acquired. > Director Buchner advised the standard in the industry is to require a$2 million policy. She acknowledged this cannot be changed to apply to the lessee;however,she wants the city to have coverage for the potential liability. > Redevelopment Project Manager Farrelly said Assistant to the City Manager Mills is in charge of the city's Risk Division. Ms. Mills has monitored this property and Redevelopment Project Manager Farrelly said he is certain that adequate coverage for tort claims will be in place. > In response to a question from Councilor Snider,City Attorney Olsen advised the current Oregon tort limit for local government is $500,000 and it goes up every year. In the case of a lease,there are several types of liability to be concerned about. This particular lease is unusual in that there is no opportunity,without renegotiating the lease to increase the responsibility of the tenant for insurance. Therefore,the city,through its Risk Manager, needs to take a look at purchasing adequate additional insurance or procure a rider on the city's policy to cover any additional exposure. This is being done. 4. CITY CENTER DEVELOPMENT AGENCY RESOLUTION TO AMEND THE CITY CENTER URBAN RENEWAL PLAN (AMENDMENT NO. 1) • Add property acquisition and property disposition to the list of urban renewal projects. • Add the acquisition of the property at 9110 SW Burnham to the list of urban renewal projects. ® Redevelopment Project Manager Farrelly reviewed Agenda Item No. 4. This is the first amendment to the Plan since voter approval in 2006. The Plan authorizes property acquisition and disposition in Section 8. Such property must be from willing sellers and the Plan lists reasons for purchasing property: To complete public improvements and to support development of retail, office,housing and mixed-use projects. The proposed amendment will add real property acquisition TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 12 of 18 and real property disposition to the list of urban renewal projects. A list of specific added projects that will change the Urban Renewal Plan was submitted in the council's meeting packet. ® Once the specific projects have been added,a list of properties to be purchased will be placed into the Plan. This Burnham Street property will be the first property. As properties are purchased in the future,the Plan will have to be amended. ® The Urban Renewal Plan established the method for amending the Plan. Redevelopment Project Manager Farrelly explained this will be a City Center Development Agency Board and a Tigard City Council approved amendment.This amendment is categorized as: The addition or expansion of a project that adds costs in 2005 dollars of more than$500,000 and is materially different from projects previously authorized in the Plan. ® Board discussion followed. Director Henderson said he could understand the amendment calling for property acquisition;however,he did not understand why property disposition was also listed. Redevelopment Project Manager Farrelly explained that if a property is purchased,the Agency will want to dispose of all or part by selling or conveying property to a developer. At this time,what is to be done with the property is unknown. The Agency might retain the property for public use or sell part for private development and keep part for public use. ® Director Henderson noted the proposed language would provide the ability for the Agency to dispose of street improvements,bike/pedestrian facilities,parks,public spaces and public facilities. He said he thought this was too inclusive and was unsure whether this was the intention. Redevelopment Project Manager Farrelly said this list is in conjunction with projects. He acknowledged the Agency would not be selling sidewalks or public plazas;however,if the Agency purchased a property it might decide to build a public street on part of it and sell the remainder for private development. The language would not authorize selling of public improvements. ® Following a comment by Director Henderson,Director Woodard said it was his understanding there could be a change of use of the property and this must be reflected in the Plan. Redevelopment Project Manager Farrelly said the amendment would authorize the Agency to sell property;board approval would be required for property disposition. ® Director Henderson explained he understands the amendment of the Plan to allow this particular purchase;however,the authority to sell property appears to be unnecessarily broad at this time. ® Director Snider commented that the Agency can only sell property which is owned by the district and it is his understanding the Agency will only own the Burnham Street property that is now under consideration for purchase. This amendment will allow the Agency to not only purchase property but also sell or dispose of the property as it determines to be of benefit to the TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 13 of 18 r district. Redevelopment Project Manager Farrelly confirmed that action by the board with regard to the purchase and sale of property will have to be done to further the Urban Renewal Plan. ® Motion by Director Snider,seconded by Director Buehner,to approve CCDA Resolution No. 14-03. CCDA RESOLUTION NO. 14-03- A RESOLUTION AMENDING THE CITY CENTER URBAN RENEWAL PLAN BY ADDING PROPERTY ACQUISITION AND PROPERTY DISPOSITION TO THE LIST OF URBAN RENEWAL PROJECTS AND ADDING THE ACQUISITION OF 9110 SW BURNHAM STREET PROPERTY(TAX LOT ID 2S12AC-00202) AS A PROJECT The motion was approved by a majority vote (4 to 1) of CCDA board members present: Chair Cook Yes Director Buehner Yes Director Henderson No Director Snider Yes Director Woodard Yes 5. CITY COUNCIL RESOLUTION TO AMEND THE CITY CENTER URBAN RENEWAL PLAN (AMENDMENT NO. 1) • Add Property Acquisition and Property Disposition to the list of urban renewal projects. • Add the acquisition of the property at 9110 SW Burnham to the list of urban renewal projects. Mayor Cook noted this agenda item was reviewed during the staff report for Agenda Item No. 4 and is now before the City Council for consideration. Redevelopment Project Manager Farrelly confirmed this is an identical amendment that was before the CCDA in Item No. 4. Motion by Councilor Woodard,seconded by Councilor Snider,to adopt Resolution No. 14- 19. RESOLUTION NO. 14-19 --A RESOLUTION AMENDING THE CITY CENTER URBAN RENEWAL PLAN BY ADDING PROPERTY ACQUISITION AND PROPERTY DISPOSITION TO THE LIST OF URBAN RENEWAL PROJECTS AND ADDING THE ACQUISITION OF 9110 SW BURNHAM STREET PROPERTY (TAXLOT ID 2S12AC-00202) AS A PROJECT ® The motion was approved by a majority vote (4-1) of council present. TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 14 of 18 Mayor Cook Yes Council President Henderson No Councilor Buehner Yes Councilor Snider Yes Councilor Woodard Yes 6. CITY CENTER DEVELOPMENT AGENCY (CCDA) RESOLUTION TO APPROVE PURCHASE OF THE MILLER PROPERTY AS OUTLINED IN THE PURCHASE AND SALE AGREEMENT AND TO AUTHORIZE THE CCDA EXECUTIVE DIRECTOR TO TAKE ACTION TO COMPLETE THE PURCHASE ON BEHALF OF THE AGENCY Redevelopment Project Manager Farrelly presented the staff report. Now that the Urban Renewal Plan has been amended,the CCDA board can authorize the Executive Director to proceed with the property purchase. He noted the CCDA received a copy of the Purchase and Sale Agreement in the meeting packet along with two amendments. One amendment was to clarify the property's legal description and the second amendment was to clarify-, that the CCDA,rather than the City of Tigard,was purchasing the property. He referred again to the due diligence that was taken,including an environmental assessment. The proposed resolution will direct the CCDA Executive Director to complete the purchase and close on the property. ® Motion by Director Henderson, seconded by Director Woodard,to approve the purchase of the property (CCDA Resolution No. 14-04). CCDA RESOLUTION NO. 14-04-A RESOLUTION APPROVING THE PURCHASE OF THE PROPERTY AT 9110 SW BURNHAM STREET(TAX LOT ID 2S12AC-00202) AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE CITY CENTER DEVELOPMENT AGENCY TO TAKE ALL NECESSARY ACTION TO COMPLETE THE PROPERTY PURCHASE ON BEHALF OF THE AGENCY ® The motion was approved by a unanimous vote of CCDA Board members present: Chair Cook Yes Director Buehner Yes Director Henderson Yes Director Snider Yes Director Woodard Yes TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 15 of 18 7. CITY CENTER DEVELOPMENT AGENCY(CCDA) RESOLUTION TO AUTHORIZE AN INTERGOVERNMENTAL AGREEMENT(IGA) BETWEEN THE CCDA AND THE CITY OF TIGARD TO ENTER INTO INDEBTEDNESS AND DELEGATE TO THE EXECUTIVE DIRECTOR,OR DESIGNEE,THE AUTHORITY TO DETERMINE THE FINAL TERMS OF THE IGA AND TO EXECUTE THE IGA ® Finance and Information Services Department Director LaFrance presented the staff report. The first action on the IGA will be by the CCDA Board to authorize the Executive Director to finalize the terms of the IGA. The IGA form is attached to CCDA Resolution No. 14-05. The IGA contains some blanks because the financing of the property purchase needs to be completed. The second action (Agenda Item No. 8)will be before the assembly as the City Council to authorize the City Manager to finalize the terms of the IGA. The Council will also be authorizing the staff to finalize the financing. ® Councilor Woodard noted the purchase price is stated as $1.3 million. He said Page 1 of the resolution quotes a figure of$1.4 million. Finance and Information Services Department Director LaFrance said the resolution is authorizing purchase for"up to$1.4 million." Bond counsel advised the CCDA should authorize the amount"up to$1.4 million"to cover additional expenses that might occur between now and the time of final purchase. Finance and Information Services Department Director LaFrance said,"We will borrow the amount necessary to make the purchase up to$1.4 million." Finance and Information Services Department Director LaFrance acknowledged Director Buehner's comment that there will be closing costs;however,the$1.4 million is authorization for the principal amount of the borrowing;closing costs could be up to$30,000. ® In response to a question from Director Henderson,the CCDA/City Council will see the final documents either in a council packet or on an agenda as a"Receive and File." At this time,if the resolution is approved,the CCDA board will authorize the City Manager/Executive Director to finalize the IGA. Finance and Information Services Department Director LaFrance said he will be working with bond counsel and the city's financial advisor to finalize the terms with the lender,which (at this point)is U.S. Bank. The reason there are two actions (before the CCDA Board and the City Council) this evening is because the city's full faith and credit will be used to back the borrowing,which means a lower interest rate. These actions will also allow for a reduction in closing costs so annual interest payments will be lower and make more resources available for programming within the CCDA. The intent is that the CCDA will use the tax increment to pay the annual debt service. The city will not have to pay anything towards this debt unless something unforeseen occurs within the property tax increment received by the CCDA making it unable to make full payment in any given year. TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 16 of 18 ® Motion by Director Snider,seconded by Director Buehner,to approve CCDA Resolution No. 14-05. CCDA RESOLUTION NO. 14-05 -A RESOLUTION AUTHORIZING INDEBTEDNESS FOR A CAPITAL PROJECT DESCRIBED IN THE URBAN RENEWAL PLAN FOR THE CITY CENTER URBAN RENEWAL AREA. ® The motion was approved by a unanimous vote of CCDA Board members present: Chair Cook Yes Director Buehner Yes Director Henderson Yes Director Snider Yes Director Woodard Yes 8. CITY COUNCIL RESOLUTION TO AUTHORIZE DEBT UP TO $1,400,000 AND DELEGATE AUTHORITY TO NEGOTIATE AND EXECUTE THE FINANCING AND ENTER INTO AND INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY CENTER DEVELOPMENT AGENCY(CCDA)AND THE CITY OF TIGARD TO ENTER INTO INDEBTEDNESS THAT WILL BE REPAID BY THE CCDA PROPERTY TAX INCREMENT Mayor Cook announced this agenda item and noted the action before with City Council is associated with Agenda Item No. 7. ® Motion by Councilor Woodard,seconded by Councilor Snider,to adopt Resolution No. 14-20. RESOLUTION NO. 14-20-A RESOLUTION AUTHORIZING FINANCING OF A CAPITAL PROJECT DESCRIBED IN THE URBAN RENEWAL PLAN FOR THE CITY CENTER URBAN RENEWAL AREA. The motion was approved by a unanimous vote of City Council present: Mayor Cook Yes Council President Henderson Yes Councilor Buehner Yes Councilor Snider Yes Councilor Woodard Yes TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 17 of 18 ® Council President Henderson commented that this project"has been a long time in coming"and is instrumental for the efforts up to this point by the CCDA and CCAC. He recognized Neal Brown for his involvement which made the project possible. 9. NON AGENDA ITEMS: None 10. ADJOURNMENT- 8:24 p.m. ® Motion by Director/Councilor Snider to adjourn the meeting. Director/Councilor Buehner seconded the motion. The motion was approved by a unanimous vote of the CCDA Board and City Council members present: Chair/Mayor Cook Yes Director/Council President Henderson Yes Director/Councilor Buehner Yes Director/Councilor Snider Yes Director/Councilor Woodard Yes Catherine Wheatley,City Recorder Attest: Chair/ yor,City of Tigard Date: D TIGARD CITY CENTER DEVELOPMENT AGENCY/CITY COUNCIL MEETING MINUTES—MAY 6,2014 City of Tigard 113125 SW Hall Blvd.,Tigard,OR 97223 1 www.tigard-or.gov I Page 18 of 18