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City Council Minutes - 08/08/2017 Cites 'Tigard Tigard City Council Meeting Minutes August 8, 2017 Iola STUDY SESSION—6:30 p.m. City Council present: Mayor Cook,Council President Snider, Councilor Woodard, Councilor Goodhouse and Councilor Anderson Staff present: City Manager Wine,Assistant City Manager Zimmerman and City Recorder Krager Council Liaison Reports: Councilor Woodard reported on the Tigard Transportation Advisory Commission (TTAC) meeting. Senior Transportation Planner Brown gave a presentation on the 2017 transportation bill the legislature approved. Congestion pricing(tolls)was discussed. The Transit Subcommittee requested youth participation regarding transportation options and mode choice. The TTAC desires to improve their involvement process with the city in prioritizing city gas tax transportation projects and a suggestion on this may be coming up later. City Manager Wine said staff needs to update the transportation project uber list. She said it is timely to get youth involved in the TTAC because Washington County wants to develop priorities for the future and it would be great to have youth involved. City Manager Wine said the Transportation Funding Strategies Team discussed different types of funding and how it may be used. There are two lists of projects. The city is committed to the"qualified list" (projects adopted in the CIP, funded and underway). Prospective or discretionary projects can be debated. Councilor Goodhouse said the Tigard Youth Advisory Council may want to do a fundraising project at the Movies in the Park. Administrative Items: • A petition is circulating from an outside group that is filling up the council email boxes. IT will create a temporary folder to collect them. If you want to be unsubscribed from any junk mail, let staff know. Executive Assistant Bengtson can help with setting up email rules or unsubscribing. • Movies in the Park Council Outreach—7:00 p.m. on August 25. Look for the tent at the park at Metzger School. The city recorders will be there with cookies to hand out. • Any councilors interested in a League of Oregon City Conference tour should let Ms. Bengtson know and she will take care of the sign-ups. Please note that some tours have limited capacity. TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 1 of 18 1. BUSINESS MEETING A. At 7:34 p.m. Mayor Cook called the City Council and Local Contract Review Board to order. B. City Recorder Krager called the roll. Present Absent Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ C. Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Call to Council and Staff for Non-Agenda Items—None. 2. CITIZEN COMMUNICATION (Two Minutes or Less,Please) A. Follow-up to Previous Citizen Communication—None. B. Tigard Chamber of Commerce—CEO Mollahan updated council on Chamber activities. She said they are accepting applications for Leadership Tigard which gives participants a way to make an impact and learn more about how your community works and the challenges it may face.The Main Street banner was installed and commemorated and Ms. Mollahan expressed appreciation to the Washington County Visitors Association and numerous businesses and private donors. She said the banner is visible from Highway 99W. The Downtown Tigard Street Fair will be on September 9 followed by the Latino Festival. Vendor registration is open and everyone is invited. B. Citizen Communication—Sign-up Sheet. Ralph Robbins,residing at the Gatehouse Apartments,8545 SW Pfaffle Street,Tigard Oregon, said he has lived there since 2009 and is 88 years old. He said he is a victim of age discrimination by the community manager of the apartments,Margie Geary,and her husband David Geary,a community maintenance technician. He said Margie Geary is an agent with Princeton Property Management,7831 SE Lake Road,#200,Portland, OR 97267. (503)746-7296. He said he has been treated with disrespect by the Gearys. Mayor Cook said he will have staff look into what they can do about the situation. City Manager Wine requested that Mr. Robbins leave his information tonight with Assistant City Manager Zimmerman for staff follow-up. 3. CONSENT AGENDA: (Tigard City Council) — A. APPROVE CITY COUNCIL MEETING MINUTES • July 18,2017 TIGARD CITY COUNCIL MEETING MINUTES—August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 2 of 18 B. CONSIDER AUTHORIZING THE CITY MANAGER TO SIGN AN AMENDED EAST TIGARD SEWER IMPROVEMENT INTERGOVERNMENTAL AGREEMENT C. CONSIDER AUTHORIZING THE CITY MANAGER TO SIGN A SHARED PERSONNEL INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF LAKE OSWEGO Councilor Goodhouse motioned to approve the Consent Agenda and Council President Snider seconded the motion. Mayor Cook conducted a vote and the motion passed unanimously. Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ 4. LOCAL CONTRACT REVIEW BOARD: CONSIDERATION OF CONTRACT AWARD FOR DERRY DELL AT 118TH COURT SLOPE STABILIZATION Senior Management Analyst Barrett and City Engineer Faha gave the staff report. Mr. Barrett said this contract is for construction on the Derry Dell Creek at 118`''Court slope stabilization and stormwater outfall repair. Staff is asking that the contract be awarded to Elting Northwest. Two sections of stream bank will be repaired. The first is located immediately downstream of 118`''Court and is an active landslide. The area has experienced two significant slides,one in 2005 and another in 2015. This continued slide and stream bank failure is threatening a private home, sewer infrastructure and a popular walking trail. The second unstable portion is located just upstream of 118`h Court where a broken public stormwater outfall is undermining private property and eroding a steep stream bank. This project will repair the broken stormwater pipe and reconfigure the outfall, stabilize the stream bank and eliminate the risk of collapsing a private backyard. Staff issued an invitation to bid and received four bids.Two of the bids came in below the engineer's estimate and were the closest bids he has seen in his tenure at the city. Staff recommends approval of a contract in the amount of$576,335 for the project. Mayor Cook commented that it has been tough to find bidders and it was good that the city was able to receive a bid below the estimate. Councilor Woodard moved to approve the contract award for the contract and Councilor Anderson seconded the motion. Mayor Cook conducted a vote and the motion passed unanimously. Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ TIGARD CITY COUNCIL MEETING MINUTES—August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.dgard-or.gov I Page 3 of 18 5. LOCAL CONTRACT REVIEW BOARD: CONSIDERATION OF CONTRACT AWARD FOR DIRKSEN NATURE PARK BOARDWALK AND OVERLOOK IMPROVEMENTS Senior Management Analyst Barrett and Project Manager Peck gave the staff report.This contract is for the installation of the boardwalk and other improvements at Dirksen Nature Park. The purpose of the project is to install a hard surface overlook at the high point in the oak savannah to provide park users with an area to experience and view the newly restored savannah. It will include a concrete walkway with a stone veneer seat,basalt columns and brass replicas of animals embedded into the paving.The second element of the project is installation of an elevated boardwalk within the park's forested wetland and a soft surface walkway. Staff received three proposals,all of which were higher than the engineer's estimate. The boardwalk manufacturer is too busy to schedule an installation so the cost increase is due to needing a third party to install it. Lee Contractors is the lowest responsible bidder,at$138,750. Staff recommends awarding this contract for Lee Contractors. Mayor Cook asked a question about the history of the project. Mr. Barrett said originally staff had wanted two boardwalks but it had to be cut to one because of costs. Council President Snider moved and Councilor Woodard seconded the motion to approve the contract award. Mayor Cook conducted a vote and the motion passed unanimously. Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ 5. LEGISLATIVE PUBLIC HEARING: CONSIDER ADOPTING A TRANSIENT LODGING TAX A. Mayor Cook opened the Public Hearing. B. Mayor Cook gave the hearing procedures and said that anyone may offer testimony. C. Finance and Information Services Director LaFrance gave the staff report. He said discussions on this started back in spring 2016 when Council was searching for potential funding sources for the Tigard Downtown Association (TDA).The conversation continued last November and on July 18,2017 Council asked staff to come forward and bring legislation for a 2.5 percent Transient Lodging Tax (TLT),or what most people refer to as a hotel/motel tax. He said there is currently a 1.8 percent state tax and a 9 percent Washington County tax. Tigard is proposing a 2.5 percent lodging tax. This would put Tigard at a competitive rate compared to neighboring jurisdictions. There is a comparison chart in the agenda packet for this meeting. Mr. LaFrance noted that at least 70 percent of the TLT revenue is required to be spent on tourism-related purposes. A special revenue fund would be set up to track this. Up to 30 TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 w�vw.tigard-or.gov I Page 4 of 18 percent of the TLT can be spent for general government purposes because it is recognized that increased tourism puts a burden on local jurisdictions. Mr. LaFrance said he and Mayor Cook met with Scott Youngblood of the Embassy Suites near Washington Square,which is the largest hotel in Tigard. Staff conducted outreach to the hospitality industry including a June 28,2017 open house which all hotel/motel businesses in Tigard were invited to attend and none chose to come. Following that, staff sent an emailed invitation for feedback on the proposal and some ways Tigard might spend the revenues.The Tigard Chamber of Commerce reached out to their membership and received one comment;it was from a hotel that is a Chamber member but located in King City. In the last few days the city received a letter from the Oregon Restaurant and Lodging Association. Primarily,ORLA is requesting that the vote be delayed. They are citing the lack of response in the city's attempts to engage the hotel community and they also point out that Beaverton just experienced a ten-percent decline in hotel revenues. Finance and Information Services Director LaFrance contacted Beaverton and Washington County, including the Washington County Visitors Association and was able to learn that this appears to be true in terms of occupancy of rooms. Beaverton however, says their decline was 3.3 percent. Some factors that might lead to the decline in occupancies in Beaverton were that a few hotels have been added in Hillsboro which add to the total number of rooms available in Washington County. Air BnB's play a larger role in the industry,offering another lodging choice.According to WCVA information there is an industry-wide decline in occupancy of hotel rooms this year. All of those could be factors,including Beaverton's new TLT. Staff has looked into the letter and attempted to find out what could be causing those impacts. Council President Snider commented that he had the same question about the ten percent decrease in Beaverton. He felt the information was incomplete without looking at the number of rooms available in the area. He appreciated the depth of staff research and that his question was answered by Mr. LaFrance before he asked it. Mayor Cook commented that more than a couple of hotels opened recently in Hillsboro so the number Mr.LaFrance was given might be a little low. D. Public Testimony-Mayor Cook called upon those who signed up in favor to testify. Steve DeAngelo, 13215 SW 124th Avenue,Tigard,OR 97224,asked council to consider adoption of the proposed TLT. He said staff did a great job reaching out to the community and strategized to keep the tax a little lower than neighboring jurisdictions. He said that as a professional caterer and event planner,anything that drives opportunities for his business is important. He said bringing more tourists to downtown Tigard is good for downtown businesses,and he is the president of the Tigard Downtown Alliance. He asked council to approve the TLT as presented. Debi Mollahan,Tigard Chamber of Commerce CEO, 12345 SW Main Street,Tigard,OR 97223,said she was present to speak in support of the TLT. She said it is a way for the city to improve and build tourism-centric amenities and help stimulate the local economy. Local hotels benefit and this will trickle down to the the rest of the businesses. She likes the rate because it puts our Tigard hotels at a competitive advantage with other Washington TIGARD CITY COUNCIL MEETING MINUTES—August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 5 of 18 County,Beaverton and Hillsboro hotels. She noted that the Embassy Suites in Tigard is the largest hotel by far,in Washington County so keeping them at a competitive advantage is great. She said they gave staff feedback on tourism-centric amenities and she likes the list that was prepared. Ms. Mollahan added that the Chamber also wears a tourism promotion hat and from that perspective are very interested in this proposal. Staff did their due diligence and reached out to the hotel community. She has heard that this non-response has been a trend in other locales considering a TLT. She supported council approval of the TLT and asked that the rate be kept competitive to help local hotels keep their competitive edge. E. Public Testimony: Mayor Cook called upon those who signed up in opposition to testify. Greg Astley,Director of Government Affairs,Oregon Restaurant and Lodging Association, 8565 SW Salish Lane,Wilsonville,OR,said they sent in written testimony. He said ORLA tried to reach out to the lodging community and it is their high season so they are busy keeping tourists happy and making sure they have a nice place to stay. He said he hoped that Tigard would take the time to get a little more input. He said the outreach done so far was appreciated and he applauded the efforts by the city to do that because there have been other instances (Beaverton is one)where that was not done.Despite protests from the lodging community decided to forge ahead with a four percent tax. He said in those cases the city is not listening to the folks that are actually collecting the tax and talking to the people who are paying that tax. He said while some guests will not look at a room tax rate when making their decisions,those booking larger room blocks will. It makes a big difference to Little League teams travelling all across the state with 15 kids and their families. Mr.Astley asked that if the council goes ahead with the TLT that they make sure that there is accountability for anything the money is being used for and that it is proven to put heads in beds. F. Response to testimony by staff Finance and Information Services Director LaFrance said he had no response. He thanked everyone who presented testimony on both sides of the issue. G. Mayor Cook closed the public hearing. H. Council Discussion and Consideration: Ordinance No. 17-18 Councilor Woodard said he looked at the competitive structure and Tigard is still very competitive. If he was ordering a big block of rooms,he would consider Tigard. He was unsure how much could be learned about investigating the ten percent loss in Beaverton and thinks what staff has proposed is a good rate. Councilor Goodhouse agreed that the city did a lot of research. He commented that he is a member of both the Tigard and Tualatin Chambers of Commerce and they act as visitor associations, doing a lot of tourism work. He suggested putting some revenue towards these "visitor centers" so they can do more work to get the word out on what there is to see or do in Tigard. He noted the importance of messaging so that hotel guests know what could be done in Tigard and not pass it up,and messaging takes a little bit of extra money. TIGARD CITY COUNCIL MEETING MINUTES—August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 6 of 18 Council President Snider asked how long the city has been seeking outreach. He asked how many times and ways have been tried. Mayor Cook said it started in September 2016 and that makes it close to one year. Washington County Visitors'Association has been at the table at two of those meetings and they have helped spread the word. He said he and City Manager Wine met with Mr.Astley before all of this started and agreed to do the outreach. He said he was disappointed that people did not come forward but that has been the experience of other cities that also did outreach. Council President Snider said he did not think there would be new information with more outreach. He added that people often complain about how long it takes government to act on anything and he wanted to move forward. Councilor Anderson noted that the city deliberately arrived at 2.5 percent with the understanding that this percentage can be assessed later. He recommended going forward. Council President Snider moved to approve Ordinance No. 17-18. Councilor Anderson seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 17-18—AN ORDINANCE ADDING CHAPTER 3.85 TO THE TIGARD MUNICIPAL CODE TO ESTABLISH A 2.5 PERCENT TAX ON TRANSIENT LODGING IN THE CITY OF TIGARD City Recorder Krager conducted a roll call vote. Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ 7. LEGISLATIVE PUBLIC HEARING—CONSIDER DEVELOPMENT CODE AMENDMENT (DCA2017-00002) ADOPTING TIGARD TRIANGLE LEAN CODE AND RELATED CODE AMENDMENTS A. Mayor Cook opened the Public Hearing. B. Hearing Procedures—Mayor Cook announced that anyone may offer testimony. Oral testimony may be offered only by a person who has been asked to speak by the Mayor. C. Staff Report—Assistant Community Development Director McGuire said staff is very excited to bring this forward as a lot of work has gone into this by staff and consultants. A Lean Code is new and innovative for Tigard. Staff is getting a lot of positive feedback from property owners and businesses in the area. It is a major step towards implementing the Strategic Plan. TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 7 of 18 Senior Planner Shanks gave the staff report,including a PowerPoint on the current Lean Code proposal Phase 1. Phase I repeals and replaces the Tigard Triangle Plan District section of the code (Chapter 18.620),modifies the Commercial Zoning districts (Chapter 18.520) and modifies the Off-street Parking table (Table 18.765.2). The modification to this table is a housekeeping item as it has always been unclear. Council will be considering Phase I tonight. Phase II to the Lean Code Proposal is to create a new Triangle Mixed Use Zone (TMU) and rezones MUE and C-G properties. Phase II will be considered by the council later this year and the effective date of Phase I is contingent upon the adoption of Phase II. Staff will continue to work with ODOT on a traffic analysis. Ms. Shanks compared the current and proposed zoning and building heights and showed a slide of the transportation network. Mayor Cook noted that the lines in the transportation network are shown going through existing buildings but that road will not occur unless the existing owner moves. If the best use of that land is a street it will only happen when development happens on that property. Ms. Shanks said in 2014 the city began discussions on what the vision was for this area.That vision process was completed in 2015. This major code update achieves the goals with a mixed-use rezone,lean and form-based approach, small-scale and incremental strategies and street improvements that prioritize pedestrians. Ms. Shanks said the overarching goal is to transform the Triangle into an active,urban,multimodal,and mixed-use district that prioritizes pedestrians and supports equitable development. She said equitable development is ensuring that plans and aspirations do not leave people behind. It supports those living and working in the area now so they are not priced out by gentrification. The Lean Code expects varied heights located towards the street and wide sidewalks activated with uses (sidewalk cafe). She said businesses can use the public right-of-way. She described smaller structures that are more affordable to build and use for business and residents.The idea is to avoid typical suburban development with large parking lots. The Lean Code process was discussed. Ms. Shanks said it will make it easier to go through the development process. Standards for parking are on one page rather than twenty as in the existing code. Form is emphasized over use. It supports pedestrians, small-scale and incremental strategies. She gave an example of an owner who has a house and wants to open a coffee shop or gathering spot. The existing code requires a lot of parking.The Lean Code proposes no minimum parking requirement. But street parking is required everywhere it will fit. Ms. Shanks said this code will be kind and gentle for existing residential areas. For pre-existing code purposes they can have any addition they want and do not have to come into conformance. Ms. Shanks showed examples of development proposed under the current code and under the Lean Code.There is a pre-existing commercial 35-foot setback. Expansion at the back is allowed. However,if something closer to the street is proposed,then there are standards to meet as it is approaching the public realm. All pre-existing commercial use can remain in perpetuity. TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 8 of 18 Senior Planner Shanks summarized the public comments and noted that council received copies of four recent comments and her response to them. She said Mr. Specht owns an entire block,which is unusual in the Triangle. He has multiple street frontages and is concerned about parking but the proposed code focuses on form,not on use.The Planning Commission reviewed the comments and felt the adjustment process is sufficient to address his concerns. Council President Snider asked Ms. Shanks for her professional opinion. Ms. Shanks said what Mr. Specht is proposing for parking was allowed under the current code but the city's vision and aspirations for the Triangle have changed and this site could be developed differently to clearly meet the new standards. It will need to go through a land use adjustment process which allows an applicant to request an adjustment for almost any standard in the code,but the evaluation criteria for approving the adjustment would be,"if you do that,what are you going to do so the pedestrian realm is not affected?" Assistant Community Development Director McGuire said it is a trade-off and in the adjustment process staff can look at it individually and provide some type of mitigation for the pedestrian experience (in the Specht case) because they would allow the parking to be closer. If we change the standard then we do not get a chance to get that mitigation for the pedestrian. Ms. Shanks added that the 35-foot setback was questioned but staff had worked with the Incremental Development Alliance and 35-feet is the magic number for small,incremental developments to fit in those kinds of spaces over time. Ms. Shanks discussed a concern Mr. Corliss has for the rezone of the Landmark Ford property from General Commercial to the new Triangle Mixed Use. She said Landmark Ford is valued as a business and his use will be allowed to exist in perpetuity and will not be called non- conforming. She noted that they cannot build beyond the site but the use could be intensified by building up or reconfiguring. A lot of car dealerships are going vertical because land is so expensive. She said there was also a concern raised about the dashed line on the drawing but the size of the block would only be reduced at time of redevelopment. Mayor Cook clarified that redevelopment does not mean Mr. Corliss adding a building on his site and keeping the same use. Ms. Shanks said if at some point,perhaps if his inventory doubled or some intense impact, staff would need to look at street dedications to minimize impacts. In response to a question from Council President about options,Ms. Shanks said the site is constrained by no buildings allowed over the future street connection. Ms. Shanks discussed a letter from Mr. Lampus about his properties. He owns five contiguous lots but three to the north have a four-story maximum and two are in the six-story maximum designation. They have done some market analysis and would like to consider combining their adjoining lots but they have different height maximums. She said staff was neutral about his request to make them all six-story. There is no scientific reason for four or six story heights and if Council does not want to honor this request Mr. Lampus could always proceed with the adjustment process. She said having buildings of similar heights on opposite sides of the street is a design principle. Ms. Shanks said Mr. Cassinelli's property is in the four-story maximum height zone. She said staff has done some market analyses and while sometimes five stories could be squeezed out of a property,they have been advised that four-stories is the natural cut-off point. Ms. Shanks said the four-story limit was intentional to keep land values down and expectations lower so that smaller development can get going. TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.dgard-or.gov I Page 9 of 18 She said the Planning Commission held a hearing on June 19 public hearing and considered all comments received by then. She noted that Mr. Martin,Mr. Lampus and Mr. Robinson's most recent comments are new and were not considered by the Planning Commission.The Planning Commission instructed staff to make some minor changes after a three-hour hearing and made a unanimous recommendation for Council adoption. The proposal was further modified to correct some omissions. Three Commercial zone standards were not moved into the Lean Code but have been added now. The Planning Commission did not know that but staff wanted to make sure it was right. Council received a memo about this. Staff recommendation is that the code not be changed for Mr. Martin or Mr. Robinson's comments and staff is neutral about Mr. Lampus'request,leaving it up to Council. Ms. Shanks said Council has some decision-making alternatives: adopt with no changes,adopt with minor changes,or continue the public hearing to a date certain to consider public comments or major changes. Councilor Anderson said Mr. Corliss'property looks to him to be commercial, coming right off of the freeway. He asked if it could remain General Commercial. Ms. Shanks replied that the Triangle needs a more cohesive look. Also,the car sales businesses are changing and evolving with the times. Many are going vertical or are keeping inventory at different locations. That business model is evolving and this is an opportunity to look at the Triangle long term and consider it more of a cohesive,unified whole. D. Public Testimony: James Lampus,4439 SW Eleanor Lane,Portland,OR 97221,referred to his lots on the corner of Dartmouth and 72nd Avenue. He said there is a tremendous slope from Clinton Street down to Dartmouth Street. He has previously looked into dividing the site but the cost of retaining walls and lack of access and egress made it financially unfeasible. He said an advantage to allowing six-story development is that it would be a nice gateway to the Triangle.The natural slope lends itself to street level retail. His previous development proposal,which had been approved,went by the wayside due to the financial downtown,but had three levels (two for retail and one for office space). He asked council to consider the properties one development as carving it up will not be feasible. Council President Snider asked Mr. Lampus if he was talking about the building height maximum and he replied that while they had not done all the computations,they believed they could build 140 units with retail,and meet the parking requirements. Six stories will give them more options. Rachael Duke,Community Partners for Affordable Housing,P. O. Box 23206,Tigard,OR 97281,said she was speaking in support of the Tigard Triangle Lean Code. She read a letter which has been entered into the record. She said CPAH's goal is to provide housing that is excellent,but simple. The Tigard Triangle is the perfect place for multi-family affordable housing which belongs in places where there is access to opportunity,including transit and employment in both small and large businesses,and education. She said a necessary ingredient in any vibrant community is housing for people of all income ranges. She said CPAH is looking forward to building in the Triangle. TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 S`X'Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 10 of 18 Michael Robinson, 1120 NW Couch Street,Portland, OR 97209,said he was speaking on behalf of Deacon Development,the owner of the property at the tip of the Triangle. He said staff made a few changes in the code in response to previous comments and this was appreciated. He said they are going through a Type II development process but in looking at the Lean Code they would like to suggest two small changes. One is that there be a"minor change provision" that does not kick someone into a non-conforming modification process. They have an approved plan now and as Ms. Shanks stated earlier they can go ahead and develop it and are not a non-conforming use. But as they develop this property and make small changes that maintain the essential nature of the development,they are concerned that this will trigger a modification process or cause loss of their pre-approval status,either of which might put the project in jeopardy. Notwithstanding everyone's goal for the Triangle,it is not yet at maturity. He suggested that council ask staff to sit down and work with them on some language for this. He said the other change involves saving as many of the white oaks on the property as possible.As they work on the footprint there may be some minor changes to the plan and it would be ironic if saving trees that were not required to be saved would kick them into a modification process. He said he knows a lot of work has gone into this process and as it moves ahead staff may be loath to hold it up for these two changes. He said they support adoption of the Lean Code and hope it is a model for other cities. Councilor Woodard asked what type of modifications they are concerned about with their pre-existing land use approval. Mr. Robinson said it is not necessarily pre-existing land use, it is the fact that they have a development plan approval and under the Lean Code both pre-existing uses and approvals that aren't implemented yet are not subject to the new code. He said he did not know exactly what changes might come up but they want a mechanism to avoid being kicked into a modification process. Jim Corliss,Landmark Ford, 12000 SW 66"'Avenue,Tigard,OR 97223, said most of his comments have been put into a letter to the Planning Commission and City Council but he did want to make a few comments after listening tonight. He said he participated in some community meetings and Triangle visioning sessions early on but never heard the planners say that part of their vision was not to have an automobile dealership in the middle of the Triangle,or he would have commented sooner. He said it is a natural commercial location and has been there for 50 years. He disagreed with Senior Planner Shanks' comment that the business is changing and we will be out of the automobile business in the future. He said his dealership has gone through changes from being a very small business to being one of the largest in the United States and is not done growing. He said if he adds another franchise he would need a sizable building but cannot do this on his lot under the Lean Code. The next time the Selectron building comes up for sale he intends to buy it. He noted that they own the forest land and commented that he had no plans to take down the trees. He acknowledged that Phase I is the Lean Code and Phase II is the zoning changes and they are being considered separately but to him they are together. He disagrees with a lot of the language in the code that will apply to his property once those zoning changes are adopted. He said larger businesses are necessary for employment. There needs to be a mix. He suggested getting rid of a car business because things are changing makes no sense and they might as well get rid of Costco because Amazon will be taking it over. Many things can change in the future. Getting rid of a car business—an anchor tenant—instead of the large retail businesses does not make sense. TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 11 of 18 Council President Snider thanked him for coming and said he has been considering his correspondence. He said in one hundred years that lot will not be configured the way it is now. He asked Mr. Corliss if,given what the city is trying to achieve,he would support the Lean Code generally applying to the property when it was sold. Mr. Corliss said at some point in time he might sell the business but would not sell the property. He does not anticipate selling it as it is in a family trust. He said he still felt it is a commercial location because it is on I-5 and not a pedestrian-friendly situation. 12 Daniel Heffernan,2525 NE Halsey Street,Portland,OR,97232,said he was here representing Specht Development and asked that the city council add language that was in the letter sent July 25 to the Lean Code. This change would add flexibility for property owners whose land fronts two or more streets. He stated that their proposal is very different from what the Planning Commission heard. What they heard from them was ten feet. This would not alter the 35-foot setback requirement for most properties in the district. It would only apply to a property that fronts two or more streets. He explained that the Lean Code presents a challenge to developing such properties and might discourage building because the setback changes what the development could look like in ways that could be a disadvantage to the city. He noted that the staff report said there was no need for their recommendation because the applicant could always use the modification process to obtain relief from any part of the code. He said,"This is antithetical to the entire process we've been going through for three years which has been to provide certainty and remove red tape and accelerate the development review process." He said a Type II application is still is a secondary process that adds time, cost and uncertainty. Mr. Heffernan said whether there is a deep 35-foot landscaped setback or a 35-foot parking lot,the land underneath is valuable and you are limited to what can happen on the front lot.A site with two street frontages is further constrained. He suggested that Council adopt language staff prepared prior to the Planning Commission meeting that amends 18.620.70D, adding flexibility for properties bordering more than one street. It would only apply to only those properties. Having this flexibility lets the property owners make better use of development opportunities in today's market while not messing things up for them in the future. He said that staff prepared this amendment and they would like to see it re-inserted. Lloyd Hill,Hill Architects, 1750 SW Blankenship Road,Suite 400,West Linn, OR 97068, said he is the architect for Mr. Cassinelli's project and also for the Hampton Suites project on 69" Avenue and Clinton Street which is hopefully getting land use approval this week. He referred to Mr. Cassinelli's project they've been working on under the current code,which has been challenging. They are close to being complete and may have to submit under the current code. The building is designed to comply with current 45-foot height limits because the property is on the uphill side of 72nd Avenue. They evaluated several different alternatives but found that building a four-story,wood frame over a concrete slab with parking below generated optimal returns. He is concerned that if the new zoning goes into place there should be an adjustment process that might allow them to get approval for a five-story even though the area is zoned for four-story. He said there may be other developers running into the same situation where they need the extra story. He said there was other testimony from a developer who had a property split between four and six story zoning. He noted that the west side of 72"d Avenue TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 12 of 18 was proposed to be six stories and the city said they wanted similar projects on each side of the street. He recommended making the east side of 72ad all six-stories. E. Response to testimony by staff Senior Planner Shanks referred to Mr. Hill and Mr. Heffernan and said she appreciated how challenging it is to keep a foot in both places and it is hard to write a code that bridges the old code and a new one. She asked Council if they really want to change a code for certain owners. She said even though staff prepared the language Mr. Heffernan referred to,they would really rather use the adjustment process because this is what it is for. The Planning Commission wants to see how this process works. If it does not,we can change it. The adjustment process elevates the code's goal of creating a place that is walkable. It is very straightforward and focuses on one thing. She referred to the comment from Michael Robinson expressing concern about coming back and wanting to preserve a tree and triggering a formal modification process, she did not think there is additional language needed. She said,"Not doing something you were never required to do does not trigger a land use process." She said that Mr. Corliss' concerns and requested modifications are problematic and the Planning Commission accepted staffs feeling that the code language is sufficient. Ms. Shanks reiterated that Mr. Corliss'business,with current surrounding zoning cannot expand into the existing MUE today. He could not even without these changes. But she said the proposed Lean Code will allow him to continue to operate and intensify his business on his existing site in perpetuity. Assistant Community Development Director McGuire commented that the zone change gives Tigard the opportunity to achieve the vision at some point. He said staff tried very hard to make it as easy as possible to continue existing businesses so we don't put that pressure on them and even allow some expansion. He said,"But remember,the vision that the community and all of the work that went into this was for a more urban style,pedestrian-oriented development. That particular property may be an obvious commercial property right now but it does not fit the vision in the future. It is right in the center of an area where we are trying to create a denser,urban area.We do not want to push anyone out,but we want to create that opportunity for it to naturally develop over time to meet the vision. Senior Planner Shanks showed the transportation network map which clearly shows the commercial development but what is not apparent is a pedestrian bridge that goes over to Kruse Way and connects to a path at the southern Triangle edge. Having some bike facilities on 66th Avenue was discussed and this might even be a cycle track because it only has development on one side because of the freeway. The path connection at the freeway could be a very viable pedestrian/bike connection even though it is right up against the freeway. Councilor Anderson asked if there was a charge for a Type II adjustment process and could there be a discount for folks already in process with the current code. Mayor Cook said TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 13 of 18 Council could grant that. Assistant Community Development Director McGuire suggested making a Tigard Triangle adjustment fee of$200 which would be"lean." Councilor Woodard asked if the adjustment is defined and was it a fair process. Senior Planner Shanks said it follows the Type II process and is a staff level decision. There is a public notice requirement and staff takes care of that. In terms of the adjustment itself there are two criteria that have to be met: 1)the proposed adjustment has public benefits and is generally consistent with the applicable stated purposes of the related chapter and 2) the proposed adjustment includes enhancements to the pedestrian environment along the proposed development street frontage including but not limited to plaza development, district tree preservation,pedestrian amenities in the public right of way or pedestrian oriented building facade design elements. Councilor Woodard said wanted this read on television so people would be aware. He asked how the appeal process would work. Ms. Shanks said it would be heard by the hearings officer. Mayor Cook asked if Type II is a director-level decision and Ms. Shanks said it is. Council President Snider asked staff for any objections to six stories on east side of 72' Avenue. Ms. Shanks said Mr. Cassinelli's site is in the middle of the block and would take a chunk of four-story land away. Council President Snider asked if that is a concern and Ms. Shanks replied that after talking with consultants,staff found that four-stories made a lot of sense so smaller development can get started. Assistant Community Development Director McGuire said the market is telling us that there is demand for five or six stories. Mayor Cook said discouraging development of higher densities does not make sense because our intent is to encourage development and make it easier to develop. Council President Snider verified that staff is recommending that the language requested by Mr. Heffernan not be placed in the code. Mr. McGuire said the Planning Commission did not rule on this but were very supportive of letting the adjustment process work. If we lose the adjustment process we lose the option to try and maintain the pedestrian experience by other means. That is given up if we use the compromise language. Councilor Goodhouse said it is ridiculous to disrupt a longtime business. He asked if Mr. Corliss wanted to,could he add buildings if they were not on the dotted line.Mayor Cook said under General-Commercial is there still the 35 foot setback. Ms. Shanks said C-G zone standards are less flexible than the Lean Code and will benefit him as well as others in the property. Council President Snider said there is a big difference between what the staff and Mr. Corliss view as the Lean Code impacts on his property. Councilor Goodhouse asked what might be a hindrance to Mr. Corliss if he added a new dealership and wanted to reconfigure. Ms. Shanks said Mr. Corliss can continue to operate his business on everything on that land except for the one corner lot. He can continue to reconfigure,add buildings,take away buildings,and operate as a dealership under the Lean Code.The future street is a constraint. Councilor Woodard asked about the separate approval process for Phase I and II and Ms. Shanks said approving Phase I will give certainty to the development community although it TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 14 of 18 will not go into effect until, or if,the zoning is adopted in Phase II. Councilor Woodard asked if the traffic impact study will change anything in Phase I.Assistant Community Development Director McGuire said what it impacts is that we may have to do a project with ODOT,such as expanding an ODOT facility. Senior Planner Shanks said small changes such as building height would not affect the traffic impact study. F. Mayor Cook closed the public hearing. G. Council Discussion and Consideration: Ordinance No. 17-19 Council President Snider recommended that council move forward will six stories on the east side of 72nd Avenue and the Lampus properties as well. He said Mr. Corliss is an important member and leader of the community and he is getting more of a mixed bag with this. It is impossible to think of every scenario but what we've got is flexible. He said he was supportive of the$200 lean fee as discussed for adjustments and it seems like a reasonable process. Councilor Goodhouse asked about allowing six stories across the board. He said he did not want to change every detail for certain circumstances and said he wanted appeals to come to council. Councilor Anderson commented that is not very lean,which was the whole point. He said staff can make decisions and move on. H added that he did not think there would be that many appeals. Councilor Woodard commented that staff and everyone who worked on this did a great job. He recommended staying with the Planning Commission's recommendation but had concerns with the 35-foot setback. He said he agreed with staff that there is more flexibility with the Lean Code for Landmark Ford than General Commercial. He said he agreed with Council President Snider about allowing six stories on 72nd Avenue and he hoped there was a way to save the oak trees. Councilor Anderson asked about the feasibility of keeping the CG Zoning for Landmark Ford because it felt to him like commercial property. He said in a few years if there is an increase in pedestrians someone could walk over on their lunch hour and look at a car. He suggested the Landmark Ford property be grandfathered in. He said he agreed with the Lean Code with the inclusion of the six stories on 72nd and combining the two lots on the Lampus property. Mayor Cook said he concurs with allowing six stories on 72nd Avenue. He referred to a comment by Mr. Corliss that Phase I and Phase II of the Triangle Lean Code are the same and said he disagrees. He said he is only considering Phase I tonight and has not decided how to vote on Phase II. He said he would like to add wording protecting the Landmark Ford property if it is sold. He said Landmark Ford should be able to do what they want on their property within the code for the foreseeable future but at the same time,he did not want to see a big box store built on it if the property is sold in the future. Council President Snider clarified that the combined lots on the Lampus property would be covered by adding six-stories to 72nd Avenue. Mayor Cook said they were and Council President Snider moved to approve Ordinance No. 17-19 with a modification to allow six TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.dgard-or.gov I Page 15 of 18 stories to be built on the entire east side of 72"d Avenue. Councilor Woodard seconded the motion. City Recorder Krager read the number and title of the ordinance. Ordinance No. 17-19—AN ORDINANCE ADOPTING AMENDMENTS TO TIGARD MUNICIPAL CODE TITLE 18 CHAPTER 18.620 (TIGARD TRIANGLE PLAN DISTRICT), CHAPTER 18.520 (COMMERCIAL ZONING DISTRICTS),AND CHAPTER 18.765 (OFF-STREET PARKING AND LOADING REQUIREMENTS) TO IMPLEMENT THE LAND USE AND DEVELOPMENT VISION FOR THE TIGARD TRIANGLE,A REGIONAL TOWN CENTER,AS DESCRIBED IN THE COMPREHENSIVE PLAN, TIGARD TRIANGLE STRATEGIC PLAN,AND TIGARD TRIANGLE URBAN RENEWAL PLAN AND IN FURTHERANCE OF TIGARD'S WALKABILITY GOALS. (Land Use File: DCA2017-00002), as amended to allow six stories to be permitted on the entire east side of 72nd Avenue. City Recorder Krager conducted a roll-call vote. Mayor Cook announced that Ordinance No. 17-19 as amended passed unanimously. Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ 8. CONSIDER RESOLUTION TERMINATING ANNEXATION INCENTIVES Assistant Community Development Director McGuire said since 2007 staff has annually brought resolutions forward for Council consideration of annexation incentives. After a review of success, or lack thereof,of the incentive program,and the specific goals related to annexation in the Council Goals,which provide direction, staff is suggesting that Council consider terminating the yearly incentive review process. Mayor Cook said it made sense but he had a concern that people who want to consider annexing into the city may think any incentives are off the table. He said Council's Goal was not only to annex islands but to continue discussion with other areas that might want to come in. Council President Snider agreed that annexation incentives should be considered as properties come forward but noted that this has been in place for a long time and has not been effective. Councilor Woodard suggested terminating the annual review but bringing back to the agenda a discussion on what incentives should be considered. Mr. McGuire said the island annexations had many individual agreements regarding desired incentives that could not have been determined in advance because they are unique to each property. TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.dgard-or.gov ( Page 16 of 18 City Manager Wine read from the Council Goals,`Beginning in July 2018,develop a work plan for future annexations of the urban growth boundary. Include dates and deadlines for needed studies and outreach,identify logical phasing options and present a work plan to council by the end of 2018." Councilor Goodhouse said the best way to find out is to speak to people and find out,going from house to house,what would encourage them to annex and then craft the incentives. Councilor Goodhouse motioned to approve Resolution No. 17-37. Council President Snider seconded the motion. City Recorder Krager read the number and title of the Resolution. Mayor Cook conducted a vote and announced that Resolution No. 17-37 passed unanimously. Resolution No. 17-37— A RESOLUTION REPEALING RESOLUTION 07- 13 TO TERMINATE THE INCENTIVES FOR VOLUNTARY ANNEXATION OF UNINCORPORATED LANDS TO THE MUNICIPAL CITY LIMITS Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ 9. EXECUTIVE SESSION None. 10. NON AGENDA ITEMS None. 11. ADJOURNMENT At 10:27 p.m. Councilor Anderson moved for adjournment and Councilor Goodhouse seconded the motion. Mayor Cook announced that the motion passed unanimously. Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 17 of 18 Carol A. Krager, City Recorder Attest: P, WL%� John L. ok,Mayor t Date: -7 TIGARD CITY COUNCIL MEETING MINUTES —August 8, 2017 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 18 of 18