Loading...
02/13/2013 - Packet Completeness i Review for Boards, 0. Commissions and Committee Records CITY OF TIGARD CCAC—City Center Advisory Commission Name of Board, Commission or Committee February 13,2013 Date of Meeting C.L. Wiley Print Name w Signature 311 8120 13 Date City of Tigard City Center Advisory Con1nUssion Agenda MEETING DATE: Wednesday, February 13, 2013 — 6:30— 8:15 p.m. MEETING LOCATION: Red Rock Creek Conference Room 13125 SW Hall Blvd.,Tigard, OR 97223 1. Welcome and Introductions.................................. ....................................................................6:30—6:35 2. Review / Approve January Minutes..........................................................................................6:35—6:40 3. Non-Agenda Items/ Public Comment.................—.................................................................6:40—6:45 4. Liaison/subcommittee reports.....................:.......::....................................................................6:45—6:50 5. Finalize CCAC 2013 Goals ........................................................................................................6:50—7:05 Review and finali--e 2013 goals from January retreat (Chair Shearer, Sean Farrelly) 6. Tigard Developer Interviews Report...........................:.................................. ..........................7:05 —7:30 Review recommendations from report (Sean Farrelly) 7. Plan for CCAC/CCDA Joint Meeting.......................................................................................7:30—7:40 Prepare and assign roles for March 5, 2013 joint meeting (Chair Shearer, Sean Farrelly) 8. Blue Ribbon Task Force Report................................................................................................7:40—8:00 Review recommendations related to Downtown/economic development (Chair Shearer, Sean Farrelly) 9. CCAC Executive Session*...................................................................................:.....::.:...............8:00—8:15 Property purcbase discussion 10. Adjourn............................................................................................................................................8:15 p.m. *EXECUTIVE SESSION;The Tigard City Center Advisory Commission may go into Executive Session to discuss real property transaction negotiations under ORS 192.660(2) (e).All discussions are confidential and those present may disclose nothing from the Session.Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed.No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. Upcoming meetings of note: 'March 5,Joint CCDA/CCAC Meeting,Tigard Town Hall,6:30 PM CITY CENTER ADVISORY COMMISSION AGENDA— February 13, 2013 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 I www.tiprd-ot.gov I Page 1 of 2 City Center Advisory Commission Meeting Minutes Date of Meeting: Wednesday, February 13,2013 Location: City Center,Red Rock Creek Conference Room Called to order by: Chair Elise Shearer Time Started: 6:37 pm Ixecutive Session 8:24 to 8:33 m Time Ended: 8:36 pm Commissioners Present: Elise Shearer (Chair),Philip Thornburg (Vice Chair), Thomas Murphy,Linli Pao, Paul Miller, Laura Fisher,Hemendra Mathur (Alternate), Carine Arendes (Alternate) Commissioners Absent: Deane Bush, Sherrie Devaney,Tamera Slack (resignation announced at this meeting) Others Present: City Councilor Marland Henderson, Council liaison to the CCAC, and local realtor Neal Brown. Staff Present: Downtown Redevelopment Project Manager Sean Farrelly and Community Planning Senior Administrative Specialist Chris Wiley. Community Development Director Kenny Asher arrived at 7:12 p.m. AGENDA ITEM #1:Welcome and Introductions There were members present who hadn't been at the January meeting so Sean asked everyone present to introduce themselves. Sean told the committee newly appointed CCAC member Tamera Slack had contacted him to say that unanticipated obligations would preclude her from continuing on the committee. He invited the two alternates to let him know if either of them would be interested in assuming a permanent position on the committee at this time. AGENDA ITEM #2: Review / Approve January 2013 Minutes The January minutes were approved as presented. AGENDA ITEM #3: Non-Agenda Items / Public Comment Metro offers Construction Excise Tax (CET) Grants for planning for new areas or to kick start new development. Tigard will apply for a grant for further planning for the River Terrace area and for the downtown development. The grant money could be used to look at urban renewal development at the Public Works site; to do additional environmental studies and site planning to see what is feasible for that site. The City needs to get their letter of intent for the grant in by this Friday, February 15. CCAC Meeting Minutes for Wednesday, February 13,2013 Page 1 of 5 AGENDA ITEM #4: Liaison / subcommittee reports for: CCDA,Art Subcommittee, Fafade Improvement Joint Committee; PRAB-CCAC Join#Committee A. Tigard Downtown Steering Committee—report from Deanie who attends as CCAC's liaison. The committee discussed feedback regarding the logo design. Other topics addressed potential upcoming events; and making a point to schedule events so they don't conflict with big events in neighboring cities. The committee is looking at grants and events for sponsorship. The potential art shows could feature a group of artists. Tom Murphy suggested Deanie might want to get in touch with Jan Rimerman, an art teacher at Tigard High School and a local artist, who has connections to other artists in the area who might be interested in showing their work at downtown Tigard art events. B. Facade Improvement Joint Committee—report from Sean.The committee just met to consider an application for a new cafe to go into the vacant space in the front of the Chamber of Commerce building. Members agreed it is a strong application and they had a favorable interview with the applicant. The applicant is asking for $24,000 of the $75,000 grant dollars available. It will be a second location for Symposium Coffee. The applicant was recently awarded "New Business of the Year" in Sherwood. The Facade Improvement Committee approved the grant request to go forward before the CCDA on March 5. The applicant hopes to open on April 1". Paul Miller asked about parking. Sean said there is public parking in the back of the Chamber—about 11 spaces and the applicant feels that is sufficient. Their current location only has nine spaces. There is also on-street parking. They will also be asking for a facade improvement grant. There are also facade applications in for the Fanno Creek Brew Pub, and an application for the neighboring building where Keplers Upholstery and Tigard Cleaners are located. C. PRAB-CCAC Joint Committee—report from Liti i and Elise. 1. Regarding the PRAB goals, the committee noted that downtown revitalization wasn't specifically mentioned in the goals. It had been blended into Goal #2. Linli didn't have a copy of the working document to refer to when she attended the meeting. She will look at the final document when PRAB releases it in a few weeks and report back to the committee on how it is addressed. 2. Mr. Neal Brown asked PRAB to engage an out-of-state consultant he recommended to evaluate the possibility of putting in a downtown YMCA. That seemed to get quite a bit of support from PRAB and Councilor Woodard said he would support the proposal. 3. There has been difficulty finding a plaza site and that funding needs to be used soon. Staff member Steve Martin said he would like to have a back-up plan because there are other properties that could be purchased with these funds if a site for the downtown plaza can't be identified for purchase. Elise said CCAC is definitely committed to finding a plaza site and encouraging city staff to do whatever they can do to help find a location for a community plaza in the downtown area. 4. Vandals put anti-freeze in the water dishes in the dog park. Fortunately it was discovered before any dogs were endangered. CCAC Meeting Minutes for Wednesday,February 13,2013 Page 2 of 5 5. Linli and Elise,who was also present at the PRAB meeting,briefed the PRAB members about Third Fridays. Elise said PRAB is very interested in the Rotary's plan to donate fitness equipment to the city parks. Rotary- said they would like to see it on the Tigard Street trail site. Another property that was talked about at the joint meeting was the Fields property development plans. This is going to be a Metro/Tigard joint project. The open space will hopefully become hall fields. The Fanno Creek Trail could be continued through the wetlands. 6. The book sharing kiosk at Woodard Park appears to be a success. There may be book sharing kiosks placed at other park locations as well. D. Art Subcommittee—report from Sean. There will be a visioning event March 27 for gateway art in downtown. Elise said they would like everyone on the committees to participate and to meet with artist Brian Borello and give him feedback on the type of art they would like to see. Sean said Brian will probably be coming in with some ideas but will be looking for input to fill out the plan. Mr. Borelloplans to have the project completed by the fall. E. Transportation Advisory Committee—report from Elise.The Transportation Committee received an update on the SW Corridor plan and Tigard will definitely be included as part of the plan. Locations that are specifically being considered for inclusion are Tigard Triangle, downtown, Kruse Way, Hall and Durham. There was discussion about upcoming projects, possibly funding for improvements at the Highway 217 and 72"d interchange. There are also studies in progress for improvements for the Hunziker intersection. TriMet is working with Tigard to get federal funds from the JARC Qob Access and Reverse Commute) grant program which could allocate funds for a trial program to see if there is rider demand to bring bus transit from PCC through 72"d to the Triangle to Bonita Road connecting Bridgeport to Tualatin. There are more road project updates and they will be coming up on the city web site. F. The Citizens Advisory Committee for Housing has one more meeting scheduled for this month. G. Elise reminded everyone the Farmers Market starts up May 12"and this year it will be held in the Public Forks parking lot. AGENDA ITEM #5: Finalize CCAC 2013 Goals - Review and finali e 2013 goalrJrom January retreat(Chair Shearer, Sean Farrelly) (Refer to Attachment 1 of these minutes) A. Sean proposed under 4c, Land Use and Transportation Planning, change the wording to say "An action plan to cover the remainingyears"vs. "5, 10 and 15yearr..." B. 2c—delete i and iii and write the entry to read "to develop downtown Tigard to developers and businesses" C. The committee agreed to move item 2cii to stand alone as 2d and rename the existing entries marked 2d and 2e to 2e and 2f. CCAC Meeting Minutes for Wednesday,February 13,2013 Page 3 of 5 D. 3a —delete i and ii and write the entry to read "review program outcomes and define program success". E. Tom Murphy pointed out that laii and 2b said the same thing. The committee agreed to delete laii and renumber the remaining goals under 1. F. Sean suggested lbii read "Lower Fanno Creek park improvements and remeander" and that G. lbiii read "Tigard Street Trail", and deleting the words, "Pedestrian / Bike Boulevard." H. The committee adopted the goals as amended. AGENDA ITEM #6: Tigard Developer Interviews Report The committee reviewed the report (Attachment 2 to these minutes). AGENDA ITEM #7: Plan for CCAC/CCDA Joint Meeting - Prepare and assign rolesfor March S, 2013 joint meeting (Chair Shearer, Sean Farrelly) A. The meeting will begin at 6:30 pm in the Town Hall. Elise will present a synopsis of the goals. B. CCAC members should be able to relate the goals to the mayor's Blue Ribbon Task Force Report recommendations especially regarding the Urban Renewal District which still has vacancies. C. Linli, Phil and Hemendra said they would not be able to be present for this meeting however all three said they would help preparing the presentation. D. Elise will briefly recap the 2012 CCAC Annual Report. E. Following Elise's opening, the new CCAC goals will be presented as follows • Goal I Project Infrastructure: Deane • Goal II Economic Development: Tom and Laura • Goal III Facade Improvement and Targeted Incentive Programs: Paul and Sherrie • Goal IV Land Use & Transportation Planning: Elise and Carine • Goal V Communication: Elise and Hemendra CCAC Meeting Minutes for Wednesday,February 13,2013 Page 4 of 5 F. Sean said each goal should be covered in a minute to a minute and a half. Sean will try to think of some questions to get the discussion going. Elise said we need to ask how CCAC can support CCDA to help them achieve their 2013 goals. G. The committee asked their Council liaison, Marland Henderson, if he had any suggestions regarding their upcoming presentation. Council President Henderson suggested the CCAC representatives include some reference back to the Urban Renewal Plan. Explain what CCAC is trying to achieve in the urban renewal area, how the money is being used to achieve those goals, and how the CCAC's recommendations to CCDA will help further those goals. H. Elise said in summary the CCAC members need to focus on specific subjects and some specific projects CCAC wants to be involved in. I. Sean added that the presentation on the Developer Interviews will follow the joint session. There may be some discussion between CCAC and CCDA afterwards.. AGENDA ITEM #8: Blue Ribbon Task Force Report—Review recommendations related to Downtown/economic demlopment(Chair Shearer, Sean Farrelly) The committee reviewed the report (Attachment 3 to these minutes). Overall the committee thought the report was very well done and very positive. The committee discussed getting more information out to the public about Tigard activities, perhaps using the information the PRAB put together. It would be good to get that information on the city website. Sean said he would ask Parks and Facilities Manager Steve Martin about it. AGENDA ITEM #9: Executive Session The regular meeting recessed for an executive session in accordance with ORS 192.660(2), (e) (to discuss real property transactions) at 8:24 p.m. The executive session was closed and the regular meeting reconvened at 8:33 p.m. AGENDA ITEM #10: Adjourn The meeting adjourned at 8:36 p.m. C.L.Filey, CCAC Re*ding•ding Secretary ATTEST: hearer, Chair CCAC Meeting Minutes for Wednesday, February 13,2013 page 5 of 5 Agenda Item 5 (DRAFT) CCAC 2013 Goals I. Project Infrastructure a. Oversee, review and provide input including the following key projects: i. Main Street/Green Street Phases 1 and 2 ii. Ensure mitigation of construction impacts for Main Street/Green Street Phases 1 and 2. iii. Public parking lot on Burnham Street near Main Street iv. Open space/Downtown park/ Plaza site V. Consider public restroom accommodations near plaza or transit center b. Monitor ongoing projects: i. 99W/Hall Gateway-flagpole park ii. Lower Fanno Creek remeander iii. Tigard Street Trail Pedestrian/Bike Boulevard II. Economic Development a. Support the efforts of downtown businesses and property owners to better market the area. i. Receive reports from and monitor the work of the contracted facilitator in downtown. ii. Engage neighborhoods, business owners, property owners, potential tenants and developers within the process. b. Ensure that Main Street/Green Street phases 1 and 2 are constructed with as little economic impact as possible on downtown businesses. i. Apply lessons learned from completed Burnham Street process to Main Street/Green Street Phases 1/2. ii. Include businesses on and adjacent to Main Street within this process. c. Promote downtown Tigard i. Outreach to developers/solicitation of businesses. ii. Encourage land assembly and direct development options. iii. Continue to encourage dialog with developers. d. Review developer incentives matrix and advocate as necessary for implementation with CCDA: e. Continue to improve our knowledge of the downtown businesses and customer base using census information, cultural demographics, trends, and other statistics. III. Facade Improvement and Targeted Incentive Programs a. Review program outcomes i. Review progress and outcomes of existing programs. ii. Define program success. b. Continue to promote, expand, and adjust the program. i. Consider expanding program onto streets in addition to Main. ii. Pursue endorsements from participants. IV. Land Use &Transportation Planning a. Advocate to TTAC, CCDA on behalf of top three priority Connectivity Plan elements: Ash Avenue rail crossing, Scoffins/ Hunziker intersection realignment, and Commercial/ Main intersection realignment. b. Engage in regular communication with TTAC to ensure SW Corridor planning, and other transportation plans meet the needs and values of downtown and the greater community. c. Begin a long-range plan to cover the 5, 10 and 15 years left in the URD V. Communication a. Liaise with CCDA, PRAB,TTAC, Budget Committee,and other boards. b. Engage in on-going communication with CCDA, Council, and Staff. c. Engage in on-going communication with citizens of Tigard through Cityscape and other means. 02/13/13 CCAC Meeting Minutes Attachment 1 (2 s/s pgs) (For inclusion in the CCAC binder) (DRAFT) Internal CCAC Processes: Internal Communication and Ongoing Processes a. Improve CCAC processes and procedures including, but not limited to: i. Annual calendar development. ii. Continue to evolve meeting efficiency and agendas. iii. Set aside regular time for liaison reports on each agenda. b. Increase awareness of the impact our work has on the community i. Continually work to include within city processes increased transparency for citizens ii. Quarterly financial reports of Urban Renewal Funds c. Increase training of CCAC to be better prepared for duties. i. Increase financial literacy of CCAC regarding budgets, urban renewal funds, and other matters. ii. Receive training for advocacy roles, e.g. talking points. iii. Receive training refresher on ethical and legal matters pertaining to being a public official. G CITY OF TIGARD/ CITY CENTER DEVELOPMENT AGENCY a • Lp T.. Cutin/ WES'Sbeaa t Pu4lic Works Tigard Sk'a t Park TIGARD DEVELOPER INTERVIEWS REPORT FOR SELECT DOWNTOWN TIGARD AND CITY-OWNED SITES PREPARED FOR CITY OF TIGARD / CITY CENTER DEVELOPMENT AGENCY PREPARED BY L LELAND CONSULTING GROUP People Places Prosperity January 2013 02/13/13 CCAC Meeting Minutes Attachment 2 (22 d/s pgs) - Tigard Developer Interviews Report Contents Introduction and Project Purpose............................................................................... 1 DeveloperResponses................................................................................................ 3 Conclusions ...............................................................................................................9 Appendix.................................................................................................................. 12 List of Figures Figure 1. Map of Downtown Tigard and Three City-Owned Properties..........................................................3 Figure 2. Saxony Properties, Site#1..............................................................................................................5 Figure3. Public Works Yard, Site#2 .............................................................................................................6 Figure 4. Burnham and Ash, Site#3..............................................................................................................7 Leland Consulting Group a January 2013 kL Tigard Developer Interviews Report Introduction and Project Purpose The Community Development Department of the City of Tigard ("City"), at the request of the Mayor and City Council (acting as the board of the City Center Development Agency—Tigard's urban renewal agency), initiated a developer interview process in order to provide the Board with a current understanding of how the development community views Tigard, its downtown, and several sites either owned by the City or potentially acquired by the City.The intent of the interviews was to gather vital information in support of adopted City Center Urban Renewal Plan goals: • Goal 1: Revitalization of the Downtown should recognize the value of natural resources as amenities and as contributing to the special sense of place. • Goal 2: Capitalize on Commuter Rail and Fanno Creek as catalysts for future investment and development. • Goal 3: Downtown's transportation system should be multi-modal, connecting people, places and activities safely and conveniently. • Goal 4: Downtown's streetscape and public spaces should be pedestrian-friendly and not visually dominated by the automobile. • Goal 5: Promote high quality development of retail, office and residential uses that support and are supported by public streetscape,transportation, recreation and open space investments. This report presents a summary of the pattern of opinion expressed in the interviews, key conclusions to be drawn from the developer responses, and a discussion of next steps. The Developer Interview Process To assist the City and urban renewal division, Leland Consulting Group, Urban Strategists and Development Advisors,was retained to conduct confidential developer interviews. This firm has a long standing working relationship with the City of Tigard on its downtown development and redevelopment efforts. The firm has also worked extensively with private developers in the region. Dave Leland, Managing Director of the firm, conducted the confidential developer interviews (Sean Farrelly, City Redevelopment Project Manager was present for four of the interviews).The term"confidential" in this context means that no particular remark is attributed to any individual. The process was intended to obtain as much candor and direct feedback as possible,with the promise for such directness assured by a commitment that individual comments would be consolidated into"patterns of observation."The patterns sought were opinions of: • Levels of interest in working with and in the City of Tigard. • Particular interest and/or concerns about the City-owned or to be acquired sites. • The state of the economy with regard to developers making investment and development decisions. • Ideas and concerns that could be helpful to the City as it makes decisions going forward. • Related information. Leland Consulting Group . January2013 t Tigard Developer Interviews Report All of the developers interviewed have a history of successful urban development and therefore are considered by the industry and by their peers as knowledgeable parties. The participants interviewed, either in person or by phone, included: • Vern Rifer, Vernon L. Rifer Real Estate Development • Tony Marnella, Marnella Homes • Tom Cody, Jonathan Ledesma, and Anyeley Hallova, Project^ • Bob Johnson, Marathon Management • Tom Kemper, KemperCo, LLC • Kira Rembold Cador, Rembold Companies The interviews were conducted in individual sessions with each specific developer. The discussions included an open dialogue, a back-and-forth about the properties,their observations, opinions, and recommendations. Some of the interviews included site tours with the developer and in some cases the developer chose to view the properties alone. Some had been to the properties before the interviews began and some chose to visit them after the interviews, having the benefit of information provided during the discussion. Leland Consulting Group has conducted similar interviews for more than 40 cities using a technique developed by the Urban Land Institute. It is not unusual during the course of such candid interviews to hear complaints or concerns from developers about working with a particular city. Leadership in the City of Tigard should be pleased to know that there were no such negative comments from any of those interviewed.Even if they had not worked in Tigard before,there was no expression of negative opinion or hearsay from others. The working relationship between the City, its elected officials,the staff, and the development community came across in these candid conversations as positive—a state of relationship that would be envied by many cities that do not enjoy as healthy a level of public-private cooperation. Goodwill between Tigard and the development and investment community is very important. While markets are coming back from the recession, developers have a lot of choices.A good working relationship, particularly in a public-private partnership,is a key asset for the City. Leland Consulting Group • January2013 2 Tigard Developer Interviews Report Developer Responses As an organizing principle for the City Council/CCDA Board to understand the findings from this process, the patterns and lessons learned are categorized into a series of subjects. These subjects are in no particular order of priority or importance. However, most of the information does have some bearing on the overall pattern of responses. In effect,the answers are not simple 11 or most of these subjects at some point intersect and have a bearing on decision making about what to do,where to do it, when,with what developer, at what cost, etc. Site-Specific Feedback In addition to gathering opinions about the overall downtown, which are discussed in more detail later, the interview process had a specific goal of finding out each developer's opinion on the three subject properties, described on the following pages. Each of the three properties were discussed in detail regarding their development potential, appropriate type of development, level of interest and potential City incentives that could increase project viability. The three sites are shown within the downtown context in Figure 1 below. A summary of each site is included in the following discussion. More detailed information regarding each property is included in the appendix of this report. Figure 1. Map of Downtown Tigard and Three City-Owned Properties P - Site 1 Site 3 Site 2 ✓ [ _roc( � _ mrr Leland Consulting Group . January 2013 3 Tigard Developer Interviews Report Site 1: Saxony Properties The Saxony Properties are located on the southern end of Main Street, between Main Street and Highway 99W, directly adjacent to Fanno Creek. The property contains approximately 19,000 square feet. The initial concept for this property tested with the developers includes a future 2,000 to 5,000 square foot public space or plaza along Fanno Creek with the remainder of the property offered as a mixed-use development,with ground floor commercial and upper floor(s)office or residential components. For the Saxony Properties to achieve redevelopment, the existing structures have to be removed. There was some discussion of acquiring an additional building to the north (Perma-Treat, currently on the market)to further the intent of this acquisition and redevelopment opportunity. These Main Street properties currently being negotiated for acquisition and resale by the City are a very different kind of project than the Public Works site (site#2). Interest in this location was reasonably strong. In particular, the fact that George Diamond, a developer with many holdings around the region, has purchased the brewpub property across the street from the acquisition (Saxony) site and is in the middle of a major remodel of the adjacent building, suggests that the south end of Main Street (in particular) has opportunity for a more expansive success. One of the strategies that emerged from discussions and tested with various developers is a focus on the south end of Main Street to include the properties developed by Diamond, redevelopment for mixed- use (retail and housing) on the two,to-be-acquired Saxony Properties, encouragement of a working relationship with the Dolan family (on the now vacant A-Boy building), and several other opportunity sites that would dramatically strengthen Main Street from its south entry up to Burnham Street. Diamond's purchase and redevelopment encourages investment by others. Developers who expressed potential interest in the Saxony Properties site want more information. The City should prepare specific property details, as well as a series of photographs that help to explain the site. Follow up with the developers that expressed interest is very much encouraged.There were a number of questions about the relationship of the southern-most building and the concrete and steel footings that are in the creek and"public deck"concept.Leland Consulting Group is encouraging the City not to build the public deck as a stand-alone project but, rather,to make such an investment and amenity an integral part of a complete mixed-use solution. The dialogue with several of the developers regarding the Saxony Properties strengthened the perception that the south end of Main Street has a higher probability for short-term success than does the north end. Given that there is only so much money that can be applied to Main Street at any given time, Leland Consulting Group recommends that it be predominately focused on the south end where activity is underway and reinvestment is occurring. The Saxony Properties can play a very significant role in this process, and if the interviews are accurate, there should be parties interested in responding to such a City-sponsored request. Communication with the Dolan family about possible revitalization, redevelopment, and related solutions that can both benefit the Dolan family and Main Street is strongly encouraged. In effect,with the proper discussions, public-private partnering, and mutual and beneficial cooperation, it is conceivable that the entire south end of Main Street could be revitalized in a relatively simultaneous action.This strategy is further enhanced by the upcoming"Green Street'implementation that will take place along Main Street itself and,thereby,bring considerable revitalization, image, and personality to the public realm that connects each of these properties.This observation aligns with the City Council's 2012 Goals in which this area (Main Street at Fanno Creek) is identified as the area with the greatest redevelopment potential and, therefore, a place to concentrate resources. Leland Consulting Group . January2013 4 Tigard Developer Interviews Report Figure 2.Saxony Properties,Site#1 i s Source:GoogleEarth,Leland Consulting Group Site 2: Public Works Yard The largest of the three sites is currently occupied by the Tigard Public Works Department with a total of 3.26 acres, of which only 2.64 acres is actually developable.The site lies directly adjacent to Fanno Creek(park is to the south)with easy access to the trail system serving Fanno Creek and beyond.Also adjacent to the site is a newly constructed dog park. The site concept tested with the developers is for a residential development of up to 100 multifamily units. This site received a good deal of discussion.All of the developers agree that it is a future housing site and that proximity to Fanno Creek Park is an attractor. The dog park was perceived as an amenity. Several developers spoke of serving smaller households in new housing projects in which pets are typically the norm. Having the dog park immediately next door is seen as an advantage because many of these developers have had to figure out how to deal with dogs in prior projects. The question raised by several, if not most, of the developers was, although it is a housing site, should it be rental or should it be some form of ownership or some combination of housing. There was initial interest by developers interested in apartments, another interested in a for sale product, and still another for some form of mixed ownership and rental housing. Since this was an initial inquiry with developers, it would be overstating interest to say that anyone is ready to move on this right now. There is the matter of Tigard Public Works still occupying the property as well as questions such as, does it need to be cleaned up environmentally, and how much of existing buildings and infrastructure have to be removed?The City, as recommended by Leland Consulting Group,should not remove buildings and infrastructure until such time that it has a binding agreement with a developer who has contractually agreed to build a product that Is approved by the City. In effect, tearing everything out and cleaning up the site and waiting for a developer could be a long wait. It is much better for the public and private sectors to simultaneously commit to achieving the same objective. Leland Consulting Group . January 2013 5 Tigard Developer Interviews Report Many of the developers are seeking good infill sites.The Public Works site is technically an infill site. However,with 2.5 acres of net developable area, it is considerably larger than the typical infill site. It will therefore require a developer with strong experience, credit capacity, and realistic debt and equity financing. Some of the developers interviewed are certainly worth following up with regarding the Public Works site. There was a variety of discussion about the size of units that might go on to the Public Works site. Leland Consulting Group provided the developers with a general assessment of demographics for the City, and for a one,three, and five-mile radius around the properties (attached as an appendix). Still, more detailed market study and development programming will be necessary by any interested developer in specifically defining the appropriate housing product to go onto the property That expenditure is not likely to occur until such time as a developer has expressed very serious interest in moving forward and is willing to risk some upfront investment to further examine the opportunity. Figure 3. Public Works Yard,Site#2 i' i Source.GoogleEarth, Leland Consulting Group Site 3: Burnham and Ash The smallest of the three properties is a single-family house located on a 12,600-square-foot lot on the corner of Burnham and Ash.The concept tested with developers for this site included a residential or mixed-use development. This property received virtually no interest from the interviewed developers as a near-term project. The City did have a serious proposal from a developer for a 37-unit apartment building on this and the adjacent property in 2011, but the financial gap was too great. Given the size of projects the interviewed developers typically pursue,there was lack of interest due to the scale (too small) of the potential project. However, that does not rule out redevelopment of this site. It suggests that as a small project, outreach to an infill developer that specializes in small sites is recommended. It would probably garner more interest from the development community if adjoining properties could be acquired.This particular site may take a while to redevelop. Leland Consulting Group January 2013 s Tigard Developer Interviews Report Figure 4. Burnham and Ash, Site#3 r r i Y•� Source:GoogfbEorth_l Blond Consulting Group Other Feedback Urban Renewal Area Tigard's urban renewal area covers approximately 194 acres and is, by comparison to all of the City of Tigard, about 2.6 percent of the City's total land area. Investment in the urban renewal area today represents 1.9 percent of the City's total tax base.The 2011-2012 total assessed value of the URA was $95.3 million. In 2011-2012, the total assessed value of City was$5.127 billion. Due to the recession, virtually all downtowns have experienced very little development since 2008 because of highly constrained capital markets, lack of investment confidence, and consumer caution. Entering 2013 is at a time when the housing market is experiencing better access to capital, a growing market,and remarkably low interest rates. Given vacant and underutilized land,there is future potential for significant additional investment in the urban renewal area. The fact that it is an urban renewal district will play a significant role going forward to encouraging private sector investment to help realize the City's objectives in strengthening its downtown and adjacent areas. As is the nature of cities and particularly their more urban areas, a variety of land uses are included in the urban renewal area including the downtown and main street. However,the urban renewal area, in terms of uses and activities,accommodates a great many"urban personalities"including industry,civic uses, retail, office, a variety of housing, cultural facilities, entertainment, dining, and other uses. Therefore, what can and should work in one part of the urban renewal area may have little bearing in terms of what works in other parts. People that live in close proximity to downtown will become a positive contributor to shopping, dining,cultural activities, and other activities that can strengthen Tigard's investment in its Main Street. While one of the main purposes of the interview process was to inform prospective developers about Tigard and sites owned or in the process of being acquired by the City, other objectives were pursued as well. It was an opportunity to introduce or reintroduce developers to Tigard,to what is happening in the central area,to understand and appreciate the City Council/CCDA Board's willingness to become Leland Consulting Group . January 2013 7 Tigard Developer Interviews Repo, involved in public-private partnerships, and to convey the City of Tigard's strong interest in the growth and investment in Main Street and nearby properties. It was pointed out to the developers that the urban renewal area is comparatively smaller than one might find in other cities,which allows for a concentration of reinvestment capital,creating a financial condition for long-term successful public- private ventures. The other side of that coin is that a smaller district also has smaller potential bonding capacity (maximum of$22 million over 20 years). As one of the developers pointed out,"there are lots of properties and opportunities in the metropolitan area. Given the still emerging economy and real estate markets, being in an urban renewal district certainly enhances the opportunity through a public-private partnership." Apartments It was noted by multiple developers that the apartment market is very strong at this time.That can be explained in part by the fact that very few apartments were constructed in this region over the past 10 or more years because the condominium market had been so strong(in lieu of building apartments).Tigard did see some apartment investment during that 10-year history-1135 apartments and 197 condominiums.With vacancy rates now in the three percent range, many developers are building apartments throughout the region.A normal vacancy rate for apartments is in the five to six percent range,which allows for turnover and realistic movement in the market. Because the real estate industry has been slow in most other sectors, lenders and developers have switched to apartments as one of the few viable sectors. If an apartment project is to be developed in the City's urban renewal area, it should be in the planning stage fairly soon in order to catch the current wave of an underserved market.At some point,overbuilding is possible, if not likely, because real estate development is not a well- integrated industry,thus"booms and busts"are a typical characteristic of its cycles. However, overbuilding is not an immediate threat.The best protection in an overbuilt market is having a high- quality,well-designed,well-managed, and well-priced project. Concerns about Highway 99W i There were two instances of concern expressed about noise from Highway 99W in the downtown.This can and should be resolved with soundproofing for multistory buildings,although this adds to the development cost.There are successful examples around the country where soundproofing has removed that problem and, in doing so, made upper floor housing very habitable even in close proximity to high traffic volumes or even heavy freight railroads.The cost of additional soundproofing can be mitigated by superior design. Successful small unit housing is one of architecture's most challenging assignments. In a public-private partnership with the selected developer,the City should contractually insist that the project architects are highly experienced with demonstrated success in urban housing. The focus for each building should be to look into the downtown and Main Street and not to Highway 99W. Leland Consulting Group n January 2013 8 - Tigard Developer Interviews Report Conclusions Tigard Has Potential All of the developers in one way or another expressed a belief that Tigard has potential for development. Without overstating, this is positive and reassuring. In some cases, interviewed developers said the sites were too small for the kinds of projects they typically developed—not an objection to place, but rather, a matter of scale. Several of the developers expressed interest in either the Main Street properties or the Public Works Yard. Since successful developers focus on one or two types of investments, these two properties are not likely to be pursued by a common developer. In effect, a successful apartment developer is not likely to simultaneously pursue a mixed-use infill project. As described in the following paragraphs, both the Main Street and the Public Works properties can be pursued simultaneously,just not by the same developer. In October of 2007, Leland Consulting Group prepared a"Development Strategy for Downtown Tigard." That study, completed before the devastating international recession, spoke optimistically because virtually no one anticipated the depth of damage that would come from the recession. Nonetheless, the study pointed out"that in order to attract private investment,the City will need to address existing economic and physical constraints, including existing land uses that are incompatible with the Tigard Downtown Vision,fractured ownership and poor parcel configuration, access constraints, substandard development, and the presence of a relatively large supply of underutilized properties with a low ratio of improvement value to land value." In that same study,five areas where the City of Tigard should focus its development priorities were cited: • Organization • Policy • Housing • Retail • Access, Transportation, and Parking The 2007 report goes on to elaborate on these recommendations. Based on serving as strategists and development advisors to more than 90 downtowns, Leland Consulting Group has learned that cities and their downtowns must go through a"Getting Ready Phase"before real development can occur— regulations,staffing, policy support, an urban renewal district(established in May of 2006)and related tools and organization need to be put in place. Further, and highly important,elected leadership will need to provide strong support to public-private efforts. Tigard has been doing all of these things. But then, the recession hit, developers lost access to capital, lenders became,for all purposes, unwilling to lend, and the markets for urban products—housing, retail, and office—went stagnant. In November of 2011, Leland Consulting Group prepared the"Tigard Downtown Strategy Update/Five Year Assessment of Urban Renewal."That report reinforces the comments above about the recession and its impacts. Still, Tigard made achievements during this difficult period (examples): • Reconstruction of Burnham Street • TriMet opened the Westside Express Service linking Tigard with Beaverton and Wilsonville • Community Partner for Affordable Housing opened the 48-unit Knoll (senior housing) • Three property owners utilized urban renewal matching grants for building fagade renovations Leland Consulting Group • January2013 9 Tigard Developer Interviews Report And while some progress was made,the recession truly put the brakes on investment. What happened in Tigard was mirrored all over America and was particularly noticeable in the housing industry. In 2012, and particularly the second half of the year, there has been a promising jump in both single family and multifamily home construction. This year(2013)promises to be even better as exceedingly low interest rates stimulate home purchases. National homebuilders are active again. Investors that have sat on the sidelines for years are getting back in the game. It is in that context of hope for real estate that the developer interviews were conducted. And as a result,there is expressed interest in both the Public Works site and the Saxony Properties in downtown Tigard. Tigard's Competitive Advantage: "Main Street" It became evident during the interview process that Tigard's Main Street provides a perceived competitive advantage compared to other nearby communities.The three closest central areas to Portland are Lake Oswego, Tigard, and Beaverton. Lake Oswego has what is essentially a two-block Main Street from Millennium Park on the south next to the lake moving north along First Street to B Avenue. Property values in that area are high and redevelopment is being discussed, but has not as yet happened beyond the significant and successful Lake View Village. Land values in many cases exceed$100 per square foot as compared to downtown Tigard,which ranges around$20 per square foot—a distinct advantage. To the west, Beaverton's original downtown, the historic district, seems to be slowly disappearing and much of Beaverton's downtown is still without a heart. Historically dominated by auto retailers,new and used, the large central area is without a true urban center. Retail is successful, but it is scattered in multiple locations rather than concentrated. As part of this perspective, it became apparent during the interview process that Tigard is home to the only established double-loaded Main Street of these three close-in cities that still has affordable land values, and that can potentially attract significant redevelopment if it is effectively approached The Main Street, granted, needs work, but there is investment occurring and that, in and of itself, is encouraging. The City's potential acquisition of the Saxony Properties is a strategically wise decision. It carries enough front footage on Main Street that,when redeveloped with pedestrian-serving retail and service uses on the ground floor and either housing or offices above, it can benefit the properties across the street and vice versa. What is important, however, is that the south end of Main Street should be approached assertively and as a unified project rather than a series of independent one-at-a-time transactions. By bringing all of the key property owners into the discussion, and by using urban renewal funds strategically to get maximum leverage from those dollars thereby putting additional private investment on the tax rolls,the result will be an overall plan and finished Main Street that is very successful for all parties concerned—the investors and developers,the tenants, the City, and the citizens of Tigard and its visitors who will frequent new shops and restaurants that will be a part of Tigard's Main Street experience. A recommended next step is to discuss these findings and recommendations with the City Center Development Agency Board and City Center Advisory Commission. With clear support from City Council/CODA Board, staff can move to strategies for the Public Works site and the south end of Main Street. More physical plans are not a priority. Tigard has physical plans for the downtown— implementation should begin now with negotiations and deal-making as follows: • Complete the Main Street acquisitions. Public ownership of these sites will put the City in the driver's seat in terms of defining the desired type of development. • Meet with key property owners along Main Street to explore their interest in development,joint ventures, sale,or other initiatives that would leverage the upcoming Green Street project as well as the newly acquired sites. • Determine if, how, and when Public Works can be moved from the current site so as to accelerate the disposition and redevelopment of that site. Leland Consulting Group • January2013 10 - Tigard Developer Interviews Report • Prepare a developer recruitment strategy that includes goals and objectives to be achieved through development—both on Main Street and the Public Works site.As the property owner, the City will have the opportunity and obligation to set clear expectations for the type, character, scale,and timing of development that will occur on these sites. Defining these terms up-front will help inform potential developers of the City's expectations and will result in responses that better meet the financial and land use expectations for Main Street. • Prepare development scenarios, including financial forecasts, to better inform Council about prospective returns on public capital as well as increased tax base, leverage (public to private investment) and other indicators. This work will help ensure that the City's expectations for redevelopment are realistic and can reasonably be achieved by private developers. • Design the developer RFQ (request for qualifications) package and define and outline the DDA (development and disposition agreement)that will guide the public-private partnerships. Public- private partnerships can be complex—laying the roadmap to completion up-front can help avoid delays. • Consider modifying codes to provide a more streamlined application, land use, and design review sequence and timing as a strategic advantage to the City for attracting private capital into the community. Reduced timing, clear procedural rules, and greater assurance of approval (while fully protecting the public interest)will be a major attractor and advantage over entitlement processes in other(competing) cities. • On a case-by-case basis, be prepared to utilize one or more incentives to help development overcome financial and market barriers. For each tool,the City should have clear guidelines regarding the conditions under which each tool would be made available(e.g., project financial need, provision of community benefits, target location, etc.). The tools that are most likely to be of benefit to potential developers include: o Land assembly: Downtown is characterized by small parcels under different ownerships. Assembling land into parcels that are large enough for new development to be viable can be a long and expensive process—and one that keeps developers away. By assembling and aggregating properties through willing-seller acquisitions,the City can gain control of useful sites and can then sell the property to a developer for the desired type of project. o Streamline permit process: Providing assurances to developers that a project can be entitled within an accelerated timeline will have direct economic benefit to developers("time is money") and can provide Tigard with a competitive advantage in the marketplace over other jurisdictions where the entitlement process is longer and more uncertain. a Property tax abatements: Property tax abatements can provide direct bottom-line benefits to developers by reducing or eliminating property taxes for a period of time(usually 10 years), which, in turn, has a direct and immediate impact on a developer's return on investment(ROI), particularly for rental properties where the developer will continue to own and operate the property after completion.While abating property taxes has the effect of eliminating tax increment generation on the property,it can be an effective tool for projects that meet certain public policy goals,which can range from measures of affordability to simply bringing development to a desired part of downtown. o Fee subsidies or waivers: Reducing or eliminating certain development impact fees has a direct impact on a project's bottom line.The waiving of such fees can be acceptable in a downtown environment since the infrastructure and services that would support the new development are typically already in place(e.g., roads, parks,etc.). o Subsidized loans:As discussed earlier,the current financial marketplace is very constrained for new development. As such,the City's ability to provide financing to developers(either at market, low interest, or zero interest)can help developer's fill critical financing gaps that can make the difference between a project that gets built and one that does not. If reduced or zero interest loans are considered, specific criteria will be needed to define the eligibility requirements.As the loan gets repaid over time, it can become a revolving funding program where revenues can be used to fund future projects. Leland Consulting Group . January 2013 }i Appendix The appendix includes the following brief informational reports, generated by Leland Consulting Group and the City of Tigard respectively, which were given to the developers during the interview process. Some graphics and information from the following reports was used in this summary to illustrate key ideas and conclusions that surfaced during the interview process. A. Demographic Overview B. Information and Prospectus on City-Owned Sites C. Policy Tools and Incentives Matrix Leland Consulting Group . January 2013 12 CITY OF TIGARD P 1 DEMOGRAPHIC OVERVIEW PREPARED CITY • -D TIGARD PREPARED BY . ■• P Tigard Market Summary Varies from 1-mile Market area by: >10% >20% LL- I mile 3 miles Tigard city Population Summary 2000 Total Population 11,995 112,695 41,223 2000 Group Quarters 92 633 221 2010 Total Population 13,108 126,546. 45,830 2015 Total Population 13,611 132,932 48,105 2010-2015 Annual Rate 0.76% 0.99% 0.97%n Household Summary 2000 Households 4,694 47,125 16,507 2000 Average Household Size 2.54 2.38 2.48 2010 Households 5,069 52,172 18,081 2010 Average Household Size 2.57 2.41 2.52 2015 Households 5,258 54,701 18,940 2015 Average Household Size 2.57 2.42 2.53 2010-2015 Annual Rate 0.74% 0.95% 0.93% 2000 Families 2,962 29,278 10,739 2000 Average Family Size 3.09 2.97 3.03 2010 Families 3,119 31,692 11,518 2010 Average Family Size 3.14 3.04 3.09 2015 Families 3,194 32,818 11,934 2015 Average Family Size 3.15 3.06 3.11 2010-2015 Annual Rate 0.48% Housing Unit Summary 2000 Housing Units 4,973 49,819 17,369 Owner Occupied Housing Units 45.8% 57.1% 55.4% Renter Occupied Housing Units 48.8% 37.5% 39.6% Vacant Housing Units 5.4°% 5.3% 5.0% 2010 Housing Units 5,452 Owner Occupied Housing Units 45.4% 56.1% 55.8% Renter Occupied Housing Units 47.6% 37.2% 38A% Vacant Housing Units 7.0% 6.7°% 6.1% 2015 Housing Units 5,711 Owner Occupied Housing Units 45.0% 55.3% 55.1% Renter Occupied Housing Units 47.1% 37.1% 37.9% Vacant Housing Units 7.9°% 7.5% 6.91yo Median Household Income 2000 $44,054 $52,346 $51,632 2010 $58,860 $65,174 $64,830 2015 $66,139 $75,437 $74,436 Median Home Value 2000 $170,732 $188,413 $187,107 2010 $287,566 $325,788 $320,749 2015 $356,163 $396,979 $392,666 Per Capita Income 2000 $21,509 $27,884 $25,110 2010 $26,696 $33,753 $30,800 2015 $30,217 $37;961 $34,715 Median Age 2000 32.9 36.0 34.5 2010 34.7 37.9 36.6 2015 34.7 38.0 36.8 page 1 I mile 3 miles Tigard city 2000 Households by Income Household Income Base 4,690 47,094 16,499 <$15,000 9.7% 8.1% 8.8% $15,000-$24,999 13.8%" 10.0% 11.6% $25,000-$34,999 14.5% 12.8% 11.4% $35,000-$49,999 17.5% -16.4% 16.3% $50,000-$74,999 21.5% 21.6% 21.7% $75,000-$99,999 13.7% 13.5% 14.5% $100,000-$149,999 7.50/. 10.6% $150,000-$199,999 0.9% $200,000+ 0.9% Average Household Income $53,877 $66,236 $62,439 2010 Households by Income Household Income Base 5,069 52,173 18,080 <$15,000 6.6% 5.7% 5.8% $15,000- $24,999 8.7% 7.6% $25,000-$34,999 9.0% 7.4% 7.4% $35,000-$49,999 17.2% 15.9% 14.9% $50,000-$74,999 25.1% 22.5% 23.2% $75,000-$99,999 13.4% 14.8% 15.0% $100,000-$149,999 16.0% 17.8% 18.8% $150,000-$199,999 2.7% $200,000+ 1.4% Average Household Income $67,886 $81,748 $77,880 2015 Households by Income Household Income Base 5,258 54,703 18,942 <$15,000 4.9% 4.1% 4.2% $15,000-$24,999 6.7% 10%u 5.7% $25,000-$34,999 6.7%n 5.2% 5.3% $35,000-$49,999 11.9% 10.5% 9.7% $50,000-$74,999 28.4% 24.9% 25.5% $75,000-$99,999 13.7% 14.7% 14.8% $100,000-$149,999 22.3% 24.1% 25.4% $150,000-$199,999 3.7% $200,000+ 1.70 Average Household Income $76,958 $92,163 $87,970 2000 Owner Occupied Housing Units by Value Total 2,244 28,431 9,654 <$50,000 2.7% 2.2% $50,00 %0-$99,999 4.1 4.2°/ $100,000-$149,999 23.5% $150,000-$199,999 44.3% 35.0% 41.1% $200,000-$299,999 20.4% 27.9% 26.8% $300,000-$499,999 4. % $500,000-$999,999 0.4 4% $1,000,000+ 0.1% Average Home Value $182,021 $212,792 $210,355 2000 Specified Renter Occupied Housing Units by Contract Rent Total 2,428 18,642 6,857 With Cash Rent 98.9% 98.5°/ 99.2% No Cash Rent 1.1% 1.5°/a Medlan Rent $593 $656 $613 Average Rent $618 $720 $668 2000 Population by Age Total 11,995 112,696 41,223 0-4 7.3% 6.6% 7.7% 5-9 6.8% 6.9% 7.2% 10- 14 6.5% 6.7% 6.7% 15-24 14.7% 12.4% 12.9% 2S-34 18.3% 15.7% 16.3% 35-44 17.3% 17.2% 17.7% 45-54 14.2% 15.49/o 14.2% 5S-64 7.3% 7.9% 7.2% 65-74 4.0% 5.1% 4.5% 75-84 2.6% 85+ 0.9% 1B + 75.4% 75.9% 74.5% �- __Page 2 I mile 3 miles Tigard city 2010 Population by Age Total 13,107 126.,548 45,831 0-4 7.2% 6.5% 7.3% 5-9 6.2-/0 6.3% 6.7% 10- 14 6.0% 6.2% 6.4% 15-24 14.1% 12.0% 12.1% 25-34 17.1% 15.0% 15.1% 35-44 14.8% 14.5% 14.9% 45-54 14.7% 15.3% 14.8% 55-64 11.0% 12.1% 11.4% 65-74 5.2% 6.4% 5.9% 75-84 2.7% 85+ 1.1% 18+ 77.1% 77.4% 75.9% 2015 Population by Age Total 13,611 132,932 48,104 0-4 7.2% 6.5% 7.2% 5-9 6.3% 6.3-/0 6.7% 10- 14 6.19/a 6.2% 6.5% 15- 24 13.8% 11.6% 12.0% 25- 34 17.20/o 15.0% 14.8% 35-44 14.3% 14.4% 14.5-/0 45- 54 13.6-/ 14.0% 13.6% 55-64 11.2% 12.1% 11.60/a 65-74 6.6% 8.1-/a 7.6% 75-84 2.9% 3.99/6 3.8% 85 + 1.0%a 18+ 77.1%- 77.5%- 75.9% 2000 Population by Sex Males 50.7-/- 48.50/. 49.0% Females 49.3% 51.5% 51.0% 2010 Population by Sex Males 50.4% 48.5% 49.1% Females 49.6% 51.5% 50.9% 2015 Population by Sex Males 50.20/. 48.6% 49.1% Females 49.8% 51.4%e 50.9% 2000 Population by Race/Ethnicity Total 11,996 112,694 41,223 White Alone 84.0% 86.7%- 85.4% Black Alone 1.3%- 1.2% 1.1% American Indian Alone 0.8-k® 0.6% Aslan or Pacific Islander Alone 5.0-/ 5.8% 6.1% Some Other Race Alone 5.8% Two or More Races 3.1-/ 3.2% 3.0% Hispanic Origin 14.5-/ • Diversity Index 46.9 38.7 2010 Population by Race/Ethnicity Total 13,107 126,546 45,829 White Alone 77.9-/ 81.6% 80.0-/ Black Alone 2A% 2.0% 1.9% American Indian Alone 0.8-/ 0.7% Aslan or Pacific Islander Alone 6.20/a 7.7% 7.70% Some Other Race Alone 9.2-/ Two or More Races 3.8% 3.9% 3.7% Hispanic Origin 22.2% . . Diversity Index 60.1 50.9 2015 population by Race/Ethnicity Total 13,611 132,932 48,104 White Alone 75.6% 79.4% 77.5% Black Alone 2.4% 2.3% 2.2% American Indian Alone 0.9% d= 0.7% Asian or Pacific Islander Alone 6.7% 8.7% 8.7% Some Other Race Alone 10.39/. Two or More Races 4.1% 4.30/o 4.0% Hispanic Origin 25.6% Diversity Index, 64.3 49.5 •55.6 page 3 I mile 3 miles Tigard city 2000.Population 3+by School Enrollment Total 11,443 .108,430 39,263 Enrolled In Nursery/Preschool 1.2% 1fif)o Enrolled In Kindergarten 1.2% 1.5% Enrolled in Grade 1-8 10.7% 11.3% 11.5% Enrolled in Grade 9-12 5.1°% 5.39/o 5.1% Enrolled In College 5.4% 4.9% 4.8%° Enrolled in Grad/Prof School 1.3% 1.5% 1.3% Not Enrolled in School 75.1% 73.7% 73.8% 2010 Population 25+by Educational Attainment Total 8,732 87,464 30,955 Less Than 9th Grade 6.1% 1111111=1- 9th to 12th Grade, No Diploma 5.6°/ High School Graduate 21.9°/ 16.2% 18.0% Some College, No Degree 25.6% 24.1%° 25.6% Associate Degree 9.3% 8.3% 9.0% Bachelor's Degree 20.5%i 30M, 27`4% Graduate/Professional Degree 10.9% 15.4% 12.5% 2010 Population 15+ by Marital Status Total 10,577 102,613 36,478 Never Married 34.5% 29.6% 29.1% Married 48.5% 52.5% 53.8% Widowed 2.99/. Divorced 14.1% 12.5% 12.4% 2000 Population 16+ by Employment Status Total 9,411 88,781 31,809 In Labor Force 74.8% 71.1% 72.2% Civilian Employed 70.5% 68.2% 68.8% Civilian Unemployed 4.3%® 3.4% In Armed Forces 0.0°% . . . . Not In Labor Force 25.2% 28.9% 27.8% 2010 Civilian Population 16+ in Labor Force Civilian Employed 88.0% 89.9% 89.5% Civilian Unemployed 12.0% 10.1% 10.5% 2015 Civilian Population 16+ in Labor Force Civilian Employed 90.4% 92.0% 91.7% Civilian Unemployed 9.6% 8.0% 8.3% 2000 Females 16+ by Employment Status and Age of Children Total 4,665 46,439 16,507 Own Children < 6 Only 10.3% 8.2% 9.8% Employed/In Armed Forces 6.2% 4.8% 5.6% Unemployed 0.3% 0.2% 0.3% Not in Labor Force 3.8% 3.2% 3.9% Own Children <6 and 6-17 Only 5.6% 5.9% 6.8% Employed/in Armed Forces 3.1% 3.1% 3.8% Unemployed 0.6% Not in Labor Force 1.9% 2.6% 2.7% Own Children 6-17 Only 16.5% 17.3% 16.0% Employed/in Armed Forces 12.6% 13.1% 12.3% Unemployed 0,4% 0.3% 0.4"/ Not in Labor Force 3.5% 3.8% 3.49% No Own Children < 18 67.7% 68.7% 67.4% Employed/in Armed Forces 41.8% 39.8% 40.1° Unemployed 2.5% Not in Labor Force 23.3% 27.1% 25.4% 2010 Employed Population 16+ by Industry Total 6,317 59,917 21,377 Agriculture/Mining 0.5% 0.5% 0.7% Construction 5.8% 4.6% 5.1% Manufacturing 8.9% 9.1% 10.1% Wholesale Trade 4.7% 4.6% 4.8% Retail Trade 12.3% 11.7% 12.1% Transportation/Utilities 4.5% 3.6% 3.7% Information 3.3% 3.2% 3.1% Finance/Insurance/Real Estate 8.4% 10.6% 10.7% Services 49.4% 49.3% 46.8% Public Administration2.0% 2.8% '2 page 4 1 mile 3 miles Tigard city 2010 Employed Population 16+by Occupation Total 6,315 59,914 21,379 White Collar 62.9% 76.5% 71.1% Management/Business/Financial 13.7/0 20'.5°70 18.3% Professional 19.6% 27.6% 23.2% Sales 13.5% 14.5% 14.7% Administrative Support 16.2% 13.9% 14.7% Services 19.4% E44M Blue Collar 17,7°/ 14.5% Farming/Forestry/Fishing 0.2% 0.2% 0.2% Construction/Extractl on 3.7% 3.1% 33% Installation/Maintenance/Repair 3.5% 2.9% Production 5.1%jjjjjjjjjjjjj� 4,1% Transportation/Material Moving 5.3% 2010 Consumer Spending Apparel&Services: Total $ $8,580,915 $104,130,956 $34,368,125 Average Spent $1,692.78 $1,995.91 $1,900.79 Spending Potential Index 71 83 79 Computers&Accessories:Total$ $1,145,656 $13,806,241 $4,572,285 Average Spent $226.01 $264.63 $252.88 Spending Potential Index 103 120 115 Education: Total $ $6,258,165 $76,880,078 $25,440,826 Average Spent $1,234.57 $1,473.58 $1,407.05 Spending Potential Index 101 121 115 Entertainment/Recreation: Total$ $16,051,523 $200,436,317 $66,179,498 Average Spent $3,166.53 $3,841.83 $3,660.17 Spending Potential Index 98 119 114 Food at Home: Total$ $22,.134,085 $268,231,160 $86,682,859 Average Spent $4,366.46 $5,141.27 $4,904.75 Spending Potentlal Index 98 115 110 Food Away from Home: Total$ $16,416,968 $198,981,268 $65,693,581 Average Spent $3,238.63 $3,813.94 $3,633.29 Spending Potential Index 101 118 113 Health Care: Total$ $16,896,781 $216,979,298 $71,554,382 Average Spent $3,333.28 $4,158.91 $3,957.44 Spending Potential Index 89 112106 HH Furnishings&Equipment: Total$ $8,945,681 $111,729,095 $36,909,700 Average Spent $1,764.74 $2,141.55 $2,041.35 Spending Potential Index 86 104 99 Investments: Total $ $7,628,866 $101,206,652 $33,365,069 Average Spent $1,504.97 $1,939.86 $1,845.31 Spending Potential Index 87 112 106 Retail Goods: Total $ $116,520,952 $1,440,703,479 $475,792,189 Average Spent $22,986.44 $27,614.41 $26,314.48 Spending Potential Index 92 111 106 Shelter: Total$ $81,176,266 $999,812,725 $330,372,178 Average Spent $16,013.89 $19,163.72 $18,271.79 Spending Potential Index 101 121 116 TV/Video/Audlo:Total$ $6,192,255 $75,306,856 $24,841,932 Average Spent $1,221.57 $1,443.43 $1,373.93 Spending Potential Index 98 116 111 Travel: Total $ $9,302,516 $119,176,793 $39,379,778 Average Spent $1,835.14 $2,284.30 $2,177.97 Spending Potential Index 97 121 115 Vehicle Maintenance&Repairs:Total $ $4,682,013 $57,566,645 $19,015,239 Average Spent $923.64 $1,103:40 $1,051.67 Spending Potential Index 98 117 _ 112 Note:Spending Potential Index compares spending potential of households within the market area to the national average.The degree to which the market area differs from the national average,represented by 100,is reflected by the difference above or below 100, page 6 (Pesn' . . . - Close Up 12485 SW Main St, PoMand,OR,97223 ROD: 1, 3 Miles 591 ~*s C ��L W Lan dor.Ct 6t, 6 , c � Aov9 Clm y �Fd'iCJ � '4' SCen.fmLerc��p �CdttJ � r :i;s,� t a�yy�a �llrbq AQ 9r 5 Rae Qty,\�tio� N r W +ta 1)560 ��- �� �• t1P c, fi. 1 1-164 S'6y i S s.a66 S m 2.283 _ ¢fit TT �``,pi SSY a'r'Ra �� ai a° s '�'w%' WN16h , ngton Count C% 531, 250 ✓049 .y 1. r r r 5.400. 9.®r ?.a ,u+; ,DC Soh 'j`>•'° \r Oc sf �\41a y,,qk�' h•�` Sr °iry g�rfe � S S} zr 4;922 �4k OC 444 'Oi o S1 'r °m S.dUtY to 0.1 ml ISI I �S r 0.15 P` Fanmo Park ®� S el AV"Agv 000 rmRic VCJuma 07 fa�J UP A.9,090 wft&f ♦ 8,001- 15.001) 30.900 G 7\{�y Q Cb a9r99r-1u/rP00 ash 9 Trr.[c y tlrm.rtitn 100,OO'. 1uY 4 ' 141 Tigard Source:£400 Market Pw nna SJMIenG.Inc. October 29, 2012 page 6 Top Three Tapestry Segments "Esri's Tapestry 1 mile Radius City of TigardRadius Segmentation Aspiring Young In Style In Style divides US Families 26% 24% residential areas 31 % into 65 distinctive In Style Sophisticated Enterprising segments based on 28% Squires Professionals 11 % 12% socioeconomic and Inner City Tenants Boomburbs Urban Chic demographic 17% 11 % 9% characteristics. " L TIGARD DEVELOPER INTERVIEWS page 7 SP��' S,wA Y• 1 A w Aspiring Young Families In Style Inner City Tenants • 31% (vs 2.391o) • 28% (vs 2.3%) • 25% (vs 1.4%) • Ethnically diverse • Prosperous professional • Multicultural • 51% rent their homes couples • Younger than average • 47% own their homes • Live in suburbs but prefer the • Very few own their homes • Median age of 31 city • Likely to work in the service • Mix of Household Types • Two-thirds are households industry children t ithoucren • Approximately two-thirds of w • 17% do not own a vehicle HHs are families (married • Median age of 41 • Mix of households types couples with or without • 42% hold bachelor's degree or • 34 percent are singles children and single parents) higher • 28• 27% are single person HHs • 14% prefer townhouses to families ent are married-couple • 9% are shared HHs traditional single-family homes • 21 percent are single parents , . O" Blue Ribbo Task Force 1Tinal Report DECEMBER 18, 2012 INTRODUCTION In Mayor Dirksen's 2011 State of the City address,he summarized the city's financial situation and the factors that challenge the city's commitment to maintaining financial stability into the future. Mayor Dirksen referred to the fiscal challenge that faces Oregon municipalities as a"cliff" over which all of us will eventually fall unless something fundamentally changes. Due to service level reductions and prudent fiscal decisions Tigard isn't facing the"cliff"at this time. However, the city has no financial flexibility to address service enhancements without corresponding cuts and will face further service cuts, in the next three to five years unless something changes fundamentally. The mayor proposed to council that the city convene a citizen task force composed of the citizen members of the budget committee together with representatives from Tigard citizen advisory committees to look at the problem and recommend a course of action to address the problem proactively and find a solution before we reach a crisis. • CHARGE: The Mayor's Blue Ribbon Task Force was convened August 16, 2012, with the charge described below. • Purpose: Convene a citizen task force to examine Tigard's service and financial challenges and recommend a course of action to the City Council. • Background: The City of Tigard continually strives to align services to the community's needs and available resources.The city conducts surveys every other year to measure citizen satisfaction with services, and to measure the most important areas of demand. These surveys show that there is a high level of citizen satisfaction and that Tigard has done a good job of aligning services with demand.Additionally,Tigard's Citizen Budget Committee annually reviews the allocation of city resources to services.The committee has supported targeted service and budget reductions in two of the last three budgets.These reductions are due to revenue growth that is slower than growth in costs for existing services.This puts citizen satisfaction with these reduced service levels in jeopardy and leaves no room to address deferred or emerging service needs without further reductions in 1 of S 02/13/13 CCAC Meeting Minutes Attachment 3 (8 s/s pgs) Mayor's Blue Ribbon Task Force I Final Report existing services or additional revenue sources.To begin to address this,the city is working to identify areas of emerging service level needs and ways to fund them. One of the fundamental issues this task force will need to confirm is the current alignment of services, given the reduced revenues available. Fundamental Questions: If Tigard were to acquire a new public dollar, what would it fund?Where would it come from? • Based on citizen surveys, the city has done a good job aligning services with demand given the resources available. • Citizen satisfaction may decrease unless service reductions are restored. • There are no resources identified to fund deferred or emerging service needs. Membership: In an effort to focus the work of the task force in addressing these fundamental questions, it was important that members have some working knowledge of government financing. Members were selected based on their current and past involvement in the community and for their experience in a variety of backgrounds and perspectives. Barry Albertson State Representative Margaret Doherty Bob Smith Mark Haldeman David Burke Melody Graeber Fire Chief Michael Duyck Mike Stevenson Dan Goodrich Sue Yesilada Jason Rogers Tom Woodruff Jessica Cousineau Troy Mears Resources: Task force members were provided with a number of background reports as informational tools. They requested further information from staff to assist in their discussions. A complete list of resource material is attached. Assistant City Manager Liz Newton facilitated the meetings; Finance and Information Services Director Toby LaFrance provided budget and financial information and his Executive Assistant Liz Lutz took meeting notes and distributed meeting materials. 2of8 Mayor's Blue Ribbon Task Force I Final Report FINANCIAL STABILITY/SERVICES The first topic discussed by the task force members was citizens'perceptions of the city's financial condition and level of services provided. Tigard has one of the lowest tax rates in comparison with other cities in the region and in Oregon, and should be proud of doing well with less. However, the city may want to consider what services other cities are providing with their additional revenue that Tigard doesn't provide.Task force members agree that Tigard citizens have confidence in the city to address financial issues because the city has met these challenges in the past. The city maintains a sound financial forecast and sound fiscal practices and it's important to continue what works.The task force recognizes the financial problems created by the state's tax structure.There was discussion about other options that may increase revenue, including the impact to the city's tax base caused by expanding the city limits and charging more fees for service. One of the key documents that the task force used is found in the appendix.The task force discussed the"Hundred Thousand Dollar Revenue Matrix Fact Sheet" as a potential resource for Tigard to increase revenue. The city has a good batting average on passing bonds and levies because it keeps its commitments. Before going out to voters or raising fees to maintain or expand services or unfunded capital needs, the city needs to make a case for those expenditures.Task force members noted that the city received over 50 calls from citizens on the recent PGE franchise fee increase. The most recent community attitudes survey reveals that 99 percent of respondents are satisfied or very satisfied with Tigard as a place to live.That means citizens have confidence in the city as an organization. Citizens perceive the recent service cuts and staff reductions as necessary to ensure financial stability over the long term.Task force members have a broader community view of the city and believe that citizens don't expect the city to be the provider of all community services. There was a lot of discussion about providing services through partnerships and changing the mindset that it's "all or nothing" in terms of the city providing services. It's critical to ask citizens which services they want,what services they would be willing to spend more for, and how they would spend existing resources. - RECOMMENDATIONS: 1. Develop and launch an ongoing robust communication strategy that celebrates what Tigard does well, educates citizens about how services are provided, and addresses future funding challenges. Communicate more; offer feedback postcards in Cityscape,use focus groups. The city needs to make the case for increasing taxes or fees tied to specific expenditures. 2. Change the focus of the 2013 community survey to ask citizens specifically about services; which services they want, how they would spend existing resources and how much more they would be willing to pay to retain existing services or add new services or programs. Use a shopping cart concept; put a dollar value on each service, show how the funds are spent now, and ask respondents to allocate $100 going forward. Include the business community and residents in focus groups during the development of the survey. 3. Lobby for legislation at the state level that provides local communities with options to fund local services. 3of8 Mayor's Blue Ribbon Task Force I Final Report ECONOMIC DEVELOPMENT Economic development and a healthy business sector are critical for a financially stable and vibrant community.A more robust local economy brings more revenue to the city which supports the city's goal of financial stability.The city has a lot to offer businesses but needs to be more creative and proactive in attracting quality businesses that citizens want, especially downtown. Engage citizens to identify the types of businesses that will keep them here and encourage them to shop local. Use marketing tools to increase private rather than public investment.The city's low tax rate should be attractive to investors. Which investments in the business community would get them involved and connected in determining what's important for businesses to be successful—tax incentives, infrastructure improvements, business-friendly policies? Positive interactions between the business community and city personnel are critical.The city should work to identify business types and/or clusters to attract new businesses and develop the business community. It's important to get input from the business community about Tigard's unique potential that makes it attractive for investment It's also important to connect with successful business owners in areas with more potential such as Washington Square II. The appearance of the community is important.The beautification of Pacific Highway could improve the overall image of the city. The view of downtown from the Pacific Highway viaduct could also be improved, making downtown more inviting. Although viewed as an important commitment by the city to advancing improvements in the downtown, the Burnham Street project has not had a positive impact on downtown development by itself; it is the first phase. More public or public/private investments are needed in the downtown to spur private investment. • RECOMMENDATIONS: 1. Develop and implement a competitive economic development strategy that creatively engages members of the business community and the citizens. Focus on strategies for the downtown, Washington Square Il, the Pacific Highway corridor and the Tigard Triangle. Include ideas for leveraging private investment through interviews with successful developers with proven equity investors such as Barry Cain of Grantor,who developed both Progress Ridge and downtown Lake Oswego. Emphasize doing business locally. Enhance this strategy through a dedicated full time staff position and an economic development commission. 2. Renew a focus on community aesthetics and beautification. Review, update and enforce code requirements as necessary in keeping with community standards as determined through the community survey. 4of8 Mayor's Blue Ribbon Task Force I Final Report IDENTITY/VISION The city needs a strategic plan that clearly articulates the city's vision for what it hopes to accomplish and that supports a stronger identity and brand.This effort is crucial to implementing the task force recommendations in the areas of economic development,partnerships and marketing, education and communication.The strategic plan is the umbrella encompassing all of the city's future efforts and critical to engaging the business community and residents in developing the image the city wants to project. Branding the city's identity is important.A strong community identity would create a connection for people to be more than just satisfied with Tigard as a place to live,and motivate people to move to Tigard and stay.A vibrant downtown with a community gathering place is important for connecting citizens to their community. Some tangible things that could contribute to branding the city include signage that says "City of Tigard"even on fire stations; family friendly activities that facilitate gathering as a community; and a Tigard zip code--distinct from Portland and required for all Tigard addresses—that would foster a stronger business connection to the community. It should be noted that State Representative Doherty is exploring a resolution to the zip code issue. • RECOMLMY"ATIONS: 1. Develop a strategic plan that articulates a clear vision for the city. Involve the business community along with residents. Include strategies for ongoing communication with the public. 2. Reinforce and strengthen the city's brand through signage, print materials and electronic communication. Complete the installation of "Welcome to Tigard"signs at entry points with the first priority location around Washington Square. 5of8 Mayor's Blue Ribbon Task Force I Final Report MARKETING/EDUCATION/COMMUNICATION The city needs a communication strategy that does a better job celebrating what it does well and conveys the financial realities without using scare tactics.The strategy should determine the goal, audience and timing.This effort is separate from the development of a vision because it's ongoing. Ongoing communication with citizens is critical in addressing the city's financial future.The message is more than the city's vision. Citizens and business owners need to be educated and engaged to convey their priorities for services and express a willingness to fund those priorities. Communication needs to be proactive and market the services the city offers, current economic conditions and our vision for the future. The city is running"lean and mean"which should be a point of pride, but significant financial consequences (e.g., the one-day-a-week library closure) should be highlighted.A balanced picture should be presented; parks and businesses are open, residents are safe. More effort is needed to keep citizens informed about what's planned for downtown.Building excitement about the possibilities for downtown will also build interest.Work with the Tigard Area Chamber of Commerce to celebrate the success of businesses in the community. Emphasize the city's commitment to businesses and citizens. Consider a Cityscape feature on new businesses including those new to Washington Square. The tools used should be appropriate for the intended audience.The Cityscape and the city's website are good communication tools,but to be effective, it's essential to communicate with people where they are (i.e„ school, community and business events.) Create a dialogue with citizens. Social media tools are key to effective communication.When conducting the 2013 community survey, the use of focus groups could ensure that respondents represent the city's demographic. • RECOMMENDATIONS: 1. Develop and implement a comprehensive ongoing marketing/communication strategy that celebrates what the city does well and conveys the financial realities without using scare tactics. 2. Incorporate community and business outreach and dialogue using a wide variety of communication tools including the Community Section of the Oregonian, the Tigard Times, Cityscape and potential activities at Washington Square or other high foot traffic areas. Feature local businesses in a regular monthly business section of Cityscape. 6of8 Mayor's Blue Ribbon Task Force I Final Report PARTNERSHIPS Providing services through partnerships should be an integral part of the city's financial strategy. Partnerships may reduce expenses through economies of scale, using single service providers or eliminating duplication of equipment or administrative costs.The city regularly partners with adjacent cities, the private sector, special districts and non-profit or private entities for maintenance of existing, expanded or new programs. Partnerships should be pursued before revenue increases are considered to maximize quality service delivery at the lowest cost. The city is in a partnership with the City of Lake Oswego to develop a long-term water supply because the partnership is the most cost-effective option.There is some potential for partnering with the Tigard-Tualatin School District on facility use. Citizen volunteers serve as partners on boards and commissions that support city staff in the delivery of ongoing services. Colleges and universities may offer partnership opportunities. The private sector is a logical choice to help spur development in the downtown. Many city services are currently provided in partnership with the private sector. In a typical year,half of the city's expenditures go directly to the public sector in the form of equipment, supplies, capital and contracted services. In fiscal year 2011-12, over $27 million went directly to the private sector from the city, creating jobs in the local economy. This includes services such as legal advice, street sweeping, fleet maintenance,janitorial, fuel providers and software companies. • RECOMMENDATIONS: 1. Conduct periodic reviews of programs and services to determine if partnerships are a more cost-effective way to deliver quality services. 2. Identify and pursue partnership opportunities with the Tigard-Tualatin School District for joint improvement and use of facilities and fields. 3. Develop and implement a robust public/private partnership strategy for development in the downtown. 4. Survey citizens about their interest in providing recreation opportunities and/or facilities through partnerships. 7of8 Mayor's Blue Ribbon Task Force I Final Report NEXT PUBLIC DOLLAR The fundamental questions asked of the Mayor's Blue Ribbon Task Force were, `If Tigard were to acquire a new public dollar, wbat would it fund? Where would it come from?"The task force members concluded that the city should engage the community in answering those questions. Implementing the task force recommendations in the areas of economic development, partnerships, and marketing, education and communication will involve the community in a comprehensive approach to address the city's vision for the future and in how to fund services over the long term. The city has reduced the number of staff, kept the tax base low in comparison to surrounding cities and improved roads without additional revenue, but that can't continue.The structure of local government revenues does not allow revenue growth at the same rate as the costs of services.The city should apprise the community of the need to increase revenue or raise taxes, but it needs to be specific about what the funding source is and how the money will be used. Survey citizens first on what they value and their service priorities are. Include a specific list of revenue options and measure their support for each. Enlist staff in developing a detailed list of restored and new services,including the impact of staff reductions on service delivery and continued maintenance of streets and utilities.A second voter survey should focus on specifically gauging citizen support for additional revenue to retain or expand services. Communicate to citizens what the city does well and convey the financial realities the city faces on an ongoing basis.The Cityscape is the most popular communication tool and should promote city services, local businesses and encourage participation in community surveys. It's also critical to engage the business and development community in a dialogue about what they need to be successful. The task force is bullish on Tigard—both the community and city government.We unanimously concur that Tigard citizens have confidence in their city's leadership to adequately address financial issues based on the City of Tigard's past and current fiscal challenges. We believe the future is bright. Moreover, task force members are secure in the city's determination and ability to both ask and then follow the recommendations of this task force with the belief that following them will better assure financial stability and success. Specifically, they are confident in Tigard's ability to engage citizens to determine priorities and to identify the best and most appropriate arenas for the expenditure of future public dollars. NOTE. The task force advises that it is important for the city to spend the$1.7 million set aside in the park bond to acquire land for a downtown plaza. Citizens are looking forward to that investment as a gathering place to bring people into the downtown.Also, its assumed that the city will make it a priority to continue investment in the urban renewal district to update and vitalize downtown. Further, a focus on community development and economic development witb incentives to attract and retain business is essential. 8ofs a � Sys• �t r7 P` �".«. F'A s.. . �y ��� �• dH � !rte � Iv •a�F l •��CI� .yS'q lr. �.',., fi .!',�!_^t. AdvisoryTigard City Center PREPAREDFive Year Urban Renewal Assessment O. PREPARED BY City of Tigard Chris SIO .O ■ TIGARD People Prosperity Presentation Overview • Project • • • Market Analysis Overview • Completed Projects • Development Strategy • • e • Projects I _= s 4 TigardRenewalFive-year Assessment September .I' . 1 Market America' s Population : From Pyramid to Rectangle 1940 1960 2020 Age 85 and over ® Baby Boom 80 to 84 75 to 79 Male Female Male Female Male Female 70 to 74 65 to 69 60 to 64 SS to 59 50 to S4 45 to 49 40 to 44 3S to 39 30 to 34 25 to 29 20 to 24 1S to 19 10 to 14 5to9 0to41 15 10 5 0 5 10 15 5 0 5 10 IS 10 5 0 5 10 15 Millions Millions Millions Note: The reference population for these data is the resident population. Source: U.S. Bureau of the Census, 1943,Table 2. For full citation, see references at end of chapter. LTigard Urban Renewal Five-year Assessment 14 September 2011 Page 3 Demographic Sea Change Households With and Without Children 100% 80% 72% 67% _ Without children 60% 52% 40% 48% 330 fo With children 20% 28% 0% 1960 2000 2025 Source:Arthur C. Nelson, US Census, Leland Consulting Group. LTigard Urban Renewal Five-year Assessment 14 September 2011 Page 4 Nationwide Household Growth , 2010-2020 (Millions) Younger households: Middle-age households: Older households: Modest growth Net decrease; minority Signif icant growth, households increase particularly in white households 2.5 2.0 _ 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 ■ Non-Hispanic White ■ Minority -- -2.0 -2.5 -- 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75 and Age of Householder over LTigard Urban Renewal Five-year Assessment 14September2011 Page 5 Development Prospects , 2011 - --- - ---- --- - --- ---- -- - - -- - -- - -- - -- - -- - ----- - -- - - Apartment Property Types with near Fair Senior Housing Development Prospects in 2011 Infill and In-Town Housing L - - - - - - - - _. - - - - - - - - - - ---- -- --- - -- - - - - -- - - -- --- --- - Industrial - --- - -- - - - - -- - - -- --- --- -Industrial Single-Family Homes Hotels Retail Office 0 5 9 Abysmal Fair Excellent Source: ULI Emerging Trends 2011, Leland Consulting Group. LTigard Urban Renewal Five-year Assessment 14 September 2011 Page 6 Portland Area Submarket Apartment Vacancy and Rents, Q1 2011 Rent 2 Bed/1 Bath —Vacancy $1,400 -------i — — — 5% $1,200 -- 4% $1,000 $800 3% $600 2% $400 1% $200 $0 0% Q°� ,ei� �G\ lea Jr� °ice 05�e0 �c�o G�a�a50 �o I°�r �a�e �o Gia LTigard Urban Renewal Five-year Assessment 14september2011 Page 7 Depreciation Rates of Existing Detached Homes Q1 2010 to Q1 2011 Milwaukie.!Clackamas Northeast Portland NW Washington County Overall Yamhill County Lake Oswego/West Linn West Portland North Portland Southeast Portland ------------- ----------- - ---------- I � Tigard/Wilsonville L___________________ _____ __________ _____ I Beaverton/Aloha Columbia County Gresham Troutdale Oregon City/Canby Hillsboro/Forest Grove Mt. Hood/Govt Camp/Wemme -25% -20% -15% -10% -5% 0% -- - -- -- - ---- -L Tigard Urban Renewal Five-year Assessment 14September2011 - Page 8 Office Submarket Vacancy Submarket IQ11 Vacancy Tualatin/Wilsonville 32.5% Sunset Corridor 24.5% Columbia Corridor 23.9% Camas 21 .6% Orchards 21 .0% Cascade Park 19.3% Wash.Sq/Kruse Way 19.2% Clackamas Sunnyside 18.0% SW/Beaverton/Sylvan 16.3% Johns Landing/Barbur Blvd 15.7% Vancouver 13.6% Hazel Dell/Salmon Creek 11 .0% Eastside 10.6% St. Johns/Central Vancouver 10.3% Northwest 9.5% Vancouver Mall 8.6% Tigard Urban Renewal Five-year Assessment 14 September 2011 - Page 9 IL a Key - 1 Ash Avenue Extension, Scoffins to Infrastructure Burnham Fagade Improvements 2 Hall Blvd/Highway 99W Intersection New construction 3 Greenburg Road/Highway 99W Private Capital Improvements Intersection Planning &Design Assistance 4 Burnham Street 5 Main Street 6 W ES Station Park and Ride 7 Tigard Liquor Store 8 Underwater Works 9 Main St. Stamp & Stationery 10 American Family Insurance Building 9 8 11 Tigard Wine Crafters 12 12460 Main (former lab 33) 13 Wei Li Acupuncture 14 Tigardville Station 15 Tigard Vision Center 16 Harris McMonagle Office Building 17 217 Self Storage 18 Knoll at Tigard 19 McDonald's 20 Tigard Senior Center 21 Rite Aid 22 Luke Dorf 23 Muse Music School 24 Brake Team Addition 25 SW Garden Place Russ Auto Lot 27 Skate Park 28 Jo-Ann Fabrics Remodel 29 Fanno Creek Brew Pub ;.fit 120. 30 Ballroom Dance Company 31 Stone Gallery rehabilitation of former Cash's Realty Building ! �✓ __ I Il �' : nu 1 � � c Tigardb. R. Five-yearSeptembero .. 12 - �rN 7. i IVA : 'H a Tigard Urban Renewal Main Street Stamp and Stationery T. Main Street Stamp Stationery _ ,._ _ ..a how. LTigard Urban Renewal Five-year Assessment 14 September 2011 Pages R � E S S c E S` P S SE T S T s Q � O T G B y G Y S N U s c� s A Development StrategyL Development Strategy • Encourage and Facilitate Redevelopment Projects in Downtown T yfi • Improve Fanno Creek Park and Develop an Open Space System in gig ' Downtown • Develop Comprehensive Street and t Circulation Improvements in Downtown • Develop Organizational Leadership and Capacity in Downtown LO Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 18 F l ' go fit 1 Priority M Encourage and Facilitate Redevelopment Projects in Downtown Project Selection Criteria • Tax Increment Creation ! << r V tEASIN • Catalytic potential • Housing amenity • Project readiness L• Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 20 New Development Grant and Loan Program • Loans and/or grants • Commercial or residential • Burnham ripe for housing • Projects will support tax i a� �,�, increment OM • Budget = $200 ,000 per fiscal year 2012-2016 r L Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 21 Rehabilitation/Redevelopment Grant an • Loan Program Property rehabilitation I • redevelopment Fagade improvements f�� 4 BudgetFive year focus on Main and Burnham to leverage recent investment 111 per 2011 -2016 . . • Urban Technical Assistance Program • Provide technical assistance: • Development Opportunity Studies , .. • Market Studies • Feasibility analyses, • Engineering and design • Other activities • Five year focus = Main St, 1 Burnham St, or other housing opportunity sites • Budget = $60, 000 per fiscal year, 2011 -2016 L Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 23 Property Acquisition • Acquire property from willing -- sellers _ \ • Assemble land • Cost can be recovered or land can be written down providing incentive {, : • Five year focus = housing opportunity sites '_ �, • Budget = TBD `' ' Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 24 Redevelop Public Works Yard • Ideal housing site A • Adjacent to Fanno Creek 04 • Close to library • Explore opportunities to relocate • Budget = TBD LTigard Urban Renewal Five-year Assessment 14 September 2011 Page 25 Fanno Creek Park Improvements • Downtown asset • Amenity to attract residents • Restore and preserve sensitive areas • Make Ash St and Main St park entrances more prominent • Budget = $400, 000 in 2012-2013 L f t LTigard Urban Renewal Five-year Assessment 14 September 2011 Page 26 Plazas • Encourage broader range of activities downtown • Draw visitors and residents • Concerts, markets and festivals ' ' i • Continue to search for a site • Budget = TBD 9` _ 9 b dTigard Urban Renewal Five-year Assessment 14 September 2011 Page 27 Main Street Green Street • Landscaping features • Street furniture • Stormwater catchment systems • Sewer upgrades "ri• • Leverage grant from Metro • Urban renewal Budget = $255,000 in 2012-2013 LTigard Urban Renewal Five-year Assessment 14 September 2011 Page 28 High Capacity Transit • Long-term regional vision • Planning underway • Connection to DT Tigard • Can integrate with downtown and support land uses , • Budget = TBD r Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 29 Downtown Organization • Increase organizational capacity pOWNTOwy PIAN • Support business growth -- �MP�EMENTATION • Marketing • Events ._ . , . • Link with other priority - projects - • Budget = $50 ,000 in 2011 -2012 LTigard Urban Renewal Five-year Assessment 14 September 2011 Page 30 Project Schedule and Funding Matrix 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016- Encourage and Facilitate Redevelopment Projects in Downtown New Development Grant/Loan Program $0 $200,000 $200,000 $200,000 $200,000 Rehabilitation/Redevelopment Grant/Loan Program $75,000 $75,000 $75,000 $75,000 $75,000 Technical Assistance Program $60,000 $60,000 $60,000 $60,000 $60,000 Property Acquisition TBD TBD TBD TBD TBD Redevelop Public Works Yard TBD TBD TBD TBD TBD Improve Fanno Creek Park and Develop an Open Space System in Downtown Fanno Creek Park Improvements $0 $400,000 TBD TBD TBD Plazas TBD TBD TBD TBD TBD Develop Comprehensive Street and Circulation Improvements in Downtown Main Street Green Street Related Projects $70,000 $255,000 $0 $0 $0 High Capacity Transit TBD TBD TBD TBD TBD Downtown Gateways $120,000 $0 $0 $0 $0 Develop Organizational Leadership and Capacity in Downtown Downtown Organization $50,000 TBD TBD TBD TBD Carry Over Projects $89,330 Five Year Total $464,330 $990,000 $335,000 $335,000 $335,000 Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 31 ,. , r !` � A�� � ' 1 I�� «,- _ `` !` \ ` ` ti `� u� �j'.. Leo LELAND CONSULTING GROUP People Places Prospedty Portland I Bend I Texas I New York 503.222. 1600 www.lelandconsultinggroup.com Development Advisors to the Public and Private Sectors