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06/11/1987 - Packet AGENDA CITY CENTER PLAN TASK FORCE THURSDAY, JUNE 11, 1987, 7:00 - 9:30 P.M. CIVIC CENTER - TOWN HALL CONFERENCE ROOM 13125 SW HALL BLVD. , TIGARD, OR 1. CALL TO ORDER 2. ROLL CALL: ASH COHEN DEFFERDING JUAREZ MARR PINKERTON 3. Approve Minutes 4. Portland State University Presentation 5. Discussion of Sea First and South Waterfront Project Material (Enclosed) 6. Definition of Study Area Boundaries 7. Discussion of Chair and Vice Chair 8. Other Business 9. Adjournment ' ' L-'Y CENTER PLAN TASK FORCE MEETIN- Thursday, May 21, 1087 Minutes ^ MEMBERS PRESENT: Pam Juarez' Chris Defferdin8^ Stuart Cohen, Michael Marr' Jolynn Ash. OTHERS PRESENT: Liz Newton, Duane Roberts, Bill Monahan ° Mike suggested that the group examine the direction from the Council and choose a focus and direction. The Committee needs to define the objective and break it down into several phases . Liz Newton gave an update on the Portland State University study. The Spring course has six students working on projects related to the city center. Possible land use changes, transportation solutions, improving appearanoe of the viaduct, carrying Fanno Creek Park into the downtown, and improvements to the Main Street roof tops are student project topics. A mural of Main Street has been prepared already . A negative space picture is available. Liz will meet next week with Dr. Zigretti to 6ioouox when the class projects can be presented to the Task Force. The Committee members indicated that they each could make time to attend a daytime presentation. Thursday evening, June 11 in the target date for presentations to the Committee. The Transportation Advisory Committee and City Council will be invited. Valerie introduced some concepts from the National Main Street approach. _ Organization, design, promotion, and economic restructuring are the elements of the prmgram. Elements of the development team are city government, citizen groups, merchants, and tenants . Each of the groups needs to he involved for a successful program. Tigard' s prior efforts to revitalize downtown have not included all of the elementu . Valerie noted that the process suggested at the conference included: Concept Phase: The Committee will engage in an activity deciding what' ^ why' where, when, and who., A decision of "no or maybe" may come out of this exercise. Analysis Phase: Development of m preliminary pro forma is done including site selection, user identification, identify concerns, then a format pro format in developed. A decision is than made based upon the analysis. Preparation Phase: Items such as legal' financing, architectural, site plan' zoning, ownership form' public participation' construction preparation, and development of a revised pro format. Then m go/no go decision is made. The costs associated with the phases are 0-5% for the concept' 5-16% for the analysis phase, and I5-30% for the preparation phase. Therefore, up to 50% of the ultimate project cost can be spent preparing for the project, Valerie suggested that the Committee work on a goal statement for submission to Council for review. Duane noted that the members are now on the mailing lint for the Oregon Main Street Program. ~ The Committee reviewed oe resolution which created b Task Force. Zoning and availability of non—residential land were noted as key issues. Mike noted that the resolution calls for creation of m "comprehensive planning, economic, ^ public facilities, transportation, and marketing plan to guide City efforts" . Item 6 of the resolution was identified as the key task . Discussion focused on the content of this task as each timeline sub—topics of task d were discussed. The NPO #1 Chairman' and Downtown Council Chairman will be added to the Task Force mailing lint. , Next meeting, the Committee will attack point A to create m boundary for the area. Duane will create a map showing commercial and industrial land uses in the areas adjoining the CBD. Mike suggested that the Committee further review the Resolution and then develop a goal otatement. Jolynn suggested that Committee members study the information distributed about what is downtown. Focusing in on individual tasks for upcoming meetings was suggested as a format to follow. Mike suggested that the southwest end of the CBD could be developed for residential uses or hotels, The Committee discussed the potential of the area for residential uoea . The next meeting will be held on Thursday, June 11' 1087. The meeting adjourned at 9:40 P.M. 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J f a y f v:•.`7�L� �,b s , aM !yu•Yr � TMrI,e l +' .y.{ 7t J of . } i.•.:-'�.v;Ji �� '+S«?� +M r�.::i'�t '�i rll: 4Pt;CK.+�%�3d s:�1•S,`iyi ��.:. 1CMA � `'"Lanagement mtormation F.` :M Service VOLUME 191 NUMBER 5 r MAY 1987 - i J.h MIS Reports are published monthly by the Management Information Service,International City Management AssociaR` .. tion,11M G Street,N.W.,Washington,D.C.20005.Copyright ©1987 by the International City Management Association.No part of this report may be reproduced without permission of the i copyright owner. �r� +.� r These reports are intended primarily to Provdetimely information on subjects:of.practical'intereskto local government administrators,A artminit heads,budget and :� `�'' =�X74. n, research analysts,administrative assistants,and Others yy + �+ Fad 9 d responsible for and'coneerned with operational aspects of local $OVernnlCnt. €r a r < t .• E� raFY i MIS Reports`aitrissuedYas part of a cubstnption`semce available to all local.governments Asuliaphon to the f � Management Information Service inciud4suiilimuted access to .. ' i the MIS Inquiry Service-backed up m 15 thio CMA autoated data base the MIS$tllletin�Info Packetsiii other ld�'�;.. +,rf rh*.. t int Rf �{`y�•'i �' _ publications: i k�txNZ Recent MIS Reports =y` 5/86 Records Management -6/86 Strategic Issue Management:Improving the = _ Council-Manager Relationship Office of Informafion Services 7/86 Local Animal Control Management Donald J.Borut,Director 8/86 Housing-and Business Development ` F through Community Development Corporations Management Informafion Service 9/86 A Framework for Citizen Participation: _ Cheryl A.Farr,Director Portland's Office of Neighborhood Associations ` Christine Kubo,Editor 10/86 Marketing the Community "�f Jani Sepanik,Manager,:Inquiry Service 11/86 Strategies for Implementing Performance Measurement .. Jacqueline Harmon,Program Assistant 12/86 Building Staff Management Capacity in Local Government Publieafion Produefion 1/87 Video Technology: Programs and Uses Dawn Leland,Production Director 2/87 Monitoring the Quality of Local Government Services - _ Susan Gubisch,Graphic Designer 3/87 Residential Fue Sprinkler Ordinances Lonna Koblick,Production Assistant - 4/87 Controlling Employee Health Care Costs Downtown Management: This report was developed by Richard H. Bradley, president of the International Downtown Association(IDA), Washington, An Economic D.C., and compiled by Tani Sepanik, Manager, MIS Inquiry Service, ICMA. y IDA u an international association of Development Strateg organizations,government agencies, businesses, and individuals dedicated to the revitalization of downtown areas and their adjacent neighborhoods. IDA focuses its programs on effective management of downtowns including retailing, security, maintenance, physical design, business development, transportation,culture, and entertainment. The focus on the redevelopment of downtown and neigh- movable benches,and put up bright flags and banners-s borhood commercial areas that occurred in recent years is all efforts to breathe new life into public places. now being augmented by a growing use of management- Management of downtown areas today also involves oriented strategies to achieve and maintain economic new approaches to downtown traffic problems.The 1970s growth.Along with planning the physical design of down- saw significant changes in downtown traffic issues, as town areas, more and more Iocal governments are using improvements were aimed at getting people in and out of effective, and often creative, management activities to the downtown area quickly.Local governments built new help revitalize older commercial districts or develop roads, wider streets, and more parking facilities. In the successful new areas. early 1980s, some communities began to successfully During the 1970s,many communities recognized that experiment with traffic management techniques. Today, their downtown commercial areas were facing competi- parking management, flextime, employer incentives for tion from suburban shopping centers. In the hope of car pooling,and transit discount fares are used to increase attracting new retail activity, they used a development the effectiveness of the existing transportation infra- strategy that imitated the shopping mall concept and structure and relieve congestion. Again, management paved over Main Street, making it into a "downtown techniques are complementing physical development mall"Most of these initiatives helped beautify downtown projects. areas,but failed to attract either new shops or additional Emphasis on management has long been a component shoppers. Today, local governments are looking more of development projects like shopping centers and malls. closely at the suburban shopping centers, and realizing What makes downtown management new is the applica- that retail management—the control over the mix of tion of these techniques to an environment where property tenants, parking rates, security, and promotions--is the ownership is diverse. Like a symphony conductor; a key to growth for these retail centers.Local governments downtown management professional must orchestrate are beginning to adapt these approaches to their down- a diverse mix of interest groups and resources.Downtown town areas.For example, the festival marketplaces being management requires an understanding of the separate developed in many communities are based on the under- needs and expectations of shoppers, retailers, property standing that the retail will be explicitly managed. owners,municipal administrators,developers,and bank- Management is therefore complementing the physical ers, and an ability to meet these needs by developing development, strategies and programs. Communities also built streetscapes, plazas, and parks in the 1970s.While aesthetically satisfying,these ele- ments often resulted in sterile environments that have been THE BENEFITS OF DOWNTOWN MANAGEMENT little used by people.Today,however,local governments are learning how to program and manage these spaces. The goal of downtown management is to integrate maiimc Local officials work with business owners to put on special ing and development activities. A collaborative manage- events and concerts, allow push-cart street vending, use ment venture can achieve a number of benefits,induding: 2 Management Information Service • Expanded or improved basic services such as down- pedestrian environment. Downtown shuttle buses, car town maintenance and security pool staging areas, parking validation programs, and • Improved image and aesthetics transit discount programs are a few examples. Hartford, • Improved transportation Connecticut,for instance,has developed a nationally recog- • Increased retail sales nized program to manage its downtown transportation • Increased street activity and a livelier environment system. • Improved environment for mixed-use development. With financial support from the Hartford business community, the Greater Hartford Rideshare Corporation Expanded or improved services. By emphasizing mutual created a subsidiary organization to manage and finance interests and complementary resources, many local gov- transportation services in the downtown area. Services ernments are involving the private sector in cooperative provided include car and van pooling assistance to major management structures,and are finding new ways to fund employers,parking management services,shuttle bus ser- basic supplementary services for their downtown areas. vices to fringe parking lots, on-street car pool loading The cooperation of businesses can increase the level of areas, and employer incentive programs to encourage funding for services like a mounted patrol for the central employees to take buses or car/van pools to work. business district or a maintenance crew that takes respon- sibility for sidewalk and street cleaning. Increased retail sales. Some communities are increasing A good example of an effective and innovative man- retail sales by marketing downtown shopping through agement program involves the Portland Mall in Portland, joint promotions,common store hours,cooperative leas- Oregon's central business district. The city's downtown ing strategies,and special sales.As a result more shoppers association,the Downtown Portland Alliance for Progress, are encouraged to use the business district. Neenah, Wis- identified those services that either the city was not provid- consin drastically reduced its retail vacancy rates by using ing or was providing only in a particular area.For example, such techniques. the city initially cleaned the streets six nights a week. In 1983,Neenah had 38 businesses in the downtown When these services were substantially reduced,the down- area with a 27 percent vacancy rate in available stores.By town association used excess reserves from its parking lot 1985, two years after a master lease program was imple- revenues,and began providing the same level of service at mented by the Future Neenah Development Corporation, one-half the cost.Besides relieving the city of its responsi- the vacancy rate had dropped to 3 percent.Fifty-five busi- bility to flush and sweep the streets,the downtown associ- nesses were in the area,providing 100 new jobs as well as a ation has also hired a 10-person private security force and tremendous increase in sales.The master lease program is a 12-person maintenance staff with funds for landscaping supported by over 80 percent of the retail and property and special cleaning equipment. owners in the downtown area. The program grants the Future Neenah Development Corporation the right to Improved image and aesthetics.Complementing develop- approve new retail tenants. Should the management ment projects with amenities such as moveable seating, organization decide a proposed tenant is not compatible tables,banners,vending carts,and attractive bus shelters with the adopted retailing standards,it has six months to adds a great deal to the image of the downtown area. obtain a tenant for the owner's property, during which Denver, Colorado's Sixteenth Street Mall, for example, time it is obligated to pay the owner 80 percent of the has been made more attractive as the result of these types median rent. The program also stipulates common store of improvements. hours,and a common area charge of$0.25 per square foot In order to carry out its program of aesthetic and of retail selling space to cover'Costs for special events and image improvements of the mall,The Denver Partnership, promotions, common advertising, and technical assis- a downtown association, has undertaken a number of tance.Design review of major construction or renovation initiatives.These include stipulating a design for vending over$10,000,and alterations to store fronts or signage is carts, developing cafe ordinances with design require- also provided. ments,providing 300 garden chairs for distribution along the mall, planting and maintaining flower arrangements, Increased•street activity and a livelier environment. As a and sponsoring noon-time concerts and numerous festi- consequence of higher levels of maintenance and security, vals to provide entertainment on the mall.They also spon- as well as increased special events programming and side- sor a "tickets bus"—a British double-decker bus perma- walk vending,streets are becoming more active and enjoy- nently parked on the mall that is used as a ticket outlet and able for pedestrians. The Downtown Crossing area of visitor information center. Tickets for concerts, the Col- Boston is recognized as one of the most exciting environ- orado Lottery, area theaters, and other area activities are ments in the country due to effective downtown manage- sold there.Also, the employees hand out public informa- ment and improvements. tion and give directions to Denver visitors. A combination of activities have livened the down- town area. Boston has one of the most profitable and Improved transportation. By coordinating overlapping attractive vending programs in the country,and the re u- transportation l jurisdictions and authorities,and by work- lation of street performers for noon time events and con- ing with major property owners and employers,commu- certs,and the added security of mounted police all help to nities can improve both the overall transit system and the create an exciting and inviting pedestrian environment. Downtown Management 3 Improved environment for mixed-use development. The • Ridesharing which is encouraged through company- overall objective of all management activities is to create supported carpooling and vanpooling activities. an environment that encourages and welcomes future Computer-assisted services are often used to match investment.As a consequence of their downtown manage- needs with opportunities.Subsidies for bus passengers ment programs, many communities are finding that a are also used. decrease in retail vacancy rates has had the impact of also • Parking management which begins by assessing the decreasing commercial office vacancies and, in fact, has location and use of parking spaces by time of day and spurred considerable new mixed-use development. need.Changes can be achieved by instituting parking meter charges which are sensitive to time of day, enhancing the physical condition of off-street parking ELEMENTS OF DOWNTOWN MANAGEMENT lots, reducing the cost of shopper parking through merchant validation, and establishing a shuttle bus Public Space Management service to and from outlying parking areas. • Commuter management which is an attempt to en- The aim of a downtown management program is to inte- courage use of a range of transportation modes by grate several physical improvement strategies into a single employees in the downtown area. Programs that comprehensive agenda.This concept was first realized in change employee work schedules to reduce rush hour the form of public space management. The three basic traffic, or that provide bus passes to employees at components of public space management are: reduced rates are good examples of commuter man- agement activities. 1)Augmenting city services such as maintenance and security The city of Bellevue, Washington has a zoning law that 2)Coordinating activities such as vending and special stipulates a major reduction of parking spaces while em- events ployment densities in the central business district continue 3)Integrating high-quality design improvements such to increase.A new Transportation Management Organ- as landscaping, fountains, and kiosks with existing zation has been established to coordinate the activities of and new developments. the public transit agency,the parking authority,and major employers,in an effort to address the downtown transpor- 4D Initially,public space management was targeted to deliver tation issues in a cooperative manner. supplemental services such as additional security and maintenance to the downtown neighborhood. In most Retail Management downtowns,the intensive use of the central area for com- mercial and social purposes demanded larger allocations Another emerging aspect of downtown management is the of public funds for basic services.Today, however,com- control not only of the physical environment,but also of munities have learned to integrate these diverse needs into the mix of stores,physical design,sales events,and activity comprehensive management districts. They have found programming.Centralized Retail Management(CRM)bor- that public spaces can be dramatically designed and filled rows key management techniques from shopping centers, with vendors and special events,and can provide a feeling like creating a dynamic marketplace in accordance with a of safety by providing special security programs.The city leasing plan.Implicit in this form of management are con- of Tulsa, Oklahoma, for example, established its down- tractual agreements among property owners and merchants town management district in 1981 as part of the mayor's in the forms of protective and common covenants. plan for a seven block pedestrian mall. The concept, Centralized retail management is a way of consolidat- however, evolved into a comprehensive program. ing many of the separate retail management activities which Downtown Tulsa Unlimited,Inc.created a subsidiary already exist.Joint promotions,merchant associations,and organization TulCenter—to manage the downtown im- special downtown sale days all can be effective tools. provement district. The downtown district's operating The city of Orlando, Florida uses the centralized budget is financed 50 percent by property assessments,40 retail management concept in its downtown area.The un- percent by city funds and in-kind services,and 10 percent precedented growth of central Florida provided an oppor- from income generated by investments and parking man- tunity for the downtown retail area of Orlando to realize a agement. TulCenter contracts with the city of Tulsa for large increase in sales volume. According to a retail security,weekly sidewalk cleaning and maintenance,and market study completed by the Downtown Development provides for a downtown trolley shuttle service. Down- Board,the 1985 sales volume of$10 to$12 million has the town Tulsa Unlimited, Inc. provides marketing, promo- potential to triple by 1990.Tapping this market is the chal- tion,and sponsors three or four major downtown festivals lenge faced by Orlando's Downtown Development Board. each year. The recent growth in the downtown office market has helped rekindle retail interests. However, the uneven Transportation Management quality of retail establishments and poor merchandising mix have deterred downtown merchants from increasing Transportation management is another function of down- their share of the regional market.The Downtown Devel- town management, and can take many forms including: opment Board,a public agency,and the private non-profit d Management information Service Downtown Orlando,Inc.have joined forces to participate interest to the exclusion of others in the community in a centralized retail management program. Together adversely affects the business environment. with the city,they have recently completed the streetscap- Public sector representatives,especially local govern- ing of the main retail street, instituted new signage and ment managers, need to take the lead in encouraging the facade ordinances, and agreed to zone the street level development of cooperative arrangements among and be- spaces in new developments for retail only.These organi- tween the key sectors of the community for better man- zations financed a marketing analysis, a lease plan, and agement of downtown areas. A city manager can play a assigned a staff person to help recruit new retail busi- variety of roles in helping to expand downtown manage- nesses. A special assessment district, yielding $350,000 ment activities. These include: advocating for change, annually,is used to finance these efforts,as well as,main- activating planning,and sponsoring or co-venturing pro- tenance and security improvements. grams.Realizing that each municipality has special prob- lems and unique resources, a manager can initiate an Social Program Management informal process of discussion,exploratory meetings,and community involvement.From this process comes a pre- Social program management is the most recent innovation liminary agenda for action. By providing support for in downtown areas management. Atlanta, Georgia and downtown management through public sector interest, Richmond,Virginia are two of many cities that have initi- local government managers can become catalysts for ated creative solutions to address long-standing problems greater private sector involvement. in their downtown areas. In Atlanta, Georgia, the Central Atlanta Progress, Inc..recently organized a consortium of five businesses to DOWNTOWN MANAGEMENT ORGANIZATIONS provide child care for 120 children as an incentive in recruiting working mothers to the downtown labor force. While ongoing communication between the public and Today, each consortium participant is allocated twenty private sectors is used to define the separate and coopera- spaces for their employees'children.The remaining twenty tive responsibilities of each sector,very often it is neces- spaces are for the children of other, smaller downtown sary to create a new organization to provide administra- businesses.The center cost$341,000 to develop,including tion and meet special needs. These entities are called in-kind donations. The sponsoring corporations were downtown management organizations.Downtown man- equal contributors for the start-up costs, as well as the agement organizations are commonly structured as either feasibility study. The $400,000 annual operating budget voluntary associations or as agencies established to over- for the center is sustained by tuition payments that range see a special assessment district. from$55 to$75 per child per week depending on the age of The special assessment district (SAD), sometimes the child. called a business improvement district(BID),is anorgani- In Richmond,Virginia,a coalition of business organ- zational and financial tool used by a group of merchants zations,churches,social service agencies,and the city was and property owners who, subject to city approval, use developed to assist people who live on the street. As a the city's power of revenue collection to assess themselves result, the Richmond Street Center was founded to serve for capital improvements or supplemental services. In meals and provide clothing assistance, showers, laundry most areas of the country,districts are permitted by state facilities, and overnight emergency shelter during the enabling legislation and some type of local ordinance, winter months. both of which must be sufficiently flexible to provide for alternate revenue sources and organizational structures. The resulting district, which is defined by its physical PUBLIC-PRIVATE VENTURES boundaries, operates with public authority, but usually has a degree of autonomy to coordinate and manage its All of these management strategies—public space, trans- own development. portation,retail,and social program management—have The opportunity to manage its own resources is the traditionally been the responsibility of either the private major advantage of the assessment district.Services can be sector or the public sector. However, many communities allocated to specific programs without involving a general are learning that governmental actions and entrepreneurial municipal tax levy.Also, the district does not have to be plans are not the only tools for revitalizing a community. constrained by compliance with state or city personnel, The key component of a successful management initiative purchasing, contracting, or financial regulations. This is the coordination and cooperation of multiple players allows for a considerable amount of freedom in respond- from both the public and private sectors.Business people ing to the immediate needs of retailers and the property understand that their interests are best served not through owners. dependence on government,but through organizing them- Funding for SAD services comes from a variety of selves and developing cooperative arrangements with the sources. The most common practice is to base the assess- public sector. While they are inherently competitive, ment on the value of the property as shown on the city's downtown merchants, property owners, and financial tax rolls. Acting as the agent for the management entity, and corporate leaders can agree that maximizing one's self the city adds the increment and collects the revenue.Other Downtown Management 5 feasible assessment methods include basing the assessment vertising,promote common hours,sponsor parking vali- on the proximity of the taxed property to the focal point of dation,and organize promotional events. Basic financing the district. For example, in Tulsa,Oklahoma the assess- comes in the form of dues or contributions,with additional ment is based on the square footage occupied, times the charges levied to fund improvements like maintenance in distance from the central mall.In Cleveland Heights,Ohio the common areas. the assessment formula is based on square footage occu- At the most basic levels, downtown management pied and tenent category. Assessments in proportion to associations provide for additional levels of security and gross sales,rents, or linear front footage are also used. maintenance for the downtown area, often contracting The second basic form of management organization with the city or a third party to provide services. Some- is the private voluntary association. Examples such as times these entities are focused only on a single service Merchants' Associations, Chamber of Commerce com- dimension, such as transportation. In other instances, mittees,or Boards of Trade,have taken the lead in imple- they carry out multiple initiatives such as security, main- menting activities which are now part of a comprehensive tenance, promotions, transportation, marketing, and downtown management program. They coordinate ad- cooperative planning. Comparison of Several Districts �. Annual District Funding Size City 'Population .'- 'Operating Budget Sources of District CHICAGO,JL 3,000,000+ $1,500,000 60%-CI1y 9 square blocks (State Street 30%—special District) assessments : 10%=4ranslt authority CUMBERLAND,'MD 25,000 ` $125,000 100%—'special 6 square blocks x,� � assessments DENVER,CO 491,000 $1,500,000 95%—special 68 square blocks assessments 5%--City FORT WORTH,TX 383,000 $662,000 96%—special 80 square blocks assessment 4%—parking& promotions HARTFORD,CT 136,000 $700,000 100%—corporate 320 acres and private contributions LAKELAND, FL 58,000 $113,000 100%—special 75 square blocks assessment MINNEAPOLIS,MN 371,000 $1,000,000 92%—special 12 square blocks assessment 25%—parking revenue NEW ORLEANS,LA 557,000 $3,400,000 100%—special 100 square blocks assessments SYRACUSE,NY 170,000 $400,000 75%—special 74 square blocks assessment 25%—parking TULSA,OK 361,000 $705,000 50%—special 222 square blocks assessment 40%--City �` 10%—fees b Management Information Service DEVELOPING A MUNICIPAL SERVICE DISTRICT and Board of Realtors).A five-member executive commit- tee provides day-today staff supervision. The following is a case study of one successful downtown management effort in Shelby, North Carolina. The city's Voluntary funding. Initial fundraising efforts gathered Municipal Service District was established in June 1985 $47,800 from the uptown business and property owners with the assistance of the Uptown Shelby Association,Inc. the first year. With yearly contributions of first $8,000 The district covers 22 square blocks in the downtown then$9,000 from the city of Shelby and a$25,000 operat- area, and has an annual budget of$75,000. Some of the ing surplus from only being staffed half of the first year, major services provided by the district include leasing, USA,Inc.sustained an annual operating budget of around sales recruitment, retention, marketing, events, small $60,000 per year. business assistance,and quasi-management activities.The In the summer of 1984,it became evident that the cash tax rate is 30c per$100,compared to the normal city rate reserve would be consumed and USA would have to find of 29¢per$100. additional sources of funding or cut back on its operation. A first attempt. On June 19, 1978, after recognizing the FIGURE 1-The Specific Objectives of the trend of program financing with special assessment dis- Uptown Shelby Association, Inc. tricts, the Shelby Downtown Improvement Corporation requested that a Municipal Service District (20c per$100 valuation)be created to support a full-time staff. On the The functions and responsibilities of downtown night of the required public hearing,the city council cham- management organizations can cover a wide bers overflowed with a hostile crowd, and the council range of activities.Usted below are the objec- rejected the request.Opinions of the reason for rejection fives for USA,Inc.of Shelby,North Carolina. vary,but usually center on the following: 1.To improve the,availability of basic retail • Too large a boundary.In an effort to keep the tax rate gds and to a minimum the district had been extended 4-5 2.To fully develop the educational;cultural, blocks into areas which had never considered them- and economic,potential of Shelby's historic selves as part of the central business district--strong commerciai buildings. opposition came from these areas. 3.To enlist the active interest and financial sup- • An unclear understanding of the goals,objectives,orportof individuals,firms,and corporations- ro osed activities of the new staff. particularly property owners and tenants P P located within the centrai business district. • No impending danger--two regional mall sites were 4.To Improve the quality of urban life by reduc- being contemplated but construction seemed years Ing urban blight,improving the physical, away. environmental,and business conditions. 5.To generate additional jobs In the Uptown After the failure of the district,the city funded and staffed Shelby area through the expansion of som- an economic development commission(EDC)in 1979.The mercial,office,and ancillary economic EDC's initial mission was downtown redevelopment,until developments. 1981 when a Main Street resource panel recognized that b.To increase city revenues by stabilizing the tax the private sector was not fully participating in the efforts, base,enhancing property values,and In- Their report recommended the creation of a private sector creasing retail safes in ou,ra e a area. po P � 7. To coordinate and encourage appropriate organization to coordinate the business community's devel- planning and land use practices within the opment activities. This recommendation resulted in the entire city area. creation of the Uptown Shelby Association,Inc.(USA)in 8.To advance,promote,and market the Indus- March 1982 (almost simultaneously with the ground- trial,commercial,business,economic,resi- breaking of a new regional mall).The EDC then assumed a dential,and civic development of Uptown city-wide economic and community development mis- Shelby. sion,leaving the downtown proponent and management 9.To provide a public relations program for the function to the USA, Inc. purpose of retaining presently existing busi- The Uptown Shelby Association, Inc.was chartered nesses and attracting new business. to enhance the economic vitality of the Shelby Central 10. To act as a real estate clearinghouse In order to match the needs of business ventures with Business District.The specific purposes of this nonprofit, the most appropriate structures available. 501(c)(3) corporation were many (see Figure 1). The 11. To collaborate and cooperate with public association is governed by a board of directors made up of and private agencies whose function may in 34 elected members in staggered three-year terms, and any manner relate to any of these objectives. seven members by position (city manager; county man- 12. To provide for a full-time management staff to ager;chairman of the appearance commission;chairman implement the goals and objectives of the of the economic development commission;and presidents corporation. of the Chamber of Commerce, Merchants Association, Downtown Management 7 Although pledges had been for a three-year period,contri- what an exceptional Uptown you have.All 300 of us can butions had fallen by$10,000 the second year, and board make history on June 3 when we decide to do, for our- members were constantly having to resolicit contribu- selves,what it takes to keep Uptown Shelby at the leading tions. In August 1984 a finance study committee recom- edge of prosperity, growth, and success...Uptown mended that funding continue on a voluntary basis. Shelby's greatest opportunity to preserve and enhance her In September and October 1984, a mid-year USA future lies before us this Monday evening, June 3rd.The (Uptown Stays Afloat) fundraising campaign called for time has come. I urge you to alter, change, or rearrange person-to-person, face-to-face contact with every person any plans that might prevent your coming to the 7:30 not pledging or contributing to USA.The concerted effort public hearing Monday night,and to stand proudly with regained around$8,500 but by December still only 134 of us as we state our case in the defense of Uptown Shelby's about 300 affected businesses and property owners had future:' agreed to contribute. All comments and complaints were monitored by the steering committee who immediately answered questions The campaign. In January 1985 the USA leadership reluc- or fielded complaints in-person.This quick response,usu- tantly accepted the special assessment district as the only ally with a calculation,in hand,showing the actual assess- way to obtain equitable,continuing funding.In lieu of an ment cost to the individual, quickly killed erroneous annual meeting, a "three-year celebration" had been rumors and misinformation. planned for March to focus attention on the Uptown area's The relatively successful track record of the uptown ability to hold its ground against the new mall's foray into effort, combined with its identification with the positive the marketplace. The entire uptown community was in- leadership of the community and tremendous additional vited to a box lunch program including slides, displays, endorsements by the media,made it easy for most people project announcements,and speaker;in the courtroom of to support it. Even an industrial supply business whose the old courthouse. It was decided not to announce the voluntary$1,000 contribution would become a$6,000 tax municipal service district proposal until after the celebra- assessment stayed supportive. A concrete plant on the tion. (The celebration, in fact, created a very positive fringe of the uptown,owned by an out-of-town corpora- "can-do" spirit and concentrated media attention which tion also came forward in support. would be useful later.) / Memories of the controversy over the failed district The public hearing—the vote. On June 3, 1985, the city l try seven years earlier were still fresh.Some of the leader- council chambers were again overflowing. This time the ship felt that a year-long orchestrated campaign should be supporters outnumbered opponents about five to one.As developed. The current chairman, unable to continue the planned, USA Chairman Hill Hudson made an eloquent traditional two-year term due to her health,was stepping introduction followed by other USA directors and an en- down.The vice chairman,although a strong supporter of dorsement from the Chamber of Commerce president. the municipal service district concept,did not feel council Then two unscheduled proponents stepped forward, a would pass the district,did not want his business to be per- respected owner of an accounting firm(a property owner sonally associated with a controversial failure,and there- not involved in the USA movement)and an entrepreneur fore, declined to become chairman. opening a new camera and video shop.The CPA said that Fortunately,Hill Hudson III,vice-president of a local, Shelby was a better place than it was before USA,and that family-owned department store and the founding chair- the effort was worth it, even if it cost him a few dollars man of the Association agreed to retake the point position more.The camera store owner stated very matter of factly and again become USAs champion. that he would not be opening his store in the uptown if it Rather than going through a year-long consensus had not been for the assistance of USA, Inc. building time,he pushed for a quick April-May campaign Opponents of the district criticized the USA executive leading toward a June adoption of the service district by committee's running of the organization and the failure of city council in time for the new July fiscal year.A steering the organization to communicate with all persons in the committee was established, and tasks were delegated. uptown area.They accused the organization of only serv- Information concerning the assessment district was ing the larger businesses and major property owners,and mailed to all property owners on April 5.The information that USA, Inc. was taking credit for everything positive packet began:'What you are about to read is probably the that had happened. They concluded that they were very most important letter you will ever receive concerning much in favor of a strong uptown economy,but felt that the future of your uptown Shelby business and/or prop- the assessment district decision should be postponed until erty.Take a few moments to absorb its contents;then take they had time to examine the USA books,phone bills,and a look around your uptown and make your decision about files to determine just what the organization had been the future direction YOU wish to see your uptown take, doing. Thank you." The council voted and unanimously supported the Follow-up letters arrived just prior to the official city creation of the municipal service district for a 3-year notice and public hearing.The letters read, in part: "Con- period. USA, Inc.immediately contracted with the city of tinue to support each other. Be positive in your conversa- Shelby to manage the downtown improvement activities. tions with those who are just now beginning to realize The funding raised by the district would be$59,01X1. The 8 Management Information Service Implementing a Downtown Management Program The following guidelines can be used to deter- 5. Establishing a new organization.The nature of mine community interest and to assess the the organization can be totally new,an expan- potential of downtown management initiatives. sion of an existing system,or a coalition of a number of organizations.In most Instances,it is i.Organizing for change.Organizing for change necessary to establish the organization as a Is a process of orienting key figures in the nonprofit body,pursuant to the requirements of community toward Joint problem solving of section 501(c)(6)or(c)(3)of the Internal Revenue downtown problems.Any plan for downtown Code.Contributions are then deductible to management must begin by including repro- business members as business expenses for tax sentation of all affected parties at the very start purposes. of the process to agree to work together to ex- plore management alternatives. 6.Financing.Financing a downtown manage- ment program usually takes one of three forms: 2. Educating local officials and the public.After special assessments,membership dues,or vol- agreeing on the range of problems amenable untary contributions.Where allowed by state to downtown management,civic leaders can enabling legislation,special assessment financ- begin the process of educating themselves Ing provides a stable and consistent source of and the public.Presentations from representa- funding.The cost of establishing a special tives of cities who have successfully launched assessment district is dependent on factors management programs is often most useful. such as: Organizing follow-up visits by a team from the local community provides an opportunity for • The size of the assessment area acquiring first-hand knowledge. • Physical improvement needs • Intensity of use in the improvement area 3.Developing a plan.The first step of the analysis • The service level desired process Is to analyze and document existing • The nature and scope of the improvement services,retail markets,transportation system plan capabilities,and financial and economic • The level of marketing and promotional resources.The fact-finding process can some- events. times be aided by a consultant or It can be done with local staff.The next step is to deter- Membership dues are often easier than assess- mine appropriate levels of service program- ments to solicit,but are much less stable.It is diffi- ming to help meet the basic needs.As a con- cult to raise large amounts of capital,particularly sequence of this analysis,a plan should emerge if businesses or corporations can contribute little to guide all of the decision making. and still receive the same services. If visible improvements are not immediately apparent,busi- 4.Deciding on new services.Providing a flexible nesses may decide that paying dues is not worth- response to an ever changing economic and while.As the most popular form of financing, social environment requires an informal plan- however,a dues system Is simple to administer ning mechanism to build consensus not only and it does not force compliance. on what can be,but also on what already Is.If Finally,contributions of both money and In- an Improved management structure for down- kind services are used to supplement or replace town is planned to supplement city services, a dues system.Banks,corporations,and founda- then there must be a cooperative agreement tions may support downtown organizations as on what is lacking in provided services and a philanthropy.For downtown-based contributors, how much it Is worth to improve these services. this can mean a tax-deductible donation while This usually requires some kind of consensus safeguarding a local Investment.Local service based on a decision making process,at least organizations can provide in-kind services to In the early stages.Sometimes a public vote reduce costs in certain programs,like office rental Is needed. or secretarial help. Downtown Management 9 city also increased its annual contribution to the organiza- report,more and more local governments are conducting tion to$15,000. public space, transportation, retail, and social manage- ment activities. Many have also established downtown Elements of success.In retrospect,several factors led to the management organizations to help them meet their ob- success of the Shelby effort. Among these were: jectives of making their downtown areas safer, more attractive, and more productive places to live,work,and • The city manager and city staff maintained a neutral conduct business. posture,ensuring that the council viewed the request as the business community asking for a self-imposed tax FOR FURTHER INFORMATION • The concentrated, short-term effort allowed for the marshalling and holding of support,while giving the The list below includes the names of contact people in- opposition little time to mobilize volved in downtown management programs across the • The support of the key leadership and power structure country. of the business and civic community • The care taken to ensure that the city council was Richard Bradley heavily lobbied prior to the public hearing President International Downtown Association • The system where all complaints, comments, and rumors were immediately followed-up by a personal ` 15th St., , Suite 900 visit from the steering committee Washington, shington, DDC C 20005 • A respected community leader with definite goals and 202/783-4963 objectives Dan Sweat • A strong, responsive proponent organization. Central Atlanta Progress, Inc. 2 Peachtree Street, N.W. The process.In 1973,the North Carolina General Assembly Lobby Suite approved the Municipal Service District Act which allows Atlanta, GA 30303 city councils to establish any number of service districts in 404/658_1877 order to finance downtown revitalization projects. The Sara Bode MSD enabling legislation allows considerable freedom to Greater State Street Council pursue downtown revitalization. Any activity or project that is designed to improve the economic well-being of the 36 South State Street downtown area and further the public health,safety,wel- Chicago, IL 60603 fare, and convenience is allowable. Further, the city may 312/782-9160 provide the service or contract with another private or john Benjamin public agency to provide the service. Three Rivers Development Foundation, Inc. Under the new legislation, passage of a Municipal Market at Centerway Service District requires: Corning, NY 14830 607/962-4963 1)A report containing: a map of the proposed district showing boundaries; a statement showing that the Jerry Goodwin proposed district is in need of services, facilities, Downtown Development Authority or functions to a greater extent than those provided Cumberland, MD for the entire city; and a plan providing the needed 301/722-2422 services. E. Larry Fonts 2)A notice of public hearing (published notice, one Central Dallas Association week prior; mailed notice four weeks prior.) 1507 Pacific Avenue, Suite 1310 3)A public hearing. Dallas, TX 75201 4)A majority vote of city council. 214/720-2232 Diana H. Boulter CONCLUSION The Denver Partnerships, Inc. 511 Sixteenth Street, Suite 200 Communities across the country are developing innova- Denver, CO 80202 tive ways to manage their downtown and major com- 303/534-6161 mercial areas.The intent of these efforts is to make these Katy Liske areas of the community more competitive for economic Denver Technological Center development and more attractive for its citizens. Some of 7887 East Belleview Avenue, Suite 1100 the most successful efforts are those that involve joint Englewood, CO 80111 public-private sector initiatives. As discussed in this 303/773-1700 10 Management Information Service Elaine Stewart Tom Kohler Eugene Development Department Downtown Development Board 72 West Broadway,Suite 200 120 South Orange Avenue Eugene, OR 97401 Orlando, FL 32801 i 503/687-5443 305/425-0534 Ken Umbehocker J. Randall Evans Downtown Business Association Richmond Renaissance, Inc. P.O. Box 962 600 East Broad Street, Suite 960 Fargo, ND 58107 Richmond, VA 23219 701/237-3721 804/644-0404 Kevin Walker Gregg Kevil Downtown Development Authority Downtown Development Authority City of Hutchinson 400 Edwards Street P.O. Box 1567 Shreveport, LA 71101 Hutchinson, KS 67504 318/222-7403 316/665-3727 Ed Ruesing William Hill Downtown St. Louis, Inc. Downtown Development Authority 705 Olive Bldg., Suite 815 I 2015 East Lemon Street, Suite 14 St. Louis, MO 63101 Lakeland, FL 33801 314/621-5747 813/687-8910 Jane Joukovsky Carol Jess Downtown Committee of Syracuse, Inc. Downtown Lincoln Association 1900 State Tower Bldg. 1221 N Street, Suite 110 Syracuse, NY 13202 Lincoln, NE 68508 315/422-8284 402/474-5500 Ann Jenkins John Dudas Florida Downtown Development Association Center City Commission P.O. Box 1757 Jefferson Plaza, Suite 1001 Tallahassee, FL 32302 147 Jefferson Avenue 904/222-9684 Memphis,TN 38103 Bill Fountain 901/526-6840 Downtown Tulsa Unlimited, Inc. Roy Kenzie 6 East 5th Street, Suite 200 Downtown Development Authority Tulsa, OK 74103 of the City of Miami 918/583-2617 One Biscayne Tower, Suite 2099 Miami, FL 33131 305/579-6675 Jerry Moomau Downtown Development District 301 Camp Street New Orleans, LA 70130 504/561-8927 Management Information Service Volume 19 l Number 5 Downtown Management: May 1987 An Economic Development Strategy WORK TEAM CITY CENTER PLAN TASK FORCE Steering Committee Council Liaison J0LYN0 ASH VALERIE JOHNSON 11175 SW 0ovmre Pl . 12265 SW Walnut Tigard, OR 07223 Tigard, OR 07222 Ren: 639-3784 Res: 020-9423 Bus: 604-2537 Bus : 295-2843 STUART K. C0HEN, Chair-man 14275 SW 125th Chamber of Commerce Tigard, OR 07224 Res : 639-4705 PEGGY WEST00 BYRD' Executive Director Bus: 222-5510 Mail c/o: 12420 SW Main St. JERRY C0URS0LLE Tigard, OR 97223 12215 SW Summer Bus: 639 1656 Tigard' OR 07223 Ren : 028-8831 Economic Development Committee CHRIS DEFFEBDINC 12245 SW Summer JOHN SAVORY Tigard, OR 97228 Mail c/o: Res: 639-3785 12245 SW Main St. Bus: 222-1687 Tigard, OR 97223 Bus: 020-3179 PAM JUAREZ Rex : 1-829-2686 Mail : c/o Washington Federal S/L Bank 12260 SW Main Tigard, OR 97223 Res : 644-0089 Bus: 630-1163 R. MICHAEL MARR, Vice—Chairman 14446 SW 87th Court Tigard, OR 97224 Res : 620-2372 Buy : 039-1056 DONALD H. PZNKERT0N 15355 SW Alderbrnuk Cir. Tigard' OR 97224 Res : 620-2405 Staff BILI M0NAHAN, Community Development Diroctor, 630-4171, Ext. 322 ELIZABETH NEWTON, Senior Planner, 639-4171, Ext. 317 DUANE ROBERTS, Administrative Planner 639-4171' Ext. 347 DR:cn/3105P/0022P CITY OF TIGA RD OREGON June 30, 1987 25 Years of Service 1961-1986 Dear This letter is to summarize and expand on our telephone conversation of June As I mentioned, in May of this year the Tigard City Council appointed a seven member Central City Planning Committee to develop a plan for the revitalization of the downtown area. As a starting point, the committee has defined the boundaries of the study area to include a 188 acre area consisting of mixed commercial retail, office, multi-family, mobile home, and light industrial development, with many undeveloped and underdeveloped parcels interspersed throughout. An existing land use map and two other maps showing this area are enclosed. This month the committee has developed a work program that defines several key tasks. One of the earliest of these is to pursue a market study using the services of a private consultant. The timetable set by the work program calls for the preparation of a formal request for proposals sometime in August and for the selection of a consultant sometime in September, with the completion of a report anticipated in November. As set forth in the committee's goal statement, the market study would focus on the economic potential of the Tigard downtown area for retail, professional, light industrial, and residential development. The study would analyze the existing and projected demand and supply for these uses within the market area and would identify the specific kinds of development the City should try to attract. With regard to the data required for the study, I noted that the Planning Department has assembled a considerable amount of pertinent demographic and economic information. This information includes detailed tables on population and employment; income and age groups; education; retail, industrial, and market absorption; building and investment activity; leasable properties; and various other features and attributes of the City and surrounding area. In addition, City employees have compiled basic data and information on land use within the Tigard downtown area. This includes, most importantly, a series of individual data sheets listing various facts and statistics on each of the 167 tax lots that make up the downtown study area. 13125 SW Hall Blvd.,P,O,Box 23397,Tigard,Oregon 97223 (503)639-4171 Market Study June 29, 1987 Page 2 As we discussed, my reason for calling and writing is, first, to check on your interest and availability; second, to prevail upon you to provide us with a tentative estimate of what you would charge to prepare a market study covering the preliminary scope of work described above -- in other words, to provide a "typical" cost estimate. As I attempted to explain, the reason for making this request is that, as a practical matter, the Committee needs information on estimated cost in order to request funding from the City Council. It is understood that any estimate provided would in no way be viewed as an offer to provide services at a predetermined fee. As another favor, if possible, we would appreciate receiving a copy or summary of a previous market study you may have done that focused on the specialized problems and opportunities of a downtown area. This information would aid the committee and staff in preparing a more specific request for proposals. Thank you for whatever help you can provide. It is very much appreciated. We look forward to sending you a copy of the completed request for proposals at the appropriate time. Cordially, Duane Roberts Administrative Planner DR:ir/1903W HOBSON AND ASSOCIATES RESEARCH TRAC INC ATTN: ERIC TINUS ATTN: SHAUN O'REILLY 813 SW ALDER 4135 NW ROCK CREEK BLVD. PORTLAND, OR 97205 PORTLAND, OR 97229 LUND MANAGEMENT AND MARKETING PIHAS SCHMIDT WESTERDAHL CO SERVICE INC ATTN: MELANINE SEIVERS ATTN: MR ERIC LUND 319 SW WASHINGTON 15315 SW BULL MOUNTAIN ROAD PORTLAND, OR 97204 TIGARD, OR 97223 INTERCEPT RESEARCH CORPORATION DECISION SCIENCES INC ATTN: DEAN BOLEN ATTN: ADAM DAVIS 10175 SW BARBUR BLVD. 1084 SW 6TH AVE PORTLAND, OR 97035 PORTLAND, OR 97201 MARKET DECISIONS CORPORATION PORTLAND STATE UNIVERSITY ATTN: DOUG VARIGAN SCHOOL OF BUSINESS ADMIN 8959 SW BARBUR BLVD. ATTN: PROFEEOR VIRGIL MILLER PORTLAND, OR 97219 PO BOX 751 PORTLAND, OR 97207 LYN MUSOLF AND ASSOCIATES REGION WEST RESEARCH CONSULTANTS ATTN: LYN MUSOLF ATTN: VICKI PFLAUMER 534 SW THIRD SUITE 711 520 SW 6TH SUITE 1107 PORTLAND, OR 97204 PORTLAND, OR 97204 GRIFFIN AND CO KEYSER - MARSTON ASSOC. ATTN: JERARD GRIFFIN ATTN: KATE FUNK 1500 SW1ST 55 PACIFIC AVE. MALL PORTLAND, OR 97204 SAN FRANCISCO, CA 9411 COLUMBIA INFORMATION SYSTEMS OREGON STATE UNVERSITY ATTN: MIKE LEHMAN & MIKE MALONE COLLEGE OF BUSINESS 333 SW• 5TH MARKETING DEPT. PORTLAND, OR 97204 ATTN: BILL BECKER CORVALLIS, OR 97331 NORTHWEST STRATEGIES GRIGGS - ANDERSON ATTN: LEN BERGSTEIN ATTN: CHARLES MCNEILLY 621 SW MORRISON 5200 SW MACADAM SUITE 200 PORTLAND, OR 97204 PORTLAND, OR 972CI BARSLEY & HASLACHER ATTN: DALLAS HARDISON 111 SW FRONT PORTLAND, OR 97204 MARTECH ASSOC. ATTN: DOUG BENNET 707 SW WASH ST SUITE 918 PORTLAND, OR 97205 CHAPTER 22 DOWNTOWN MARKET STUDIES INTRODUCTION The Benefits of New Development in the CBD Potential gains from new development in the central business district are more than just new buildings, jobs, and tax revenues. New downtown development can be considered as a source of new energy and vitality for the CBD for at least three reasons. First, because of its potential for attacting workers into the CBD, creating employee purchasing power, and serving as a CBD amenity, new development can serve as a building block for still more growth. Second, new development can cause a chain reaction that leads to a general upgrading of the inventory of commercial facilities in the CBD. The creation of new retail or office space can result in the most deteriorated and obsolete spaces coming off the market, since, due to steadily increasing vacancy rates, they will become uneconomical to operate. Meanwhile, because of increased competition, the owners of those older facilities which are in relatively better .shape would be encouraged to renovate and modernize to offer good quality space and retain existing tenants.1 Third, new retail and office space in the CBD may create additional demands on the part of existing downtown tenants who are currently occupying less space than they might use if additional conveniently located space were available to them. Thus, the construction of new office and retail facilities may induce tenant expansion not only in the new buildings, but also in the older buildings as additional space becomes available. The Problem of New Development Most downtown business communities would like some type of new develop- ment to come into their area. Many soon realize, however, that to expect it is simply not practical. The demand for new development--not only in central business districts but in other areas as well--is enormous. Under normal circumstances, outlying areas are more attractive to a potential developer; land costs are lower, population growth is greater, and there are few problems of blight and congestion. Even if a downtown business community can put together an adequate parcel of land for development, it may have to upgrade the rest of the CBD to convince a developer of the merit of building there. This is why it is so important to thoroughtly explore the feasibility 1 Real Estate Research Corporation, Economic and Market Analysis Morris, Illinois (Chicago, 1968) P. 17. 22-1 and design of the project itself, to investigate the potential of zoning and other methods for guiding development, and to consider the other tech- niques for CBD improvement outlined in this manual. The problems inherent in any new development include those of trans- portation access, on-site circulation of cars and people, interrelationships of different properties, building and site design, and- promotion. The ulti- mate success of the project will depend in no small measure on the care with which these and other considerations are addressed. At one time just the developer and a small staff might have been able to deal with all facets of a project. However, this is no longer the case. With stronger competition among retail and office centers, plus the complications of high construction costs and tightened financing, development is now a very technical operation. The combined services of a team of experts are normally required, including those of market analysts, architects, land use planners, transportation planners, engineers, realtors, financing specialists, and the developer. Even with such expertise, however, success is never completely assured, given the uncertainties in construction, financing, transportation, and peoples' buying habits. These uncertainties only serve to underline the necessity of planning a retail, office, or housing development carefully and thoroughly. The Role of a Market Analysis A community which feels that its CBD can successfully absorb new development but needs supportive documentation will often find that a complete analysis of its downtown development potential is necessary. Such a "market analysis" might assess the potentials for additional retail, office, and other commercial facili- ties; for hotels and multifamily housing; and even for a convention center. Depending on the size and scope of the study, and who does it, the cost of having a market analysis prepared can be substantial. However, it will be a worthwhile expenditure of community funds if it will provide the necessary assurances to potential developers, financiers, and businesses. To give the reader a general understanding of market analysis methods, the next few pages will be devoted to describing two components of a downtown market study--those dealing with retail and office potential. Following this will be a brief discussion of land and building space requirements of new development. RETAIL MARKET ANALYSIS The main purpose of a downtown retail market analysis is to measure the CBD's retail sales potential. This information can be used to develop plans for providing additional stores or expanding existing ones; for attracting new businesses into the CBD; or for making more effective use of existing space by compacting the CBD-'s shopping area where the market study suggests that vacant or underutilized space is likely to remain so. Any plans for new retail development downtown should be founded on positive results from a market study. Even if no new development is contemplated, such a study can help you make better use of existing buildings. For example, the market 22-2 study may suggest some additional types of stores that would probably do well in the central business district. You can capitalize on this knowledge by actively seeking out--and persuading--particular local, regional, and national retailers to take over space which is currently available downtown. If the market analysis should reveal that, overall, you have more space in sound downtown buildings than you need for retail functions, try to fill this excess space with non-retail uses which--through their employees, patrons, or residents--will be particularly strong in generating additional potential customers for downtown stores. Included among such uses are restaurants, libraries, government offices, community centers, medical and business offices, business services, and housing. A retail market analysis commonly involves the following general pro- cedures: delineation of the CBD's trade area; measurement of current and future retail expenditures by trade area residents; estimation of the share of these future expenditures which can be expected to accrue to the central business district; and a determination of what additional retail facilities (if any) will be needed in the CBD to capture these retail expenditures. For the purposes of this chapter, these procedures have been organized into six stages, as shown in Figure 22-1. Figure 22-1 Retail Market Study Outline Stage 1 Define the CBD Retail Trade Area Stage 2 Identify Trade Area Zones Stage 3 Measure 1972 Per Capita Retail Expendi- tures in the Trade Zones Stage 4 Forecast Retail Expenditures Stage 5 Estimate the CBD's Share of Future Retail Expentitures in the Trade Area Stage 6 Determine Floor Area Requirements STAGE 1: Define the CBD Retail Trade Area The first step is to determine the overall market area limits for the retail facilities located in the central business district. The market area is that area from which downtown retail establishments can expect to receive 80 to 90 percent of their business. It is determined by the distance which shoppers are willing to travel to make various kinds of purchases on a daily, weekly, or irregular basis. In arriving at a determination of the market area limits, the market analyst should consider a variety of factors, including: the size and other physical characteristics of the CBD; the location of nearby retail centers and business districts; shopper loyalty to individual merchants in the CBD; ease of access and parking; .the existence of physical barriers (such as rivers, railroads, and lakes) which would inhibit shoppers frequenting the CBD; changes over time in the CBD's sales volume in comparison with the performance of competing centers; and other factors having an effect on where people shop. 22-3 A number of methods and techniques of trade area delineation exist. While any one of these methods used alone will yield an estimated retail trade area, the use of more than one method concurrently--and comparing the results obtained from each--will yield more reliable information. It is also important that the results of such analyses be viewed in the light of those factors listed in the preceding paragraph to help assure that all of the peculiarities of each situation are considered. Any or all of the following methods may be used in determining a central business district's retail trade area. Classification of the CBD as a Retail Center --- Many market analysts will classify the center under study according to its size and the range of goods and services it offers. Table 22-1 shows one such system of classi- fication which is widely used. According to it, all retail facilities in the united States--both shopp�ng centers and older business districts-- can be classified as either regional, community, or neighborhood centers. Not only does this classification say something about the size of the center, but also it says something about the size of the area the center serves. Table 22-1 includes a number of trade area characteristics which are normally attributed to these three types of centers. This classification of retail centers is based, to a certain extent, on the kinds of goods and services offered. For its purposes, goods and services are grouped into two general categories, convenience goods and comparison goods: Convenience goods are merchandise of daily consumption and purchase, such as food and drugstore items. Also included in this category are eating and drinking establishments. Comparisonog ods are merchandise subject to longer term con- sumption as opposed to daily consumption and are usually found in centers serving city rather than neighborhood trading areas. Examples include apparel and related soft goods, furniture and applicances, and "specialities" such as jewelry and stationery. The smallest CBD's and shopping centers will boast only the most basic range of goods and services--those "convenience goods" needed on a day-to- day basis by people who live in close proximity to the center. As centers become larger and broaden their trading area,they must offer a broader range of goods and services to attract patrons from a greater distance for their weekly or even less frequent purchases, i.e. , "comparison goods." These variations in the selection of goods and services suggest the three basic levels of shopping center/business district: neighborhood center, community center, and regional center. The title "regional center" is reserved for a few of the larger new shopping centers being built throughout the state, as well as for a few of Illinois' central business districts. The major tenant, or "anchor," of such a retail facility or area is a full-line department store such as 22-4 Table 22-1: Major Types of Retail Centers NEIGHBORHOOD COMMUNITY REGIONAL CENTER CENTER CENTER GROSS LEASABLE RETAIL FLOOR AREA 20,000 100,000 500,000 100,000 sq.ft. 300,000 sq.ft. 1,000,000 sq. ft. TYPES OF GOODS AND SERVICES OFFERED Convenience Comparison Comparison MAIN TENANT Supermarket Junior De- Full-line partment Department Store or Dis- Store(s) count Store OTHER STORES AND SERVICES Small variety Clothing and Other types of store, service specialty stores are stores, drug- stores, hard- similar to those stores, banks, ware stores, in a community cleaners, appliance center, but in beauty shops, store, shoe greater quantity other daily stores, plus for comparison services those facil- shopping ities in a neighborhood center PRIMARY ZONE Yes Yes Yes Usually serves a population of 5000 to to 40,000 and in urban areas has a radius of from 1/2 to 1 1/2 miles (the distance can be much greater in rural areas). Includes close-by walk-in shoppers (such as CBD workers who shop on their lunch hours) and nearby resi- dents who come to shop for convenience goods like drugs and groceries. The CBD is the primary source of conveni- ence goods for the residents of the primary zone. SECONDARY ZONE No Yes Yes Contains convenience goods stores nearer to its residents than the CBD, however it lacks comparison goods stores (department stores, clothing stores, etc.) In this zone, there- fore, the CBD serves those people who have no more convenient source of comparison goods. In urban areas, the secondary zone often has a radius of from 2 to 5 miles, with a normal maxi- mum travel time of 15 to 20 minutes. TERTIARY ZONE No No Yes Serves people who live (in urban areas) from 5 to 20 miles away from the CBD and who are attracted there even though there may be a more convenient place to obtain comparison goads. Only a regional shopping center or a CBD with comparable facilities will have a tertiary trade area. The possible reasons for such a center's drawing power include ease of access, greater parking facilities, and, most important, selection of merchandise. 22-5 FIGURE � -- ' THE TRADE AREA QF A CENTRAL BUSINE5S DISTRICT WHICH SERVES AS • - �►1 J/ . . . A REGIONAL. CENTER, . I TERTIARY L � NaR� Y •, ,, PR l A A RY ACOMMUNITY ' CENTER \% S kora v7A'l P - * - A NE16H ORt1OOD p GARY CEN'rER I`' R MARY C.B.D. i 4 22-6 Sears, Carson Pirie Scott, Marshall Field, or Montgomery Ward. A "community center," on the other hand, is anchored by a junior department store or discount store, while a neighborhood center is commonly centered around a supermarket or other food store. There are, of course, other factors and characteristics to distinguish the three levels of retail centers, as shown in Table 22-1. Among these differences are the important ones of market outreach (as illustrated in Figure 22-2) . Survey Methods -- If one can determine the residence of the customers who patronize businesses in the central business district, as well as those who patronize competing centers, trade areas for both individual establish- ments and the CBD as a whole can be delineated. There are at least five common methods of doing this. (The first two are perhaps the most common methods of trade area delineation.) (1) Many stores have either formal or informal charge accounts which can serve as an excellent source of information regarding the place of residence of regular customers. (2) The license plates of cars parked in the central business district can be checked to determine the place of residence of the car owners. Care should be exercised to assure that the cars are in the CBD for shopping rather than employment. (3) Customers can be surveyed in the CBD to determine where they live, what stores they patronize and for what purposes, and some of their shopping habits. With information such as this, the analyst can piece together a picture of the behavior of shoppers throughout the trade area. To obtain this information, it will be necessary to interview customers at key businesses throughout the central business district. A more complete picture can be obtained by also interviewing customers at competing centers. (4) People throughout the area may also be interviewed at their homes--either in person or by phone--to determine where, when, and how they shop. (5) A fifth method is to interview merchants in the CBD, asking them where most of their customers live and what they think is the maximum extent of their market area. Merchants who have been doing business in a community for a long time often know a great deal about their customers and their shopping habits. Reilly's Law of Retail Gravitation -- In 1929, a professor at the University of Texas advanced a theory that two towns will attract trade from any intermediate point in direct proportion to the population of the respective towns and in inverse proportion to the square of the distance that the intermediate point is from either town. "Reilly's Law" was ex- pressed in terms of the following formula: 22-7 The trade area boundary between Miles between A and B two centers, A = and B, is, in Size of A Miles from B 1 + Size of B Through the years, this theory has been altered and adapted, and it has become a favored technique for measuring the breaking point in the gravitational pull of two competing retail centers. By replacing the population factors in the above formula with the retail centers' size (expressed in terms of annual sales, floor area, or range of stores and services), and by replacing distance with driving time, market analysts have developed a relatively easy method of calculating the market areas of two competing centers. For example, the following is an application of Reilly's Law, using the number of stores in the centers as a measure of their attractiveness: Distance between centers = 36 miles 36 = 17.8 miles Size of A = 92 stores (the distance from Size of B = 90 stores 1 +f-92 90 Center B to the trade area boundary) While there are weaknesses with this technique (as with any method) , its general reliability has been demonstrated over the years. Adaptations of "Reilly's Law" are, therefore, commonly used in determining retail market areas. Inventory of Competing Retail Facilities -- An essential consideration in determining a CBD's retail trade area is the effect of competing shopping centers, other CBD's, and free-standing major general merchandise stores. The opposing "pull" of these other retail facilities will have to be eval- uated in determining the following: the outside boundaries of the central business district's trade area; the different zones of influence within the trade area; and the share of the retail expenditures within this trade j area that will go to the CBD, as opposed to other centers and stores. The tables on the following page demonstrate the kinds of inventories that are necessary and the kinds of information that should be gathered for both the CBD and competing retail facilities. i STAGE 2: Identify Trade Area Zones Within the trade area of a retail center, the strongest influence will jbe exerted closest to the site. This influence diminishes gradually as distance from the center increases. To take account of this tendency, the trade areas of central business districts usually are divided into different zones of influence which reflect both the frequency with which the residents of the zones can be expected to patronize the CBD and the kinds of purchases they can be expected to make. The need for dividing the trade area into zones increases in importance as the trade area increases in size. 22-8 Table 22-2: Inventory of Retail Facilities in Anytown Illinois, Trade Area ANYTOWN CBD Comparison Facilities Dept. Variety/ Apparel/ Furniture/- Other Com- Total Com- - Store Gen.Merch. Accessories Appliances parison Goods parison Goods Estimated Floor Area in Square Feet 45,100 23,400 14,000 17,800 34,400 134,700 Estimated Sales in Thousands $ 2,400 700 768. 510 1,420 $ 5,798 ANYTOWN CBD Convenience Facilities Food Drug Hardware Liquor Total Store Store Store Store Convenience Estimated Floor Area in Square Feet 2,500 7,000 2,000 ----- 11,500 Estimated Sales in Thousands $ 245 549 101 ----- $ 895 , COMPETING COMPARISON FACILITIES Estimated Gross Sq. Ft. of Floor Area Dept. Variety/ Apparel/ Furniture/ Other Com- Total Com- Shopping Location Store Gen.Merch. Accessories Appliances parison Goods parison Goods CBD #1 75,000 20,000 33,000 61,000 10,000 199,000 CBD-#2 350,000 31,000 79,000 100,000 23,000 583,000 Northtown Plaza -- 42,000 25,000 29,000 32,000 128,000 Westside Plaza 227,000 9,000 31,000 24,000 14,000 105,000 Wickes -- -- -- 48,000 -- 48,000 Riverside Village -- 19,000 17,000 8,000 3,000 47,000 Shoprite Center -- 28,000 18,000 57,000 7,000 110,000 K-Mart 90,000 -- -- -- 90,000 1,197,000 149,000 203,000 377,000 89,000 2,015,000 Estimated Annual Sales Capacity (in thousands of dollars) Dept. Variety/ Apparel/ Furniture/ Other Com- Total Com- Shopping Location Store Gen.Merch. Accessories Appliances parison Goods parison Goods CBD O1 $ 5,250 891 2,138 2,948 611 $ 11,838 CBD 02 24,500 1,397 4,755 4,989 1,407 37,048 Northtown Plaza -- 805 1,529 1,456 1,923 7,429 Westside Plaza 1,716 405 1,863 1,185 828 5,997 Wickes -- -- -- 2,421 -- 2,421 Riverside Village -- 424 996 400 189 2,009 Shoprite Center -- 1,238 1,053 2,868 441 5,600 K-Mart 6,300 -- -- -- 6,300 $83,790 5,160 12,334 18,779 5,399 $125,462 COMPETING CONVENIENCE FACILITIES Estimated Gross So. Ft. of Floor Area Food Drug Hardware Liquor Total Shopping Location Store Store Store Store Convenience Shoprite Center 49,000 15,000 -- -- 64,000 12th St/7th-16th Ave. 2,000 6,000 2,000 4,000 14,000 21st St/20-23rd Ave. 12,000 -- 1.500 10,000 23,500 63,000 21,000 3,500 14,000 101,000 Estimated Annual Sales Capacity (in thousands of dollars) Food Drug Hardware Liquor Total Shopping Location Store Store Store Store Convenience Shoprite Center 6,100 1,091 -- -- 7,191 12th St/7th-16th Ave. 248 462 176 158 1,044 21st St/20-23rd Ave. 1,556 -- 466 126 2,148 7,904 1,553 642 284 10,383 22-9 SUN VALLEY DRIVE J, Q0 ti l !I Q 1 � —r--� SHERIDAN RD. —1J-L.LLI ILL III- < I Z o yo F � m w x � Q , Z ly O ' J 2 / tl(S GLEN DALE LANE 9 111t ttr c.s�. 10 < r C W ' O T ev V s COUNT 0.Y CLUB PIKE W ' d f 4 q F O N .-y COUNTY LINE ROAD R FTA f L FACILITIES ANYTOWN, !LLINOIS �> TRADE AREA . tr_s C\{ j p C BD # I I © C B D N2 PRIMARY / © NORTHTOWN PLAZA IIIII IIIIII N■ TRADE AREA I GRAPHIC /_ .� SCALE ® WESTSIDE PLAZA © WICKES SECONDARY 0l _r95y;�'OcO RIVERSIDE VILLAGE -- TRADE AREA '— ILLINOIS DEPT. OF LOCAL GOVT AFFAIRS n I SHOPRITE CENTER I —OFF/CE OF RESEARCH It PLANNING— ®K-MART CHICAGO ® 12"-'ST.fr 7t"--16"� AVENUE Ff 10 Zlss 5T. 20 -23"?AVENUE GFIELD� C= MARION V 22-10 No single method of designating zones of influence has been agreed upon by market analysts. Some analysts use only two zones of influence-- primary and secondary--even for the largest centers. Others use three zones of influence: primary, secondary, and tertiary. The number of zones of influence which a trade area is divided into is not, however, of critical importance from the standpoint of an accurate market analysis. What is critical is the manner in which percentages of retail expenditures in each of the zones of influence are assigned to the CBD and its competitors (this is done later, in Stage 5) . Regardless of the number, size, shape, and location of the zones of influence within the CBD's trade area, these percentages must be realistic in terms of the location and composition of competing retail facilities situated within and near the trade area. For purposes of this chapter, we will use a system of three zones of influence, as depicted in Figure 22-2. The characteristics of these three zones are described in Table 22-1. It should be noted that, under this system, for a neighborhood-sized center, no breakdown of the trade area is necessary; that for a community center, the first two zones apply; and that for a regional-sized center, all three zones would be used.l In delineating the zones of influence (using this or any other system) , it is important that the inventory of competing retail facilities--as described in Stage 1-- be considered. STAGE 3: Measure 1972 Per Capita Retail Expenditures in the Trade Zones Once the boundaries of the market area and the various zones have been defined, the population residing in them can be determined on the basis of U.S. Bureau of Census data (see footnote on page 22-13) . Coupled with income data from the census, these population figures can be translated into estimated per capita annual expenditures for the population residing in the market area. These figures can be expressed both in general terms and in terms of different types of retail sales categories , such as department store, food, and drugs. These estimated expenditures are important in that they represent the level of per capita expenditures potentially available to the CBD and to competing centers. The following three st os will yield the 1972 per capita retail expenditures of the populations residing in each trade zone. 1"Anytown" Central Business District, the mythical Illinois CBD used as an example throughout this chapter, is assumed to serve as a "community" retail center and, therefore, to have the characteristics attributed to such centers in Table 22-1. For this reason, in all of the sample com- putations given in the remainder of the chapter, it is assumed that the CBD under study has two zones of influence: primary and secondary. 22-11 Step A PURPOSE: To determine county per capita retail expenditures (1972) by major retail categories. METHOD: For each retail sales category to be measured, divide county total retail expenditures (1972) by county population (1970, or 1972 if estimate is made).1 This yields the 1972 level of per capita retail expenditures in the county, shown below for the major retail categories. EXAMPLE: County 1972 Per Capita Comparison Goods Expenditures Department Stores $249 Variety and Other General Merchandise (OGM) 69 Apparel/Accessories 123 Furniture/Applicances 113 Other Comparison Goods 101 TOTAL $655 Convenience Goods Food $431 Drugs 83 Hardware 22 Liquor 38 TOTAL $574 1For county retail expenditures, see U. S. Bureau of Census, Census of Retail Trade, 1972, Area Series: Illinois, RC72-A-14 (Washington: U. S. Government Printing Office, 1975) . For county population, see U. S. Bureau of Census, Census of Population, 1970, General Social and Economic Character- istics: Illinois (Washington: U. S. Government Printing Office, 1972) . Additional information on sales and store composition for major shopping centers and business districts (in metropolitan areas only) is contained in U. S. Bureau of Census, Census of Retail Trade, 1972, Retail Trade: Major Retail Centers Illinois, RC72-C-14 (Washington: U. S. Government Printing Office, 1975) . 22-12 Step B PURPOSE: To determine the "Income Index" for each trade area zone. This index (the trade area zone's mean family income as a percentage of the county's) relates county per capita retail expenditures to those of the trade area. METHOD: 1. Determine the mean family income for the county, 1970. 2. Determine the mean family income for the trade area zones (on the basis of 1970 census tract information) .1 3. Determine each trade zone's mean family income as a percentage of the county's. The result is the Income Index. EXAMPLE: Mean Family As a % of Income Income the County's Index County $ 11,888 100.0 1.00 Primary Zone 11,627 97.9 .979 Secondary Zone 10,313 86.6 .866 Step C PURPOSE: To use the Income Index to determine the per capita expenditures in the trade zones. METHOD: For each retail sales category, multiply the county per capita retail expenditure level (determined in Step A) by the income index for each trade zone (determined in Step B) . 1For each census tract, one would find the mean family income for 1970. These figures for each of the tracts lying in the trade zone would then be added together and then averaged to determine the zone's mean family income. This process could understandably be made easier in those cases in which an entire municipality lay within a trade zone, making it possible to retrieve income figures on the basis of the total municipality without having to do it tract by tract. It should be noted, however, that population and mean family income information is published by census tracts only for Standard Statistical Metropolitan Areas (SMSA's) . It is found in a separate report for each of 22-13 ,!1 EXAMPLE: County Per Primary Secondary Capita Primary Zone Per Secondary Zone Per Retail Zone Capita Re- Zone Capita Re- Expenditures, Income tail Expend. Income tail Expend. 1972 Index 1972 Index 1972 COMPARISON GOODS Department Stores $ 249 .979 $ 246 .866 $ 229 Variety and Other General Merchandise 69 ft68 if 64 Apparel/Accessories 123 if121 111 Furniture/Applicances 113 if 112 " 103 Other Comparison Goods 101 if99 93 TOTAL $ 655 it $ 646 $ 600 CONVENIENCE GOODS Food $ 431 if $ 427 --- Drugs 83 It82 --- Hardware 22 " 22 --- Liquor 38 " 38 --- TOTAL $ 574 " $ 569 --- the following Illinois metropolitan areas: Bloomington-Normal, Champaign-Urbana, Chicago, Davenport-Rock Island-Moline, Decatur, Peoria, Rockford, St. Louis, and Springfield. The citation for this series of reports (available from the U.S. Department of Commerce Field Office in Chicago or from the U.S. Government Printing Office) is: U.S. Bureau of Census, Census of Population and Housing: 1970, Census Tracts. Final Report: (Name) Ill. SMSA. Outside of SMSA's, the information is generally published only in the following breakdowns: (1) entire counties (2) "places" with population of 2500 or more (usually municipalities). This information is contained in the following report: 22-14 STAGE 4: Forecast Retail Expenditures A CBD retail trade area study performed in 1975 might logically contain retail expenditure projections for the following years: 1978, 1980, 1985, and 1990. The significance of the year 1978 is that any new shopping development which results from the study would probably not have a full year of operation before 1978. In addition, new retail space normally takes at least two years before it reaches its "stabilized volume," hence the year 1980. The years 1985 and 1990 are included to provide a more distant picture of the CBD's future market and to provide a basis for judging the extent of possible later retail expansion in the central business district. The following three steps are involved in making those forecasts. Step A PURPOSE: To make population projections for the trade area zones. METHOD: Determine the average annual increase in population from 1960 to 1970 in each of the zones. Add this increment of population for each year throughout the period to be forecasted. EXAMPLE: RESIDENT POPULATION AVERAGE PROJECTED RESIDENT LEVELS ANNUAL POPULATION LEVELS 1960 1970 INCREASE 1975 1978 1980 1985 1990 rimary Zone 29,210 33,640 443 35,855 37,184 38.070 40,285 42,500 Secondary Zone 21,24021,860 62 22,170 22,356 22,480 22,790 23,100 OTAL TRADE AREA 40,450 55,500 505 58,025 59,540 60,550 63,075 65,600 U.S. Bureau of the Census, Census of Population: 1970 General Social and Economic Characteristics: Illinois (Washington: U.S. Government Printing Office, 1972) $3.75 More detailed breakdowns may be available from your local library system. There are 19 such library systems in Illinois (their names and addresses are listed in Appendix 0) . Otherwise, microfiche census tract information can be obtained from: Illinois State Library Centennial Building Springfield, IL 62756 (217) 782-5430 22-15 Step PURPOSE: To make projections of per capita retail expenditures in the trade area zones. METHOD: In Stage 3, the per capita retail expenditures in the trade zones were determined. It now becomes necessary to forecast these personal expenditure levels into the future. Accurate projections of these figures require an understanding of both national and local trends. It is commonly assumed that, overall, comparison goodsl expendi- tures in the United States increase at a rate of 2% a year (compounded--over five years, the increase is a total of 10%) .2 Convenience goods expenditures are assumed to increase at a rate of 1.5% a year. These figures can be used to forecast the total comparison goods and convenience goods expenditures in a trade zone. Individual sales categories do not experience increases at the same rates, however. For example, department stores` share of comparison goods sales has been increasing in recent years. Variety and other general merchandise stores' share of this same market has been decreasing over the same period. Therefore, whereas comparison goods sales may be increasing at a 2% annual rate in a region, department store sales may be increasing at a 5% rate, while variety store sales may increase only negligibly. Accurate projections of these sales categories, therefore, require the following: (1) an assessment of past and current retail sales trends in the local area and (2) an understanding of retail trends nationally. The following example indicates such trends in one area of Illinois. 1For a definition of comparison and convenience goods, see' page 22-4 above. 2This is the rate of increase in constant dollars, discounting the effects of inflation. 22-16 EXAMPLE: Current Projected Per Capita Expenditures 1972 1975 1980 1985 1990 PRIMARY ZONE Department Store $246 $268 $309 $352 $398 Variety & Other GM 68 69 70 71 72 Apparel/Accessories 121 122 124 126 128 Furniture/Appliances 112 119 127 135 140 Other Comparison Goods 99 106 119 130 140 . TOTAL COMPARISON $646 $684 $749 $814 $878 Food 427 443 470 497 522 Drugs 82 90 103 117 132 Hardware 22 23 24 25 26 Liquor 38 39 40 41 43 TOTAL CONVENIENCE $569 $595 $637 $680 $723 SECONDARY ZONE Department Store 229 248 287 326 369 Variety & Other GM 64 65 66 67 68 Apparel/Accessories 111 112 114 116 118 Furniture/Appliances 103 111 119 127 131 Other Comparison Goods 93 100 110 120 130 TOTAL COMPARISON $600 $636 $696 $756 $816 22-17 i Step C PURPOSE: To project total retail expenditures (by retail category) for the trade zones. METHOD: For each trade zone, and for each retail sales category, multiply projected per capita expenditures (determined in Step B) by projected population (determined in Step A). EXAMPLE: (For a Single Year) Projected Total Projected Per Capita Projected Retail Expenditures PRIMARY ZONE Expenditures Population (1,000 omitted) Departme4t Store $268 35,855 $9,611 Variety Store/OGM 69 2,474 Apparel/Accessories 122 4,375 Furniture/Appliances 119 4,267 Other Comparison Goods 106 3,801 Food 443 15,886 Drugs 90 3,227 Liquor 39 825 Hardware 23 1,399 TOTAL Primary Zone $1,279 $45,865 SECONDARY ZONE Department Store 248 22,170 5,498 Variety Store/OGM 65 1,441 Apparel/Accessories 112 2,483 Furniture/Appliances 111 2,461 Other Comparison Goods 100 2,217 TOTAL Secondary Zone $636 $14,100 TOTAL TRADE AREA Department Store 15,109 Variety Store/OGM 3,915 Apparel/Accessories 6,858 Furniture/Appliances 6,728 Other Comparison Goods 6,018 Food 15,886 Drugs _ 3,227 Liquor 825 Hardware 1,399 TOTAL Trade Area $59,965 22-18 (For a Series of Years) Total Projected Retail Expenditures 1,000 omitted 1975 1980 1985 1990 PRIMARY ZONE Department Store 9,611 11,764 14,182 16,915 Variety Store/OGM 2,474 2,665 2,861 3,060 Apparel/Accessories 4,375 4,720 5,077 5,440 Furniture/Appliances 4,267 4,835 5,439 5,950 Other Comparison Goods 3,801 4,530 5,238 5,950 Food 15,886 17,893 20,024 22,185 Drugs 3,227 3,921 4,714 5,610 Liquor 825 914 1,007 1,105 Hardware 1,399 1,523 1,652 1,828 TOTAL Primary Zone $45,865 $52,765 $60,194 $68,043 SECONDARY ZONE Department Store 5,498 6,452 7,430 8,524 Variety Store/OGM 1,441 1,484 1,525 1,571 Apparel/Accessories 2,483 2,563 2,644 2,726 Furniture/Appliances 2,461 2,675 2,894 3,026 Other Comparison Goods 2,217 2,473 2,735 3,003 TOTAL Secondary Zone $14,100 $15,647 $17,228 $18,850 TOTAL TRADE AREA Department Store 15,109 18,215 21,612 25,439 Variety Store/OGM 3,915 4,149 4,388 4,630 Apparel/Accessories 6,858 7,283 7,720 8,166 Furniture/Appliances 6,728 7,510 8,333 8,976 Other Comparison Goods 6,081 7,003 7,973 8,953 Food 15,886 17,893 20,000 22,185 Drugs 3,227 3,921 4,714 5,610 Liquor 825 914 1,007 1,105 Hardware 1,399 1,523 1,652 1,828 TOTAL Trade Area $59,965 $68,411 $77,423 $86,892 22-19 STAGE 5: Estimate the CBD's Share of Future Retail Expenditures in the Trade Area The figures in Stage 4 represent only the retail sales potential lying throughout the CBD's market area. No shopping area will capture all of the sales in its market area. It is, therefore, necessary to determine what proportion of-the retail expenditures of each zone should go to the CBD and which should go to other centers, both in total and,in each expenditure category. Though there is no universally accepted method of doing this, the end result is nearly always that the market share captured will decrease as the distance from the CBD increases. The inventory of competing retail facilities performed in Stage 1 will be important here. In addition, the following summarizes some current thinking on sharing the trade area's total retail sales. Zone 1 (Primary) -- Applicable to all CBD's. This is the area which" immediately surrounds the CBD and which depends on the CBD for convenience goods. The CBD may capture up to 100% of the zone's purchases in the convenience goods category (e.g. , food and drugs) and, depending on the establishments it contains, up to 100% of purchases in all other categories as well. Zone 2 (Secondary) -- Applicable only to those CBD's which function as community or regional centers. This area would contain convenience goods stores nearer to its residents than the central business district, but it lacks department stores and clothing stores of equal merit to those in the CBD. Therefore, most convenience purchases from Zone 2 would be made at establishments located in Zone 2, while many of the zone's residents would be likely to go to the CBD--and, perhaps, other centers--for comparison goods. It can be assumed that only about 10-15% of the convenience goods expendi- tures in this zone would accrue to the CBD. Depending on the quality of the CBD's shops and on the location of competing centers, up to 100% of the com- parison goods expenditures from this zone could be made in the central business district. Zone -3 (Tertiary) -- Applicable only to those CBD's which function as regional centers. This area is a "fringe" zone, the degree of the CBD's attraction being dependent on the relative pull of competing retail centers in and near the zone, as well as on the selection of goods and services offered in the CBD. Any convenience goods sales to this zone will be to shoppers attracted to the CBD by comparison goods items and, therefore, will be incidental in nature. The CBD can capture up to 100% of the comparison goods sales to this zone, dependent, again, on the quality of goods it offers. 22-20 EXAMPLE: ANYTOWN CBD SHARE OF TOTAL PROJECTED TRADE AREA RETAIL SALES, 1975-1990 ($1,000 omitted) PRIMARY ZONE SHARE 1975 1978 1980 1985 1990 Department Store 65% $ 6,247 $ 7,009 $ 7,547 $ 9,218 $10,995 Variety Store/OGM 55% 1,361 1,432 1,466 1,574 1,683 Apparel/Accessories 60% 2,625 2,766 2,832 3,046 3,264 Furniture/Appliances 60% 2,565 2,833 2,901 3,263 3,570 Other Comparison Goods 55% 2,091 2,433 2,492 2,881 3,273 Food 70% 11,120 11,919 12,525 14,018 15,530 Drugs 70% 2,259 2,524 2,745 3,300 3,927 Liquor 70% 578 624 640 705 774 Hardware 60% 839 892 914 991 1,097 TOTAL Primary Zone $29,685 $32,432 $34,062 $39,272 $44,113 SECONDARY ZONE Department Store 55% 3,024 3,306 3,549 4,087 4,688 Variety Store/OGM 45% 648 665 668 686 707 Apparel/Accessories 50% 1,241 1,263 1,282 1,322 1,363 Furniture/Appliances 50% 1,231 1,286 1,338 1,447 1,513 Other Comparison Goods 45% 998 1,067 1,113 1,231 1,351 TOTAL Secondary Zone $ 7,142 $ 7,586 $ 7,950 $ 8,773 $ 9,622 TOTAL TRADE AREA Department Store 9,271 10,315 11,096 13,305 15,683 Variety Store/OGM 2,009 2,096 2,134 2,260 2,390 Apparel/Accessories 3,866 4,029 4,114 4,368 4,627 Furniture/Appliances 3,796 4,119 4,239 4,710 5,083 Other Comparison Goods 3,089 3,500 3,605 4,112 4,624 Food 11,120 11,919 12,525 14,018 15,530 Drugs 2,259 2,524 2,745 3,300 3,927 Liquor 578 624 640 705 774 Hardware 839 892 914 991 1,097 TOTAL Trade Area $36,827 $40,018 $42,012 $48,045 $53,735 22-21 I , i Stage 6: Determine Future Floor Area Requirements i We now have a picture of the CBD's future retail sales potential. To capture these projected sales, however, the central business district may have to increase its retail sales facilities. To determine what additional space may be warranted for development over the next fifteen years, it will be necessary to translate projected expenditures into space requirements. METHOD: Step A Determine current retail floor space (gross leasable floor area) in -the CBD for each retail category. ' The forms for the building structural soundness survey (Chapter 5) and building appearance survey (Chapter 6) include questions on the amounts of floor area in downtown buildings. Step B Estimate annual retail sales per square foot of floor area. Table 22-3 gives average national retail sales per square foot in 1975, figures which should be adjusted on the basis of current local data (such as that obtained from interviews with merchants). These figures will be used to convert projected expenditure levels into retail floor area requirements, and they will be assumed to remain constant through the forecasting period. i Step C For each year to be forecasted (1978, 1980, 1985, 1990) , divide the downtown share of projected retail sales in each retail category ` (computed in Stage 5) by average sales per square foot (e.g. , see Table 22-3). The resulting figures will be the amount of retail floor space in the CBD which should be warranted in future years. i it Step D Subtract current retail floor space from the warranted retail floor space for each forecasting year. The results represent the amount of '! additional retail floor space (over the current supply) which the central business district should warrant in the future. i 'Information on current floor area can be further refined by locating space that is being underutilized or whose continued occupancy is in doubt. Such "marginal" space can be identified by considering the following factors: the space's productivity as measured-by trends in sales volume per square foot (an indicator of the business's vitality) ; rent level (this is related to the landlord's ability to maintain his property and suggests whether the use is the "highest anq best" one for the space) ; duration of lease (a measure of the landlord's and tenant's commitments) ; compatibility of the use with neighboring uses; adequacy of property maintenance; and quality of the retailer's service and merchandising. To upgrade marginal space, considera- tion can be given to building renovation, more careful tenant selection, use of longer term leases, and improved maintenance and merchandising. Although sales volume and rental information may be hard to obtain, it can be instru- mental in developing the quality as well as the quantity of downtown retail facilities. 22-22 EXAMPLE: (For a Single Year) ANYTOWN CBD WARRANTED ADDITIONAL RETAIL FLOOR SPACE, 1978 Existing Assumed Total Retail Add'1 Retail Retail Floor Sales per Floor Space Floor Space Space Square Warranted, 1978 Warranted, 1978 (Sq. Ft.) Foot (Sq. Ft.) (Sq. Ft.) Retail Sales Category Department Store 73,000 $ 45.00 229,000 156,000 Variety Store/OGM 49,000 30.00 70,000 21,000 Apparel/Accessories 90,000 50.00 80,500 -- Furniture/Appliances 30,000 30.00 137,000 107,000 Other Comparison Goods 51,000 40.00 87,500 36;.500 Food 93,000 130.00 92,000 -- Drugs 37,000 60.00 42,000 5,000 Liquor 2,500 155.00 4,000 1,500 Hardware 19,000 35.00 25,500 6,500 (As It Would Look Over a Series of Years) ANYTOWN CBD WARRANTED ADDITIONAL RETAIL FLOOR SPACE Warranted Additional Space (Sq. Ft.) Existing Retail Sales Category Sq. Ft. 1978 1980 1985 1990 Department Store 73,000 156,000 173,000 223,000 275,000 Variety Store/OGM 49,000 21,000 22,000 26,000 31,000 Apparel/Accessories 90,000 -- -- -- 2,500 Furniture/Appliances 30,000 107,000 111,000 127,000 139,000 Other Comparison Goods 51,000 36,500 39,000 52,000 64,000 Food 93,000 -- 3,000 15,000 26,000 Drugs 37,000 5,000 9,000 18,000 28,000 Liquor 2,500 1,500 1,600 2,000 2,500 Hardware 19,000 6,500 7,000 9,000 12,000 22-23 Table 22-3: National Median Annual Sales Volume Per Square Foot of Gross Leasable Floor Area, 19751-- Neighborhood Community Regional Center Center Center Department Stores Department Store $ 61.41 Junior Department Store $ 51.97 59.87 Variety and Other General Merchandise Variety Store $ 41.22 33.67 36.74 Discount Department Store 57.56 55.46 Apparel/Accessories Ladies' Specialty 62.08 81.86 Ladies' Wear 63.05 61.83 85.86 Children's Wear 55.00 74.61 Men's Wear 67.96 65.55 96.19 Family Shoes 35.63 52.37 67.75 Ladies' Shoes 35.44 67.46 Children's Shoes 62.57 88.64 Men's and Boys' Shoes 72.89 107.88 Furniture/Appliances Furniture 43.61 43.88 Appliances 62.24 71.96 Radio, TV, Hi-Fi 67.45 120.22 Other Comparison Goods Jewelry 77.93 141.22 Cards and Gifts 48.90 71.00 Books and Stationery 58.45 79.24 Sporting Goods 62.08 80.38 Cameras 165.31 Food Supermarket 133.19 135.22 113.55 Nuts and Candy 42.99 86.83 Drugs 64.82 78.95 79.84 Hardware 43.29 44.09 66.29 Liquors and Wines 79.50 121.86 99.71 Restaurants Restaurant w/ Liquor 55.03 62.08 65.96 Restaurant w/o Liquor 50.80 64.10 80.59 Fast Food/Carry-out 50.06 78.89 113.50 Services Beauty Shop 49.85 50.54 61.38 Barber Shop 38.88 43.70 61.36 Cleaners and Dyers 33.81 31.31 30.39 Coin Laundry 15.03 16.56 54.11 Note: Because theses figures are national, they should be modified to reflect current local sales and ratios which can be obtained through interviews with local merchants. lFrom The Dollars and Cents of Shopping Centers, 1975, with permission of ULI- The Urban Land Institute, 1200 18th Street N.W., Washington, D.C. 20036. 22-24 A Note on Projecting the Development Potential of Eating and Drinking Establishments and Gas Stations Eating and Drinking Establishments -- The primary factor in the success of restaurants, bars, and other eating and drinking facilities is entrepre- neurial and managerial effort. As a result, it is difficult to forecast on a statistical basis the market demand for these uses. Assuming appropriate amenities and good quality management, it has been found that eating and drinking facilities can be successfully operated at any reasonable location, provided that there is no gross overbuilding of the market and that the location is reasonably accessible to the area's population. Nevertheless, an effort can be made to estimate the amount of addi- tional space which can be justified for eating and drinking establishments in a central business district. Such estimates may be based on recent local trends in consumer expenditures in these establishments. This information can be found in the same Census of Business (Retail Trade) reports which art, used in making general retail sales projections. Apart from any efforts to estimate the general development potential of eating and drinking facilities, plans for new operations should be considered on a case-by-case basis. Gas Stations -- The development potential of gas station uses is also tenuous. Projections can be based on local expenditure patterns noted in the Census of Business (Retail Trade) reports. However, consideration must also be given to non-statistical factors. For one, the rate of gas station shut-downs has accelerated in recent months, with little new station develop- ment taking place. It is not certain if and when this trend will be reversed. Furthermore, gas station location decisions are influenced heavily by the policies of the major oil companies in their quest for maximum representation in a given market and maximum exposure to the traveling public. Sources of Data for Retail Market Studies County Population, 1960 and 1970: U.S. Bureau of the Census, Census of Population: 1960 and 1970. General Social and Economic Characteristics, Final Reports, Illinois. County Income, 1970: Same (1970) . Trade Area Income, 1970: See Footnote, page 22-13. County Retail Expenditures, 1972: U.S. Bureau of Census, Census of Retail Trade, 1972. Area Series: Illinois RC72-A-14 (Washington, D.C. : U.S. Government Printing Office, 1974) . Other Data Resources: Illinois Department of Revenue, Receipts from Retailers' Occupation Tax and Service Occupation Tax (reported quarterly) ; Sales Manage- ment, "Survey of Buying Power," (special issue, each July); U.S. Department of Commerce, Survey of Current Business (published monthly) ; U.S. Department of Labor, Bureau of Labor Statistics, Urban Family Budgets and Comparative Indexes for Selected Urban Areas (published annually in the spring) . 22-25 OFFICE MARKET ANALYSIS Forecasting Demand for New Office Space in the CBD Forecasts of future demand for office space are normally made by projecting increases in the level of employment in the particular industry which the offices serve. If; for example, the number of local employees in "finance" is expected to increase by 100 in the next ten years, it can be assumed that extra office space will be needed to serve these additional workers. The amount of extra space required is figured on the basis of a standard number of square feet per employee. Such a determination does not take into consideration replacement of deteriorated or outmoded office space, which may require still additional new facilities over the years. Office space projections normally are based on the occupational figures for the county (or other market area which the offices serve). These projec- tions are typically broken down into the following categories (sources of data and typical space requirements are also given) : (1) Finance, Insurance and Real Estate Data Source: U.S. Census of Population, General Social and Economic Characteristics Space Needs: 160 square feet per worker (2) Legal Data Source: Local bar association, telephone directories Space Needs: 600 square feet per lawyer (3) Business Services Data Source: U.S. Census of Business, Selected Services l Space Needs: 160 square feet per business service employee (4) Medical-Dental Data Source: Local medical and dental associations, telephone direc- tories Space Needs: 1200 square feet per doctor 800 square feet per dentist 1U.S. Bureau of Census, Census of Selcted Service Industries, 1962, 1967, 1972. Area Series: Illinois (Washington: U.S. Government Printing Office_ 22-26 (5) Miscellaneous General Purpose (Includes office workers in construction firms; engineering and archi- tectural services; accounting, auditing and bookkeeping services; non- profit agencies and business education services; and those others not already classified. Because of the difficulty in obtaining this in- formation comprehensively, estimates are often based on projections in the size of the general population.) Space Needs: 2 square feet per person in the general population Basic Method of Analysis With minor modifications, the following procedure is generally appli- cable to all of the above five categories except Miscellaneous General Purpose, as noted above. Step 1: Determine numerical annual gain (or loss) in overall population of county (or other market area which local offices serve) from 1960 to 1970. Step 2: Determine numerical annual gain (or loss) from 1960 to 1970 in the number of employees in the sector served by the offices. Step 3: Express the ratio of the gain in employment in the economic sector to the gain in population as "employees per 1000." Step 4: Project population gain in county using method described on page 22-15. Step 5: Project employment gain, using the "employees per 1000" as a ratio to the projected population growth. Step 6: Relate anticipated employment growth to space needs using a figure of square feet per employee. Step 7: Determine what percentage of this new office space should accrue to the CBD (subjectively based on current proportions as well as on other factors deemed important.) Step 8: The resulting figures are the anticipated CBD office space needs for the particular economic sector. Example A major need for office space is in the sector of the economy known as Finance, Insurance, and Real Estate (FIRE) . The following indicates how a space needs determination for this economic sector might be done. 22-27 Current Trends 1960 1970 Gain County Population 31,938 36,264 4,326 (Step 1) County FIRE Employment 467 627 160 (Step 2) Employees Per 1000 37.0 (Step 3) Forecasts 1975 1980 1985 1990 County Population (Increase over 1970) 1,280 3,660 6,290 8,960 (Step 4.) FIRE Employment (Increase over 1970) 47 135 233 332 (Step 5) FIRE Office Space Needs Over 1970 Supply (@ 160 sq. ft./Employee 7,520 21,600 37,280 53,120 (Step 6) --expressed in sq.ft.) CBD Share 15% 13% 11% 10% (Step 7) CBD FIRE Office Space Needs (Increase over 1970 supply 1,130 2,810 4,100 5,310 (Step 8) --expressed in sq. ft.) DETERMINING ACTUAL SPACE DEMANDS OF NEW DEVELOPMENT Actual Space Demands Once the potential for new development in the central business district has been identified, it becomes necessary to translate the potential for new facilities into actual space demands. This process,called "dimensioning in," consists of evaluating the overall space and land requirements for new devel- opment. Table 22-4 and the accompanying notes provide a description of this process. Finding Room for the New Growth These total space requirements must then be fitted into the block pattern of the CBD and surrounding area. Possible locations for new devel- opments must be identified, including parcels containing structurally sub- standard or economically obsolescent buildings; vacant lots; peripheral residential areas; older buildings which have been converted to rooming 22-28 Table 22-4: Estimating Net Increase in Space for Retail and Office Facilities Space in Thousands of Square Feet Type of Space Ilse Retail Office Combined Total - Total floor area Ground floor area 1 2 Ground area for new parking3 round area for new loading4 rther ground areas First subtotal of ground area Allowance for flexibility I recond subtotal of ground area 1 Deficiencies in parking and loading for existing uses otal ground area required 1For estimating purposes, an average story height for retail uses is assumed here. If, for ex- ample, upon examining the prevailing average height to which retail uses build, it seems reason- able to expect new uses to build to an average of 1.9 stories, then to derive this entry, the total floor area in the entry immediately above would be divided by 1.9. 2Two assumptions are involved here. First, the per cent of floor area in offices in the CBD which can be expected to be added to floors above retail activities already provided for in the entry immediately to the left is assumed, let us say 40 per cent. Second, as in the case of re- tail structures, an average story height of CBD office buildings is assumed, say 5 stories. Then, under this example, the entry here would be 60 per cent of the total new office floor area expected to be added in the CBD (60 per cent of the item immediately above), divided by 5. 3Assumed parking ratio standards are introduced and applied to total new floor area figures. Differential standards may be used, or a crude general standard may be applied to the entry for combined floor area in the right-hand column. If a portion of the parking area is to go into multideck structures, a procedure similar to that followed in Note 2 would be followed in order to "factor out" the space in upper-deck areas and obtain a ground area total. 40n the basis of design standards, an estimate of space required for new loading areas is made in this entry. Crude standards for both retail and office structures are sometimes developed on the basis of a survey of areas presently judged to be well served in this or other cities. Some studies have used rough estimators such as one square foot of loading area for every 20 square feet of total floor space. 5This is to take care of waste area and private open spaces not included in estimates above. According to anticipated changes in the intensity to which ground area is to be used, an entry for these space needs is made here. On the basis of recent construction in the CBD, some studies simply follow the trend observed, adjusted or unadjusted, and increase the ground floor area by, say, 10, 20, or 25 per cent to provide for "relief space" and planted areas. 6The flexibility factor is an allowance for unforeseen expansion in the CBD, including at the same time latitude for choice of location among leasing users of CBD floor area. This factor is estimated locally on the basis of vacancy rates assumed reasonable for the period ahead and an adequate allowance for flexibility. It usually takes the form of a simple per cent increase of the aggregate ground area represented in the first subtotal, say a 20 per cent increase. 7This entry involves an analysis of the adequacy of present off-street parking provisions. It reflects the aggregate deficiency in parking and loading areas that must be treated as new space requirements under assumptions concerning the elimination of on-street parking and loading and any significant changes in driving habits anticipated. Source: F. Stuart Chapin Urban Land Use Planning (Urbana, University of Illinois Press, 1965) p.407. 22-29 houses and light-housekeeping apartments (sometimes called "areas of trans- ition") ; parcels which can be more intensively used than they are at present; older buildings that are capable of being converted to new uses; and, in CBD's in which property values are exceptionally high, possible locations for "air rights" development over existing right-of way. Locations should take into account factors such as the prevailing directions of CBD expansion; land values; the location of transportation facilities; the pattern of railroads in or near the CBD and other relatively fixed natural and man-made features; and the location of major subfunctional areas in the central area including major concentrations of retail shopping, entertainment, finance, offices, warehousing, manufacturing, etc.1 Implementation Alternatives Where major development or redevelopment is sought, the locations .for possible development should be expressed in the form of a land use plan for the central business district. Implementation of such a plan can take one or more of the following forms: (a) persuasion of private developers to undertake specific projects, with such possible municipal inducements as financial assistance, land acquisition, and construction of needed capital improvements; (b) direction of private development into selected locations through the use of zoning measures (see Chapter 31) ; (c) a downtown develop- ment corporation acting as developer; or (d) the municipality acting as developer, using powers such as those granted by the Illinois Commercial Renewal and Redevelopment Areas Act. Chapters 23 and 24 will be devoted to discussing the final two of these alternatives. 1Chapin, op. cit. , p. 406. 22-30 Table 22-5: Per Capita Annual Retail Expenditures Illinois, 1972 Chicago Outside of Metropolitan Metropolitan SIC Retail Category Statewide Area Areasl Code Department Store $271 $345 $108 531 Variety & Other General Merch. 56 50 77 533+539 Apparel/Accessories2 140 176 94 56 Furniture/Appliances3 113 132 88 57 Other Comparison Goods4 90 108 61 595 Food 463 517 454 54 Drugs 89 108 63 591 Hardware 25 27 28 525 Liquor 52 67 24 592 Source: U. S. Bureau of Census, Census of Retail Trade, 1972. Area Studies Illinois, RC 72-A-14 (Washington: U. S. Government Printing Office, 1975) . lExcluded from this figure are the following metropolitan areas: Chicago, Rockford, Rock Island-Moline, Peoria, Bloomington-Normal, Champaign-Urbana-Rantoul, Decatur, Springfield, St. Louis. 2Includes women's ready-to-wear, women's accessory and specialty, furriers and fur shops, men's and boys, clothing and furnishings, family clothing, men's shoes, women's shoes, children's and juveniles' shoes, family shoes, children's and infants' wear, and miscellaneous apparel and accessories. 31ncludes furniture; floor covering; drapery, curtain, and upholstery; miscellaneous home furnishings; household appliances; radios and televisions; records; and musical instruments. 4Includes florists; cigars; general line sporting goods; specialty line sporting goods; books; stationery; jewelry; hobby, toys, and games; camera and photographic; gift, novelty,- and souvenir; luggage and leather goods; sewing, needlework, and piece goods; news dealers and newsstands; pets; typewriters; optical goods; and other retail. SExcept 592, 593, 596, and 598. 22-31 G„ Table 22-6: RETAIL AND SERVICE ESTABLISHMENTS MOST FREQUENTLY FOUND IN NEIGHBORHOOD AND COMMUNITY CENTERS, 1975 Frequency Rankings Frequency Rankings in in in in Neighborhood Community Neighborhood Community Type of Establishment Centers Centers Type of Establishment Centers Centers Cosmetics 67 49 Supermarkets 2 2 10 10 Meat, Poultry, Fish * 84 Cards and Gifts Specialty Food 60 60 Toys 6 56 655 Delicatessens 58 68 Camera 42 46 47 Liquors and Wine 12 25 Bakeries * ** Hot Bakeries 70 ** Stamp Redemption - 61 ** Candy, Nuts 52 Dairy Products -s ** Health Foods 57 65 Bridal Shops - 86 Restaurants w/o Liquor 8 17 Maternity - Hosiery 69 63 ** Cafeterias 4 39 ' Fast Food/Carry Out 23 24 Family Wear 5 Restaurant w/ Liquor 21 20 Ladies' Shoe _- 51 83 Men's and Boys' Shoe 80 Cocktail Lounge 39 _ ** Doughnut Shops 62 72 Furs - 20 29 China and Glass J;* Ice Cream Parlor _ 79 Jr. Dept. Store 38 6 Home Improvements Candle Shops 14 13 ** Variety Stores _ ** .Dept. Store - Discount 68 43 Tobacco * Catalog Store 54 Costume Jewelry **Ladies' Specialty 15 14 Sewing Machine _ 48 ** Ladies' Ready to Wear 7 1 Key Shops ** Childrens' Wear 33 34 Wine Only - Men's Wear 22 7 Savings and Loan 28 27 Family Shoe 24 5 Finance Companies 32 21 Children's Shoe * 76 Insurance 27 18 * * Formal Wear Rental 82 67 Brokerage 3 Unisex/Jean Shop 63 66 Medical and Dental 3 Yard Goods 18 11 Legal 59 61 * 73 Accounting 52 58 Curtains and Drapes * * 59 Architect 75 Imports 9 22 Luggage, Leather Goods * 89 Real Estate 48 62 Furniture 31 31 Contractor Appliances 51 50 Beauty Shops 40 35 Floor Coverings 43 74 Shoe Repair Radio, TV, Hi Fi 19 19 Cleaners and Dyers 5 15 * 77 Laundries 44 53 Interior Decorator 45 70 Hardware 16 38 Travel Agents Music Studio - Dance 11 71 Automotive 34 26 Coin Laundries 1 Paint and Wallpaper 30 30 1 44 Garden Shops * 90 Photographers 53 36 49 32 Hobby Shops 47 55 Optometrists 55 57 Art Gallery * 69 Figure Salon Arts and Crafts 41 45 Service Stations 17 28 40 Bowling Alleys * 81 Records and Tapes 64 56 40 Musical Instruments 42 33 Cinema 35 46 Arcade Amusement Center * 87 Pet Shops Books and Stationery 36 23 Small Loans _ 85 Flowers 26 37 Employment Agency 78 ** g 4 g Watch Repair - Dru s _ 88 Sporting Goods 37 41 Car Wash Credit Jewelry * 91 Barber Shops 6 9 Jewelry 25 12 Source: From The Dollars and Cents of Shopping Centers: 1975 with permission of ULI-The Urban Land Institute, 1200 18th Street, N. W., Washington, D. C. 20036. -Use not normally found in a neighborhood center. *Marginal neighborhood center use. **Marginal community center use. 22-32 TIGARD COMMUNITY COM IERCIAL SITE DESCRIPTION OF SITE LOCATION The subject property is located to the east of the S.W. Pacific Highway (State Highway 99W) and S.W. Main Street, whcih form a "Y" intersection at the south end of the central business district in Tigard, Oregon. SIZE The subject site contains an estimated 15.6 acres. The site has an irregular rectangular shape with approximately 660 feet of frontage to the east side of S.W. Main and S.W. Pacific Highway, with a maximum depth of approximately 1,200 feet. EXPOSURE AND ACCESSIBILITY .The subject property has excellent exposure and accessibility from S.W. Pacific Highway and S.W. Main Street, leading to and from the central business district in Tigard. The 1986 average daily traffic count along the highway was approximately 33,000 vehicles. The subject property also has exposure from the S.W. Pacific Highway overpass, just north of the subject property. 3 UTILITIES ,z The subject is now served by all necessary utilities. STREET IMPROVEMENTS S.W. Pacif is Highway is a four-lane, two-way paved asphalt street, with a central turn lane. The north bound portion of S.W. Pacific Highway also includes a deceleration lane onto S.W. Main Street. S.W. Main Street is a two-lane, two- way paved asphalt street, with dual left turn refuge lanes onto S.W. Pacific Highway. D CO1NI11 UNITY COMMERCIAL SITE TIGAR DESCRIKION OF SITE zOr1ING AND COMMMENSIVE PLAN The City of Tigard indicates that the subject is predominantly zoned CBD-PD (Central Business District- Planned Development). Thezone inthe City ofTigard, withha most intensivpermittedluses. broad range Top=ApHY/VBGSTATION The site is a moderately rolling, easily draining parcel. The ground surface slopes to the north and easVew with elevation chan ange of 25 to 30 feet. Thwith sconiferous- and consists of native grasses, along deciduous trees. 90IL S rt Available information t Testing Laboratoriindicates that a es in Nils o embers completed by Northw 1979. The report indicates that soil coondiiotions ofpping the subject property would adequately support ter development. ABUTTING PROPERTIES North--The old City of Tigard Library, along with vacant land along Fanno Creek. - South--Commercial, Multi-family and vacant properties. East—Fanno Creek drainage basin and future site of Downtown Greenway Park. ' ch West--S.W. Pacif is Highway ad S.W. Main st S hool and separate the subject from St. Anthony commercial development. f - TIGARD COMMUNITY COMMERCIAL SITE r' DESCRIPTION OF SITE x J EXISTING IMPROVEMENTS The subject is wittanloldermwood frame and concrete rised of an assemblage block several tax lots with This structure lying along the northwest boundary. improvement is estimated to be at the end of its physical and economic life. However, it is estimated that its salvage value would offset demolition costs. E OTHER pHYSICAL ODNDITIONS A small portion of the subject property lying to the south along Fanno Creek is within the 100 year flood plain and is f subject to Sensitive Lands Use constraints. E For more information contact: f Jim Freeman i SEAFIRST REAL ESTATE 701 Fifth Avenue 14th Floor Seattle, Washington 98124 (206) 442-3973 Source City of ; oa ;GohPieaand SefnHobson & Associates (1987) . SOUTHWEST SUBURBAN PORTLAND b and 10 Minute Trade Areae for Tigard inset Corridoic �s Lloyd Center y►V�, Portland I'84 s ' ?6 10 MINUTE CB 3 1� Beaverton a MINUTE �) Milwaukie Vw quare /► `� a V Tigard `/► Lake Gladstone v / Oswego 7 1 Tualatin f'20g West Linn Oregon q City 01 an a Wilsonville NfILES TIGARD CENTRAL BUSINESS DISTRICT m tiwr 9� D� 5 � W ut SWJSCT ta- SiT■ w C.B.D. W McDon4ld B nit J Q Q c = N 3 3 � = co 3 U co 4 V 4Q W Durham 3 co Jos%tla River TIGARD COMMUNITY COMMERCIAL SITE tte el* 5 pa 5 0 4 srr � ee� AA anno -1,6• 4' 5 (Futur.e) Downtown Greenway Park 15.6 Acres jp �O o • f 00 �o J o loo 200 FEET TIGARD COMMUNITY COMMERCIAL SITE DEMOGRAPHIC PROFILE Employment and Population Tigard: Five Minute Trade Area 40 35 30 m aD b O cd 25 to m ~ G 20 H 15 10 5 O 1985 1990 2005 ® Employment Year Population Employment and Population Tigard: Ten Minute Trade Area 200 190 180 170 160 150 140 ^m 130 OD b 120 p 110 Go cd m 100 C90 �' .G 60 F 70 60 50 40 30 2O • 10 _ 02005 1985 1990 Year ® Employment Population Source: Metropolitan Service District, Hobson & Associates (1987)- TIGARD COMMUNITY COMMERCIAL SITE DEMOGRAPHIC PROFILE FOW A"ON BY AGE GROUP WITHIN 5 AND 10 MINUTE MACE ARFA Tigard, 1985 5 Minutes 10 Minutes Ase Persons % Persons $ 0-9 4,191 (138) 18,739 (128) 10-14 1,842 (68) 10,380 (78) 15-19 2,331 (88) 11,594 (78) 20-24 2,793 (98) 12,854 (88) 25-29 31142 (108) 14,220 (98) 30-34 3,163 (108) 15,447 (108) 35-44 4,882 (168) 26,161 (178) 45-54 21775 (98) 15,773 (108) 55-59 1,473 (58) . 7,171 (58) 60-64 11195 (48) 61512 (48) 65-74 2,131 (78) 10,441 (78) 75+ 1,136 (48) 61,527 (48) Source: Metropolitan Service District; Hobson & Associates (1987). EWCATION OF POFOLATICU WITHIN 5 AND 10 M32UTE TRALE AREA Tigard, 1985 5 Minutes 10 Minutes Education Persons 8 Persons 8 (Persons 25 years and older) 17,075 (100%) 93,595 (100%) Elementary (0-8) 1,039 (68) 4,377 (58) Same High School 1,318 (88) 5,788 (68) High School Graduate 5,695 (338) 26,990 (298) Sane College 4,649 (278) 25,041 (27%) College Graduate 4,374 (26%) 31,399 (33%) Source: Metropolitan Service District; Hobson & Associates (1987). MARITAL SUMS, FMaNPAGE DISTRIBUTION 1/ Tigard, 1986 Married 668 Single 17% Sep/bivorce 9% Widowed 6% Cohabitation 28 Within five mile radius from intersection of S.W. 71st and Highway 99W. Source: Oregonian Marketing Research; Hobson & Associates (1987). TIGARD COMMUNITY COMMERCIAL SITE DEMOGRAPHIC PROFILE Number of Households 90 Tigard: Five and Ten Minute Trade Area 80 70 60 - cc a50 pCc 40 - 0 H 30 - 20 10 0 - 1985 1990 2005 Year ® Five Minute = Ten Minute Note: Average household size is 2.21 persons per household. Source: Metropolitan Service District, Hobson & Associates (1987) MEAN HOUSEHOLD INOOME Tigard 1985 5 Minute Trade Area 10 Minute Trade Area $30,595 $35,210 Source : Metropolitan Service District; Hobson & Associates i (1987) . TIGARD COMMUNITY COMMERCIAL SITE DEMOGRAPHIC PROFILE BOnW MWER KW 5 AND 10 MUTE TRALB AREAS Tigard 1985 Buying Power 2/ Buying Power 2/ Expenditure 5 Minute 10 Minute SIC Kind of Business Per Household 1/ , ($1,000) ($11000) 52 Building Material $518 $ 6,672 $33,630 53 General Merchandise 28,650 34,132 172,043 54 Food Stores 21817 36,283 182,885 55 Auto and Gas 2,450 31,556 159,059 56 Apparel 736 9,480 47,783 57 Furniture, furnishings •653 8,411 42,394 58 Eating and Drinking Establishments 1,645 21,188 106,797 591 Drug Stores 283 3,645 18,373 59 Miscellaneous Retail 1,711 22,038 111,082 MTAL $13,463 $173,403 $874,045 1/ 1986 dollars. 2/ Based on 1985 households; expressed in 1986 dollars. Source: 1982 Oensus of Retail Trade; Oenter for Population Research and Census, Portland State University; and Hobson & Associates (1987). 'YF .. `+ .. �{s.`S , it � +. r ,7 S�.t" ♦ °i•�,�.W�1"«.i� .;.wA Yf•�kh•t •w. f r i v K. R r 4' •• [ YP .;f r<ot1.a 4' F �,2•.rn ' a .S '�� ;� ♦sf t •}, 1.,�.f i� 'ff a[t i��s '. Y,s � �,��lFr1 os�� ,� S .y r f •'.. ` 1`y ,��Tl+..�. rf 'fjv� •� j\y: i',. + 'r � Y �� t• s �(4/� j�fl �� y�a4 +�r �� '� ` •Y wAa4. t \ 3`, fi 7 A Ng I�yrV`.' 11•`r $ x ( TrY�saoF�j•J� w. ltrAt ` , at��F; -y ..ra�c��' J� TA; ,��it , - .5.. F 7 '� \a 7YS-_ A �� ♦' � J .ta. ;:10101, iLz { t .ca 1. r 1�. �• a '•�•.. :► I; 4477'' Z.�.. t- ��y.;.�`;tt ,r .t+, 114 . y i. v�i• 1.t'�•i.�, ra+• .. -ANN •:01.44,. .. LJ.r • 1 ••�y� �'rh' L .��aaii,. 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T 1 E - t'f�4t.l,� - s I +,r '-�1 it ti 1{ 5"rzr' 4i "� +f i i z •4 y 1141� o+.! xv F� i +�� , f�s;_F,j��-•� "'i'+� �.F :f � +i F/�„s.,�t }t 4 t r < < � s k to pr •"ti �,';Y` �,'+ �:r z� 7�� {� f�'4,w.hft �fi� !sx � {*'s Y•C+ \_ �:."rt{�' r 1 t ��'� � t � ��r �1 ; t Yb sS'x?lsra'�� si k'4,{�Zh�:: `if• 5 �jj X» r, �� ''" »k r st'Irz 1 `. o .7r'�1� •�rF�1}kl�t�SC'�,y", r r.: �!. :r.•. . -aia-r, t '�,.ygi i,�"�A�x'+ T,a.i't.' �c��y�r. �r�+ � -_ -_ -__— Sou,tth Witcrtront SOUTH WATERFRONT PROJECT I i A PORTLAND DEVELOPMENT COMMISSION REQUEST FOR PROPOSALS c F ' E 1 i For Further Information Contact: Portland Development Commission Atm.Brian D.McCarl,Project Coodinator ? 1 120 S.W.Fifth Avenue,Suite 1 102 t; Portland,Oregon 97204-1968 r (503)796-5300 'y. January, 1943 =y THE PORTLAND DEVELOPMENT COMMISSION The development of the South Waterfront Project follows over 20 years of successful downtown redevelopment activities by the Portland Development Commission.The Development Commission was created by the City's voters in 1958 and has played a major role in the revitalization of Portland's downtown and surrounding urban neighborhoods. Working in cooperation with the City Council,government agencies,neigh- borhood organizations,the business community and private interests,the Devel- opment Commission performs all functions of the City of Portland relating to urban renewal,development and housing rehabilitation. A five-member Commission governs the Development Commission.The Mayor appoints the Commissioners,subject to City Council approval.An Executive Director and a staff of eighty-five employees located in a downtown office and a housing field office carry out the various Development Commission activities. Members of Portland Development Commission William E. Roberts,Chairman Angie Davis Jack L.McIsaac Donald W.Magnusen John Piacentini i t I Via.. a r RVA i r A "F Inviting Your Participation: The City of Portland through the Portland Development Commission is pleased to offer two prime riverfront sites in one of the country's finest medium- sized cities. .Twenty years ago,Portland citizens set plans in motion to halt the decline of downtown and to encourage its development as a regional center for commerce, government,culture,entertainment and recreation.The Portland Development Commission is proud to have played an important role in that process through ,i its involvement in the South Auditorium Renewal Project,Waterfront Park,the Skidmore and Yamhill Historic Districts,and the new office,housing and retail development that has occurred as a result. p The South Waterfront Project will mark another significant milestone for M the City.The 73-acre project area will support year around activity on our I Waterfront and bring new vitality and excitement to our nationally acclaimed downtown. The citizens of Portland envision an urban residential community on the !; Willamette River with housing,a marina,parks,specialty shops,restaurants, and offices which will further complement the success of our exciting downtown.„ The City of Portland welcomes your participation in this important it undertaking. i 4 Francis f. Ivancie,Mayor FJl:ems t i ' !til �I r a SUMMARY Project Location , Downtown Portland between the Hawthorne and Marquam Bridges,S.W. Front Avenue and the Willamette River. i Project Area } 73 acres Offering Sites Parcel A: 3.8 acres Parcel B: 4.9 acres 8.7 acres 378,972 sq.ft. Private Development Program Parcel A: 150 housing units(minimum);40,000 sq.ft.commercial (maximum); 150-slip marina;parking sufficient to support these activites. Parcel B:350 housing units(development rights based on performance in Parcel A);5,000 sq.ft.support commercial(maximum);parking sufficient to support these activities. Minimum Price Residential: $2,000 per unit Commercial: $20.00 per sq.ft.(GLA) Total Parcels A and B assuming 500 dwelling units,and 45,000 sq.ft. commercial: $1.9 million Estimated Private Investment Parcels A and B Total:$50 million Proposals Due Developer Qualifications: 3:00 p.m. (Pacific Time) March 1, 1983 FRONTAVE NU--E--� Development Proposals: 90 days following determination of short list. I NAaeoR— ( ,�M r m 4 ' 7 jJ 11 ¢ II i ' I 11 I 1 l '1 SOLI 11 Watcrfront CONTENTS Page 1.Introduction 7 2. Metropolitan Portland 8 3.The South Waterfront Project 22 4.Project Development Program 25 T: Development Program 25 Zoning 26 5.The Development Offering 27 Conditions of the Development Offering 27 Disposition Value and Terms 27 Housing Bond Program 28 Selection Procedures,Negotiation Process and Schedule 28 Selection Criteria for Qualifications Phase 31 Selection Criteria for Development Proposal Phase 33 How to Receive a Developer's Notebook 34 5! 1� v I 1 1 '=11 ;'�R.w..��f•'L Ii 111} y - 1r'yr.�i+,� 41 w+PZiv, Nom.. Afl '_ . ,e• !( ";"-y�e... f W 4.. d1°g^�r'�1 -'� «�� _ .L �' t Uli jar q�+�3A� e�w I i i 4 3 1. INTRODUCTION The City of Portland through its traffic and transit service.The marina While recognizing the realities redevelopment agency,the Portland basin,already completed,is the first of the national and local housing Development Commission,is pleased facility of its kind ever built in down- market,the Commission believes it is to announce that it is seeking a town Portland.A floating breakwater providing adequate incentives for qualified developer for the purchase has been designed to protect the developers to produce quality afford- and redevelopment of two prune marina and provide direct public able housing for downtown Portland riverfront sites(8.7 acres)in the only access to the river for fishing,swim- within a reasonable period of time. remaining undeveloped area of down- ming and boating.In addition,a The Development Commission is town Portland. 5-acre terraced park,riverfront seeking a Master Developer,who The South Waterfront Project is esplanade and viewpoint plazas will may have joint venture partners to envisioned as a quality residential be constructed resulting in over 12 undertake the South Waterfront community anchored by a commer- acres of outdoor recreational ameni- Project.Proposals will be accepted tial center and marina that will ties immediately adjacent to the sites only for the purchase of both sites encourage people to live in the down- being offered. being offered together.Sole responsi- town area.The Development Com- The Development Commission bility for the selection of the Devel- mission is seeking a developer who has found strong consensus among oper rests with the Portland can create a distinctive urban living leading developers and market spe- Development Commission. environment which provides an cialists that the South Waterfront The Development Commission exciting mixture of housing,restau- Project Area is the premier location in will enter into exclusive negotiations rants,plazas,shops and outdoor the City for both an urban housing with the selected Developer following facilities and attracts year-round community and specialty commercial a two-step Developer Selection Proc- activities to the riverfront.The South center.Moreover,the project area ess.The first step of the process Waterfront Project is expected to includes over 112 mile of continuous involves selection of a short list of a become an immediate regional land- riverfront and is within easy walking limited number of developers based 7 mark and focus of public attention. distance of an established residential on qualifications and experience.In In December of 1981,the Devel- neighborhood,the City's retail and the second step,the most highly opment Commission broke ground business district,parks and educa- qualified developers will be asked to Jon the first part of a$5.6 million tional facilities. submit a development proposal for public investment in riverfront,street The approved Development review and consideration by a Selec- and park improvements.Street work Program for the project calls for 500 tion Advisory Committee assisting currently underway will remove new residential units.The commercial the Development Commission.A obsolete and underutilized roadways component,consisting of 45,000 summary of the procedures and and improve accessibility for local square feet,is to be anchored by a requirements and selection criteria for minimum of two high-quality restau- the Developer Selection Process are rants,specialty shops and offices, contained within this brochure.A overlooking a 150-slip marina.The Developer's Notebook,containing Development Program requires that official forms and supporting docu- 150 housing units,commercial space ments necessary for preparation of a and the marina be put in place simul- development proposal is available taneously as part of a minimum first (see page 36 for details). phase. Once the minimum first phase is provided,the remaining 350 resi- dential units and supporting commer- cial space may be developed on a phased basis depending upon devel- oper performance on P1 ase 1. is µ.. :J fy S f� } 2. METROPOLITAN PORTLAND L Portland,Oregon The Portland region experienced a twenty-three percent increase in Metropolitan Portland(see Map 1) population during the 1970's.Con- is a community which combines the tinued population and labor force OFT" strength of an established and growth is forecast for the 1980's. Q� or diversified economic environment Today,Portland boasts the most Ll Rx HOUSING Ft with an expanding population and _ diversified economy of any major city ❑ labor force.The Metropolitan Area is on the United States West Coast.First the thirty-first largest Standard Met- in the Pacific Northwest in wholesale D O D SWT-PARK BL.i ropolitan Statistical Area(SMSA)in trade and nineteenth nationally, PORTLAND BIAIE UNI IERSITY � I r F the United States.The SMSA encom- Metropolitan Portland continues to passes Multnomah,Washington and expand in this vital economic sector. �a �D DEEl 0 f Clackamas Counties in Oregon and Electronics,an industry with signifi- `b o D o ; E(. Clark County,Washington,and cant opportunities for expansion, N � ❑^0 "I includes a population of over 1.2 increased its business volume in then W°�,:k million in an area of over 3,700 area 134 percent between 1977 and 1:11:1~O"O`L� square miles.The City of Portland, 1980.Portland is a regional financial *PAR SIDE the hub of the regional economy,is center and world headquarters for CENTER LOVEJOY PETTYCROVE the largest city in Oregon with a over 80 manufacturing firms as well FOUNTAIN PARK .. YARKET r population of 366,000 in 1980. as Fortune 500 firms such aso�LONP i}L °TOP SOUTH AUDITO I M DISTRICT �L BLUE �F cRoss t I5 'U'POTOM NIVMS TfS CO VANCOUVER,WA. 8 .. LEWIS.CL^Rk NWY F. . PORTLAND O NERNATIONAL AIRPORT I "RD S[ / SA'C / Y BLVD fit• / :'f m f��/ tiM✓ / :3 _� UB BPO. ...«........«« / OAPNE BURNSIDE ST««w•�.Y y PORTLAND POWELL BLVD. GRESHAM BEAVERTON HILLSDALE HIL �0 Tektronix,Willamette Industries, BEAVERTON FOSTER RO. Evans Products,Hyster and Louisiana f Pacific. Despite the current presence of MILWAUKIE high unemployment in Oregon caused TIGARD by a downturn in the national econ- LAKEOSWEGO omy,Metropolitan Portland's diversi- fied economic base has responded �= relatively better to national economic conditions.The outlook for the future cucKANAS RIPER is positive.Numerous national organ- izations have identified Portland as a major growth and development opportunity area for the 1980's. IS R 4, . DOWNTOWN PORTLAND WILSONVILLE LIGHT RAIL LINE Map 1 E TOWS ❑ ❑ ❑ ❑ ❑ ❑ ❑ D OO Oo 0 -�RYELF TH AVE.AVE -10 �❑ ❑ ❑ ❑ ❑ ❑ ❑❑ �� o ELEVENTH AVE. ENTH AVE. • O •� - \ 4RT MUSEVM❑ MPARK il� O D`.-• O 0`�Y•5 •L'- -Z \•\ 1''.❑ ❑ ❑ S WEST GALL LERIA❑ TH�p✓K O �L S� < o 0 0 0 o SO.O O �o R G PERFORMING PARK t-11. NOR MSTF.AN'S HEH�6Nr ISTORICA ARTS ITO�WE STROM ALLEYINOTELI.❑ ❑SOt ---J CENTER I:I' 19S IJ QROADWAYAVE. � (_�•� T ❑'l�J`U;U'❑ HOTEL FIRSTJ FEDERAL SLy I ❑I❑ oO v N U P PQM `i'W;4 31ATH 0AVE. TPAC- DNMMMNM�NNNNIXMNNNKMNNKNNIIMMp XW•KIINIINXM�IXNMIIIXIIIINIIINMNNNIRyMIX MMNXNMMNNIMI�MIMMMXMIX O= Q P (WE S OWER, LSO �,JF�� ORBANCO I COURT M6ER FREDAERIIK XIBLD6� TOWEflNK '!', O ¢ Ur �,.• n`. ❑j❑I J. ❑.LJ SHOUSE FRANK �Elrr>1 •IFTH NAVE. -11NNNNIMpIKININXXNYMIMNNNINMNRNKlp11 MSNNMNNXX SMIIMXMWMIIMMMMNIINIIW IXIp ISI IpINNXNIXIIXIMXNNXNN...-IIIIXM O o 4 J~ T HALL POIBLUG.ID❑ -EOR-GIA ACIFIC = VENNEY❑ F^ADES DITION PARKING 1 O O OURTH AVE. 11 TIL it Il JI PROJEG �- ��YF V / SCNRUNK I � III�'A ANN ❑ ❑ PLAZA l�J IJ f RI Of F f 't�f Do ONO EL NEPA PG / HIRD AVE 11-J\ D a D ; D F j D UNTAIN PLAZA C.S.A. JU TICE D NA EL Z CPPS. yy�� Not :ENTER Oa i TINE O P •••S TFKOIN IE=TER E� SIX' w❑N.I Z ❑yD /\ SOTI••• Tl��,�S ;ECOND AVE. ( .•��'•//�� ERRACE COLUMBIA TWO OMAIN ON AMHILLS WILLAMETTE �/� NEW ARKET 'tO,� \ /• S�F•• I .PIR�VESOUARE{,� P PLACEy❑ ARKET:at CKJ:. ❑ ,/ I ❑ ❑ LOCK NNO`'E V` /• �'HOTIELT FRANKLIN Y WICEAM N TTERTE yA�DAYTONNOTEL �^'1 ^��1I ANC ADE /• �FNII FRONT FRONT AVE. YAMH-I HISTORIC DI - 9 WATERFRONT PARK DISTRICT WATERFRONT PARK -m9 N o UNDER /•� _ o m PLANNED CONSTRUCTION SF W I L L A M E T T E R I V E R X 31E COMMERCIAL/GOVERNMENT Q A HISTORIC PRESERVATION Q HOUSING Q PARKS jMMINNIIIIIMIIIXIIINIIXMNMNM TRANSIT MALL .•.«•«........ LIGHT RAIL t �! ._._._._.. DOWNTOWN WATERFRONT URBAN RENEWAL AREA Map 2 Portland has repeatedly been Downtown Portland Downtown Portland is centrally recognized as one of America's most located within the Metropolitan Area livable cities.Located at the heart of Noted throughout the country and is served by a well-developed Northwest Oregon's vast recreational for its attractiveness,downtown transportation network.The economic area,Portland offers all the attrac- Portland serves a national model for and cultural focal point of the region, tions of urban life,in addition to urban revitalization.Over the past the downtown blends an attractive year-round skiing,fishing,access to two decades,the City has engaged in mix of new housing,office buildings ocean beaches,boating and hiking.In an aggressive combination of public and retail facilities in a setting of addition to a major symphony or- and private projects aimed at revers- parks and public amenities. chestra,an opera company and major ing the tide of decay typical of so league sports,there is an abundance many American city centers.These of theatre groups,galleries and res- efforts have resulted in a commercial taurants.A city of parks,fountains and cultural renaissance.Today, and attractive neighborhoods,Port- downtown Portland offers an land offers good schools and excellent enriched living and working environ mass transit. meat,and a vibrant and energetic setting fertile for new development. I ' 1, F f. Ff Downtown Housing r3 i From the outset of Portland's _ �,d� � A,, downtown revitalization effort,the 11 City has given high priority to in- 'K � ffj creasing the number of downtown t f� living units available to citizens of all ages,incomes and lifestyles.This i emphasis on downtown housing is _ seen as an integral part of rejuvenat- ing and maintaining a stable down- ti town community which balances and - j augments its rapid expansion as a cultural,entertainment and high- quality retail shopping center. Moreover,20,000 new workers are expected to find employment in downtown Portland by 1990.Single professionals and childless couples working downtown will be prime candidates for downtown waterfront housing. Madison Tower Condominiums { 10 K i n McCormick Pier Apartments � I ' i y i In 1972,the Portland City Coun- NORTHEAST cil adopted the Downtown Plan.This RESIDENTIAL. i Plan establishes a concept which has `s AREA since directed downtown growth and development.A special emphasis of VAUGHN the Downtown Plan is the generation BROADWAY of activity and pedestrian movement NORTHWEST from the retail and office core on the APARTMENT&RESIDENTIAL west,toward Waterfront Park and AREA : i AOeN residential areas to the east,including LovE!or 1= the South Waterfront. i eP`'F`�vo In 1977,the City Council took another key step toward the goal of lincreasing downtown housing when BURNSIDE_ it approved changes in the local WESTSIDE NEAR EASTSIDE zoning laws to create a special hous- APARTMENT APTS APARTMENT i ing zone in the southwest section of AREA AND SINGLE FAMILY AREA i- downtown.This zone includes the APTS Portland State University campus,the BELMONT Park Blocks and a moderate density apartment neighborhood.Zoning P.S.U. 'I requires that a minimum of 60%of PORTLAND "AWT"ORNE all new construction within the area ,rT CENTER 12 be housing.Developer interest in downtown housing has also resulted WEST HILLS X405 - from the adoption of a Downtown Housing Policy and Program which establishes a City commitment to the POWELL CORBETT • creation of new housing for middle- TERWILLIGER income households. - BROOKLYN At present,over 14,000 people live in the downtown area.The City's revitalization efforts have led to a " dramatic upswing in housing devel- opment and rehabilitation.Since 1978, 1,100 middle-and upper- r < ' income units have been built down- s town,with extensive stock also being # added through conversion and up- grading of existing buildings.A ! number of new high-rise apartments c' '�M have been completed in the last two f years including the Parkside Apart- ments which opened in 1980,and the Madison Tower with 107 condomin- ium units completed in 1981.McCor- mick Pier,a 302-unit rental develop- J ment on the waterfront adjacent to the downtown core,was recently r finished and Goose Hollow Village 1_ Portland State Campus !- j■ 1- i- +'i 'I- j' i i s t i TABLE 1 Selected Urban Housing Projects in and Adjacent to ` Downtown Portland Since 1979 Project Number Unit Size Sales Price Year I Name Units Type (Sq.Ft.) (000's) Completion 1) Abitare 57 Condo 525-825 $50-$85 1978 r 2) Hoyt Square 24 Condo 576-1008 $45-$92 1980 3) Parkside Plaza 208 Rental 630-950 $32545851mo. 1980 4) The Landing 96 Condo 705-2366 $64-$298 1980 5) Madison Tower 104 Condo 1296-2400 $148-$361 1980 6) Westover 180 Condo 900-3100 $137-$328 1981 " x ". i 7) McCormick Pier 302 Rental 696-1134 $360-$7751mo. 1982 s' } 8) Goose Hollow k` Village 116 Condo 620-944 $62-$105 1982 r -> F Portland State Campus 6 � J 1 O Jf 13 00h cz6w 4 ' q;IRIL7 F 9 i W Map 3 opened the doors to sixty new condo- homes in the west hills,northwest miniums on the western edge of Portland,and the close-in cast side downtown in the Spring of 1982. surrounding downtown.Since 1978, Table l further summarizes recently over 2,000 units have been con- completed housing projects in the structcd in close-in neighborhoods downtown and close-in areas(see and several new condominium and Map 3). apartment projects are proposed in In addition,there are several fine and adjacent to the downtown. neighborhoods with single-family i Office Development million square feet.Currently,the r� downtown contains by far the re-. `i, ,t Downtown Portland has experi- gion's largest concentration of office enced a tremendous surge in office facilities,with over half of the total 8 space development during the last t'e million square feet of space con- decade.Between 1970 and 1977,over 3.2 millions The square feet of net rentable struin the last ten years. � q The future for downtown office office space was constructed in down- development looks equally promis- � � town Portland.This represents the ing.In 1981,downtown employment addition of 405,000 square feet per was estimated at 85,000.By 1995, year.By comparison, 1.7 million ex is expected to reach !� square feet,or 432,000 square feet employment P _� ' per ear,were added during the 108-112,000.This translates into a �F. � sem; p y g demand for 450,000 square feet period 1978-1981. Overall construc- of space per year through 1985 and I' l ®MW li'OMM tion of major office buildings in the 400,000 square feet per year downtown during the 1970-81 period h� �� through 1990. i�rcFt 6G — resulted in a total increase of nearly 5 U.S.National Bank Tower ` --_Ill --- 11111111 I , I a s� .r r v F Parkside Plaza Apartments j Downtown Retail The Morrison Street Project yMk r '" ,� Downtown Portland is the largest In August,the Development shopping center in the Portland Commission began seeking a qualified j region and ranks among the top three developer for one of the most dra- in terms of sales.At present,the matic renewal undertakings in the 32-square block retail district has City's history.The Morrison Street four major department stores with Project is envisioned as a high-quality jover one million sq.ft.,and a total of complex of department stores,small about two million sq.ft.of retail shops and restaurants,office space facilities.Total downtown retail sales and possible residential and hotel ! for 1981 were$250 million. facilities to be constructed on 3 A full-block, 150,000 sq.ft. blocks in the heart of the downtown Nordstrom store was completed in retail district. " j 1977 and was the first new retail The Morrison Street Project is facility to be built in downtown in 15 indicative of a strong public commit- years.Marking a milestone for the ment to solidifying and enhancing the downtown,it represented a new downtown's role as the major high- iconfidence on the part of the retail quality retail center in the Portland k industry in Portland's downtown region.The project is expected to IX j retail potential. contribute additional vitality and , In response to this revitalized bolster the downtown as a 24-hour Willamette Center downtown retail atmosphere,other urban center. It is expected that a iretailers have followed Nordstrom's developer will be selected to under- 15 example.Meier and Frank(May take the Morrison Street Project by Company),Portland's landmark Spring of 1983,with the first phase to department store,remodeled its be under construction by Summer of facility;J.C.Penney,which had 1985. planned to leave the downtown, I opened a new,larger store;and Frederick and Nelson(Batus)put- chased and renovated an existing store. I 46L it � s I i � a 4 Nordstroms IIPJt ti Public Amenities Light Rail Transit T i~ The Portland Mall In 1983,Tri-Met will begin-- � construction of the downtown por- The Portland Mall has signifi- tion of the Banfield Light Rail line. �^ cantly improved bus service in the The$147 million transit project 1 downtown and has also created a received a full funding commitment focus for the Metropolitan Area's from the federal government in 1982 rV q` excellent transit system.The mall and is currently under construction provides two exclusive bus lanes on outside the downtown.The route for Fifth and Sixth Avenues alongeleven ethe light rail line covers 15.1 miles blocks through the center of down- and will connect downtown Portland .� town.All incoming and outgoing to neighborhoods and suburban l buses in the downtown travel on or - communities in the eastern portion of cross the transit mall,providing the City.The light rail system will convenient access to bus service from feature a total of 25 stations,includ- f anywhere in the downtown. ing 7 within the downtown.The Pedestrians enjoy the mall's downtown portion of light rail is — widened walkways,trees,plantings, expected to be completed by 1985. artworks,sheltered benches and Right-of-way for future expansion of access to route and schedule informa- the light rail service is reserved adja- .,- tion.Residents living in the South cent to the South Waterfront Project --� Waterfront Project Area will be Area. 16 `` located within"Fareless Square,"a free transit zone encompassing all of Pioneer Courthouse Square the downtown area. In celebration of Portland's role W,. tin as the center of regional culture and commerce,citizens have joined with the local business community and the City to construct an$8 million public square on the most important block Q1 C1 in the downtown.The design for the space,which includes an ornate brick plaza,large waterfall and cascade _ pool,bronze pavillion,open seating = - - and landscaping,is the result of a national architectural competition conducted by the Development Commission in 1980.Construction of Pioneer Square began in the Fall a , y of 1982 and will be completed in approximately one year. A t ( PIONEER COURTHOUSE- SQUARE__ IIII � / pi 1 1;1 1 U��U�i��UD d�,l i; (� �i0,ll,�li. �. Yl d% _ 17 It DESIGN AREA PERSPECTIVE + hl � w �- --- ._ Portland Center for the Waterfront Park l 't '"—N) Performing Arts *, The South Waterfront Project In March 1981,Portland voters will be an extension of Waterfront approved a$19 million general Park,which parallels the Willamette * obligation bond issue for develop- River throughout the downtown V l I } �. ment of a new Portland Center for the core.The Park represents one of the k. Performing Arts.The Center,which major achievements of the City's T. r will cost over$28 million,will be renewal efforts,and reflects Port- located on Broadway within walking land's origins as a harbor town and distance of the South Waterfront commitment to an active and Project Area.The project includes accessible waterfront. renovation of the existing Paramount Waterfront Park has proven to be Theater into a Concert Hall seating a valuable recreational resource.The 2,750;a new"Intermediate Theater" Park's open meadow is popular for seating 1,400;and a smaller"Show- noontime picnics and major commu- case Theater"with movable seating nity events such as Neighborfair and for 450.Improvements to the 3,000- Rose Festival.The riverside esplanade seat Civic Auditorium will also be will be extended into the South Wa- undertaken as part of the program. terfront Project Area and will offer The renovated Paramount is expected excellent views of the river and a to open in 1984 with completion of convenient walkway for jogging, the entire Center in 1985.Portland's bicycling or merely a relaxing stroll. 18 performing art halls provide year- A large brick plaza and accompany- round facilities for the Oregon Sym- ing wooden pier offer a place for phony,Broadway roadshows,local special gatherings and seating for and travelling professional ballet, lunch and conversation.Across Front major musical events and the Port- Avenue from the plaza is the Ankeny an Opera. Arcade,an outdoor museum for Portland's cast iron facades,and a _z--- — gateway to the Portland Saturday Market. —(� — �T- \ The most active area in the 1970's for new downtown construction has *� p been along the waterfront,between o' Front Avenue and Second Avenue. New projects include One Main Place,Benjamin Franklin Plaza, Willamette Center,Columbia Square -1 and the Marriott Hotel.These build- ° �j% i. UI� ings,plus those still under construe- _ tion,represent a private investment in the vicinity of Waterfront Park of over$300 million. n +• � �.: � - -�as v� °�" yt �T -'-•, �' '�s-�'n X4' 4 _�s�-+ti-` To TJ y t r�` '�� ....s:"� •' 'q 'Y x.``74',��-„"'.="�i�'r` �x *.. T it 1' r; y I i I! it The South Auditorium Project The South Auditorium Renewal Project was the Development Coin- ;,, mission's first revitalization effort.It has received national acclaim�: • ,�� t.-►�,., ,� �for its y -ic is successful creation of an integrated residential and working environment within a setting of landscaped pedes- .f trian streets and parks. The 109-acre site borders the 1 entire west side of the South Water- I front Project Area,and includes theTC I4 successful 780-unit Portland Center Apartments,the 208-unit Parkside Plaza Apartments,and the 331-unit American Plaza condominimums. The South Auditorium Project also s includes almost four million square ` feet of office space,800 hotel units, seven restaurants and a neighborhood convenience center.All of these elements are situated in an attractive 20 setting of parks,fountains,tree-lined malls,outdoor sculptures and a variety of cultural and entertainment facilities. t I � i 1 1 ►' f ' j X11 i I F ,4 II 1 r 1 441 If i The Fountain Plaza Project,a City of Portland Downtown Facts I joint venture of Olympia and YorkPopulation: 21 Equity Corporation and KOIN-TV,is Portland SMSA 1,242,000 located on the last remaining blocks Retail Trade Area 2,000,000 of the South Auditorium Renewal City of Portland 366,000 Area just west from the South Water- front Project Area.The$106 million Downtown Housing: development will include a 285-room Population 14,000 business-oriented hotel,45 units of Middle and Upper Income Housing 2,500 units luxury condominium housing,a Housing Under Construction or Planned 800 units multi-use office tower containing Downtown Office Employment: retail and office space,as well as new 1981 85,000 I KOIN studios and a cineplex movie 1995 (Estimated) 108-112,000 theater.In a later phase of the project, a 16-story office building with ground Downtown Retail Space: level retail will occupy KOIN-TV's Department Stores 1.0 million sq.ft. existing site. Specialty Shops/Restaurants .9 million sq.ft. t Fountain Plaza will enhance the Downtown Retail Sales(1981): atmosphere for shopping and evening Department Store Type Merchandise(DSTM) $165,000,000 entertainment and complement the Total Retail $250,000,000 ! diverse environment of the existing South Auditorium district and Downtown Office Space: Existing 8.3 millionsq.ft. surrounding area. I 1 Under Construction 2.5 million sq.ft. Advanced Planning 1.5 million sq.ft. j I Selected Downtown CUlturallRecreational Amenities: Civic Auditorium Civic Stadium Portland Center for Performing Arts(1985) Portland Art Museum I Portland State University l Numerous restaurants and clubs offering a variety of regional and international cuisine. � i 3. THE SOUTH WATERFRONT PROJECT History of the Project Development Commission to work completed in the Fall of 1981 (see Map with a Citizens'Advisory Committee 4),and street and marina improve- Located between the Hawthorne and development specialists to pre- ments are now being put in place: and Marquam Bridges,S.W.Front pare conceptual plans for future use Today,the Development Com- Avenue and the Willamette River,the of the area.Three schemes,ranging mission has assembled all property 73-acre South Waterfront Project from passive park use to high density necessary to implement the public Area(see Map 4) is the largest and only office development,were evaluated. and private Development Program remaining undeveloped area in down- In May 1979,the City of Port- and the project enjoys strong support town Portland.And,because it is the land City Council gave their support throughout the community,as well as most visible piece of riverfront real to an ambitious redevelopment plan from local developers and lenders. estate in the city,prospects for its for the riverfront area which called Transportation future use have captured the imagma- for a phased program of public and tion of city residents,government private investment including parks,a Excellent access to the site from officials and developers for over a marina,a mixed-use commercial the downtown and the interstate decade. center and housing—the overall freeway system is provided via Front The construction of Waterfront objective of this plan being to achieve Avenue,Harbor Drive and a new Park by the City in 1977 broke down "a mixture of active,permanent signalized extension of S.W.Mont- the physical and psychological bar- waterfront uses that attract families gomery Street.Good pedestrian riers between the Willamette River and individuals to the riverfront access extends to the site from Water- and downtown. Following this sue- throughout the year" and"provide front Park and at signalized crossings cess,the Portland City Council extensive direct public access to the of Front Avenue at S.W.Columbia amended the Doluntowir Waterfront river's water."The City Council also and Clay Streets.The Development Urban Renewal Plan in March 1978 charged the Portland Development Commission intends to construct a 22 to include the South Waterfront Commission with the responsibility new grade-level pedestrian walkway Project Area,thus making it eligible of acquiring the necessary land, formally connecting the project area for the investment of public resources undertaking public improvements with the South Auditorium Renewal essential to its redevelopment. Con- and selecting a private developer to District to the west. currently,the Council directed the carry out the project. Public transportation now serves Since Council approval of the Front Avenue and the Commission is South Waterfront Project three years working with Tri-Met to substantially j ago,the Development Commission expand transit service to the site to has worked with the engineering/ accommodate all future development design team of CH2M Hill,Robert of the area.Access to the downtown Perron Landscape Architects and the from the river will be provided via .... spa....n....s..� ". ! '' Oregon Department of Transporta- public moorage tie-up space in the tion in the preparation of detailed proposed marina and connections ��7 plans for public riverfront,street and through the project. park improvements.These plans were The Project Area Overall,the South Waterfront Project Area is largely vacant or undeveloped and is divided by Har- ` bor Drive and Harbor Way into two '1 The land �i 1 a eco A,.. distinctly different areas. FOr-.A,Gt between Harbor Drive and the river a COMMERCOL comprises 46 acres,2,600 feet of riverfront,and encompasses the entire private development area b _ `ti. Le 1. - related to this Offering.The land to I s1 „ HouslWvc the west,approximately 27 acres, slopes from Front Avenue to Harbor Drive and is essentially undeveloped � �.. i � �. .�.�.�:A?�i1. f'. .F.,.., �n..r,•P n�a�n�na hnsi- eater cont Housing/Commercial—Parcel A Housing/Conunercial—Parcel B s� #` Parcel A is a prime riverfront site Parcel B is a prime riverfront site in the South Waterfront Project Area bounded by Waterfront Park,S.W. bounded by the Willamette River and Montgomery Street,undeveloped Harbor Way,Waterfront Park and commercial property controlled by S.W. Montgomery Street(see Map 4). Pacific Power and Light Company Parcel A contains 3.8 acres and is and S.W. Harbor Way (see Map 4). currently cleared and ready for de- Parcel B contains 4.9 acres directly velopment. In addition,Parcel A south of Parcel A,and is clear and �.: includes the recently completed ready for development with the ,.T adjoining marina basin which has a exception of a vacant warehouse x maximum capacity for 150 boat slips. building and pressure steamline.The A floating breakwater to protect the steamline must be relocated in coordi- marina must be installed as a public nation with the selected Developer. si improvement by the Commission Excellent views of the West Hills, V. - prior to private development. downtown skyline and the Portland Parcel A affords one of the most Harbor are available from Parcel B. active and interesting views of the Portland Harbor and downtown skyline.This view is not available from any other location in the City. 23 t� d ya�.N� •:4 t r u� 4 Y �vro Yom• rv.; Adjacent Property and Buildings of Parcel B.The warehouse is of some not intend to acquire Metaltronics in historic interest since it is one of few connection with the project. Pacific Power and Light Property remaining early downtown water- Located on the riverfront east of —Parcel C front industrial-type buildings. Due Parcel B,the Lincoln Steam Plant is a Adjacent to the southern edge of to the building's extremely poor gas-fired steam generation facility Parcel B is approximately 9.5 acres of condition,however,the Developer owned by Pacific Power and Light undeveloped land owned by Pacific will have complete discretion with Company which provides steam heat Power and Light Company(see Map 4). respect to its ultimate utility. to approximately 560 buildings in the The Development Program for the Metaltronics is located at 1900 downtown.An electrical substation South Waterfront Renewal District S.W.Harbor Way,south of the gra- adjacent to the Lincoln Plant is a calls for up to 750,000 sq.ft.of office/ nary warehouse,and is connected major transmission station for the business type uses to bdeveloped on with the Gender Machine Shop downtown and west side.Both the e this site in the future, e the discretion operation via an easement for access. steam plant and substation will of the company. Development of The Development Commission does remain in the development area. Parcel C is subject to the requirements of the Downtown Waterfront Urban Renewal Plan,as amended September 1981,the South Waterfront Design Guidelines,as well as the limitations of Title 33 of the Planning and Zon- ing Code of the City of Portland. Existing Buildings 24 Five buildings are located in the Permits and Approvals immediate vicinity of Parcels A and B: Gender Machine Shop; 1800 S.W. In addition to the receipt of project approval from the Portland City Coun- Harbor Way;Old Granary Ware- cil,Portland Development Commission,and all applicable City Bureaus,the house; Metaltronics;and,Pacific Development Commission has obtained the following permits and approvals: Power and Light Company Lincoln State of Oregon,Department of Willamette Greenway Permit Steam Plant. Land Conservation and (riverfront access,scenic Parcel A contains no existing Development: enhancement) buildings.The Gender Machine Shop Building,however,is located adjacent Department of the Army: U.S.Corps of Engineers,Section 10 to the southwest corner of Parcel A at and 404 Permit(dredging,fill and the intersection of S.W. Harbor Way construction in the Willamette and S.W. Montgomery Street.The River) Development Commission does not Port of Portland: Section 10 and 404 concurrence intend to acquire this property in (harbor development) connection with the project. 1800 S.W. Harbor Way is located U.S. Coast Guard: Section 10 and 404 concurrence adjacent to the northwest corner of (marina) Parcel B at the intersection of S.W. State of Oregon,Division of State Removal and Fill; Lower Willamette Montgomery Street and S.W.Harbor Lands: River Review;submersible land Way.This building is owned by the lease Commission and will be made avail- able for use by the selected Developer. State of Oregon,Department of Fish Division of State Lands concurrence Directly south of 1800 S.W. Harbor and Wildlife: (dredging,fill and construction in Way is an old granary warehouse and the Willamette River) .44 acres of property included as part 4. PROJECT DEVELOPMENTPROGRAM a r Y S15af f� 4 „Sit .T DEVELOPMENT PROGRAM To ensure consistency with the established public objectives for the project,a Development Program has u t: he Cit Council and Commission which been adopted by t y i , ,�� a •.t,;,t�, stresses the provision of a residential community anchored by a marina and mixed-use commercial center.The Devel ; o ment Program is shown in Table 2.The Commission requires that the Development Program shown for Parcel A be completed in one phase.Parcel B may be developed on a phased basis depending upon developer performance in Parcel A and market feasibility. In general,the Commission encourages developers to provide development density consistent with the Develop- ment Program.The residential requirement is a minimum •' ��(�rtirdY ��JE�h, and the developer may increase this element of the Devel- opment Program at his discretion,bearing in mind the Commission's preference for a product affordable to a e" middle-range market. _ 'k °P� TABLE 2 , South Waterfront Project Development Program F � u2 Use Parcel A Size Description a.Residential 150 dwelling Condominiums(rental at units developer's option). {h b. Commercial 40,000 sq.ft. total consisting s5 of: A, 1. 1. Restaurant Minimum of two high-quality dinner restaurants. ;4 f 2. Specialty Ground level food related and Retail specialty retail complementary to r .� restaurant, marina,recreational and residential uses (at developer's t€ " option). 3. Office Small scale offices (at developer's option). { c.Marina 150 slips Full service marina excludings>s � 1= launching and repair facilities. Use Parcel B a.Residential 350 dwelling Affordable high detisity units condominiums or rental at a «,�E� ' E +'� • « developer's option. 1' b.Commercial 5,000 sq.ft. Priority given to convenience •:'., ;'"y � :� retail. Granary building to be redeveloped or removed at developer's discretioni �E� s. t d� tl 4 i {S ti s N r ZONING TABLE 3 Parking Allowance Per City Code Development of the site is subject to the limitations of <a tlr+ r z ! s Title 33 of the Planning and Zoning Code of the City of Type of Use Maximum Parking Portland.Additional regulations regarding development are contained in the Downtown Plan,Downtown Parking Residential 1.0 space/unit a3sa'z � "yrs and Circulation Policy,and Soutli Waterfront Design (developer's discretion) t x'01 j Guidelines.Prospective developers should review these Restaurant 5 rv-_11,000 sgJt f ,€ documents thoroughly for specific regulations. Copies of Retail 1.5 per 1,000 sq.ft k a. the documents are contained in the Developer's Notebook. Office ' 1.45 per 1,000 s ft ttl xfi'% p Attention is called to the fact that the project - Marina . .5 per 9`j`� �'ol:�,V 1 P 1 P t1i} � ment and design requirements are substantially belowto those densities achievable under current zoning.This Design Guidelines reflects the public objective to develop a project which fits ) 1< within the scale and character of the downtown water- Two sets of Design Guidelines are contained m the¢ I front,yet is financially feasible and can be implemented Developer's Notebook.The South Waterfront Project through a phased program of public and private Design Guidelines,prepared and approved by the Develop;jY^ ment Commission,indicate the importance the Develop >" investment. Title 33 of the Portland City Code defines maximum ment Commission attaches to certain items and the extent i building and floor area ratios and building heights for each to which the Development Commission requires that development occur in a specific manner.The South Water block within the downtown.The maximum floor area ratio(FAR)currently allowed for all land within the South front Project Special District Guidelines are general designi y o objectives approved by the Dov'ntown Design Committee Waterfront Project Area is 4:1.Maximum building height ,}r.i and City Council as a suppleWent of the City's Downtown ,l. is 205 feet in Parcel A and 185 feet in Parcel B.There is no . 26 percentage of lot coverage or yard restriction for the site. Design Guidelines. The degree of responsiveness to,and consistency with ,7 These issues are addressed in the South Waterfront Design the Design Guidelines contained in the Developer's Guidelines. All projects proposed for the downtown are subject to book will be an important selection criterion.Moreover,a z<r design and parking review.Before a project is issued a selected proposal which complies with the guidelines and';.mit+r building permit,it must be approved by the downtown pertinent City Codes will find the issuance of permits to a :F .. Design Review Committee and must obtain a Conditional construct the project a relatively straightforward process Use Permit for parking from the City Land Use Hearings 5r Officer. The Commission will enter into an agreement with a selected Developer which calls for PDC approval of the conceptual development plan,and Final Construction Drawings,and will support the Developer's application for Design Review and Conditional Use Permits. r Parking r, Surface parking will be allowed on an interim basis only.As development density increases in Parcels A and B, P Y surface parking must be removed and replaced with ' efficient parking structures to serve the shared parking needs of land uses in the project area.The maximum parking ratios allowed per City Code are shown in Table 3. t s;, 41'SrtJ # tr i '..$y YC�,,�r�r f.u.�� '• tifF N! r 1 - ,. i�..¢L{tai w L•fj' l...f:' �.♦ i✓ 5. THE DEVELOPMENT OFFERING i. a.ti93tTt '� CONDITIONS OF THE DEVELOPMENT OFFERING 3.The Commission will retain ownership of each parcel ` until the Developer is ready to begin construction Commission and City Non-Liability During the Option Period,the Commission and o er will agree to a specific schedule for take-down"and c� r 1.The Commission's rights and non-liability with respect p g p development of each parcel based on the general sched ITS{,?at ;ti to the South Waterfront Project,this Request for Devel- ule proposed by the Developer during the selection a { F7 opment Proposals responses thereto and with respect ty fi ,•eft 'x > process. to other matters which are required of the Developer as part of the Developers participation in the Developer Selection Process,are set forth in Form A—"Offer to Disposition Value Redevelop Land."This document must be executed by the Developer and submitted to the Commission as one 1. Minimum Land Price.The minimum land price will of the submission requirements.Your careful attention Y q � effective until November 1, 1986.Thereafter,the Com '� j��r�ulf� is called to this document. mission will negotiate a price per sq.ft. for all uses to be', Specific land costs are as follows: ec d. develo eS ?. t M. 2. All facts and opinions stated within this program and in. p p all supporting documents and data,including but not a.Commercial Land: $20.00 per sq.ft.of Gross Leas; limited to statistical and economic data andj roections $900,000).1 P � able Area(45 000 sq.ft. x $20.00 = are based on available information from a variety of P g ( sources.No representation or warranty is made with b.Residential Land: $2,000 er housin unit 500 units respect thereto. X $2,000 = $1 000 000).There is no additional land cost for units constructed in Parcels A and B over,500 * y 3. Please see Form A in the Developer's Notebook for C.Total Land Price:$1.9 million assuming developments additional conditions of this Offering. of the entire program for Parcels A and B. 7 -F,1 7 2. Payment for the commercial element of theprogram is A' DISPOSITION VALUE AND TERMS due upon conveyance of property by the Commission to The selected Developer and the Commission will the Developer.Payment by the Developer for the resi- dential element of the program may be made as units are finalize the specific Disposition Value and Terms during a r f, sold or rented. 180-day Option Period taking into consideration the Business Offer proposed by the Developer and commit- 3. For purposes of this offering"middle-income"refers to ments made during the selection process.Developers residential units priced between$50,000 and$120,000 i', selected to participate in the Development Proposal Phase in 1982 dollars.For units above this price,there will be t of the Developer Selection Process will be expected to a surcharge on the residential land cost equal to ten submit a Business Offer as part of their second phase percent(10%)of the difference between the selling price proposal(seepage 36). and$120,000.For example,the land cost for units The following guidelines outline the Commission's priced at$160,000 would be$6,000: $2,000 + $4,000 minimum requirements related to Disposition Value and ($160,000 — $120,000 = $40,000 x .10).Accordingly, ;ts�i Terms: as the price of units increases above$120,000 in 1982 f' dollars,the Commission's subsidy to the Developer _ sz General Terms decreases. ,; � it �� K�fyi 4• 1. The Commission will entertain proposals only for the 4.The Development Commission has leased submerged `fi iaf purchase by sale of Parcels A and B together. and submersible land in the river from the Oregon Division of State Lands.The Development Commission�4 ` 2.The Developer may joint venture or enter into other will negotiate a sublease of its interest in the submerged+, r relationships for the implementation of the project. and submersible land within the marina basin with the ti,r3�. ti rr However,the Commission is seeking a Master Devel- selected Developer.. ; oper,i.e.,one development entity for the total site (Parcels A and B),and will seek controls during negotia 5.New residential dwelling units are an integral part of thee tions that will result in the Developer having long-term Commission's objectives for the project.The Commis i. ` responsibility and control for the total development site Sion will reserve the right within the DDA to require a � and program. performance bond or similar instrument consistent With Rrr '1 4t i xj this objective. y"€" y „ <. ( S ' i4i CITY OF PORTLAND HOUSING BOND PROGRAM Utilities and Other Improvements The City of Portland has created a number of incen- 1.The Commission will pay all costs relative to the provi # tives and tools aimed at maintaining existing housing and sion of the following improvements to the perimeteeof developing new housing units in the downtown. One of the project site. these tools is the Middle Income Multi-Family Housing ■water .k<, `w � .fsl Bond Program which may be utilized by the Commission + ■sanitarysewer ' °rr�1ira t r •s� i, u to allow the selected Developer to provide financing to ■storm sewer V. improvements to Front Avenue an homebuyers with a maximum household income of ■street }'' $40,500(no restrictions on household size).This translates 1 Montgomery Street into dwelling units with a maximum purchase price of ■riverbank revettment approximately$90,000.Bonds issued under this program i ■marina basin dredging `r are secured by payments made by the recipient of the bond ■park improvements including landscaping,lighting� :r proceeds through a lease or installment sale contract under and pedestrian esplanade a mortgage and indenture of trust,in conjunction with The Development Commission will also fabricate +4 fb r applicable corporate and personal guarantees. �a install a floating breakwater to protect the marina basin tt Further information with respect to program eligibility Oaf in coordination with the selected developer.; standards,fees and other requirements is contained in the k t Developer's Notebook.Prospective developers interested It is the position of the Commission that private utilide's; in utilizing this resource as part of the overall financing for must relocate existing facilities at their own expense the project should contact the Project Coordinator at the iL <I earliest opportunity. 2.The Developer will be responsible for any cost to tect,relocate or reconstruct Pacific Power and Light Property Tax Exemption for New Multiple-Unit Company's steamline located in an easement in Parcelfi,� iL 28 Rental Housing A.The Developer will also be expected to pay the entire <� cost to construct all infrastructure improvements and 41 New multiple-unit rental housing developed in Down- streets within development Parcels A and B. town Portland is eligible for property tax exemption under City of Portland Code 3.104 and ORS 307.600-900.In 3.The Developer will be responsible for all permit and F` t;N order to qualify for the exemption,the developer must processing fees related to the project agree to include in the proposed project a public benefit i which may consist of,but is not limited to,rental units atSELECTION PROCEDURES,NEGOTIATION rental rates which are accessible to a broad income range PROCESS AND SCHEDULE of the general public,and design elements benefiting the general public.All applications for tax exemption must be General } approved by the City Council. A property for which an application for a property tax 1.The Portland Development Commission has the sole exemption has been approved will be exempt from ad authority to select the Developer for the South valorem taxation for 10 years beginning January 1 of the Waterfront Project. rF;r year immediately following the year in which construction2. A Selection Advisory Committee will be appointed to ` is completed.The exemption does not include the land advise the Commission during the Developer Selection: ; upon which the project is constructed nor any improve- Process.The Selection Advisory Committee will be k menu not part of the multiple-unit housing.An improve- responsible for review of developer qualifications and ; ment considered a public benefit by the City Council, Development Proposals.In the first phase of the Devel ^Y however,will be deemed a part of the multi-unit housing oper Selection Process,the Committee will recommend a and will be exempt. short list of the most highly qualified developers to the; Commission for review and action.In the second phase; Condition of Site at Time of Conveyance the Committee will recommend selection of a single Developer Developer for review and action by the Commission The Commission will convey the site to the }xlaT in an"as-is"condition.It shall be the sole responsibility of 3.The Commission will utilize the services of leading 4 ;, the Developer to investigate and determine the soil condi- Consultants in the areas of design,real estate economics.' . tions within the project site,beyond the geotechnical data and redevelopment law to assist in the evaluation of s k i A4 '. rovided b the Commission in the Developer's Notebook. P Y P Developmentproposals The Developer will be responsible for the costs related to .' i '•fit f h�+'� �sati b, ing: Lawrence L. Dully,Director of Development,and Developer's Notebook for additional details and instructions). Brian D.McCarl,Project Coordinator.These individu- } als will be the primary contacts and source of informa- Determination regarding eligibility for the Finder's tion for developers participating in the selection process. The Commission staff is responsible for: a)overall shall be at the Commission s sole discretion. management of the Developer Selection Process; b) 8. In response to developer concerns related to design �F " management of consultant support to the selection costs,the Commission has determined a process to lii rT' process;c)communications with developers,City minimize the cost of preparing Development Proposals Bureaus,community groups,the Commission and The Commission will partially reimburse developers others;d)preparation of required analysis and descrip- qualifying for the Development Proposal phase of the �; 4l{ ` tive materials;e)staff support for the Selection.Advisory Developer Selection Process for costs incurred in the s `tt Committee; and f)negotiations with the selected preparation of design information.A developer that..", Developer. participates in the second phase of the selection process, .,i" but is not selected by the Commission for.the Optionr u 5. In the interest of a fair and equitable competition,the Period,is eligible to receive a maximum of Fifteenfi � r > Commission retains the sole responsibility to determine "'s' `^ the timing,arrangement and method of proposal presen- Thousand Dollars($15,000) from the Commission for tations throughout the Developer Selection Process. design-related expenses.Determination regarding the amount of such reimbursement shall beat the Commis-, Developers are cautioned not to undertake any activities sion's sole discretion.Strict adherence to the instructions or actions to promote or advertise their Development Proposal except in the course o f Commission-sponsored and guidelines for preparing a Development Proposal,as < +, outlined in the Developer's Notebook,will be a precon r' + resentations. Other than liaison with Commission p dition of reimbursement. s staff,developers are not permitted to make any direct or indirect(through others)contact with members of the Portland City Council,Commission or Selection Advi- Phase One—Request for Qualifications i 29 sory Committee concerning their proposal,except in the 1:Developers will be given 60 days to prepare an initial course of Commission-sponsored presentations.Viola- '. tion of these rules will be grounds for disqualification of submittal of qualifications information only.ATwenty- Five Thousand Dollars($25,000) Good Faith Deposit is f the Developer and forfeiture of deposits made with the due upon submission of developer qualifications wee• Commission. Developer's Notebook for instructions and an outline of 4' , 6. Please see Form A—"Offer to Redevelop Land,"in the j required information). Developer's Notebook for detailed requirements,non- p q 2. The Commission strongly encourages developers to ` t liability provisions and other matters. submit comments and questions in writing to the Com 7.The Commission willpay a Finder's Fee in connection mission and meet individually with the Commission with the South Waterfront Project in an amount not to staff early in the qualifications period to discuss project exceed Fifty Thousand Dollars ($50,000).The Finder's details,submission requirements and selection criteria % <'z Fee will only be paid according to the following - schedule: 3:The Commission staff and Selection Advisory Commit tee will carefully review the responses to the Request for 4 z t S% of the first$300,000 of total sales price; Qualifications and may meet with all or any of the and 2'/2% of the balance of the total sales price. developers.The Commission may request that devel- ' op clarify,supplement,modify or provide additional The fee will be paid only to an independent broker- a ent designated b the Developer within 30 days of the ' information regarding various aspects of the informa g g y P y tion submitted.During a 60-day review period,the 60-day qualifications step of the Developer Process with Commission staff and Selection Advisory Committee.r` 3;,'a ,, , ' which the Commission executes a Disposition ands, will review qualifications request written clarifications ;i m Development Agreement and to whoit conveys the and may conduct interviews with developers under site.If either Parcel A or B is conveyed in phases or if the serious consideration. Limited presentations to the t . Developer implements less than the Development Pro- gram shown in Table 2,then the Finder's Fee will be public may also occur in this phase of the selection then t• process.` afir 'j` paid on a pro rata basis.If any portions of the site are not conveyed,the Finder's Fee for that portion shall not be 4.The Commission,after receiving the advice of the Selec _��_� tion Advisory Committee and staff,will select a limit paid.Compensation will be made pursuant to"Regulaed � _ tions Relating to the Compensation of Real Estate 'i'' number of the most highly qualified developers to par '° ss A fi k t Ski Process.Those developers not selected will be immedi- Development Commission.If the Developer negonat., r r' ately reimbursed for the full$25,000 Good Faith in good faith,but fails to reach an agreement with thea, Deposit. Development Commission staff,then the Option Fee h 5. All offers may be rejected at the discretion of the will be refunded,exclusive of$25,000 or'the Develop ,s 1( ment Commissions third-party expenses_.on the protect;t Commission. whichever is greater(see Form A of Developer's Notebook. for additional details)..:, Phase Two—Request for Development Proposals 2.The selected Developer will be expected to progress ' 1. Following action by the Commission and written notice diligently and expeditiously to complete negotiations to proceed from the Commission,developers selected the Disposition and Development A reement.Exten :�;h' duringthe first phase of the Developer Selection Process p p g ' P P sions of the Option Period may be granted by the Com:;,} will be given 90 days to prepare a complete development mission.A fee for each extension of the Option Period Vr`- proposal(see Developer's Notebook for instructions will be Ten Thousand Dollars($10,000) for each month and an outline of required information). extended,payable in advance.Extension Fees will bei. ttt" 2.The Commission strongly encourages developers to retained or returned on the same basis as the Option Fee submit comments and questions in writing to the Com- 3, During the Option Period,the Developer and Commis s mission and meet individually with the Commission Sion will: ' staff early in the second phase of the selection process to i discuss project details,submission requirements and ■Refine and finalize commitments made by the Devel 3 r selection criteria. oper during the Developer Selection Process wuh F regard to business terms,design,schedule and other`'t 3.The Commission staff and Selection Advisory Commit-; aspects of the Development Proposal. ;, ra„�Y ` ,_ tee will carefully review the responses to the Request for `�'� Development Proposals.The Commission may request ' ■Negotiate in Good Faith the terms of the Dispositions - 30 that developers clarify,supplement,modify or provide '' and Development Agreement between the Commis ;r additional information regarding various aspects of the{ Sion and the Developer.The DDA is an agreement ;s information submitted and make a presentation to the ; that details the contractual responsiblities of the ryas Selection Advisory Committee.During the review Commission and the Developer,the method and -`. period,the Commission staff and Selection Advisory amount of the land sale,approval of the design by t' Committee will review Development Proposals,request Commission and all other terms and conditions of written clarifications,conduct interviews and discuss the sale. Development Proposals with interested parties. 5 � 4. The Commission,after receiving the advice of the Selec- tion Advisory Committee and the staff's evaluation,may select a single Developer by acceptance of an Offer to Redevelop Land. 5. As noted previously,all Offers may be rejected at the discretion of the Commission. 7 r The Option Period ,n1 1.Following selection of the Developer by the Commission through acceptance of the Developer's Offer to RedevelI op Land,the Developer will be required to pay a One Hundred Thousand Dollar($1 LN,000) Option Fee to 'ms's rri 4 V a: secure an option to negotiate the terms of a Dispositionr°�ayA�'. *t;. and Development Agreement(DDA)with the Commis- "I �� `�`-e t Sion for a period of 180 days(the"Option Period").The i Option Fee -Five Thousand Dollar the Twent d4 n l y Y { ($25,000) Good Faith Deposit,shall be in the form of cashier's check,certified credit or letter of payable to the Portland Development Commission.The us .KF. i K - I � Schedule The schedule for the Developer Selection Process is proposed to be as follows: Time Elapsed Time ■ Commission issues Request for Development Proposals. -0- -0- • 0■ Designation of Broker/Agent,if any,is due 30b days prior to submittal of qualifications. 30 days 1 month �,{ t ■ Response to Request for Qualifications due, payment of$25,000 deposit. 60 days 2 monthsL ■ Commission/Selection Advisory Committee review of Qualifications.Preliminary interviews and requests for additional and clarifying information;developer responses to Commission requests for additional `'- ' information. ■ Selection of most highly qualified developers by Commission;Commission requests :ni � Development Proposals from most highly s 4 months qualified developers. 60 days ■ Development Proposals due. 90 days 7 months ■ Commission/Selection Advisory Committee tag 1 Review of Development Proposals.Interviews, ` presentations and requests for additional and clarifying information;developer responses to y , Commission requests for additional information. ■ Selection of developer by Commission; acceptance of Offer to Purchase and Redevelop r ya Land;developer payment of$100,000 Option Fee. 90 days 10 months ■ Option Period. 180 days ■ Execution of Disposition and Development Agreement between Commission and developer. 16 months ■ Developer prepares conceptual plans,obtains P permits and financing. 28 months x ars ■ Start of Construction. 29 months tat},hitt, f}i'��.. •I r:,i ■ Opening of Initial Phase. 41 months SELECTION CRITERIA FOR QUALIFICATIONS PHASE ; �►, y The Commission intends to developa short list of the most highly qualified , , g Y q developers based on information submitted by the Developer;interviews;inves- ;: rYg ti!, tigation of the Developer's previous projects,history and performance in pre vious undertakings;financial capability;and other pertinent factors.In the Qualifications Phase of the Developer Selection Process,exclusive emphasis will ' be placed by the Selection Advisory Committee on the qualifications and finan ��+ '• �" tial capability of the Developer. r. , The following criteria are those that the Selection Advisory Committee and 4 M , " � V yph 7 ff 10 ks I. Developer Experience r4w��£ia�rir A. Major downtown projects involving a mix of: «tt 1. Residential(urban high density low-rise and mid rise) a `g 2.High-qualitydinner restaurants and specialty food outlets '�al t P tY 3. High-quality specialty commercial centers. r; 4. Marina and waterfront operations. B. Success of comparable undertakings related to the following 1.'Economic success(high-quality marketing and sales record,-favorable financing,experience). t Y 2. Overall architectural and urban design quality,including ability to °1CSI create positive community identity. '�„ t '3. Successful operation in downtown settings,with emphasis on management and maintenance. 4.',Joint public-private projects.. Y a fik4 `` C. Current relationship with and demonstrated ability to attract high?; k" quality restaurants,specialty commercial and marina operators 4 �`� D.Timeliness of performances. � , :. �S r 32 E. Demonstrated ability to undertake redevelopment projects and to c= respond to public objectives. F. Delivery of product initially represented. ' II. Management Experience in the Key Use Categories A. Management success in comparable undertakings B. Experience in operating developments in a downtown setting., a v a C. Success in achieving high-quality project maintenance standards i ik I1I. Financial Capability of Developerx F. A. Ability to raise$40-60 million in capital for the project._., B. Strength of current relationships with financing sources. Y' h C. Ability to provide for operation and maintenance P D. Resources and tenacity("staying power"). IV. Organization and Management Approach , meq A. Clear lines of responsibility within the Developer's organization that t'e,� Commission can rely on to be effective and responsive F i;VA • `z'. B. Approach workable in the private marketplace. C. Availability of a full-time representative of the Developer m Portland. ' during the development of the project Jf z r " V. Qualifications of Key Personnel A. Qualifications and experience of key persons and entities associate wit's the Developer. �° ' 1 4 k ( SELECTION CRITERIA FORbuildings along this line shall be a minimum of 24 r y` DEVELOPMENT PROPOSAL PHASE . J`Ty feet in height. 'r -1 In the Development Proposal Phase of the Developer 3. In the Waterfront Center along the esplanade, Selection Process,emphasis will be given by the Commis- i ` covered arcade is required which is at least 10 Sion and Selection Advisor Committee to all aspects of the feet wide.Beyond the arcade awnings may '` i 'tf "•` Y P Y g Y ;a , Development Proposal in accordance with the following extend up to 6 feet into the esplanade.Storefront general priorities: windows and entrances are required of all com mercial establishments located along the arcade s gym" Approximate Signs along the esplanade are limited to areas u Criterion Weight within the arcade.Furthermore,signs must only identify establishments and shall not be for ■ Development Team qualifications and #" advertising purposes. financial capability. 25% ■ Adherence to the Development 4. An arcade or covered walkway is required for link r �F' Program mix and priority to increase Parcels A and B(future)and the park area south residential densi 25% of the steam plant.The arcade or covered walk ty' way should be of similar character to that along ; ■ Business Offer and Development the esplanade in the Waterfront Center. t ,r; Schedule. 25% 5. Long-term parking,except for steam plant em r ■ Design Proposal. 25% ployees,is not permitted along the waterfront fit p within a 50-foot setback of the eastproperty,line 100%, 4xa}:r; The Commission and Selection Advisory Committee 6. Because bridges and high buildings surround the r are very interested in design,but not to the exclusion of site,rooftops of buildings must be carefully 33 other key factors.The above weighting system accurately designed and appropriately treated to enhance R ; reflects the general priorities that will be used in the their visual appearance.Roof surfaces must be evaluation of Development Proposals. l composed of high-quality materials such as tile, ;! In addition to further review and consideration of the slate,metal or wood.Flat roofs with tar areprohibited where visible from adjacent bridges, { information submitted in the Qualifications Phase of the roads and public areas.Taller buildings may have. t t Developer Selection Process,the Selection Advisory Com- flat roofs with parapets and fully enclosed well mittee and Commission will utilize the following criteria to designed penthouses.All mechanical equipment evaluate Development Proposals(not necessarily in priority order): and service areas must be enclosed and screened , from view;exposed machinery is not permittedy S+S fir-; I. Fulfillment of Project Objectives/Conformance with 7. The circulation system must facilitate pedestrian City Plans and Policies access through the development in both north/ f A. Responsiveness and consistency with South Water- south and east/west directions.Access must be front Project Design Guidelines,particularly: provided through retail and office uses in the Waterfront Center to the esplanade and terrace:;,'' 1. Building heights in Parcels A and B increase in bowl park. height from the esplanade toward Harbor Way. x ;y B. Responsiveness to the Downtown Plan Goals— One oals .One point or accent tower with a maximum ` ground floor(building pad) area of 10,000 sq.ft. + ;C. Conformance with Planning and Zoning Code and is allowed but not required in Parcel A.Two other.Ci policies. q tY P towers with maximum ground floor(building pad)areas of 10,000 sq.ft.are allowed but not required in Parcel B. No building in the project II. Overall Strength of Development Team ' x q g A area may exceed the limits allowed by City Code. A. Economic and management strength of the ,k Towers may be located anywhere within the Y Y "Developer and Development Team development Parcel.Building densities immedi- ately mmedi ately adjacent to the base of towers must be B. Experience of designated planning/architecture( reduced to provide greater pedestrian open area.' urban design consultants in major mixed-use and � waterfront projects in a downtown setting as evt 1 t , C. Experience and strength of other key consultants/ A. Official Instructions and Guidelines specialists designated to be part of the Development The following instructions and guidelines are contatnedi=t,i Team. in the Notebook and are essential to the preparation � proposals: III. Project Economics 1. Submission Instructions for Qualifications Phase of ` A. Q uality anamount od f residential. Developer Selection Process. t� yvT B. Density of the overall development. 2. Submission Instructions for Development ProposalfS {s Phase of Developer Selection C. Feasibility of each component,phase and total development and likelihood of orderly and rapid 3. Design Guidelines for the South Waterfront Project., implementation of each phase to completion. B. Offical Formse+ x Degree of recognition of and responsiveness to, The following forms are contained in the Notebook and D.Deg g P g economic factors affecting key components of the must be used as part of the Developer's submittal y ".Y x proposal. 4. Form A—"OFFER TO REDEVELOP LAND'; IV. Architectural and Design Quality 5. Form B—"DEVELOPER'S CONFIDENTIAL>E '4 STATEMENT OF FINANCIAL CAPABILITY" A. Overall quality of the conceptual design within the context of surrounding development. 6. Form C—"DESIGNATION OF BROKER-` B. Degree of creative integration of residential,'restau- AGENT. rants,specialty retail,and office in the Waterfront 7. Form D—SUGGESTED FORMAT <�.€�t ter• Center uses with the residential community in SUMMARY PROFORMA. 34 Parcel B. C. Supporting Documents V. Business Offer and Development Schedule The following supporting documents and background z information are also contained in the Notebook: { A. Date for start of construction. 8. Goals and Guidelines/Portland Downtown Plan�5' 4 B. Phasing plan and dates for completion of each phase. 9. Downtown Design Guidelines a.<"1 C. Anticipated date of completion for entire project. 10. Downtown Development Regulations Title C1Z. , D. Absence of contingencies. 11. Downtown Portland Parking and Circulation!�. E. Land proceeds and other revenues generated to the Policy. Commission. s 12. Downtown Housing Policy and Program F. Proposed method of managing parking facilities. 13. City Council—Portland Development Commission Approvals. HOW TO RECEIVE A DEVELOPER'S NOTEBOOK 14. Conditional Use Design Review Process Summary. t Any developer interested in making aro osal for the 15. Geotechnical Data Summary. South Waterfront Project should send a letter on company 16. Color Slide Packet letterhead indicating the name,address,phone and lead contact for the company,along with a check for Fifty 17. Selected Technical Drawings. Dollars($50) payable to Portland Development Commis- ■Utility Drawings1rx :�` sion.Upon receipt of a letter and check,the project staff ■Topographic Survey will immediately forward a Developer's Notebook which ,-. ■Property Ownership and Easements includes all instructions and official forms to be used in the ■Legal Descriptions selection process,along with supporting data and informa- + ' tion and copies of all applicable City policies and codes, . . r specifically: Portland Development Commission Staff kC`3i' Patrick L. LaCrosse i t Executive Director Lawrence L.Dully Director of Development , s � Brian D.McCarl Project Coordinator I Ellen Gyllstrom Project Supportgk �t;..i Project Specialists: f Oliver 1.Norville: Williams,Stark,Hiefield and Norville,P.C. Commission Legal Counsel r Robert C.Lesser: Robert Charles Lesser&Co. Marketing Advisor • � _t tom° .. r i a ��d F x to�t�E4 �1 t 6 ?:jY tie- j 1 ' {� )