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City Council Packet - 11/05/2019 INCity of Tigard • TIGARD Tigard Business Meeting—Agenda TIGARD CITY COUNCIL&LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: November 5,2019 - 6:30 p.m. Business Meeting MEETING LOCATION: City of Tigard -Town Hall- 13125 SW Hall Blvd.,Tigard,OR 97223 PUBLIC NOTICE: Anyone wishing to speak on an agenda item should sign on the appropriate sign-up sheet(s). If no sheet is available,ask to be recognized by the Mayor at the beginning of that agenda item. Citizen Communication items are asked to be two minutes or less. Longer matters can be set for a future Agenda by contacting either the Mayor or the City Manager. Times noted are estimated;it is recommended that persons interested in testifying be present by 6:15 p.m. to sign in on the testimony sign-in sheet. Business agenda items can be heard in any order after 6:30 p.m. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 503-718-2419, (voice) or 503-684-2772 (11)D -Telecommunications Devices for the Deaf). Upon request, the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments;and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers,it is important to allow as much lead time as possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling. 503-718-2410 (voice) or 503-684-2772 (TDD -Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA VIEW LIVE VIDEO STREAMING ONLINE: htto://www.tigard-or.aov/city hall/council meetina.ohp CABLE VIEWERS:The first City Council meeting of the month may be shown live on Channel 28 at 6:30 p.m.The meeting will be rebroadcast at the following times on Channel 28: Thursday 6:00 p.m. Sunday 11:00 a.m. Friday 10:00 p.m. Monday 6:00 a.m. • City of Tigard Tigard Business Meeting—Agenda TIGARD TIGARD CITY COUNCIL& LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: November 5,2019 - 6:30 p.m. Business Meeting MEETING LOCATION: City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard,OR 97223 6:30 PM 1. BUSINESS MEETING A. Call to Order B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 2. CITIZEN COMMUNICATION (Two Minutes or Less,Please) A. Follow-up to Previous Citizen Communication B. Citizen Communication—Sign Up Sheet 3. CONSENT AGENDA: (Tigard City Council,Local Contract Review Board) The Consent Agenda is used for routine items including council meeting calendars,appointments to boards and committees and approval of contracts or intergovernmental agreements. Information on each item is available on the city's website in the packet for this meeting.These items may be enacted in one motion without separate discussion. Council members may request that an item be removed by motion for discussion and separate action.Motion to: A. CONSIDER INTERGOVERNMENTAL AGREEMENT WITH METRO FOR WASHINGTON SQUARE GRANT AWARD B. LOCAL CONTRACT REVIEW BOARD - CONSIDER CONTRACT AWARD FOR MAIN STREET PHASE 2 DESIGN •Consent Agenda-Items Removed for Separate Discussion:Any items requested to be removed f om the Consent Agenda for separate discussion will be considered immediately after the Council/Town Center Development Agency has voted on those items which do not need discussion. 4. LEGISLATIVE PUBLIC HEARING: CONSIDER ORDINANCE ADOPTING A CONSTRUCTION EXCISE TAX 6:40 p.m. estimated time 5. LEGISLATIVE PUBLIC HEARING: CONSIDER ORDINANCE AMENDING TIGARD MUNICIPAL CODE 3.50-TAX EXEMPTIONS FOR NON-PROFIT AFFORDABLE HOUSING 7:10 p.m. estimated time 6. RECEIVE UPDATE,ON LOCAL OPTION LEVY PLANNING 7:30 p.m. estimated time 7. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order,the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 8. NON AGENDA ITEMS 9. ADJOURNMENT 8:15 p.m. estimated time AGENDA ITEM NO. 2 B - CITIZEN COMMUNICATION DATE: November 5, 2019 (Limited to 2 minutes or less,please) The Council wishes to hear from you on other issues not on the agenda but asks that you first try to resolve your concerns through staff. This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony becomes part of the public record. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. NAME,ADDRESS & PHONE TOPIC STAFF Please Print CONTACTED Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: o n f/ Address t �pCity 101 State Zip Phone No. Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. CITIZEN COMMUNICATION 1:\ADM\CITY RECORDERS\000 City Recorder-Records Resources and Policies\CCSignup\2019\2C Citizen Communication.doc AIS-4004 3.A. Business Meeting One Meeting Date: 11/05/2019 Length (in minutes): Consent Item Agenda Title: Consider Intergovernmental Agreement with Metro for Washington Square Grant Award Prepared For: Susan Shanks Submitted By: Susan Shanks, Community Development Item Type: Motion Requested Meeting Type: Consent Agenda Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the city enter into an intergovernmental agreement (IGA)with Metro to accept a grant award in the amount of$250,000 from the Metro 2040 Planning and Development Grant Program to fund the Washington Square Regional Center Update Project? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends that Council direct the City Manager to sign the attached IGA.This will enable the city to engage a consultant team with expertise in land use planning,multimodal transportation planning,housing and economic analysis,economic development,anti-displacement strategies,and community engagement to do the necessary work to update the plans,policies,and regulations associated with Tigard's portion of the Washington Square Regional Center. KEY FACTS AND INFORMATION SUMMARY At Council's direction, the city applied for a Metro 2040 Planning and Development Grant to fund the Washington Square Regional Center (WSRC) Update Project.The city's grant application was successful,and the attached IGA describes the terms and conditions for the city's acceptance and use of the grant funds. In addition to these funds, the city has pledged$60,000 in matching funds toward the project. The matching funds will be paid for out of Community Development's consultant budget and are intended to support the project's community engagement efforts,particularly in those communities in the planning area that have been historically underrepresented or marginalized. PROJECT BACKGROUND WSRC has much greater potential for high-density residential and employment-rich development than has occurred since the original vision and regional center plan was adopted in 2000. The project assumes that the main tenets of the original vision—dense,walkable,mixed-use development—remain valid but that an update is necessary given the significant changes in the business and housing sectors in the past 20 years. The city desires to build on and refine the original vision to facilitate equitable development,remove barriers to redevelopment,and create more regional housing and employment options that are consistent with: (1) Council goals to promote economic growth and community vitality in the regional center,and (2) the city's strategic vision to be a walkable, healthy,and inclusive community. The purpose of the WSRC Update Project is to: •Understand market trends and the city's ability to influence these trends. •Work with the community to build on and refine the land use and regulatory framework for the regional center in response to market trends,city aspirations,and community priorities. •Lay the groundwork for updating all applicable plans,policies,programs,and regulations associated with the portion of the regional center within Tigard and the Tigard WSRC Plan District. This project is timely and a priority for the following reasons: •The region is experiencing a housing affordability crisis. WSRC has the potential to provide more housing options for all kinds of households in a central location that has access to a variety of services and employment opportunities. •The city is undertaking a separate but related planning project to evaluate the supply and regulation of employment lands in the city. The WSRC market analysis will contribute to the city's understanding of regional market trends. •WSRC is the closest regional center to the newest urban growth boundary expansion areas in Tigard, Beaverton,King City,and Wilsonville.The regional center needs to evolve in order to serve these new developing areas. Moreover,the city desires to balance its fiscal and physical approach to growth by facilitating high-density,mixed-use,and centrally-located infill development in WSRC along with low-density residential edge development in River Terrace. •High-quality transit is a key component of a successful regional center,and it is important that transit service to and within WSRC not be overlooked as TriMet moves forward with SW Corridor transit planning. OTHER ALTERNATIVES City Council may choose to not accept the Metro grant. This would significantly curtail staffs ability to implement the City and Council goals listed below. Staff does not have the in-house expertise or capacity to do most of the work identified in the scope of work attached to the IGA. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS City Strategic Plan Goal 2—Ensure development advances the vision. City Council Goal 2—Promote economic growth and community vitality by identifying and removing barriers to redevelopment in Washington Square Regional Center. DATES OF PREVIOUS CONSIDERATION April 2019—Council approved Resolution No. 19-14 directing staff to submit a Metro grant application for the Washington Square Regional Center Update Project. Fiscal Impact Cost: $60,000 Budgeted (yes or no): Yes Where budgeted?: CD Consultant Budget Additional Fiscal Notes: Matching Grant Funds Attachments IGA MetroTigard-WA Square Grant Contract No. 936295 2040 PLANNING AND DEVELOPMENT GRANT INTERGOVERNMENTAL AGREEMENT Metro—City of Tigard Washington Square Regional Center Update This 2040 Planning and Development Grant Intergovernmental Agreement(this"Agreement") is entered into by and between Metro,a metropolitan service district organized under the laws of the state of Oregon and the Metro Charter,located at 600 Northeast Grand Avenue, Portland OR,97232 ("Metro"), and the City of Tigard,a municipality of the State of Oregon,located at 13125 SW Hall Boulevard,Tigard, Oregon,97223 (the"City"). Metro and the City may be jointly referred to herein as the"Parties"or each, individually as a "Party". RECITALS WHEREAS, Metro has established a Construction Excise Tax("CET"),Metro Code Chapter 7.04, which imposes an excise tax throughout the Metro regional jurisdiction to fund regional and local planning that is required to make land ready for development after inclusion in the Urban Growth Boundary;and WHEREAS,the CET is collected by local jurisdictions when issuing building permits,and is remitted to Metro pursuant to Intergovernmental Agreements to Collect and Remit Tax entered into separately between Metro and the local collecting jurisdictions;and WHEREAS,the City has submitted a 2040 Planning and Development Grant Request attached hereto as Exhibit A and incorporated herein (the"Grant Request") for the Washington Square Regional Center Update (the"Project");and WHEREAS,Metro has agreed to provide 2040 Planning and Development Grant Funds to the City for the Project in the amount of$250,000 subject to the terms and conditions set forth herein (the"Grant Funds"),and the Parties wish to set forth the timing,procedures and conditions for receiving the Grant Funds from existing CET funds for the Project. In addition to the Grant Funds,$60,000 in matching funds from the City will be used to fund the Project budget. AGREEMENT NOW THEREFORE,the Parties hereto agree as follows: 1. Metro Grant Award. Metro shall provide the Grant Funds to the City for the Project as approved by the Metro Council in Resolution 19-5002 and as described in the Grant Request,subject to the terms and conditions specified in this Agreement. 2. Project Management and Coordination. The Parties have appointed the staff identified below to act as their respective project managers (each a"Project Manager"and collectively"Project Managers")with the authority and responsibility described in this Agreement: For the City: Susan Shanks Senior Planner City of Tigard 13125 SW Hall Blvd. Tigard,OR 97223 503-718-2454 susans@tigard-or.gov 2040 PLANNING&DEVELOPMENT GRANT IGA—Metro&The City of Tigard Page 1 Contract No. 936295 For Metro: Deb Meihoff,Communitas Metro 600 NE Grand Avenue Portland,OR 97232 503.358.3404 deb@communitasplanning.com Metro and the City may each designate an additional or replacement Project Manager by providing written notice to the other party. 3. Mutual Obligations of both the City and Metro. The Parties and their respective Project Managers will collaborate to oversee the successful implementation of the Project as follows: (a) Selection of Consultants.The Project Managers will work together to identify consultants best qualified to perform the scope of work described in Request for Proposals,attached hereto as Exhibit B.The Project Managers and any additional reviewers selected by the Parties will jointly review proposals from consultants and select a mutually agreeable consultant team to perform the work required to successfully complete the Project. (b) Schedule of Milestones.The Parties have agreed to a preliminary schedule of milestones for completion of the Project,which is attached hereto as Exhibit C (the"Milestones").After the Project Managers have selected a consultant team as described in subsection 3(a),the Parties each expressly delegate authority to their respective Project Managers to prepare a revised schedule of Milestones that will provide more detailed performance timelines for the Project, including specific consultant and/or City deliverables for each Milestone,and establishing the amount of Grant Funds to be disbursed by Metro upon satisfactory completion of each Milestone.The Parties agree that once the Milestones are supplemented and revised by the Project Managers in accordance with this subsection,the revised version of Exhibit C will become final and binding on the Parties unless and until it is later amended as allowed under paragraph 10 of this Agreement. (c) Project Committee(s). The Project Managers will jointly determine the role of the Project steering/technical/advisory committee(s),if any,and the composition of such committees or other bodies. Metro's Project Manager or a designated staff person will participate as a member of any such committee. 4. City Responsibilities. The City shall perform the work on the Project described in the Grant Request, and as specified in the Milestones,subject to the terms and conditions specified in this Agreement. (a) Use of Grant Funds. The City shall use the Grant Funds it receives under this Agreement only for the purposes specified in the Grant Request and to achieve the Milestones as set forth in this Agreement. In the event that unforeseen conditions require adjustments to the Project scope, approach or schedule,the City shall obtain Metro's prior written approval before implementing any revisions to the Project. (b) Consultant Contract(s). After the Project Managers have selected the consultant team and completed a revision of the Milestones as described above in section 3,the City shall enter into a contract(s) with the selected consultant team to complete the work as described in the Milestones as revised ("Consultant Contract").The contract(s) entered into by the City shall reference this agreement and reflect the Scope of Work and the Milestones,as revised. 2040 PLANNING&DEVELOPMENT GRANT IGA—Metro&The City of Tigard Page 2 Contract No. 936295 (c) Submittal of Grant Deliverables.Within 30 days after completing each of the Milestones,the City shall submit to Metro all required deliverables for such Milestone,accompanied by an invoice describing in detail its expenditures as needed to satisfy fiscal requirements.Deliverables must be submitted to Metro as outlined in the Milestones,as revised;the City shall not submit additional deliverables and invoices to Metro for later Milestones until Metro has reviewed and approved all prior deliverables under paragraph 5 of this Agreement. (d) Matching Contribution. The City commits to a matching contribution of up to$60,000 (the"City Match"). The City Match is a reimbursement of actual costs incurred under the applicable Consultant Contract or as a direct expense for the deliverables identified in the Milestones as requiring City Match. The City Match will be paid directly to the applicable vendor or the consultant team pursuant to the terms of the Consultant Contract. 5. Metro Responsibilities.Metro's funding commitment set forth in this Agreement shall be fulfilled solely through CET funds; no other funds or revenues of Metro shall be used to satisfy or pay any CET grant commitments.Metro shall facilitate successful implementation of the Project and administration of Grant Funds as follows: (a) Advisory Role. The Metro Project Manager shall take an active role as part of the Project Advisory Team and at the request of the City Project Manager will review and comment on draft project documents to communicate any concerns prior to the formal submission of the deliverables for each Milestone. (b) Review and Approval of Grant Deliverables.Within 15 days after receiving the City submittal of deliverables as set forth in the Milestones (as revised),Metro's Project Manager shall review the deliverables and either approve the submittal,or reply with comments and/or requests for further documentation or revisions that may be necessary.The Metro Project Manager shall determine whether the deliverables submitted are satisfactory in meeting the Scope of Work and the applicable Milestones. (c) Payment Procedures.Subject to the terms and conditions in this Agreement,Metro shall reimburse the City for its eligible expenditures for the applicable deliverable as set forth in Revised Exhibit C within 30 days following the Metro Project Manager's approval of deliverables, invoices and supporting documents. 6. Project Records. The City shall maintain all records and documentation relating to the expenditure of Grant Funds disbursed by Metro under this Agreement,as well as records and documentation relating to the financial match being provided by the City for the Project.Records and documents described in this section shall be retained by the City for three years from the date of completion of the Project,expiration of the Agreement or as otherwise required under applicable law,whichever is later. The City shall provide Metro with such information and documentation as Metro requires for implementation of the grant process. The City shall establish and maintain books,records,documents,and other evidence in accordance with generally accepted accounting principles,in sufficient detail to permit Metro or its auditor to verify how the Grant Funds were expended,including records demonstrating how the City matching funds were expended. 7. Audits.Inspections and Retention of Records. Metro,together with its auditors and representatives,shall have reasonable access to and the right to examine,all City records with respect to all matters covered by this Agreement during normal business hours upon three business days'prior written notice to the City. The representatives shall be permitted to audit,examine,and make excerpts or transcripts from such records, and to make audits of all contracts,invoices,materials,payrolls and other matters covered by this Agreement. All documents,papers,time sheets,accounting records,and other materials pertaining to costs incurred in 2040 PLANNING & DEVELOPMENT GRANT IGA—Metro&The City of Tigard Page 3 Contract No. 936295 connection with the Project shall be retained by the City and all of their contractors for three years from the date of completion of the Project,or expiration of the Agreement,whichever is later,to facilitate any audits or inspection. 8. Term. Unless otherwise terminated under paragraph 9,this Agreement shall be effective on the last date it is executed by the parties below,and shall be in effect until all Milestones and deliverables have been completed,all required documentation has been delivered,and all payments have been made as set forth in the Milestones,as revised. 9. Termination. Metro may terminate this Agreement and cancel any remaining Grant Fund payments upon a finding by the Metro Chief Operating Officer that the City has abandoned its work on the Project or is otherwise not satisfying its obligations under this Agreement regarding the requirements of the grant. 10. Amendment.This Agreement may be amended only by mutual written agreement of the Parties. 11. Other Agreements.This Agreement does not affect or alter any other agreements between Metro and the City. 12. Waiver. The Parties hereby waive and release one another for and from any and all claims,liabilities, or damages of any kind relating to this Agreement or the Grant Funds. 13. Authority. City and Metro each warrant and represent that each has the full power and authority to enter into and perform this Agreement in accordance with its terms; that all requisite action has been taken by the City and Metro to authorize the execution of this Agreement;and that the persons signing this Agreement have full power and authority to sign for the City and Metro,respectively. 14. Counterparts. This Agreement may be executed in one or more counterparts,each of which shall be deemed an original and together shall constitute a single document. Electronic signatures,as well as copies of signatures sent by facsimile or electronic transmission,shall be deemed original signatures for all purposes and shall be binding on the Parties. [Signature Page Follows] 2040 PLANNING&DEVELOPMENT GRANT IGA—Metro&The City of Tigard Page 4 Contract No. 936295 METRO THE CITY OF TIGARD By: By: Andrew Scott Marty Wine Interim Chief Operating Officer City Manager Date: Date: Approved as to Form: APPROVED FOR LEGAL SUFFICIENCY FOR THE CITY: By: Carrie MacLaren By: Metro Attorney Counsel for CITY OF TIGARD Date: Attachments: Exhibit A-Grant Request Exhibit B-Request for Proposals Exhibit C-Schedule of Milestones 2040 PLANNING&DEVELOPMENT GRANT IGA—Metro&The City of Tigard Page 5 METRO CONTRACT 936295 EXHIBIT A Project: Washington Square Regional Center Update Funds requested: $250,000 Matching funds: $60,000 In the space allotted after each question, use text styles, bullet lists,tables or other formatting as desired or appropriate to improve the clarity and legibility of your application. Please use 11 point black text and be succinct with your responses;is not necessary to use all of the space allowed. Clear development outcomes 1. Describe the proposed project and the specific goals to facilitate development in your community.Who are the project partners(if any)and why is this a priority? (Limit your response to page 1.) The Washington Square Regional Center has much greater potential for high-density residential and employment-rich development than has occurred since its designation as a regional center in 1995.The purpose of this project is to lay the foundation for updating all applicable plans, policies,and regulations associated with the portion of the regional center within Tigard in order to remove barriers to redevelopment, facilitate more compact and efficient use of land,and create more regional housing and employment options. This project is timely and necessary given the significant changes underway in the retail,transportation, and housing sectors since the adoption of the original vision and regional center plan 20 years ago. The specific development goals for this project include, but are not limited to: • Supporting more compact and efficient use of the Washington Square Mall site,the largest single land use and property owner within the Tigard portion of the Washington Square Regional Center; • Facilitating more centrally located housing at a variety of price points and protecting existing market- affordable housing wherever possible; • Updating zoning and regulations that result in more redevelopment and expansion opportunities for existing conforming and nonconforming businesses;and • Identifying transportation,transit, and utility infrastructure needs for development and creating a prioritized list of strategic public and private infrastructure investments. This project is a priority for Tigard for a number of reasons: • Macerich,the owner of Washington Square Mall, is interested in expanding beyond the retail mall model by building walkable, mixed-use development alongside the mall that is a mix of housing, destination businesses, and community open space. There is concern that these redevelopment plans would be difficult or impossible to achieve under current zoning regulations; • Development in River Terrace,the city's most recent urban growth boundary expansion area,is occurring at a rapid pace. The city desires to balance its fiscal and physical approach to growth by facilitating mixed- use, centrally-located infill development in Washington Square along with single-use, residential edge development in River Terrace;and • The region is experiencing a housing supply and affordability crisis.The city desires to extend its commitment to providing housing that meets the social,financial,and physical needs of its residents by focusing on increasing the supply of housing in Washington Square at a variety of price points. Key project stakeholders are the City of Beaverton,Washington County, and the Community Participation Organizations (CPO)of Beaverton and Metzger(CPO 4M). Beaverton has expressed great interest in working with Tigard on this project. Other stakeholders include local utility providers,e.g.Clean Water Services and Tualatin Valley Water District; regional and state transportation providers, e.g. TriMet and Oregon Department of Transportation; property owners, e.g. Macerich (Washington Square Mall owner);and the local business and development community. METRO CONTRACT 936295 EXHIBIT A 2. What are the major project elements,the deliverables you envision,and the outcomes you seek to achieve?Provide a bulleted list outline of the components or phases of work, the scope of work for each,the key deliverables to be produced and the general timeframe to complete the project. (Limit your response to page 2.) Engaging the community and performing the technical analysis necessary to update the applicable plans, policies,and regulations associated with the Washington Square Regional Center is expected to take about 18 months from grant award and include the following activities and deliverables: • Project Management Plan • Community Engagement Plan—including the formation of technical and citizen advisory committees and robust business and community outreach, particularly to the Metzger community. • Existing Conditions Report—including an evaluation of all applicable plans, policies, studies,and boundaries and an assessment of physical, environmental,and economic conditions. • Needs,Opportunities,and Constraints Report—including the identification of any infrastructure deficiencies or regulatory or market barriers that are preventing desired development.This report should build off the Existing Conditions Report and incorporate findings from expert interviews and a market and housing capacity analysis. • Development Goals and Objectives Report—with a focus on updating the original regional center vision with new community input and the city's strategic plan for a diverse,equitable, and inclusive community. • Transportation Sensitivity Analysis—with a focus on understanding whether the preferred land use and transportation framework is expected to significantly impact the transportation system within and adjacent to the regional center. • Land Use and Transportation Evaluation and Recommendation—including a review of all boundaries associated with the regional center;the development and evaluation of two to three land use and transportation framework options that includes all modes of travel at an appropriate level of detail within and adjacent to the regional center;and recommendations for amending plans, policies, and regulations to support the preferred land use and transportation framework. • Metzger Community Stability Plan—with a focus on defining the community's boundaries and aspirations for its future given its proximity to Washington Square, a regional center, and Tigard Triangle,a town center,and how development in these areas may contribute to gentrification of this community and possible displacement. The city plans to begin work on this project in June 2019. Any grant award would be used to pay consultants to prepare deliverables that the city does not have in-house expertise or capacity to prepare.The geographic scope of the project is limited to land within the City of Tigard,with the exception of outreach to the Metzger community which is located in Tigard and unincorporated Washington County.The city will make every effort to expand the scope of all deliverables to include land within Beaverton and unincorporated Washington County where practicable, especially with regard to an analysis of the surrounding transportation system. Project outcomes include public engagement and technical analysis to support potential amendments to: • Tigard's plan district regulations, zoning map, and infrastructure master plans. • Tigard's financial policies and economic development programs, including the Vertical Housing Development Zone boundary. • Beaverton and Washington County's zoning maps and infrastructure master plans. • Metro's 2040 Growth Concept map. METRO CONTRACT 936295 EXHIBIT A 3. Review the Performance Measures Guidelines on page 41 of the Application Handbook. Identify below 3-5 performance measures you will use to evaluate the project's success. (Limit your response to the top half of page 3.) Engagement of Businesses and Property Owners • Number of businesses and owners contacted • Level of support or opposition from the business community during any legislative amendment process Equitable Community Collaboration • Development of a Metzger Community Stability Plan supported by the Metzger community,Washington County,and the City of Tigard Evaluation of Opportunities and Constraints • Identification of infrastructure needs and corresponding updates to applicable master plans • Identification of regulatory barriers and development of a code amendment proposal Amendments to Regulations and Codes • Adoption of proposed legislative code package Adoption of New Incentives • Adoption of proposed policies or programs Advances and complements regional goals and policies 4. How will this project facilitate development while advancing established regional planning and development goals? Describe how the project will help to implement the 2040 Growth Concept, its alignment with the Urban Growth Management Functional Plan, and the Six Desired Outcomes stated in the Regional Framework Plan. (Limit your response to the bottom half of page 3.) Washington Square is one of eight regional centers in the 2040 Growth Concept. Regional centers are described as "hubs of commerce and services serving hundreds of thousands of people"and characterized by"compact employment and housing development served by high-quality transit." However, e-commerce has significantly disrupted the retail sector, and the region is in the middle of a housing crisis.This project will facilitate development—most notably redevelopment of Washington Square Mall—and advance the region's planning and development goals in important and synergistic ways—especially with regard to the development of more housing. • Washington Square has the potential to provide more housing options for all kinds of households in a central location that has access to a variety of services and employment opportunities.This advances a number of regional goals related to compact and efficient urban form, land use and transportation planning, quality of life, and the environment. • Washington Square Mall is inextricably tied to the identity and success of the regional center,and the mall has not been immune to retail market changes.The mall site has substantial redevelopment potential, and its continued success is critical for the overall vitality and prosperity of the regional center. • Washington Square is the closest regional center to the newest urban growth boundary(UGB)expansion areas in River Terrace,South Cooper Mountain, King City, and Wilsonville.The regional center needs to continue to evolve in order to serve these new developing areas as envisioned by the 2040 Growth Concept. Moreover,the City of Tigard desires to balance its approach to growth by not overlooking its regional center in favor of edge development in keeping with Metro expansion policy. • SW Corridor transit planning is proceeding, and a light rail station is not proposed in or adjacent to Washington Square. High-quality transit is a key component of a successful regional center,and it is important that transit service to and within Washington Square not be overlooked as TriMet moves forward with SW Corridor transit planning. METRO CONTRACT 936295 EXHIBIT A 5. How will the project help to advance racial equity in the metro region?(Limit your response to the top half of page 4.) The Metro 2040 Growth Concept was adopted in 1995, and Tigard adopted the Washington Square Regional Center Plan five years later in 2000.This plan, and the policies and regulations that were developed as result of this plan, are 20 years old and were not designed to advance racial equity in any way. On the one hand,this project is a unique opportunity for the city to embed its strong commitment to diversity, equity,and inclusion into a new set of development goals and objectives for Washington Square. On the other hand,the city recognizes that this project,specifically the successful redevelopment of Washington Square,could potentially contribute to localized gentrification and displacement of low-income residents. This is why the project has a two-pronged approach to advancing racial equity.The first involves understanding and unlocking the housing potential that exists in Washington Square in a way that serves the region's diverse population. The second involves working to protect existing market-affordable housing in and adjacent to the regional center where it is potentially at risk for accelerated gentrification as a result of the kind of redevelopment envisioned by the 2040 Growth Concept and the owners of Washington Square Mall. To this end,the city proposes to do additional outreach to the Metzger community, a racially diverse and historically affordable community to the east of Washington Square Mall, in order to understand and support, where possible,the community's aspirations for its future.The culmination of this work would be a deliverable entitled the Metzger Community Stability Plan. If displacement is identified by the community as a concern, this plan, at a minimum,would include strategies to help prevent community members from being priced out of their homes. Since the Metzger community is partly within Tigard but mostly within unincorporated Washington County,this effort would involve extensive coordination with Washington County. Aligns with local goals/maximizes community assets 6. Describe why you propose to take on this particular project at this time. How does the project relate to previous actions, goals, policies or strategies already identified or implemented by your jurisdiction/organization or other project partners? (Limit your response to the bottom half of page 4.) The city proposes to undertake this project at this time for the following reasons: • With work underway in both the Tigard Triangle and Downtown Tigard,this project was identified by the city as its next long-range planning priority.This project directly implements one of the city's goals to promote economic growth and community vitality specifically as it relates to removing barriers to commercial, industrial,and high-density residential development in Washington Square (City Council Goal#2). • The region is experiencing a housing supply and affordability crisis.The city desires to extend its commitment to providing housing that meets the social,financial, and physical needs of its residents by focusing on increasing the supply of housing in Washington Square at a variety of price points and protecting existing market-affordable housing wherever possible.This is reflected in several of the city's adopted goals to grow responsibly and equitably to meet the needs of its diverse population (City Council Goals#2 through#4). • Development in River Terrace,the city's most recent urban growth boundary expansion area, is occurring at a rapid pace. The city desires to balance its fiscal and physical approach to growth by facilitating mixed-use, centrally-located infill development in Washington Square along with single-use, residential edge development in River Terrace.This is captured in two of the city's adopted goals to grow in a smart and fiscally responsible manner(City Council Goals#2 and#3). • Macerich,the owner of Washington Square Mall, is actively developing plans to expand beyond the retail mall model by building walkable, mixed-use development alongside the mall,which is consistent with the city's adopted goal to enhance walkability (City Council Goal#5). METRO CONTRACT 936295 EXHIBIT A 7. How would the project leverage aspects of the existing community fabric such as key development sites or urban form? How would it complement existing assets,facilities, or amenities such as historic districts,employment centers, natural features, parks or transit?(Limit your response to the top half of page 5.) The Washington Square Regional Center is 827 acres in size with very distinct development subareas. It contains a number of unique large sites such as the Washington Square Mall, Lincoln Center, and Crescent Grove Cemetery in Tigard and the RedTail Golf Course in Beaverton. Approximately 35%of the regional center's acreage is within Tigard. Of Tigard's 288 acres, Washington Square Mall occupies 105 acres. The regional center is bisected by Highway 217, Portland and Western Railroad tracks,and several major regional transportation corridors such as Scholls Ferry Road and Hall Boulevard.The railroad tracks are utilized by freight and commuter rail, i.e. Westside Express Service (WES), and there is a WES station on the west side of Highway 217 near Hall Boulevard. Fanno Creek and Ash Creek,with associated trails and wetlands, border the regional center on its western and southern edges. The project will leverage many aspects of the existing community fabric. • It will work closely with the owners of the Washington Square Mall as they move forward with their redevelopment plans. • It will evaluate the existing transportation system in and adjacent to the regional center and identify where access,safety, and mobility improvements could be made in coordination with the Oregon Department of Transportation, City of Beaverton,and Washington County. • It will work with TriMet to evaluate transit service and associated infrastructure in and adjacent to the regional center and make recommendations for improvements. WES station access and transit facilities, including sidewalk connections,are of particular interest. • It will engage with the many commercial and industrial businesses on the west side of Highway 217 to understand their needs and concerns so as to better support their continued prosperity and growth. • It will evaluate whether existing development is negatively affecting the health of the adjacent creeks and associated riparian areas and identify where stormwater management improvements could be made in coordination with Clean Water Services. Team roles and capacity 8. Describe the skills and experience of the lead staff person who will manage all aspects of the grant project and oversee the project team's collaboration and consultant work. (Limit your response to the bottom half of page 5.) Project management and the local funding match for this project will come from the City of Tigard.This project will be led by Senior Planner, Susan Shanks. Ms.Shanks has managed several large and complex grant-funded projects in her career. She has successfully led several interdepartmental and interdisciplinary teams and has extensive experience working with many of the local planning, engineering, and financial consulting firms with the necessary skills to complete this project. Her recent experience includes project management for the 500-acre River Terrace Community Plan in Tigard (which included five related infrastructure master plans and a finance strategy);Tigard Triangle Urban Renewal Plan (which included a public education campaign for a citywide vote);and the Tigard Triangle Lean Code and Rezone (which included a Transportation Planning Rule analysis component). METRO CONTRACT 936295 EXHIBIT A 9. Complete the table below to clearly describe the roles and responsibilities of the applicant and each of the key project partners to accomplish the goals of the project. Also include consultant expertise needed. (Add or adjust rows as needed but please limit table to page 6.) Jurisdiction or partner Project role and responsibilities (include lead staff names) Tom McGuire, Project Director City of Tigard Susan Shanks, Project Manager City of Tigard Schuyler Warren, Project Planning Staff(Housing) City of Tigard Dave Roth, Project Planning Staff(Transportation) City of Tigard Dylan Bemis, Project Planning Staff(Economic Development) City of Tigard Lauren Scott, Project Community Engagement Coordinator City of Tigard Engineering Team, Project Staff City of Tigard Planning/Engineering Staff Project partner and TAC member City of Beaverton Planning/Engineering Staff Project partner and TAC member Washington County Consultant Team Expertise in land use and transportation planning, civil engineering, economic development, and market and financial analysis Community-Based Expertise in outreach and engagement with diverse communities, Organization particularly Hispanic communities METRO CONTRACT 936295 EXHIBIT A Likelihood of implementation 10. What governing bodies or private parties will have to act to ultimately implement the project?What is the extent of their authority to make policy or commit investments?Describe the roles the key project partners will have to play over time in order to fully and successfully implement the project and realize the envisioned development benefits in your community. (Limit your response to the top half of page 7.) The City of Tigard has land use authority over land within its city limits, and the Tigard City Council has the authority to adopt new zoning, land use regulations,financial incentives,and housing and economic development policies for its portion of the Washington Square Regional Center. At a minimum,the City of Tigard will likely need to develop and adopt code and zoning map amendments to fully implement this project. It will also potentially need to develop and adopt financial incentives or other housing and economic development policies specific to this area. Similarly, City of Beaverton and Washington County have land use authority over land within their respective boundaries,and implementation of any project recommendations or conclusions would require local legislative action on their part. Other key parties with project implementation roles to play are as follows: • Macerich,the owner of Washington Square Mall, is the only entity with authority to redevelop the mall site. • Metzger community members, Washington County, and City of Tigard will all likely have roles to play in developing and implementing the Metzger Community Stability Plan. • Depending upon the final set of project recommendations and conclusions,various public agencies such as TriMet, Oregon Department of Transportation,and Clean Water Services will all likely have roles to play in making specific future infrastructure investments. 11. Identify and describe the potential opportunities and threats that could affect the successful implementation of this project. (Limit your response to the bottom half of page 7.) Potential opportunities that could contribute to the success of this project include: • Timely and thoughtful redevelopment of Washington Square Mall in coordination with this project. • Synergy with other affordable housing and equity projects currently underway in Tigard. • Synergy with a commercial and industrial lands zoning update project soon to be underway in Tigard. • Tigard City Council commitment to grow in a responsible and equitable manner. • Presence of existing Metzger community relationships that exist because of past and current outreach to the Metzger Elementary School and Community Participation Organization (CPO 4M). Potential threats that could affect the success of this project include: • Lack of funds or political will to follow through with all of the project's recommendations,especially those that relate to advancing racial equity. • Accelerated gentrification as a result of regional center redevelopment that results in displacement of existing Metzger residents. • Disinterest in or opposition to the planning process by the business community or existing Metzger residents. Key to the success of this project will be to build buy-in and commitment to the goals of the project by reaching out early and frequently to all affected stakeholders. METRO CONTRACT 936295 EXHIBIT A Public involvement 12. What community members or stakeholders will be most affected by the implementation of the project's development outcomes?Discuss how the public(including neighbors, businesses, property owners and other key stakeholders)and historically marginalized communities(including low-income populations and people of color)will be involved in the project. Be specific about the methods you intend to use,and whether your organization or consultants will be leading the engagement work. (Limit your response to page 8.) The following community members and stakeholders will be most affected by the implementation of the project's development outcomes: • Existing and future property owners • Existing and future businesses • Existing and future residents • Existing and future employees • Existing and future visitors As discussed in Questions 13 and 14,the public and historically marginalized communities will be involved throughout the project on a number of levels. They will be contacted to contribute their knowledge during the data collection phase for the Existing Conditions Report and the Needs,Opportunities,and Constraints Report. They will also be invited to participate on the Citizen Advisory Committee.This committee will help shape the project's development goals and objectives and choose the preferred land use and transportation framework amongst other things. Lastly, some may be asked to help implement the project's final recommendations and conclusions, particularly the Metzger Community Stability Plan. The city will lead the public engagement effort for outreach to businesses, nonresidential property owners, neighborhood organizations, and the general public.The city proposes to contract with a community-based organization with expertise in outreach to diverse communities for help with engaging the Metzger community. The city will reach out and involve the public and historically marginalized communities in many different ways, including but not limited to: • Mailings • Cold calls • Door knocking • Social media • Online surveys • Community open houses • Focus groups The city's overall approach to public engagement for this project is to do it early,frequently,and broadly through a number of avenues. METRO CONTRACT 936295 EXHIBIT A 13. Identify any committees that will be engaged in the project. Describe how committee members will be selected,the extent of their involvement and their scope of authority to determine the project goals, process, or implementation. (Limit your response to the top half of page 9.) The project will convene a Citizen Advisory Committee (CAC) and Technical Advisory Committee (TAC)to serve for the duration of the project.The project will also utilize existing standing committees in Tigard, including but not limited to the Tigard Transportation Advisory Committee,Tigard Development Advisory Committee, and the Tigard Planning Commission,for additional input. CAC membership will include representation from affected neighborhood organizations in Tigard, Beaverton, and Washington County; affected businesses and property owners; affordable housing advocates and organizations operating in the area;and other interested parties from the community. Care will be taken to ensure a racially and economically diverse membership that reflects the composition of affected residents and businesses. Depending upon the size and composition of the committee, project staff may suggest the formation of subcommittees to ensure that meetings are productive and all members feel heard. CAC members will be involved in shaping development goals and guiding community engagement efforts. Some may eventually be involved in project implementation, specifically Metzger Community Stability Plan implementation. TAC membership will include representation from all affected agencies and jurisdiction including, but not limited to: City of Tigard,City of Beaverton,Washington County, Metro,TriMet, ODOT,Clean Water Services, Tigard and Beaverton Chambers of Commerce, Westside Economic Alliance,Tualatin Valley Fire and Rescue, and Tigard Tualatin School District. TAC members will be chosen by their respective agency or jurisdiction.Their involvement will be advisory in nature; however,as stated in Question 10,some may also be involved in project implementation. 14. Describe how public process and the committee/community input will strengthen the project outcomes and increase likelihood of implementation. (Limit your response to the bottom half of page 9.) Public input will be both broad and deep with engagement divided equally between the following groups: • Washington Square Mall • Metzger community • Businesses east of Highway 217 • Businesses around and in Lincoln Tower • Affected jurisdictions and service providers Using various outreach strategies tailored to each group, project staff will contact representatives of each group and gather information to inform the various deliverables outlined in Question 2. All deliverables will be vetted and refined through the citizen and technical advisory committees described in Question 13,which in turn will inform the project's final recommendations and conclusions. The city plans to start contacting these groups in June 2019 in order to begin building relationships and setting the stage for the upcoming work, including participation in the CAC and TAC. The city believes that early engagement and project visibility will strengthen the community's investment in the success of the project and greatly improve the likelihood of implementation. METRO CONTRACT 936295 EXHIBIT A Applicant track record 15. Describe any similar planning and development projects your organization or jurisdiction has implemented in the last 5 years and how that experience will inform this project. How successful have these projects been in delivering the proposed development outcomes?(Limit your response to the top half of page 10.) Over the past five years,the City of Tigard has used local,state,and regional funding to facilitate transformative change and innovative planning in Downtown Tigard, River Terrace, and the Tigard Triangle. Tigard's 2013 Metro grant award for the Downtown Mixed-Use Development Project provided predevelopment services for two targeted sites in downtown Tigard.This funding was crucial in securing a development partner to build a $30 million mixed-use project with 165 units.The city plans to use its experience with building public/private partnerships to leverage redevelopment of the Washington Square Mall site. Tigard's 2014 Metro grant award for the River Terrace Community Plan laid the foundation for substantial investments in infrastructure by the City of Tigard,Washington County, and the private sector that led to significant development activity in River Terrace.The city plans to apply its experience in infrastructure planning and funding to the infrastructure needs in the Washington Square Regional Center. Tigard's 2016 Metro grant award to implement the Tigard Triangle Strategic Plan resulted in voter approval of a new urban renewal district in May 2017 and the creation of innovative development standards and procedures that is spurring affordable housing and mixed-use development projects in the area.The city plans to apply its experience in town center planning and implementation to the Washington Square Regional Center. Tigard's 2018 Metro grant award for the Tigard Triangle Urban Renewal Implementation Project is focusing on strategic public investment in infrastructure to support equitable development. The city plans to apply what its learning about outreach to underrepresented communities and equitable development to this project. Replicable best practices 16. Consideration will be given to applications that demonstrate best practices that can be easily replicated elsewhere. Discuss how lessons learned from the project could be applied to other projects in your community or in other parts of the region. (Limit your response to the bottom half of page 10.) Lessons learned from this project could readily apply elsewhere in the region. • The primary focus of this project is long-term regional center planning.There are seven other regional centers within the Metro region that could benefit from what the city learns about: (1) responding to the rapidly changing retail market, (2)facilitating the construction of housing at a variety of price points, and (3) preventing successful redevelopment from negatively impacting existing adjacent low-income residents. • Instead of stopping at the city limits,this project proposes to break new ground by committing resources to a place outside of the city that is home to a historically diverse and low-income community and that the city believes may be negatively affected by this project.This approach could prove useful to other jurisdictions faced with similar situations and reframe what it means to advance racial and economic equity. METRO CONTRACT 936295 EXHIBIT A Grant leverage and project budget Budget table and narrative 17. Use the budget table template provided to show the estimated project costs by major phase or element and any additional matching funds committed to the project.The budget table should reflect the project outline provided in question#t2. Indicate estimated costs for consultant work as well as other direct project expenses. Use market averages or bid estimates for consultant services. In the space below, describe methodologies used for estimating all direct project costs. (Limit your response to page 11.) The city proposes a budget of$75,000 for community engagement work,of which $60,000 is pledged by the city as a cash match.The proposed budget for community engagement breaks down as follows: • $40,000 Community-based organization contract for Metzger community outreach. • $25,000 Consultant assistance with community events and CAC/TAC meetings. • $10,000 Other direct costs associated with postage and printing for mailings; document translation;and food,childcare,and translation services at meetings. The$50,000 proposed budget for the Needs, Opportunities, and Constraints Report breaks down as follows: • $0 Business and agency outreach by city • $15,000 Consultant assistance with focus groups • $25,000 Market and housing capacity analysis by consultant • $10,000 Final report by consultant The$30,000 proposed budget for the Metzger Community Stability Plan is in addition to the public engagement budget for Metzger outreach.The city proposes to use this budget to contract with a consultant with expertise in anti-displacement strategies. The city proposes a relatively small budget for the Existing Conditions Report and the Development Goals and Objectives Report($5,000 each) because it plans to do most of this work in-house.The city proposes a relatively large budget for the Land Use and Transportation Evaluation and Recommendation because the proposed work involves the development of two to three land use and transportation framework options and extensive evaluation of the transportation network, including pedestrian,transit, and bicycle access and safety. With the exception of the Metzger Community Stability Plan, all proposed budget amounts are based on recent city contracts or invoices for similar deliverables. METRO CONTRACT 936295 EXHIBIT A PROJECT COMPONENT CONSULTANT OTHER DIRECT ADDITIONAL CASH TOTAL GRANT FEES PROJECT COSTS MATCH(IF ANY) FUNDS (Phase,element,deliverables,etc.) 1. Project Management $ 5,000 $ 5,000 2. Community Engagement (Committee Meetings,Public Meetings,Community/Business Outreach) $ 65,000 $ 10,000 $ 60,000 $ 15,000 3. Existing Conditions Report $ 5,000 $ 5,000 4. Needs,Opportunities,and Constraints Report (Expert Interviews,Focus Groups,Market and Housing Capacity Analysis) $ 50,000 $ 50,000 5. Development Goals and Objectives Report $ 5,000 $ 5,000 6. Transportation Sensitivity Analysis $ 20,000 $ 20,000 7. Land Use and Transportation Evaluation&Recommendation (w/Implementation Measures) $ 120,000 $ 120,000 8. Metzger Community Stability Plan $ 30,000 $ 30,000 GRAND TOTAL $ 300,000 $ 10,000 $ 60,000 $ 250,000 METRO CONTRACT 936295 EXHIBIT A Demographic Data Due to possible formatting issues in ZoomGrants,this document duplicates the information provided in Short Question#3. Demographic data for residents within a 1-mile and 4-mile radius of the Washington Square Regional Center is provided below. All data is from the U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates. 1-MILE RADIUS 4-MILE RADIUS Age Total Percent Total Percent 0 to 19 years 13,286 22.5% 40,819 23.6% 20 to 34 years 13,489 22.8% 34,509 19.9% 35 to 59 years 19,881 33.6% 60,034 34.7% 60 to 84 years 10,737 18.2% 33,748 19.5% 85 years and over 1,741 2.9% 4,023 2.3% TOTAL 59,134 173,133 Ethnicity Total Percent Total Percent White alone 43,778 74.0% 131,102 75.7% Hispanic or Latino 8,117 13.7% 17,760 10.3% Asian alone 3,275 5.5% 12,484 7.2% Two or more races 2,204 3.7% 7,185 4.1% Black or African American alone 1,230 2.1% 2,986 1.7% American Indian &Alaska Native alone 280 0.5% 570 0.3% Native Hawaiian&Other Pacific Islander alone 144 0.2% 834 0.5% Some other race alone 106 0.2% 212 0.1% TOTAL 59,134 173,133 Household Income Total Percent Total Percent $0 to$24,999 4508 18.7% 10,570 15.0% $25,000 to$49,999 5271 21.8% 13,697 19.4% $50,000 to$74,999 4167 17.2% 11,520 16.3% $75,000 to$99,999 3209 13.3% 9,284 13.1% $100,000 or more 7006 29.0% 25,585 36.2% TOTAL 24,161 70,656 Rent vs Own Total Percent Renter-occupied households 12,884 53.3% Owner-occupied households 11,277 46.7% TOTAL 24,161 METRO CONTRACT 936295 EXHIBIT A CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 19- I`I A RESOLUTION APPROVING AN APPLICATION FOR A METRO 2040 PLANNING AND DEVELOPMENT GRANT TO FUND THE WASHINGTON SQUARE REGIONAL CENTER UPDATE PROJECT. WHEREAS, Metro has a new cycle of funding available for the 2040 Planning and Development Grant Program, which has targeted funds for projects that facilitate development in centers, corridors, station areas, and employment areas;and WHEREAS, the Washington Square Regional Center is the city's only regional center and one of eight centers identified in the Metro 2040 Growth Concept;and WHEREAS, the Metro 2040 Growth Concept was adopted in 1995, and Tigard adopted the Washington Square Regional Center Plan five years later,and WHEREAS, Washington Square has much greater potential for high-density residential and employment-rich development than has occurred thus far. It has been 20 years since the original vision and regional center plan were developed, and this is an opportune time to review and update all applicable plans, policies, and regulations;and WHEREAS, this project advances the region's planning and development goals in important and synergistic ways, specifically as it relates to urban growth expansion development to the west, Southwest Corridor transit planning,and regional housing needs;and WHEREAS, this project is supported by the owner of Washington Square Mall, the single largest property owner in Washington Square. The mall owner, Macerich, is interested in redeveloping the mall site, which would be difficult or impossible to effectively redevelop under current regulations;and WHEREAS, this project is timely for the city and advances City Council Goal 2 to promote economic growth and community vitality by identifying and removing bathers to redevelopment in Washington Square. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that SECTION 1: Council approves the submittal of an application for a Metro 2040 Planning and Development Grant to update the plans, policies, and regulations associated with the Washington Square Regional Center. SECTION : This resolution is effective immediately upon passage. RESOLUTION NO. 19- I Li Page 1 METRO CONTRACT 936295 EXHIBIT A PASSED: This day of riN 2019. (Th lei r 'ty of Tigard ATfJi ST: 4-1.Y.C.--r(2—) DepAi City ecorder its•of Tigard ' RESOLUTION NO. 19-t t Page 2 METRO CONTRACT 936295 EXHIBIT A April 18, 2019 Lisa Miles Principal Development Project Manager Metro 600 NE Grand Avenue Portland, OR 97232-2736 RE: 2040 Planning and Development Grant Letter of Commitment: Washington Square Regional Center Update Dear Ms. Miles, The City of Tigard is committed to updating all applicable plans,policies, and regulations associated with the Tigard portion of the Washington Square Regional Center in order to remove barriers to redevelopment, facilitate more compact and efficient use of land, and create more regional housing and employment options. This project is timely and necessary given the significant changes underway in the retail, transportation, and housing sectors since the adoption of the original vision and regional center plan 20 years ago. The city is excited to undertake this work. It directly implements several recently adopted Tigard City Council goals related to Washington Square specifically and the city's growth generally. The city desires to remove barriers to commercial,industrial, and high-density residential development in Washington Square,which is the primary focus of this project. Moreover, the city desires to grow in a fiscally responsible and equitable manner. This project accomplishes both by committing resources to the preservation of existing market- affordable housing and facilitating mixed-use, centrally-located infill development in its regional center to balance single-use residential development on its edge. This project will facilitate development—most notably redevelopment of Washington Square Mall—and advance Metro's planning and development goals in important and synergistic ways—especially with regard to the development of more housing. Washington Square has the potential to provide more housing options for all kinds of households in a central location that has access to a variety of services and employment opportunities. This advances a number of regional goals related to compact and efficient urban form,land use and transportation planning, quality of life, and the environment. METRO CONTRACT 936295 EXHIBIT A The city believes that the Washington Square Regional Center has much greater potential for high-density residential and employment-rich development than has occurred since its designation as a regional center in 1995. Metro's support of this project with a 2040 Planning and Development Grant would help the city implement its goals and also contribute to the implementation of the Metro 2040 Growth Concept. 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City of Tigard EXHIBIT A 11.101. 19 Washington Square Regional Center 1 TIGARD Metro General Zoning Map HART C6)i '11- .---1 ,,,ARD,_,1J I 1 1j 1, I [ 1 I ! -t-7-7.-- , 7,- N=HO,IMf RID.. -----4- -‘ I (—I :- .-- 1----. i i i.... N . ,...._‘ i 0 . 1 .... _.1 . _,....... _ , Nit . , 1 ...._ /., :— _._ _____ cr t-t- 1,___ [---- ; ' ' ':..';':,. \ t I I ' 1 , , 4./ . .".....A L,.....j 1 vi cr11 1,, (..D <Ai 4. g_ i , 0\1„,`D \ , CO !,... ....., v 21i'‘,/ -1r I • 1 u, , , a ‘/ / • ; &,,,,,• 4 •— — r--— —-I L.„ i ......_ > \ A k • i 1 "P / / ,..,c., , ........_+...______ ...., . ....1 ___ .. If 9.4. : . • d i ..0 . , ..--- , 1 ----- I , (..9 , 0:;rerl —I——- --- •— - !' I .... . Metro Zoning 3,"- . • . ,. ' • Commercial Public Facilities ''•%, 4C) Industrial Public Open Space Multi-Family Residential Single Family Residential Mixed-Use Residential es i k If2 Washington Square Regional Center (Metro Boundary) I-. •• Washington Square Regional Center , .. i (Tigard Plan District Area) 40. le1:0 ii€,, 11/•?/, _ • 0:r I Tigard City Boundary .' ... ICfr 0 0.25 0.5 ' J Miles , .., • . .. , • • —_ tj ' s—N, % METR CONTRACT1936295,' l\.. I "./ ---- F-r_. I---i City of Tigard f T _I` __- 1 :N Washington Square Regional Center j_ -� ,__.__._ TIGARD Key Sites and Areas 1 f L. -� t _r_l_. ......._ ,L___._:)._ . I ! / .. .17.1 --* TI-Til m \-----1 i I 1-----T '---^�/ �_ � r�.. ! 1_. GARDEN,HOME+ZD { -. ,.-- ! Tail Golf Course 1- _. -_._l .-_. / 4991. 4� ` �Q. Red I (_. a J : ` I, WES StatiaiIn z ' . i., __ ,.. _..L F I 1 ___.r ..... i ...<' / I IiiitsS. ,# ,.., , ...-....... ri ',.%. , / .---, , . .. . . ,. , ,...... , ,... _ •, , -• .._.,-:_......._ __,-- I. ._ , ; , ,, , , # -- .•., # - -,l.' 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O CONTRACT 936295 i ;:, �{, EXHIBIT A ° +. - �1 City of Tigard ,�' SquareRegional Center li '��' �� � Washington g . f 1 IGAR e : Preliminary geographic Reach Map wiw- (?„-‘,>, '� r YYZ r.,'5. am/ "6"/ &._•— 1 r.. tB `" j'�a 'fr 4-,Itch �' Ate , ,•_ _-Sy '/i. i'2/ ' > �. _ • ylji �„� /•.,•� S Ili--+ �- 9 ic a .ri`ter C fi-7 .t. , ‘ i `M71/4.i$,):•,.-_-,k_•1 tup Th��r st•t' 1# , r " N <t'r f `;1'-E r v,� > , . 1 Portland -. '''/' o :r- "' -s 3 �y,%,c Illy ,-� �, 1',I='� ,� ' ���t< , �S r .1 i r j,�� � 1a l,. y rc, 1 _1,, �.ro f: W •.-.7 -.) r � ��A, „,r , Beav- l:9,".7 ,, i IF�:; i 1,.11. t' • g__ p'11�L71 = I. .1 , 1;f115,`i / :..[W_i W F. ,yu.. a< ':�r�1 ink.Ti. 00°' f `. :. ..r., .i•+��t toe a - 1, ..1., (Altro ----jl f! a ,:i-: • • Iii *,*, ui, A- aie III a • II . ilia • .11./ •••• I:: ‘ " 11: f t ` \ i j n. . �• .\ , 1,.\ 1 " �f Tigard �i • • a ' I t n j•, ..7 4.,. S x `� �' �� /.�IM.ir n '' I Y;M1r • t••_' kyi Lake Osvyl'go i _1 ) 11, Y I , I. '- King Ci 3,, ��? ., .,c ` I , r burham, r.• i s \. II h1J ,y,, — ./ - r 1 r.r l s �..-� 11 ({te�e, � , ry -.wile. r� )r ,`? . + Tualatin i 1 j ' • / ,\S - ,i. T 1/ J / • ., \ V f — .`� ^"• \ "r. • )„ r1.,,`I, '`fig`'. s` A ,"5c „!T. it r °� if �__, - f-C. .,../"J �.�`C' ,I \ Q _)-; Yf"0. S JMetro Regional Center _, r ' _ `/ 1 ( i fI h . d._. ...�. Washington Square Regional Center �� i. • i I ,/,.--, 11.4.,rA Geographic Reach (Preliminary) �, __ ' III %�� : \ • t' � ' •� Urban Growth Boundary • • ��;� �, J ��' I 0 I 2 . . s .• — ==r , Miles zst L an i 9 C rN. ! -- ��. ''- - i i' .`.. F o re-v METRO CONTRACT 936295 EXHIBIT B City ofligard N FINANCE AND INFORMATION SERVICES TIGARD Request for Proposal (RFP) WASHINGTON SQUARE REGIONAL CENTER UPDATE PROJECT Proposals Due: Wednesday,November 27, 2019—2:00 p.m. local time Submit Proposals To: City of Tigard—Contracts & Purchasing Office Attn: Jamie Greenberg, Purchasing Specialist 13125 SW Hall Blvd. Tigard, Oregon 97223 Direct Questions To: Susan P. Shanks Phone: (503) 718-2454 Email: susansc Tgard-or.gov METRO CONTRACT 936295 EXHIBIT B PUBLIC NOTICE REQUEST FOR PROPOSAL Washington Square Regional Center Update Project The City of Tigard is seeking sealed proposals from qualified firms to provide personal services for the Washington Square Regional Center Update Project. The City is interested in a firm or consultant team with expertise in land use planning,multimodal transportation planning,housing and economic analysis,economic development,anti-displacement strategies,and community engagement. Proposals will be received until 2:00 p.m. local time, Wednesday, November 27, 2019, at Tigard City Hall's Utility Billing Counter at 13125 SW Hall Blvd.,Tigard, Oregon 97223. Funding for this project is subject to Tigard City Council's acceptance of a$250,000 grant award from the Metro 2040 Planning and Development Grant Program. Council is tentatively scheduled to consider grant acceptance on November 5,2019. Assuming the grant award is accepted,the full budget for this project is$270,000 with a $30,000 contingency. Release of contingency funds is subject to City Project Manager approval. No proposal will be considered unless fully completed in a manner provided in the RFP packet. Facsimile and electronic (email) proposals will not be accepted nor will any proposal be accepted after the stated due date and time. Any proposal received after the closing time will be returned to the submitting firm unopened after a contract has been awarded for the required services. RFP packets may be downloaded from www.tigard-or.gov/bids or obtained in person at Tigard City Hall's Utility Billing Counter located at 13125 SW Hall Blvd.,Tigard,Oregon 97223. Proposers are required to certify non-discrimination in employment practices, and identify resident status as defined in ORS 279A.120. Pre-qualification of proposers is not required. All proposers are required to comply with the provisions of Oregon Revised Statutes and Local Contract Review Board (LCRB) Policy. The City may reject any proposal not in compliance with all prescribed public bidding procedures and requirements,and may reject for good cause any or all proposals upon a finding of the City if it is in the public interest to do so. PUBLISHED: Daily Journal of Commerce DATE: Wednesday,October 23,2019 METRO CONTRACT 936295 EXHIBIT B TABLE OF CONTENTS TITLE PAGE Title Page 1 Public Notice 2 Table of Contents 3 SECTIONS Section 1 Introduction 4 Section 2 Proposer's Special Instructions 4 Section 3 Background 6 Section 4 Scope and Schedule of Work 8 Section 5 Proposal Content and Format 21 Section 6 Proposal Evaluation Procedures 23 Section 7 Proposal Certification 25 Section 8 Signature Page 26 ATTACHMENTS Attachment A Acknowledgement of Addendum 27 Attachment B Statement of Proposal 28 Attachment C City of Tigard Personal Services Agreement 29 METRO CONTRACT 936295 EXHIBIT B SECTION 1 The City of Tigard is seeking sealed proposals from qualified firms to provide personal services for the Washington Square Regional Center Update Project.The City is interested in a firm or consultant team with expertise in land use planning,multimodal transportation planning,housing and economic analysis,economic development,anti-displacement strategies, and community engagement. Proposals will be received until 2:00 p.m. local time, Wednesday, November 27, 2019, at Tigard City Hall's Utility Billing Counter at 13125 SW Hall Blvd.,Tigard,Oregon 97223. No proposal will be considered unless fully completed in a manner provided in the REP packet. Facsimile and electronic (email)proposals will not be accepted nor will any proposal be accepted after the stated due date and time. Any proposal received after the closing time will be returned to the submitting firm unopened after a contract has been awarded for the required services. Proposers are required to certify non-discrimination in employment practices, and identify resident status as defined in ORS 279A.120. Pre-qualification of proposers is not required. All proposers are required to comply with the provisions of Oregon Revised Statutes and Local Contract Review Board (LCRB) Policy. The City may reject any proposal not in compliance with all prescribed public bidding procedures and requirements,and may reject for good cause any or all proposals upon a finding of the City if it is in the public interest to do so. SECTION 2 PROPOSER'S SPECIAL INSTRUCTIONS A. PROPOSED TIMELINES Wednesday. Oct 23.2019 Advertisement/Release of Request for Proposals Wednesday.Nov 27.2019 (2:00 p.m.) Deadline for Submission of Proposals Monday—Thursday.Dec 16—19.2019 Interviews (if necessary) January 2020 Award of Contract by LCRB February 2020 Commencement of Services NOTE: The City reserves the right to modify this schedule at the City's discretion B. GENERAL By submitting a proposal, the Proposer certifies that the Proposal has been arrived at independently and has been submitted without any collusion designed to limit competition. C. PROPOSAL SUBMITTAL The Proposal and all amendments must be signed and submitted no later than 2:00 p.m.,Wednesday, November 27, 2019, to the address below. Each proposal must be submitted in a sealed envelope and designated with the proposal title. The submittal must include one (1) original paper copy and one (1) electronic .pdf copy on a portable USB drive (thumb drive). To assure that your proposal receives priority treatment,please mark as follows: RFP—Washington Square Regional Center Update Project City of Tigard—Utility Billing Counter Attn: Jamie Greenberg,Purchasing Specialist 13125 SW Hall Blvd. Tigard,Oregon 97223 METRO CONTRACT 936295 EXHIBIT B Proposer shall put their name and address on the outside of the envelope. It is the Proposer's responsibility to ensure that proposals are received prior to the stated closing time. The City shall not be responsible for the proper identification and handling of any proposals submitted incorrectly. Late proposals, late modification or late withdrawals shall not be considered accepted after the stated bid opening date and time and shall be returned unopened. Facsimile and electronic (email) proposals will not be accepted. D. PROTEST OF SCOPE OF WORK OR TERMS A Proposer who believes any details in the scope of work or terms detailed in the proposal packet and sample contract are unnecessarily restrictive or limit competition may submit a protest in writing, to the Purchasing Office. A protest may be submitted via facsimile. Any such protest shall include the reasons for the protest and shall detail any proposed changes to the scope of work or terms. The Purchasing Office shall respond to any protest and,if necessary, shall issue any appropriate revisions, substitutions,or clarification via addenda to all interested Proposers. To be considered, protests must be received at least five (5) days before the proposal closing date. The City shall not consider any protest against award due to the content of proposal scope of work or contract terms submitted after the established protest deadline. All protests should be directed to the attention of Jamie Greenberg,Purchasing Specialist,and be marked as follows: RFP Specification/Term Protest City of Tigard—Contracts and Purchasing Office Attn: Jamie Greenberg,Purchasing Specialist 13125 SW Hall Blvd. Tigard, Oregon 97223 If a protest is received in accordance with section above, the proposal opening date may be extended if necessary to allow consideration of the protest and issuance of any necessary addenda to the proposal documents. E. PROPOSAL SUBMISSION AND SIGNING All requested forms and attachments (Signature Page,Acknowledgment Addendum,Statement of Proposal,etc.) must be submitted with the Proposal and in the required format. The submission and signing of a proposal shall indicate the intention of the firm to adhere to the provisions described in this RFP. F. COST OF PREPARING A PROPOSAL The RFP does not commit the City to paying any costs incurred by Proposer in the submission or presentation of a proposal,or in making the necessary studies for the preparation thereof. G. INTERPRETATIONS AND ADDENDA All questions regarding this project proposal shall be directed to Jamie Greenberg, Purchasing Specialist. If necessary,interpretations or clarifications in response to such questions will be made by issuance of an "Addendum" to all prospective Proposers within a reasonable time prior to proposal closing, but in no case less than 72 hours before the proposal closing. If an addendum is necessary after that time, the City,at its discretion,can extend the closing date. Any Addendum issued, as a result of any change in the RFP,must be acknowledged by submitting the "Acknowledgment of Addendum"with proposal. Only questions answered by formal written addenda will be binding. Oral and other interpretations or clarifications will be without legal effect. METRO CONTRACT 936295 EXHIBIT B H. BUSINESS LICENSE/FEDERAL TAX ID REQUIRED The City of Tigard Business License is required. Chapter 5.4 of the Tigard Municipal Code states any business doing business in the City of Tigard shall pay a City of Tigard Business License. Successful Contract will be required to present a copy of their City of Tigard Business License at the time of contract execution. Successful Contractor shall also complete a W-9 form for the City at the time of contract execution. I. CITY'S PROJECT MANAGER The City's Project Manager for this work will be Susan P. Shanks,Senior Planner,who can be reached by phone at (503) 718-2454 or by email at susans(n�tigard-or.gov. J. PROPOSAL VALIDITY PERIOD Each proposal shall be irrevocable for a period of One Hundred Twenty(120)days from the Proposal Opening Date. K. FORM OF CONTRACT A copy of the City's standard personal services agreement,which the City expects the successful firm or individual to execute,is included as "Attachment C". The contract will incorporate the terms and conditions from this RFP document and the successful proposer's response documents. Firms taking exception to any of the contract terms shall submit a protest or request for change in accordance with Section 2.D"Protest of Scope of Work or Terms"or their exceptions will be deemed immaterial and waived. L. TERM OF CONTRACT The term of the contract shall be a period of two years (2) year with the mutual option to renew for up to one (1) additional one-year period. The total term of the contract cannot exceed five (5) years. M. TERMINATION The contract may be terminated by mutual consent of both parties or by the City at its discretion with a 30 days'written notice. If the agreement is so terminated, Contractor shall be paid in accordance with the terms of the agreement. N. PUBLIC RECORD All proposal material submitted by the Proposer shall become the property of the City and is public record unless otherwise specified. A proposal that contains any information that is considered trade secret under ORS 192.501(2) should be segregated and clearly identified as such. This information will be kept confidential and shall not be disclosed except in accordance with the Oregon Public Records Law, ORS 192. The above restrictions may not include cost or price information, which must be open to the public. SECTION 3 BACKGROUND Washington Square is one of eight regional centers in the 2040 Growth Concept. Regional centers are described as "hubs of commerce and services serving hundreds of thousands of people"and characterized by"compact employment and housing development served by high-quality transit."Washington Square Regional Center (WSRC) is 827 acres in size and contains several unique large sites such as the Washington Square Mall,Lincoln Center, and Crescent Grove Cemetery in Tigard and the RedTail Golf Course in Beaverton. Approximately 35% of the regional center's acreage is within Tigard. Of Tigard's 288 acres, METRO CONTRACT 936295 EXHIBIT B Washington Square Mall occupies 105 acres. Most of the remaining acreage is within Beaverton,with some in unincorporated Washington County. WSRC has much greater potential for high-density residential and employment-rich development than has occurred since the original vision and regional center plan was adopted in 2000. The project assumes that the main tenets of the original vision—dense,walkable,mixed-use development—remain valid but that an update is necessary given the significant changes in the business and housing sectors in the past 20 years. The City desires to build on and refine the original vision in order to facilitate equitable development, remove barriers to redevelopment,and create more regional housing and employment options that are consistent with the City's strategic vision to be a walkable,healthy, and inclusive community. The purpose of this project is to: • Understand market trends and the City's ability to influence these trends. • Work with the community to build on and refine the land use and regulatory framework for the regional center in response to market trends,City aspirations,and community priorities. • Lay the groundwork for updating all applicable plans,policies,programs,and regulations associated with the portion of the regional center within Tigard and the Tigard WSRC Plan District. Specific development goals for this project include, but are not limited to: • Supporting more compact and efficient use of the Washington Square Mall site,the largest single land use and property owner within the Tigard portion of the Washington Square Regional Center; • Facilitating more centrally located housing at a variety of price points and protecting existing market-affordable housing wherever possible; • Updating zoning and regulations that result in more redevelopment and expansion opportunities for existing conforming and nonconforming businesses;and • Identifying transportation, transit,and utility infrastructure needs for development and creating a prioritized list of strategic public and private infrastructure investments. Funding for this project is subject to Tigard City Council's acceptance of a$250,000 grant award from the Metro 2040 Planning and Development Grant Program. Council is tentatively scheduled to consider grant acceptance on November 5,2019.Assuming the grant award is accepted, the full budget for this project is $270,000 with a $30,000 contingency.Release of contingency funds is subject to City Project Manager approval. This project is timely and a priority for Tigard for the following reasons: • The region is experiencing a housing supply and affordability crisis. WSRC has the potential to provide more housing options for all kinds of households in a central location that has access to a variety of services and employment opportunities. • The City is undertaking a separate but related planning project to evaluate the supply and regulation of employment lands in the City.The WSRC market analysis will contribute to the City's understanding of regional market trends. • WSRC is the closest regional center to the newest urban growth boundary expansion areas in Tigard, Beaverton,King City,and Wilsonville.The regional center needs to evolve in order to serve these new developing areas. Moreover,the City desires to balance its fiscal and physical approach to growth by facilitating high-density,mixed-use,and centrally-located infill development in WSRC along with low-density residential edge development in River Terrace. METRO CONTRACT 936295 EXHIBIT B • High-quality transit is a key component of a successful regional center,and it is important that transit service to and within WSRC not be overlooked as TriMet moves forward with SW Corridor transit planning. Key questions this project should answer: • Has the original vision been achieved? If no,why not? • What kinds of changes have occurred in and around the regional center since the adoption of the original vision? • How will trends in housing, retail sales, transportation,or the economy affect the regional center and surrounding areas? • How can the City position itself to effectively respond to emerging trends while supporting community values and priorities? • What can the City do to ensure that the benefits and impacts of re/development in the regional center are equitably shared by the community? SECTION 4 SCOPE AND SCHEDULE OF WORK The City of Tigard seeks a collaborative interdisciplinary team—with expertise in land use planning, multimodal transportation planning,housing and market analysis,economic development,anti-displacement strategies,and community engagement—to work with the City on the Washington Square Regional Center Update Project. The team should include a Community Based Organization (CBO) to assist with community engagement,particularly in Metzger which is an ethnically diverse and historically low- income community. Unlike the rest of the consultant team, however,the CBO will be jointly selected by the City and Consultant after the RFP selection process but before the contracting process. If the City and Consultant are unsuccessful in obtaining the services of a CBO,alternative approaches for engaging communities of color and other underrepresented communities will be considered by both parties with input from Metro. It is expected that the CBO will advise and assist the project team throughout the entire project,including attendance at all Stakeholder Working Group and Community Meetings. It is also expected that the CBO will lead or be heavily involved in Subtask 1.3 (Community Engagement Planning);Subtask 2.4 (Metzger- specific Community Outreach);Subtask 2.5 (Metzger Community Meetings); and Task 6 (Metzger Community Report). It is hoped that the CBO will be able to provide all needed language interpretation for meetings and materials. At least$20,000 of the project budget should be reserved for the CBO to do the outreach described by the work plan developed in Subtask 2.4. Coordination between this project and three other concurrent City projects will be required,specifically regarding any housing and economic analyses for the first two projects listed below. • Tigard Employment Lands Tomorrow—This project will focus on understanding economic trends and evaluating the City's supply and zoning of employment lands. • Tigard Urban Reserves Concept Planning—This project will focus on developing concept plans for the South and West River Terrace urban reserve areas,including an evaluation of land uses and the feasibility of employment lands in these areas. • Washington Square Stormwater Retrofit—This project will focus on regional stormwater strategies for the Washington Square area,which includes portions of the Fanno Creek and Ash Creek watersheds. METRO CONTRACT 936295 EXHIBIT B The general timeframe for project completion is 16—20 months.A summary of tasks,deliverables, budget,and schedule is provided in Table 1 below. A more detailed description of tasks and deliverables follows.Tasks and deliverables are generally shown in chronological order but may include iterative steps. Table 1. Summary of Scope of Work Task Subtasks and Deliverables Meetin s Estimated Estimated (T)=Tigard (C)= Consultant g Budged Schedule 1. Project Management $15,000 Feb—Apr 2020 1.1 Project Kickoff Meeting I (2-hr) (r.)MtgSumma ....................................._..................................._. 1.2 Project Management Planning 1 (2-hr) (T)Draft Project Management Plan (C)Draft Plan Comments (T)Final Project Management Plan (C)Draft Schedule,Scope,and Budget (T)Draft Schedule,Scope,and Budget Comments (J Final Schedule,Scop.e,and Budget 1.3 Community Engagement Planning 1 (2-hr) (T)Draft Community Engagement Plan (C)Draft Plan Comments (T)Final Community Engagement Plan (T)Stakeholder Working Group(SWG)Rosters C/T Focus Gro Rosters 1.4 Document Review(C) 2. Community Engagement $70,000 Apr 2020—Jun 2021 2.1 Project Team Meetings 10(1.5-hr) (CI T.)Communiti E ttgagement Coordination _._..._...._.-.__......._._. _. _._. 2.2 Stakeholder Working Group(SWG)Meetings 5 (2-hr) (T)Mtg Logistics (C/T)Mtg Agenda (C/T)Mtg Facilitation&Materials ().Mtg Summary....... ........... 2.3 Regional Center Community Meetings 2 (2-hr) (T)Mtg Logistics (C/T)Mtg Agenda (C/T)Mtg Facilitation drMaterials (12Mtg Summary..............._................_._................................_._. 2.4 Metzger-specific Community Outreach (C)Draft Work Plan (T)Work Plan Comments C Final Work Plan 2.5 Metzger Community Meetings 3(1.5-hr) (T)Mtg Logistics (C/T)Mtg Agenda (C/T)Mtg Facilitation&Materials .(r)MtSummag........._......_................................. ................ 2.6 Project Briefings to PC/CC 2(1.5-hr) (C/T)PC Briefing Presentation (C/T)CCBriefIn Presentation 2.7 City Communications and Engagement (T)Project Website (T)Local and Social Media 1 The dollar amounts shown represent funds available through the Metro grant award of$250,000 and the city's consultant contribution of$50,000. The city has committed an additional$10,000 to cover direct costs associated with community meetings. These funds are not shown in this table. METRO CONTRACT 936295 EXHIBIT B Subtasks and Deliverables Estimated Estimated Task (I) _ Tigard (C)= consultant Meetings Budget' Schedule (1)Direct Mailings (T)Presentations to Community Groups and Project Partners 3. Report Card (Existing Conditions) $5,000 Feb —Mar 2020 3.1 Draft Report (T)Draft Outline (C)Draft Outline Comments (T)Draft Report Card (..Q_Draft...Report Card Comments 3.2 Final Report (1)Final Report Card 3.3 Infographics Summary(2-3 pages) (C)Draft Summary (T)Draft Summary Comments (C)Final Summary 4. Opportunities, Needs, and Constraints $80,000 Apr—Aug 2020 4.1 Scope Refinement Meeting 1 (1-hr) (C).Email Summary............................................ ....... .............................. 4.2 Focus Groups 3(1.5-hr) (T)Mtg Logistics (C)Mtg Facilitation&Materials (C Focus Groups Report 4.3 Stakeholder Interviews Stakeholder Interviews.Report ............... 4.4 Market Analysis (C)Real Estate and Commercial Snapshot (C)Market Trends Report (C)Development Subareas Report 4.5 Land Use and Zoning Analysis (C.)Tigard Code Audit 4.6 Infrastructure Analysis (C)Ped-Bike-Transit Audit (C)Infrastructure Audit 4.7 Residential Displacement Analysis (C)Market and DemographicAnalysir (C)Rent Prediction Analysis C Di /acement Re rt 4.8 Draft Executive Summary(5-7 pages) (C)Draft Outline (T)Draft Outline Comments (C)Draft Summary (I)Draft Summary Comments ............................. .. ......... ................ .................. ............ 4.9 Final Executive Summary (C)Final Summa2.............................................................._.__. ................ 4.10 Infographics Summary(3-5 pages) (C)Draft Summary (T)Draft Summary Comments (C)Final Summary 5. Refining the Land Use Framework $50,000 Aug—Dec 2020 5.1 Scope Refinement Meeting 1 (1-hr) .(C)Email Summer.._...._.......................... .........................................._. 5.2 Land Use Scenarios(2-3 scenarios) 1 (1.5 hr) (C)Draft Land Use Scenarios Memo METRO CONTRACT 936295 EXHIBIT B Subtasks and Deliverables Estimated Estimated Task Meetings (T)=Tigard (C)=Consultant Budget Schedule (T)Draft Memo Comments (C)Final Land Use Scenarios Memo 5.3 Development Precedents(3-6 precedents) 1 (1.5-hr) (C)Precedent Options Presentation (C)Precedents Memo 5.4 Transportation Sensitivity Analysis 1 (1.5-hr) (C)Draft Transportation Memo (T)Draft Memo Comments (C)Final Transportation Memo *,40444- ,„• 4•1•„cia. 6. Metzger Community Report#&1*. VI $D5 000 Nov—Dec 2020 KLit f f4 6.1 Scope Refinement Meeting 1 (1-hr) .(C)Email Summary 6.2 Draft Report (C)Draft Outline (T)Draft Outline Comments (C)Draft Report (I)DreReport Comments 6.3 Final Report (C)Final Report vl (T)Final Report Comments (C)Final Report v2 PAte 7. Final Report & Recommendations .":01Pej $40,000 Jan—Mar 2021 7.1 Scope Refinement Meeting 1 (1-hr) (C)Email S ummag 7.2 Draft Report (C)Draft Outline (T)Draft Outline Comments (C)Draft Report (C)Draft Report Comments 7.3 Final Report (C)Final Report vl (T)Final Report Comments (gFinal Report v2 7.4 Code&Plan Amendment Recommendations (C)Comprehensive Plan Chapter (C)Development Subarea Coals and Objectives (C)Plan District Chapter Outline and Policy Direction (C)Zoning,Plan District,and Regional Center Boundag Maps (C)TSP Project List (C)Economic Development Strategies (C)Housing Strategies 8.1 Comprehensive Plan Chapter Adoption (T)Legislative Application (I)Public Notice (T)City Council Hearing 9.1 Additional Meetings/Briefings 9.2 Additional Analysis 9.3 Additional Outreach METRO CONTRACT 936295 EXHIBIT B GENERAL PROVISIONS 1. Document Creation a. All documents shall be internally reviewed by the Consultant for grammar, formatting, content,and general quality prior to delivery to the City for review. b. All documents shall be formatted for 8.5-inch by 11-inch paper,unless otherwise approved by the City Project Manager (PM). c. All documents shall be delivered as computer files in a mutually agreed upon format (e.g.Word, Publisher,PageMaker, etc.) and in an open universally readable format (e.g. PDF). d. All documents for public distribution shall follow the City of Tigard Logo and Design Standards. e. All graphics,including maps,shall be delivered as computer files in a mutually agreed upon format (e.g. AutoCAD,ArcGIS,JPEG,Photoshop,PowerPoint,etc.) and in an open universally readable format (e.g. PDF). 2. GIS Data a. City and Consultant PM shall determine which deliverables require geospatial data development of GIS data by the Consultant and which,if any,should be delivered to the City. b. All GIS data delivered to the City shall follow the City of Tigard GIS Data Standards. 3. Document Review a. Consultant shall provide materials that are intended for public release at least two weeks prior to the scheduled release date,or as otherwise agreed upon by the City and Consultant PM. b. Comments on draft documents shall be provided within two weeks of receipt of draft documents, or as otherwise agreed upon by the City and Consultant PM. c. Consultant shall make minor revisions and corrections to materials based on comments received from either the City or the public within one week of the City requesting the change,or as otherwise agreed upon by the City and Consultant PM. d. Consultant shall make major revisions and corrections to materials based on comments received from either the City or the public within two weeks of the City requesting the change,or as otherwise agreed upon by the City and Consultant PM. e. Consultant shall not be required to make additions or revisions that are outside of this scope of work without an approved contract amendment. 4. Meetings a. Project team meetings and scope refinement meetings shall be held by phone,at City offices,or at other mutually agreed upon locations, such as Consultant offices. TASK 1. PROJECT MANAGEMENT Project management is the joint responsibility of the City and Consultant PM. Specific deliverables and assignments are identified in Table 1. • Consultant shall assume a reasonable amount of time for project communication and general coordination above and beyond the meetings specified in this scope and manage the allocated budget for each task and deliverable accordingly. • Consultant shall provide monthly reports with updated schedule,work completed and upcoming, any issues or changes. Include a percentage complete versus percentage spent by task. • City shall identify and make available relevant historical documents for review,including but not limited to the WSRC Plan and WSRC Phase II Implementation Plan. METRO CONTRACT 936295 EXHIBIT B TASK 2. COMMUNITY ENGAGEMENT Community engagement is the joint responsibility of the City and Consultant project teams. Specific deliverables and assignments are identified in Table 1. It is expected that the teams will plan for and conduct robust business and community outreach to involve the public and historically marginalized communities, particularly the Metzger community, so that they may contribute their knowledge and shape project outcomes. The scope assumes that the project team will need to meet at least once prior to each Stakeholder Working Group (SWG) and Community Meeting in order to effectively plan and prepare for these meetings. In addition to determining agendas and materials,these meetings will assign roles and responsibilities to individual team members based on the meeting purpose and content of each SWG and Community Meeting. The following general provisions apply to all community meetings: • Consultant and City shall co-produce all SWG and Community Meetings,including but not limited to: agenda creation,meeting facilitation,language access,and presentation materials. • Consultant shall provide SWG and Community Meeting materials in at least 2,possibly 3, languages: English,Spanish, and possibly an Asian language depending upon need. • Consultant shall provide simultaneous language interpretation at all Community Meetings in at least 2,possibly 3,languages: English,Spanish,and possibly an Asian language depending upon need. SWG language access needs will be determined after the SWG is formed. • City shall manage logistics for all SWG and Community Meetings,including but not limited to: room reservation,room set-up and tear-down,drinks and snacks, sign-in sheets,and notices. • City shall provide meeting summaries for all SWG and Community Meetings that,at a minimum,lists attendees and summarizes the discussion,any input and/or decision(s),and next steps. Consultant shall review the summaries for completeness and accuracy. 2.2 Stakeholder Working Group (SWG) Meetings In lieu of separate community and technical advisory committees, the scope assumes a single project advisory committee composed of representatives from: residents,businesses, commercial property owners, business and community service organizations,and public agencies.The public agencies listed below will be asked to appoint a SWG representative. All other public agencies providing services in the WSRC, such as Clean Water Services,Tualatin Valley Water District,and Tualatin Valley Fire and Rescue will be invited to attend and observe SWG meetings at their discretion. • City of Beaverton • Washington County • Metro • TriMet • Oregon Department of Transportation The balance of the SWG will include the following groups at roughly the levels indicated. • Residents and employees—6 representatives • Businesses and commercial property owners—6 representatives • Business and community service organizations—6 representatives • Bankers,brokers,and builders—3 representatives Every attempt will be made to include community members that live (Metzger residents) or work (employees) in or near the regional center within all three jurisdictions,namely Tigard,Beaverton,and METRO CONTRACT 936295 EXHIBIT B Washington County. Every attempt will also be made to include large property owners—such as the owners of RedTail Golf Course,Washington Square Mall,and Lincoln Center—and business and commercial property owners from the different development subareas—such as along Hall Blvd and Greenburg Rd and west of Hwy 217. Potential business and community service organizations include but are not limited to: Tigard Chamber of Commerce,Beaverton Chamber of Commerce,Community Partners for Affordable Housing,Washington County Housing Authority,Westside Transportation Alliance,and Westside Economic Alliance. Given the size and diversity of the SWG and the regional center,the City's preliminary proposal is to create three sub-groups within the SWG based on the regional center's geography. One sub-group would focus on the commercial/industrial area west of Hwy 217,another would focus on the commercial area on either side of Greenburg Rd,and the third would focus on the residential area on either side of Hall Blvd. This would allow for more focused attention on the different areas within the regional center simultaneously. It would also require a higher level of staffing to facilitate and record sub-group discussions. The scope assumes at least four Consultant staff for each SWG meeting. Preliminary SWG agendas are as follows: • Mtg 1 —Project Introduction Key Question: Are we asking the right project questions? • Mtg 2—Trends and Analysis Key Question:What does this tell us about what to expect and what we can influence? • Mtg 3—Land Use Refinements Charette (Contingency Task: 2'Charette) Key Question:What are realistic assumptions/aspirations?What should we encourage/discourage?What are the pros/cons? • Mtg 4— Land Use Refinements Key Question: What is the preferred scenario and why? • Mtg 5—Implementation Strategies Key Question: What are the preferred implementation strategies and why? The focus of Meetings 3 and 4 (and Task 5) is "land use refinements" to underscore one of the core project assumptions. The project assumes that the main tenets of the original vision—dense,walkable,mixed-use development—remain valid.This work is meant to build on and refine the original land use framework and implementation strategies. 2.3 Regional Center Community Meetings The scope assumes 2 community meetings that will likely be conducted in an open house format. Preliminary meeting plans and objectives to be determined during the development of the Community Engagement Plan in Task 1.3 in coordination with Beaverton,Washington County,and other project partners as needed. 2.4 Metzger-specific Community Outreach The scope assumes development and implementation of an outreach plan that is specific to the Metzger community. It is expected that the CBO will lead the outreach effort,with City and Consultant team support as needed,and that this effort will begin early in the project to involve community members, particularly those that have been historically marginalized,at all levels of the planning process. Preliminary outreach goals include but are not limited to: METRO CONTRACT 936295 EXHIBIT B • Understanding and work to address barriers to participation • Recruiting SWG representatives • Recruiting focus group and stakeholder interview participants • Facilitating attendance at community meetings 2.5 Metzger Community Meetings The scope assumes 3 community meetings. Preliminary meeting agendas to be determined during the development of the Community Engagement Plan in Task 1.3 in coordination with Washington County. The main focus of the meetings is to: • Listen and document issues,questions,and recommendations from community members. • Encourage participation of historically marginalized communities in the WSRC Update Project. • Educate community members about the kinds of changes that are occurring in their neighborhood or that may occur as a result of WSRC re/development. • Educate community members about the different development and housing initiatives available in Tigard and Washington County. • Identify how meeting input will be folded into the WSRC Update Project and may lay the groundwork for other planning efforts,such as SW Corridor 68th Ave Station Area Planning or Washington County Community Area Planning. 2.6 Project Briefings to Planning Commission (PC) and City Council (CC) The City plans to brief the PC and CC at the completion of Tasks 4, 5,and 7. The scope assumes that the Consultant will attend at least one of these briefings. City and Consultant PM to determine which briefing Consultant will attend at a later date.The City also plans to brief Washington County and the City of Beaverton in coordination with their staff but does not expect Consultant attendance at these briefings. 2.7 City Communications and Engagement The City has primary responsibility for this task but will work in close coordination with the Consultant, Beaverton,and Washington County. In addition to community meetings (Task 2), focus groups (Subtask 4.2),and stakeholder interviews (Subtask 4.3),the City will inform and engage the community through the project website,direct mailings,cold calls,social media posts,press releases,and online surveys. The City expects to tailor its outreach methods to the different stakeholder groups that live,work,own property,or operate businesses in and near the regional center including but not limited to: • Property owners,businesses,and employees along Hall Blvd in Tigard and unincorporated Washington County • Property owners,businesses,and employees along Greenburg Rd,including Washington Square Mall and Lincoln Center • Property owners,businesses,and employees west of Hwy 217 in Tigard and Beaverton • Residents and residential property owners in Tigard and unincorporated Washington County • Neighborhood associations in Tigard,Beaverton,and Washington County TASK 3. REPORT CARD (EXISTING CONDITIONS) The City has primary responsibility for this task,with the exception of Task 3.3. Specific deliverables and assignments are identified in Table 1. The purpose of the Report Card is to: • Summarize applicable WSRC plans,goals,and policies METRO CONTRACT 936295 EXHIBIT B • Summarize the original WSRC vision and conditions • Document existing WSRC conditions • Compare original WSRC vision/conditions to existing conditions Documentation of existing conditions is limited in scope to existing data sets available through the City, Metro,and state and federal governments. It does not include field research,unlike the Ped-Bike-Transit Audit deliverable in Task 4.6. The scope also assumes a 2- to 3-page Infographics Summary prepared by the Consultant. This document should be a highly-polished graphic representation of key takeaways from the Report Card. It should also be a stand-alone document;readily understandable to the general public and elected officials;and useful in a variety of public settings and online. TASK 4. OPPORTUNITIES, NEEDS, AND CONSTRAINTS The Consultant has primary responsibility for this task,with the exception of Task 4.3. Specific deliverables and assignments are identified in Table 1. Each deliverable is underlined,and described below in more detail either in paragraph form or as a series of buffeted questions that the deliverable should address. The geographic scope for each deliverable's area of analysis generally includes the entire WSRC and the Tigard WSRC Plan District,except where specifically noted otherwise. Given the awkward nature of the adopted WSRC boundary in some locations, the geographic scope in most situations will need to vary slightly from the adopted boundary in order to provide better analysis. Consultant and City PM to agree on the geographic scope for the area of analysis for each deliverable prior to the commencement of any analysis. 4.2 Focus Groups ➢ Focus Groups Report The scope assumes 3 focus groups with 8— 12 participants/group. Preliminary focus group participants and questions to be determined during the development of the Community Engagement Plan in Task 1.3. Possible groups include residents,business owners,and re/development experts. 4.3 Stakeholder Interviews ➢ Stakeholder Interviews Report The City intends to interview a broad range of stakeholders in the residential and business communities. Preliminary stakeholders and questions to be determined during the development of the Community Engagement Plan in Task 1.3. 4.4 Market Analysis (Geographic Scope:WSRC/Plan District) Y Real Estate and Commercial Snapshot • What kinds of businesses are missing (i.e. "leaking") from the WSRC/Plan District and the city as a whole? • What are the occupancy and vacancy rates in the WSRC/Plan District? • Are there properties with chronic vacancies in the WSRC/Plan District? METRO CONTRACT 936295 EXHIBIT B ➢ Market Trends Report • What are the relevant real estate trends in the Washington County submarket for retail, office, flex-space,light industrial,mixed-use,and medium- to high-density residential development?Including but not limited to: o Land supply o Rent and property sales prices o Absorption rate • What are the relevant economic trends for urbanizing suburban cities on the national,state, and regional level? Including but not limited to: o Local retail sales o Professional services o Medium- to high-density housing o Regional mall redevelopment o Areas adjacent to well-performing malls • Based on these trends and existing conditions: o What kind of residential and nonresidential redevelopment potential exists in the WSRC/Plan District in the near-and long-term re: business types, housing types,square footage,number of units, etc.? o What market barriers exist for commercial redevelopment and housing development in the WSRC/Plan District both within and beyond the district? o What actions/policies/investments in the public or private realm might catalyze or incentivize missing development or more intense development in the WSRC/Plan District? o What kind of other re/development might occur in the WSRC/Plan District as a result of Washington Square Mall redevelopment? o Which areas or properties in the WSRC/Plan District,if any, are suitable for residential mixed-use development and why? o Which areas or properties in the WSRC/Plan District,if any,are more likely to redevelop in the near- and mid-term and why? ➢ Development Subareas Report This deliverable should incorporate the nonconforming analysis in Task 4.5. • Based on existing development patterns,does the WSRC/Plan District have distinct development subareas? o What are their characteristics and boundaries?What markets do they serve? o How well do existing subarea boundaries correlate with existing base zone,plan district, or regional center boundaries? • Based on identified trends and existing conditions,which subareas are stable and which are in transition,or likely to be in transition in the near future,and why? • Based on identified trends,existing conditions,and best practices,where should the City encourage or concentrate vertical mixed-use development? METRO CONTRACT 936295 EXHIBIT B 4.5 Land Use and Zoning Analysis (Geographic Scope: Tigard WSRC/Plan District) ➢ Tigard Code Audit • Based on a high-level review of existing uses and site improvements,is there a pattern of nonconforming development in the Tigard development subareas?If so,what is the extent and type of the nonconforming development pattern(s)? • Based on stakeholder input,project analysis,and best practices,what preliminary code amendments are recommended to: o Catalyze or incentivize missing or more intense development? o Allow the City to be more responsive to changes over time,e.g. conditional zoning? o Remove regulatory barriers? o Improve clarity? • Based on stakeholder input,project analysis,and best practices,what preliminary map amendments are recommended for base zone,plan district,and regional center boundaries? 4.6 Infrastructure Analysis (Geographic Scope: WSRC/Plan District) ➢ Ped-Bike-Transit Audit This deliverable requires field research,development of geospatial data,and a review of relevant transportation planning documents,such as the Tigard TSP,Tigard CIP,and Metro RTP. • What is the condition of existing pedestrian,bicycle, and transit infrastructure (including park and rides,bus stops,and transit centers)?Where is infrastructure missing or deficient? • Where are the existing or planned bicycle routes and transit access routes?Are more routes needed?What,if any,improvements are needed to make routes more legible,comfortable,and safe? • What additional analysis or direction is needed to advance the Washington Square Loop Trail? ➢ Utilities Audit This deliverable requires coordination with applicable service providers,which the City will facilitate. • What capacity or maintenance issues have been identified by service providers? • What capital improvement projects are planned by service providers? • What barriers,if any, exist for commercial redevelopment and housing development in the regional center or plan district in the near- and mid-term? o Sewer o Water o Stormwater 4.7 Residential Displacement Analysis (Geographic Scope: Partial WSRC/Metzger) ➢ Market and Demographic Analysis ➢ Rent Prediction Analysis ➢ Displacement Report • Assuming up to three re/development scenarios based on what the market might do without any City intervention,what are the residential displacement risks of re/development in the WSRC on existing housing in and outside of the regional center,specifically on housing in the Metzger community to the east of WSRC? • How far do the effects of re/development extend? METRO CONTRACT 936295 EXHIBIT B • Considering existing City and County housing plans and initiatives,what kinds of policies, protections,or resources are recommended to address any identified displacement risks? 4.8 Draft Executive Summary The scope assumes a 5- to 7-page document that summarizes key aspects of the analysis performed in Task 4. The Executive Summary should be a stand-alone document that is readily understandable to the general public and elected officials. 4.9 Final Executive Summary See draft document description above. 4.10 Infographics Summary The scope assumes a 3- to 5-page document that is a highly-polished graphic representation of the Executive Summary.The Infographics Summary should be a stand-alone document that is readily understandable to the general public and elected officials. It should also be useful in a variety of public settings and online. TASK 5. REFINING THE LAND USE FRAMEWORK The Consultant has primary responsibility for this task. Specific deliverables and assignments are identified in Table 1. Consultant and City PM to agree on the geographic scope for each deliverable prior to the commencement of any work. The focus of this task is "refining" to underscore one of the core project assumptions. The project assumes that the main tenets of the original vision—dense,walkable,mixed-use development—remain valid.This work is meant to use new community input and the City's strategic plan for a diverse,equitable,and inclusive community,to build on and update the original vision and implementation strategies. 5.2 Land Use Scenarios The scope assumes the development of 2—3 land use scenarios in close coordination with the City. Scenarios should build off the analysis in Tasks 4.4,4.5, and 4.7 and incorporate input from the community during the refining process. Scenarios should specifically explore where best to locate different types and densities of housing to optimize development in the regional center that balances community needs and market trends. The Land Use Scenarios Memo should include the following for each scenario at a minimum: • Conceptual site plan showing land uses and multimodal transportation facilities. • Brief description of the scenario that includes land uses,commercial square footage,and residential densities. 5.3 Development Precedents The scope assumes the identification of 3—6 development precedents to help the community visualize and make choices about re/development options during the refining process. Possible precedents may include: mixed-use residential redevelopment in centers or corridors,mall redevelopment,mall/residential redevelopment,or mall/employment lands redevelopment. The scope assumes a precedent selection process whereby the Consultant presents and discusses a range of possible options with the City,and the City chooses which development precedents to present to the METRO CONTRACT 936295 EXHIBIT B community and investigate more fully. Options presented to the City should relate to and inform the work in Task 5.2. The Development Precedents Memo should include the following for each development precedent at a minimum: • Compilation of existing images and maps to convey the nature and extent of the development. • Brief description of the development that includes land uses and densities,where available. • Brief statement about the development's relevance as a precedent. • Brief description of the key actions,events,or conditions in the recent market cycle that led to the development being built. 5.4 Transportation Sensitivity Analysis Transportation analysis to be coordinated with the work in Task 5.2. Specific analysis and locations to be determined during the refining process with input from the community and affected road authorities. TASK 6. METZGER COMMUNITY REPORT The Consultant has primary responsibility for this task. Specific deliverables and assignments are identified in Table 1.The Consultant should assume input from both the City and Washington County. The contents of the final report should incorporate the analysis in Task 4.7 but,in all other respects, should be community-driven and reflect the ideas and issues identified by the community during the Metzger community outreach.While this report is a stand-alone deliverable,it is assumed that the knowledge and recommendations gathered from the Metzger community throughout the process will be incorporated into the other tasks, so as to shape the recommended framework and implementation strategies.The Metzger Community Report should include the following at a minimum: • Summary of community engagement effort,including results from outreach to historically marginalized communities • Summary of community comments/discussion and how the community influenced the Land Use Framework • Summary of Residential Displacement Analysis from Task 4.7 • Summary of recommendations,including community priorities TASK 7. FINAL REPORT AND RECOMMENDATIONS The Consultant has primary responsibility for this task. Specific deliverables and assignments are identified in Table 1.At a minimum, the WSRC Update Project Final Report should include the following elements: • Summary of community engagement effort • Summary of community comments/discussions,including areas of agreement and dissension • Summary of key findings and conclusions from analysis • Summary of recommendations,including community priorities The following detailed recommendations should be included as attachments to the Final Report: • Comprehensive Plan Chapter Special Planning Area (Including key findings,goals,policies,and action measures) METRO CONTRACT 936295 EXHIBIT B • Development Subarea Goals and Objectives (Potentially including performance measures and phasing considerations) • Plan District Chapter Outline and Policy Direction • Zoning,Plan District,and Regional Center Boundary Maps • Transportation System Plan Project List • Economic Development Strategies (including timing and length) • Housing Strategies (including timing and length) TASK 8. ADOPTION The City has primary responsibility for adoption of the Comprehensive Plan Chapter Amendments. TASK 9. CONTINGENCY TASKS The City PM will decide during the course of the project which,if any,of the contingency tasks are needed in consultation with the Consultant PM. SECTION 5 PROPOSAL CONTENT AND FORMAT A. FORMAT To provide a degree of consistency in review of the written proposals, firms are requested to prepare their proposals in the standard format specified below. 1. Title Page The title page should identify the RFP Title, name and tide of contact person, address, telephone number, fax number,email address and date of submission. 2. Transmittal Letter The transmittal letter should be not more than two (2) pages long and should include as a minimum the following: a. A brief statement of the Proposer's understanding of the project and services to be performed;and b. A positive commitment to perform the services within the time period specified, starting and completing the project within the deadlines stated in this RFP; and the names of persons authorized to represent the Proposer, their tide, address and telephone number (if different from the individual who signs the transmittal letter.) 3. Table of Contents The table of contents should include a clear and complete identification by section and page number of the materials submitted. 4. Project Understanding,Approach, and Interest Proposers should explain their understanding of the tasks and deliverables described in Section 4 of this RFP and their proposed approach and plan for accomplishing this work within the overall budget with text, tables, timelines, or other figures as desired. Proposers METRO CONTRACT 936295 EXHIBIT B may suggest changes to the estimated budget for each task but not the overall project budget. Proposers should suggest an approach to how the community-based organization (CBO)will be integrated into the team, including which tasks are anticipated to be performed by the CBO.Proposers should also suggest an approach to engaging communities of color and other underrepresented communities if the City and consultant team are unsuccessful in obtaining the services of a CBO to do this work. Proposers should also explain why the consultant team is interested in this project. 5. Consultant Team Qualifications and Organization Proposers should provide sufficient information about their qualifications and experiences for the City to understand and verify the ability of the consultant team to perform the work described in Section 4 of this RFP. This summary should include the team's experience working with community-based organizations or engaging communities of color and other underrepresented communities. Proposers should provide a consultant team organization chart that clearly identifies the project manager, prime consultant, sub-consultant(s), including the CBO, and specific areas of work responsibility. Proposers should also list and provide brief biographies for key project staff.Full resumes may be included in the appendix, with a maximum of one double-sided page per resume. 6. Consultant Team Experience with Similar Projects Proposers should provide detailed descriptions of past similar projects that have been completed for the City or other public agencies. Descriptions for up to five (5) projects may be submitted, with a maximum of one single-sided page per description. Proposers should also provide a table of all similar projects that contains the following information: • Project title,type, and year completed • Client name and contact information • Brief description of similarities,including similar tasks or deliverables • List of project team members who worked on each project The City reserves the right to contact former clients and investigate the past performance of any Proposer with respect to its successful performance of similar projects, compliance with specifications and contractual obligations, and completion of projects on time and within budget. 7. Project Management Proposers should describe the proposed project manager's experience on past similar projects and explain the project manager's approach to schedule, budget, scope, and change management. The description should include the project manager's experience with and approach to communicating with and managing a team of diverse professionals on a project with multiple inter-related deliverables, multiple jurisdictions, and a large number of stakeholders, some of whom may be skeptical of or object to the project's goals. 8. Diversity in Contracting Proposers should describe the diversity of their consultant team with respect to any recognized certification. Is your firm or any sub-consultant certified with the Certification Office of Business Inclusion and Diversity (COBID)? If yes, indicate all certification types (i.e. DBE, MBE, WBE, SDV, and ESB) by firm, with certification number(s). Proposers should also describe the diversity (i.e. race, ethnicity,gender, disability, and veteran status) of key project METRO CONTRACT 936295 EXHIBIT B staff and provide specific examples of how the prime consulting firm or its sub-consultants support workforce diversity within their respective firms or the local community. B. ADDITIONAL SERVICES Provide a brief description of any other services that your team could provide the City and an approximation of the hourly charge for each service of this type. Such services would be contracted for on an"as needed" basis,to be provided and billed for separately. C. ADDITIONAL INFORMATION Please provide any other information you feel would help the Selection Committee evaluate your team for this project. D. REFERENCES Proposers must demonstrate successful past performance of the team's ability to provide services as set forth in this specification. Proposers must provide three (3) references to document experience. References must be detailed in Attachment B "Statement of Proposal" E. DISPUTES Should any doubt or difference of opinion arise between the City and a Proposer as to the items to be furnished hereunder or the interpretation of the provisions of this RFP,the decision of the City shall be final and binding upon all parties. F. CITY PERSONNEL No officer,agent,consultant or employee of the City shall be permitted any interest in the contract. SECTION 6 PROPOSAL EVALUATION PROCEDURES A. SELECTION AND EVALUATION PROCESS A Selection Committee assembled by the City will review the written proposals. Proposals will be evaluated to determine which ones best meet the needs of the City. After meeting the mandatory requirements, the proposals will be evaluated on both their technical and fee aspects. The Selection Committee will select the Proposer which best meets the City's needs based upon its evaluation of a firms proposal. Proposals will be evaluated in accordance with the following: 1. Completed Proposal submitted on time Pass/Fail 2. 1 original& 1 electronic pdf copy on portable USB drive Pass/Fail 3. Transmittal letter Pass/Fail 4. Project understanding. approach, and interest 30 points 5. Consultant team qualifications and organization 30 points 6. Consultant team experience with similar projects 15 points 7. Project management 10 points 8. Diversity in contracting 15 points • 5 points for prime or sub-consultant(s) with any COBID certification (DBE,MBE,WBE,SDV,ESB) • 5 points for key project staff diversity • 3 points for prime or sub-consultant(s) with MBE/WBE certification • 2 points for workplace diversity efforts TOTAL EVALUATION POINTS 100 POINTS METRO CONTRACT 936295 EXHIBIT B B. PRESENTATION/INTERVIEW At the option of the City, the top scoring proposers (based on the criteria points) may be asked to make a presentation of their proposal. This will provide an opportunity to clarify or elaborate on the proposal, but will not, in any way provide an opportunity to change any fee amount originally proposed. The City's Project Manager will schedule the time and location of these presentations and notify the selected firms. If the City elects to conduct a presentation/interview process, 25 criteria points will be assigned to the process and will be added to the participating Proposers' total points. C. INVESTIGATION OF REFERENCES The City reserves the right to investigate references and the past performance of any Proposer with respect to its successful performance of similar projects,compliance with specifications and contractual obligations,its completion or delivery of a project on schedule and its lawful payment of employees and workers. D. CLARIFICATION OF PROPOSALS The City reserves the right to obtain clarification of any point in regards to a proposal or to obtain additional information necessary to properly evaluate or particular proposal. Failure of a Proposer to respond to such a request for additional information or clarification could result in rejection of their proposal. E. RESERVATION IN.EVALUATION The Selection Committee reserves the right to request "Best and Final Offers" from the two top finalists to reassess the proposals and award to the consultant team determined to best meet the overall needs of the City. F. INTENT OF AWARD Upon review of the proposals submitted, the City may negotiate a scope of work and a personal services agreement with one firm, or may select one or more firms for further consideration. G. PROTEST OF AWARD In accordance with Tigard Public Contracting Rule 30.135,any adversely affected Proposer has seven (7) calendar days from the date of the written notice of award to file a written protest. H. PROPOSAL REJECTION The City reserves the right to: 1. Reject any or all proposals not in compliance with all public procedures and requirements; 2. Reject any proposal not meeting the specifications set forth herein; 3. Waive any or all irregularities in proposals submitted; 4. In the event two or more proposals shall be for the same amount for the same work,the City shall follow the provisions of LCRB 30.095 and Section 137-095 of the Oregon Attorney General's Model Public Contract Manual; 5. Reject all proposals; 6. Award any or all parts of any proposal;and 7. Request references and other data to determine responsiveness. METRO CONTRACT 936295 EXHIBIT B SECTION 7 PROPOSAL CERTIFICATIONS ****************************************** Non-discrimination Clause The firm agrees not to discriminate against any client, employee or applicant for employment or for services, because of race, color, religion, sex, national origin, handicap or age with regard to, but not limited to, the following: employment upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation; selection for training; rendition of services. It is further understood that any firm who is in violation of this clause shall be barred from receiving awards of any contracts from the City, unless a satisfactory showing is made that discriminatory practices have terminated and that a recurrence of such acts is unlikely. Agreed by: Firm Name: Address: ***************************************** Resident Certificate Please Check One: U Resident Firm: Firm has paid unemployment taxes and income taxes in this state during the last twelve calendar months immediately preceding the submission of this proposal. Or U Non-resident Firm: Firm does not qualify under requirement stated above. (Please specify your state of residence: ) Officer's signature: Type or print officer's name: METRO CONTRACT 936295 EXHIBIT B SECTION 8 SIGNATURE PAGE The undersigned proposes to perform all work as listed in the Specification section, for the price(s) stated; and that all articles supplied under any resultant contract will conform to the specifications herein, The undersigned agrees to be bound by all applicable laws and regulations, the accompanying specifications and by City policies and regulations. The undersigned,by submitting a proposal,represents that: A) The Proposer has read and understands the specifications. B) Failure to comply with the specifications or any terms of the Request for Proposal may disqualify the Proposer as being non-responsive. The undersigned certifies that the proposal has been arrived at independently and has been submitted without any collusion designed to limit competition. The undersigned certifies that all addenda to the specifications has been received and duly considered and that all costs associated with all addenda have been included in this proposal: Addenda: No. through No. inclusive. We therefore offer and make this proposal to furnish services at the price(s) indicated herein in fulfillment of the attached requirements and specifications of the City. Name of firm: Address: Telephone Number: Fax Number: By: Date: (Signature of Authorized Official. If partnership,signature of one partner.) Typed Name/Title: If corporation,attest: (Corporate Officer) El Corporation ❑ Partnership ❑ Individual Federal Tax Identification Number (TIN): METRO CONTRACT 936295 EXHIBIT B ATTACHMENT A CITY OF TIGARD, OREGON ACKNOWLEDGMENT OF ADDENDA Project Title: Close: (Day of Week). (Date) -2:00 p.m. I/WE HAVE RECEIVED THE FOLLOWING ADDENDA (If none received, write 'None Received'): 1. 3. 2. 4. Date Signature of Proposer Title Corporate Name METRO CONTRACT 936295 EXHIBIT B ATTACHMENT B CITY OF TIGARD, OREGON STATEMENT OF PROPOSAL Name of Firm: Mailing Address: Contact Person: Telephone: Fax: Email: accepts all the terms and conditions contained in the City of Tigard's Request for Proposal for the Washington Square Regional Center Update Project and the attached personal services agreement(Attachment C): Signature of authorized representative Date Type or print name of authorized representative Telephone Number Type or print name of person(s) authorized to negotiate contracts Telephone Number REFERENCES Reference #1 Telephone Number Project Title Contact Individual Reference#2 Telephone Number Project Title Contact Individual Reference#3 Telephone Number Project Title Contact Individual METRO CONTRACT 936295-EXHIBIT C Washington Square Regional Center Update Project Milestones,Deliverables,and Disbursement of Grant Funds Project milestone and specified grant deliverables Date due* Estimated Matching Estimated Grant contributions payment 1 Execution of grant IGA a)Preparation of project documents and negotiations Nov.30,2019 b)Signed IGA document 2 Project consultants and contract scoping a) Determine RFP reviewers who will select consultant team Jan.31,2020 b) Select consultant team c) Select community-based consultant team member d) Submit draft consultant contract,scope,schedule and budget for review 3 Finalize Consultant Contract and IGA Milestones a) Establish revised milestones and deliverables Feb.29,2020 b) Finalize and execute consultant scope and contract 4-7+ Project milestones to be determined $60,000 $235,000 8 Council hearings and action $15,000 GRANT PROJECT COMPLETION Total Grantee Match Total Grant Funding • All grant project deliverables submitted by grantee and approved by Metro • All required fiscal documentation submitted or retained on file as appropriate • Final reporting on grant performance measures submitted and approved by Metro TOTAL: $ 60,000 TOTAL: $ 250,000 NOTE: Due dates are intended by the parties to be hard estimates of expected milestone completion dates.If the City anticipates that a due date cannot be met due to circumstances beyond its control,it shall inform Metro in writing no later than ten(10)days prior to the due date set forth above and provide a revised estimated due date.Metro and the City shall mutually agree upon revisions to the milestone due dates set forth in this agreement. Metro Contract 936295 2040 PLANNING AND DEVELOPMENT GRANT IGA-METRO&THE CITY OF TIGARD Page 1 Staff recommends allowing the funds for affordable housing programs to accrue for the remainder of this fiscal year,so that budgeting for the next fiscal year becomes clearer. Staff from community development are prepared to propose programs through the budgeting process that will implement strategies from the Affordable Housing Plan. Some examples of the types of programs staff are exploring include: •Affordable home ownership program managed by a community land trust that provides down payment assistance and permanent affordability.Already implemented by Beaverton and Hillsboro. •Support for purchase of low-cost market-rate units -meets the goals of the Southwest Corridor Equitable Development Strategy to preserve existing housing in the corridor. •Land banking-allows the city to purchase property as it comes available and set goals for development rather than being exclusively opportunity-based. •Gap financing for affordable rental units - assists affordable housing developers where other city funding sources,such as urban renewal funds,are not available. OTHER ALTERNATIVES Council could instead opt for alternatives including. •Adopting only a residential CET. •Adopting a lower CET rate. •Declining to adopt a CET. COUNCIL OR TCDA GOALS,POLICIES, MASTER PLANS Council Goal 3: Ensure Tigard grows and develops in a smart and inclusive manner Strategy 3.2: Complete an Affordable Housing Plan and adopt recommended strategies to promote the development and retention of affordable housing in Tigard. Increase advocacy at the regional level for housing that is affordable,funding strategies,and consider an excise tax Tigard Affordable Housing Plan Recommendation 1: Construction Excise Tax DATES OF PREVIOUS CONSIDERATION June 18,2019 -Affordable Housing Plan Adoption July 9,2019 - Council Briefing Attachments Ordinance Exhibit A Presentation •Home construction cost: $275,000 •Construction excise tax: $2,750 •Home sale price: $525,000 •Effective tax rate: 0.5% A CET is applied to all new construction,with certain exemptions provided for in the original legislation, which are: •Affordable rental housing •School improvements •Public or private hospital improvements •Improvements to religious facilities •Agricultural buildings •Residential improvements that do not add space •Public improvements under contracting code •Non-profit care facilities (long-term,residential,or continuing care) A city adopting a CET may provide for other exemptions. Staff recommends the following additional exemptions: •Projects with a permit value$50,000 or less •Regulated affordable housing subject to a deed restriction •Accessory dwelling units (with a sunset date set at the same date of the SDC exemption sunset to allow Council to consider both together) •Missing middle housing types (50 percent exempted) •Replacement residential structures where the original structure was destroyed by accident and that add no more than 10 percent living space The bill also regulates how revenue from a CET is used; specifically it"[r]equires city or county to use net construction tax revenue to fund certain developer incentives and programs of city or county related to affordable housing,and to make distributions to Housing and Community Services Department to fund home ownership programs that provide down payment assistance." Residential CETs are capped at 1 percent of the permit value and must be allocated to the following uses: •50%to developer incentives for housing(e.g. SDC exemptions,tax abatements,etc.) •35%for flexible affordable housing programs •15%to OHCS for homeownership programs in Tigard Commercial CETs have no upper limit,and 50%of the revenues must be devoted to affordable housing programs. Although the commercial CET is not limited,no jurisdiction has exceeded 1 percent. Staff believes that a 1 percent rate is the best option to ensure fairness and to ease the administrative work in implementing the CET. A 4%administrative fee is taken out by the city prior to distribution to cover expenses related to collection and distribution of the tax. A CET would benefit the city by providing a backfill for SDC exemptions for affordable housing, supporting affordable home ownership,and providing a flexible source of funds to allow the city to pursue the strategies in its adopted Affordable Housing Plan. AIS-4018 3. B. Business Meeting One Meeting Date: 11/05/2019 Length (in minutes): Consent Item Agenda Title: LCRB - Consider Contract Award for Main Street Phase 2 Design Prepared For: Joseph Barrett Submitted By: Joseph Barrett,Public Works Item Type: Motion Requested Meeting Type: Consent Agenda - LCRB Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: L Information ISSUE Shall the Local Contract Review Board award a design contract for Main Street Phase 2 Improvements to Century West? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends the Local Contract Review Board award a design contract for the Main Street Phase 2 Improvements project to Century West in an amount not to exceed$866,020 and direct the City Manager to take the steps necessary to execute the contract. KEY FACTS AND INFORMATION SUMMARY This project will provide the final phase of improvements to SW Main Street from the railroad tracks to Scoffins Street to create a vibrant downtown that connects community,visitors and businesses. The improvements to SW Main Street Phase 2 will be similar to Phase 1. Improvements will include new sidewalks with street furniture and landscaping, full street pavement restoration,utility upgrades including new street lighting and treatment of stormwater runoff with green street features. The city issued a Qualification-based Request for Proposal (QBS) for the work in late Spring 2019. The city needed to use a QBS process for this project as engineering services,a significant portion of the needed work, is covered by the city's and state's QBS process. Upon closing, the city received proposals from four firms: •KPFF, •Century West Engineering, •Kittelson&Associates, and •Harper Houf Peterson Righellis. A staff selection team reviewed,scored,and ranked the proposals based on the criteria detailed in the QBS packet (which excluded price under QBS rules). Staff entered into negotiations with the top ranked firm and, after a lengthy effort,the sides were unable to agree on a scope and price for the work. In accordance with the QBS process,staff moved to negotiation of scope and fees with the second rank firm,Century West. The initial fee from Century West was $985,945. The City reviewed internal budgets for the project and determined that staff could complete some of the construction inspection of the project saving consultant costs. With this information,Century West was able to revise their fee to $866,020 and staff is recommending this be the scope and price of award. OTHER ALTERNATIVES The Local Contract Review Board may reject this contract award and direct staff to resolicit for the work. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS Goal 2 - Invest and connect key areas of the city to promote economic growth and community vitality. •Strategy 2.2 - Continue to make Downtown Tigard a place people want to be by making substantial progress on projects that attract new residential and business investment: •Main Street Green Street Phase 2 DATES OF PREVIOUS COUNCIL CONSIDERATION This is the first time the Local Contract Review Board has reviewed this potential contract. Fiscal Impact Cost: $866,020 Budgeted (yes or no): Yes Where budgeted?: Transportation CIP Additional Fiscal Notes: The negotiated price for this work that the City and Consultant were able to agree to is $866,020. Appropriations for this work are currently in the Transportation CIP fund (with transfers from Gas Tax and City Gas Tax). The fund has $1.8 million appropriated for contracted services for this project in FY 2020. Attachments No file(s)attached AIS-3999 4. Business Meeting One Meeting Date: 11/05/2019 Length (in minutes): 30 Minutes Agenda Title: Legislative Public Hearing: Consider Ordinance Adopting a Construction Excise Tax Prepared For: Schuyler Warren Submitted By: Schuyler Warren, Community Development Item Type: Motion Requested Meeting Type: Council Ordinance Business Public Hearing- Legislative Meeting- Main Public Hearing Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the city collect a construction excise tax of 1 percent on certain new residential and commercial construction to fund affordable housing programs and developer incentives? STAFF RECOMMENDATION /ACTION REQUEST Staff recommends adoption of the ordinance. KEY FACTS AND INFORMATION SUMMARY The Affordable Housing Plan adopted by Council in June of 2019 provided a recommendation to adopt a Construction Excise Tax (CET).This tax,in addition to a recommendation for joint CDBG entitlement, would form a funding base for City affordable housing initiatives over the next 10 years.Without the tax, many of the recommendations included in the plan will not be feasible,unless alternative funding sources are secured. Local construction excise taxes to fund affordable housing were authorized by the Oregon Legislative Assembly through Senate Bill 1533 (2016).To date,ten jurisdictions (Portland,Milwaukie,Eugene,Medford, Corvallis,Tillamook County,Cannon Beach, Hood River County,Hood River City,and Newport) have passed local CETs. In addition,Bend has had a CET in place since 2006,although it is exempt from the provisions of the bill. A construction excise tax is levied on the permit value of all construction in a jurisdiction.The permit value is based on the construction cost and does not include the value of the land.The permit value is usually significantly lower than the sale price of the construction. As a result,the effective cost of the CET relative to the sale price of a home, for example,is lower than one percent. The cost breakdown of the CET for a typical single detached house would look similar to the following: CITY OF TIGARD, OREGON TIGARD CITY COUNCIL ORDINANCE NO. 19- AN ORDINANCE ENACTING A CITYWIDE CONSTRUCTION EXCISE TAX WHEREAS,there is an identified need for affordable housing in the City of Tigard;and WHEREAS, in 2016, the Oregon Legislative Assembly passed Senate Bill 1533, which allows cities and counties to collect construction excise taxes to fund affordable housing;and WHEREAS,the City Council adopted an Affordable Housing Plan in June of 2019;and WHEREAS,a key recommendation of that plan is the adoption of a construction excise tax to fund affordable housing programs within the city;and WHEREAS, Goal 10 of the City of Tigard's Comprehensive Plan is to "provide opportunities to develop a variety of housing types that meet the needs, preferences, and financial capabilities of Tigard's present and future residents";and WHEREAS,the Council desires to continue to develop a sustainable affordable housing program to ensure an adequate supply of housing for all of Tigard's residents;and WHEREAS, in 2018, Council adopted an exemption from city systems development charges (SDCs) for affordable housing developments;and WHEREAS,a construction excise tax provides a means to offset lost revenue from SDC exemptions;and WHEREAS,the 2019-2021 Council Goals prioritized adoption of a citywide construction excise tax. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Chapter 3.90 of the Tigard Municipal Code is hereby adopted, as shown on the attached Exhibit A. SECTION 2: If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect the other provisions or applications of the ordinance which can be given effect without the invalid provision or application,and to this end the provisions of this ordinance are severable.This City Council hereby dedares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the ordinance be enforced. SECTION 3: This ordinance shall be effective January 1,2020. ORDINANCE No. 19- Page 1 PASSED: By vote of all council members present after being read by number and title only, this day of ,2019. Carol A. Krager,City Recorder APPROVED: By Tigard City Council this day of _,2019. Jason B. Snider,Mayor Approved as to form: City Attorney Date ORDINANCE No. 19- Page 2 Exhibit A TIGARD MUNICIPAL CODE Chapter 3.90 CONSTRUCTION EXCISE "Commercial" means any structure designed TAX. or intended to be used, or actually used, for occupancy for other than residential purposes and Sections: includes structures otherwise categorized or described as industrial. 3.90.010 Purpose. 3.90.020 Definitions. "Construct" or "construction" means 3.90.030 Tax Imposed. erecting, constructing, enlarging, altering, 3.90.040 Administration and repairing, improving, or converting any building Enforcement. or structure for which the issuance of a building 3.90.050 Exemptions. permit is required pursuant to the provisions of 3.90.060 Failure to Pay. Oregon law. 3.90.070 Failure to Maintain Units as Affordable. "Improvement" means any improvements to 3.90.080 Expenditure of Funds. real property resulting in a new structure, 3.90.090 Statement of Entire Value of additional square footage added to an existing Improvement Required. structure, or additional living space to an existing 3.90.100 Penalties and Interest. structure. 3.90.110 Enforcement by Civil Action. 3.90.120 Refunds. "Median family income" means median 3.90.130 Appeals. family income by household size as defined annually by the Housing and Urban Development 3.90.010 Purpose. (HUD) for the Portland-Vancouver Metropolitan Statistical Area(MSA). This chapter establishes a construction excise tax ("CET") on commercial and residential "Net revenue" means revenues remaining improvements to provide funding for affordable after refunds and the administrative fees described housing in the City of Tigard. in Section 3.90.080.A are deducted from the total construction excise tax collected. 3.90.020 Definitions. "Residential" means any structure designed As used in this chapter, unless the context or intended to be used, or actually used, for requires otherwise: occupancy for residential purposes including any residential structure, dwelling, or dwelling unit. "Building official" means the building official for the City of Tigard, or his or her "Value of improvement" means the total designee. value of the improvement as determined by the construction permit(s) or building permit(s) for "City"means the City of Tigard, Oregon. the improvement, regardless of the number of separate permits issued. The city building official "City manager" means the city manager for will calculate the total value in accordance with the City of Tigard, or his or her designee. OAR, i 918-050-0100, Statewide Fee Methodologies for Residential and Commercial Permits,or as otherwise provided by law. 3-90-1 Exhibit A TIGARD MUNICIPAL CODE the date of issuance of the building permit on which the improvement value is based and that 3.90.030 Tax Imposed. remain affordable. For purposes of the initial determination of eligibility for this exemption,the A. Each person who obtains a permit to city will use the median family income for the construct a commercial improvement in the city year prior to the date of issuance of the permit on must pay a commercial CET in the amount of one which the improvement value is based. percent(1%)of the value of the improvement. Continuing affordability will be determined based on the median family income for the prior B. Each person who obtains a permit to calendar year. construct a residential improvement in the city must pay a residential CET in the amount of one 2. Accessory dwelling units. This percent(1%)of the value of the improvement. exemption is repealed automatically on July 31, 2023, after which date the full CET value will be C. The CET is due and must be paid at the assessed. time of issuance of a building permit. The CET amount is assessed at the time of submittal of a 3. Construction or improvements building permit application. having a total improvement value of less than fifty thousand dollars($50,000.00). 3.90.040 Administration and Enforcement. 4. Construction or improvements to a residential structure that was partially or The city manager is responsible for the completely destroyed by unintentional means, implementation, administration, and enforcement such as fire or act of nature, where such of this chapter. The city manager may adopt such construction or improvement results in a net policies and procedures as are necessary to increase of living area of ten percent(10%)or less efficiently and effectively carry out that over the living area of the destroyed structure. responsibility, consistent with the provisions of this chapter. 5. Cottage clusters, courtyard units, and quads, as defined by Title 18.200 of the 3.90.050 Exemptions. Tigard Community Development Code (2019), from fifty-percent (50%) of the CET. The A. Notwithstanding TMC 3.90.030, the remaining fifty percent is due and payable as following are exempt from payment of the CET: provided in Section 3.90.030.C. This exemption is repealed automatically on July 31,2023. 1. Residential housing units, including detached housing, that are subject to a deed 6. Public and private school restriction or other mechanism acceptable to the improvements. city ensuring that the unit(s) are affordable under guidelines established by the United States 7. Public improvements as defined in Department of Housing and Urban Development, ORS 279A.010. to households that earn no more than eighty percent (80%) of the median household income 8. Public or private hospital for a period of at least twenty(20)years following improvements. 3-90-2 Exhibit A TIGARD MUNICIPAL CODE the CET will immediately be due and payable as 9. Improvements to religious facilities of the date the unit no longer qualifies as primarily used for worship or education associated affordable, together with interest and penalties as with worship. provided in Section 3.90.100. The amount of the CET will be calculated using the CET in effect at 10. Long-term care facilities, as the time the unit ceases to qualify. The owner of defined in ORS 442.015, operated by a not-for- record of the unit at the time the unit ceases to profit corporation. qualify will be obligated to pay. The seller and buyer, jointly and severally, will be obligated to 11. Residential care facilities, as pay if the unit ceases to qualify as the result of a defined in ORS 443.400, operated by a not-for- sale, including a sale to a person occupying or profit corporation. intending to occupy the unit whose income exceeds the median family income determination 12. Continuing care retirement for the prior year. communities, as defined in ORS 101.020, operated by a not-for-profit corporation. 3.90.080 Expenditure of Funds. 13. Any improvements required to be A. The city may retain up to four percent exempted from this CET by state law. (4%) of the tax collected for payment toward administrative expenses related to collection and B. The city may require any person seeking distribution of the tax. an exemption to demonstrate that the • improvement is eligible for an exemption and to B. After deducting the administrative fee establish all necessary facts to support the authorized by subsection A, the net revenue from exemption. the tax on residential improvements will be allocated by the city as follows: 3.90.060 Failure to Pay. 1. Fifteen percent (15%) of net The City may not issue a building permit to revenue will be remitted to the Oregon any person required to pay the CET unless the Department of Housing and Community Services person has paid the full amount of CET alleged by to fund home ownership programs. the city to be due. 2. Fifty percent (50%) of net revenue 3.90.070 Failure to Maintain Units as will fund incentives for the development and Affordable. construction of affordable housing authorized by the city as provided by state law. The exemption for affordable units provided in Section 3.90.050.A.1. automatically terminates 3. Thirty-five percent (35%) of net if the unit ceases to qualify as affordable at any revenue will fund programs and activities related time during the twenty (20) year period of to affordable housing. affordability. For purposes of this section, affordability is calculated using the median family C. After deducting the administrative fee income determination for the preceding calendar authorized by subsection A, fifty percent(50%)of year. At any time, if the exemption terminates, the net revenue from the tax on commercial 3-90-3 Exhibit A TIGARD MUNICIPAL CODE improvements will fund programs of the city within thirty (30) days of notice from the city that related to housing. the tax is due. C. Penalties and Interest Merged with Tax. Any accrued interest and imposed penalties under 3.90.090 Statement of Entire Value of this section will be merged with and become a Improvement Required. part of the CET required to be paid under this chapter. This amount becomes the new base for A. It is a violation of this chapter for any calculating new interest amounts. person to fail to state or to misstate the full value of any improvement. 3.90.110 Enforcement by Civil Action. B. Additional CET will be due on any The CET, and any assessed interest and increase in the value of the improvement arising penalties, due and owing under this chapter from the value having been understated or arising constitutes a debt owing to the city by the person from construction changes that result in increased liable for the tax as set forth in Section 3.90.040. building permit fees. The city has all remedies available at law and equity. 3.90.100 Penalties and Interest. 3.90.120 Refunds. A. Interest. Interest will be due on the entire amount that the city manager determines A. The city will issue a refund to any has not been paid and assessed at the rate of ten person who has paid a CET if: percent (10%) per annum from the due date. Interest will be assessed to the 15th day of the 1. The person establishes that the tax month following the due date. Interest amounts was paid for improvements that were otherwise properly assessed in accordance with this section eligible for an exemption under Section 3.90.050 may not be waived or reduced by the city at the time of permit issuance; manager. 2. The person establishes that B. Penalties. In addition to assessing construction of the improvements had not begun interest, a penalty of five percent (5%) of the and the associated building permit was cancelled otherwise applicable CET liability will be by the city; or imposed upon: 3. The city manager determines that 1. Any person who removes one or the amount of any CET, penalty, or interest was more units from the affordability exemption in erroneously collected or paid to the city. Section 3.90.050.A.1. B. The city will either refund all amounts 2. Any person who intentionally fails due within thirty (30) days of a complete request to state the full value of an improvement. for the refund or give written notice of the reasons why the request has been denied. Claims for 3. Any person who fails to pay the refunds must be made upon forms provided by the full amount of the tax, interest, and any penalty city. The request for the refund must be submitted 3-90-4 Exhibit A TIGARD MUNICIPAL CODE within three(3)years from the date of payment of the CET. C. Denial of a request for refund may be appealed as provided for in Section 3.90.130. 3.90.130 Appeals. A. A person who objects to a determination issued by the city applying the provisions of this chapter may file for review of the determination by the city's finance director. The request for administrative review must be in writing,received within ten (10) days of the determination, and must include documentation supporting the request. The finance director's determination in the administrative review will be sent by regular mail. B. The administrative review determination of the finance director may be appealed to the city manager by filing a notice of appeal with the city manager within ten (10) days of issuance of the finance director's determination. The notice must describe the basis for the appeal and the relief sought. C. The filing of any notice of appeal does not stay the effectiveness of the written determination unless the city manager so directs. D. Notwithstanding Section 3.90.060, the city may issue a building permit while an appeal is pending provided that the applicant posts with the city the full amount alleged by the city to be due.No interest will accrue to the applicant on the deposit. E. The city manager will provide a written decision by regular mail to the person who filed the appeal. The city manager's decision on appeal is the city's final decision, subject to judicial review only as provided in ORS 34.010 et seq. 3-90-5 1.1 City of Tigard Respect and Care I Do the Right Thing I Get it Done t. Construction Excise Tax City Council I November 5, 2019 TIGARD City of Tigard Construction Excise Tax (CET) • Tax levied on the permit value of construction • CETs made possible by SB 1533 (2016) - CETs may be levied on both residential and commercial construction Cih of Tigard Construction Excise Tax (CET) • Residential CETs - Limited to a maximum of 1 % - Must be allocated in city budget to defined uses: - 50% to developer incentives for housing (SDC exemptions, tax abatements, etc.) - 35% for affordable housing programs - 15% to OHCS for homeownership programs in Tigard CET City of Tigard Construction Excise Tax (CET) • Commercial/Industrial CETs - No upper limit but 1 % is typical - Must be allocated in city budget to defined uses: - 50% to affordable housing programs mr. . City of Tigard Who Has Adopted a CET? • Milwaukie • Cannon Beach • Medford • Hood River City • Portland • Newport • Corvallis • Hood River County • Eugene • Tillamook County • Bend* CET City of Tigard Why Adopt a CET? • Backfills SDC funds from exemptions like the affordable housing exemption • Funds flexible affordable housing programs • Supports affordable homeownership in Tigard through state down payment assistance programs • Key implementation step for the Affordable Housing Plan CET City of'Tigard Yr How is a CET Assessed? • Tax levied on the permit value of construction - Permit value is based on construction cost not sale price or land value - Tax is paid prior to building permit issuance, like permit fees and school excise tax City of Tigard How is a CET Assessed? • Tax levied on the permit value of construction - Example: home construction cost: $275, 000 construction excise tax: $2, 750 home sale price: $525, 000 City of Tigard What is Subject to a CET? • Generally, all construction that is not exempt - State-mandated exemptions - Local exemptions CET can of Tigard What is Subject to a CET? • State-mandated exemptions - Affordable rental housing - Private school improvements - Public or private hospital improvements - Improvements to religious facilities - Agricultural buildings - Residential improvements that do not add space - Public improvements under contracting code - Non-profit care facilities (long-term, residential, or continuing care) CET cit., of Tigard What is Subject to a CET? • Locally-proposed exemptions - Public school improvements - Affordable housing for sale - Accessory dwelling units (with a sunset) - Missing middle (from 50 percent) - Permits of value $50,000 or less - Replacement residential structures where the original structure was destroyed by accident and that add no more than 10 percent living space City of Tigard What is Projected CET Revenue? • Look back at previous year permit activity - FY17-18: $2, 113,241 - FY18-19: $1, 746,485 City of Tigard What Is the CET Revenue Forecast? PROJECTIONS FROM PREVIOUS YEARS 08/09 $125,144 09/10 $332,884 10/11 $321,914 11/12 $337,424 12/13 $688,604 13/14 $515,001 14/15 $855,818 15/16 $1,113,066 16/17 $1,880,471 17/18 $2,113,241 18/19 $1,746,485 City of Tigard y._. What Is the CET Budget Forecast? Commercial FY Residential Total Total Residential CET Commercial CET CET Total 17/18 $148,596,515 $62,727,585 $1,485,965 $627,276 $2,113,241 18/19 $55,723,512 $118,925,034 $557,235 $1,189,250 $1,746,485 Affordable OHCS Housing Commercial FY CET Total Admin. Fee SDC Backfill Programs Programs 50% 17/18 $2,113,241 $84,530 $713,263 $213,979 $800,377 $301,092 18/19 $1,746,485 $69,859 $267,473 $80,242 $758,071 $570,840 Cite of Tigard immumemir What Will a CET Fund? • Current Affordable Housing Programs - Backfilling SDC funds from the affordable housing exemption program CET Cit..- of Tigard What Will a CET Fund? • Proposed Affordable Housing Programs - Down payment assistance and permanent affordability through community land trust - Support for purchase of low-cost market-rate units - Land banking for affordable housing - Gap financing for affordable rental units City of Tigard Thank You. Questions ? . AGENDA ITEM No. 4 Date: November 5, 2019 TESTIMONY SIGN-UP SHEETS Please sign on the following page(s) if you wish to testify before City Council on: PUBLIC HEARING ON ADOPTION OF A CONSTRUCTION EXCISE TAX This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony become part of the public record and is openly available to all members of the public. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. Due to Time Constraints City Council May Impose A Time Limit on Testimony - '' AGENDA ITEM No. 4 Date: November 5, 2019 PLEASE PRINT This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony become part of the public record and is openly available to all members of the public. The names and addresses ofpersons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. Proponent—(Speaking In Favor) Opponent—(Speaking Against) Neutral Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. j �icik I(-PO� ) E R P J c,I E2e J Nep,p(* Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Gl�un��-14(4,441(N;w,.) K<u� 9 SzZ s A4i, d-st,., , b� q l Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. e( I a ruv ,- C lfi� 7c)0 SIA) Mtt-rrtt, v t�, . GYZ_ ci 700 I— A— 3 • SA-i 6 5-79 Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. .T rOtt° v3 eilt4 AVA1• sue. k a.dJr 031 Name,Address&Ph ne No. Name,Address&Phone No. Name,Address&Phone No. eittf'n�/ 'vv C PAH COMMUNITY PARTNERS P.O. Box 23206*Tigard, OR 97281-3206 * cpahinc.org FOR AFFORDABLE HOUSING Tel:503.293.4038* Fax: 503.293.4039*TTY/VCO:800.735.2900 November 4, 2019 City of Tigard SUPPLEMENTAL PACKET 13125 SW Hall Blvd., FOR Akv.S .2-4)/ Tigard, Oregon 97223 (DATE OF MEETING) Aye ndla. lfems RE: Letter of support for tax exemptions for land banking for affordable housing by non-profit developers and a construction excise tax of one percent on certain new residential and commercial lUb• &Ara• s construction to fund affordable housing programs. Dear Mayor Jason Snider Council President John Goodhouse Councilor Liz Newton Councilor Tom Anderson Councilor Heidi Lueb I am writing on behalf of Community Partners for Affordable Housing(CPAH) in support of two important local policy changes that will further the development and stabilization of affordable housing. I had the privilege of participating in the City of Tigard Affordable Housing Task Force and I know that the Affordable Housing Plan adopted by Council in June provided these important recommendations ; it is gratifying to participate in a community planning effort that results in real staff proposals, consideration, and ultimately policy changes. The savings to organizations developing affordable housing from a tax exemption for land banking are real; at Red Rock Creek Commons property taxes were $5000 a year while we were waiting to assemble financing. Other parcels could have significantly higher taxes. The value provided by holding a parcel for development is particularly meaningful when looking at places where there are likely to be significant cost increases in land value in the near future, especially as a result of an investment of public resources. Certainly the SW Corridor is such a place, and the need for affordable housing along this corridor is great. Decreasing the holding costs connected to land dedicated to affordable housing can assist with more land being attained for such a use. Additionally, a construction excise tax, a key Task Force recommendation, will allow the city to pursue opportunities to purchase land, will provide a funding source so that the city can direct local funds to important affordable housing projects, and can be dedicated to both rental and homeownership programs. The city of Tigard has been a leader in affordable housing and we are pleased to be part of the conversation and process of adding units. Thank you for considering these important polices. Thank you. ArCIL i 1.) 014 Rachael Duke Executive Director CPAH does not discriminate against any person on the basis of age,race,color,religion,sex,sexual orientation or gender A identity,disability(physical,mental or developmental),familial or marital status,or national origin,in admission or M"`NO ` access to,or treatment of,residents,employees or volunteers in any of its projects or programs. SUPPLEMENTAL PACKET FOR /l/o v . ao I 1 (DATE OF MEETING) Community Housing Fund G dA_ rhS 3700 SW Murray Blvd.,#190 Al'D /I /G 5- Beaverton,OR 97005 `i do V 503.846.5794 November 5, 2019 City of Tigard Mayor Jason Snider And City Council Members 13125 SW Hall Blvd. Tigard, OR 97223 RE: Comments on Consideration of Construction Excise Tax(CET), and Amendment of Tigard Code 3.50 Tax Exemptions for Non-Profit Affordable Housing Dear Mayor Snider and City Council Members: The Community Housing Fund would like to express its support for two of the items being considered on the November 5, 2019 agenda. CHF had the opportunity to participate in the development of your most recent Affordable Housing Plan (adopted in June). We see both ordinances as critical to actualization of that plan, as well as to achievement of the City Council's goal to "grow and develop in a smart and inclusive manner." As you are aware,ten other local jurisdictions have adopted Construction Excise Tax ordinances (CET's) since SB 1533 in 2016 made this strategy available. Most of these adoptees are small cities like Tigard, who have had to carefully balance the decision to charge additional fees for development, with the pressing needs of current and future residents. Unfortunately,the preponderance of Tigard residents with severe rent burdens is part of what drove the City to update its Affordable Housing Plan. Without clear and decisive action on the strategies in that plan,the number of households who are rent-burdened will remain constant, or even increase. The is one of the few strategies available to the City to generate additional funds for affordable housing. We have reviewed the staff recommendation and analysis, and believe the recommended rate will not place undue burden on new developments,the list of additionally exempted developments is thoughtful, and the proposed uses match your housing plan and goals (housing incentives, flexible gap for affordable housing, and homeownership programs). Similarly,the updating proposed for your Non-Profit Affordable Housing Tax Exemption will allow the City to pursue goals expressed in the Affordable Housing Plan. Allowing for land banking, particularly as SW Corridor planning continues and market options decrease in number and increase in price, is an important strategy. Updating income targeting to match changes in the regulatory framework of the projects most frequently associated with this program (Low Income Housing Tax Credit, or LIHTC) makes good sense. The City of Tigard has demonstrated leadership in Washington County when it comes to planning for and supporting affordable housing.The City's motto ("a place to call home") is important for households of all incomes.Thank you for reflecting this, once again, in the policies you consider and adopt. Sincerely, Sheila Greenlaw-Fink Executive Director I ' SUPPLEMENTAL PACKET PROUD (DATE OF MEETING) GROUND A ye He Aid 5- November 5, 2019 RE: Comments on Consideration of Construction Excise Tax and Amendment of Tigard Code 3.50Tax Exemption for Non-Profit Affordable Housing I am the Deputy Director of Proud Ground, the region's Community Land Trust. We provide permanently affordable homeownership opportunities for low- and moderate- income households. In 2018, Proud Ground's Board of Directors made the strategic decision to focus on the City of Tigard as part of a larger effort to mitigate displacement along the SW Corridor. Proud Ground has worked collaboratively with the City, Metro, local developers, and non-profit partners on the feasibility of developing permanently affordable homes within the City. As a member of Tigard's Affordable Housing Task Force who helped develop the City's Affordable Housing Plan, I am in support of both ordinances. Construction Excise Tax and the Tax Exemption for Non-Profit Affordable Housing will leverage new sources to develop affordable housing in the City and mitigate displacement of its residents. The Construction Excise Tax was one of the key recommendations of the Affordable Housing Task Force. It is essential to pursuing the other recommendations within the plan, including the ability purchase land and support first-time homeownership programs. It is also critical that this type of funding has defined uses that support the community's needs. As part of Unite Oregon SW Corridor Cohort, it is clear that the community need centers around affordable housing. We are in support of the community development staff's proposed programming, which includes an affordable homeownership program managed by a community land trust to provide down-payment assistance and permanent affordability. This programming is flourishing in Beaverton and Hillsboro. With CET, we can bring this program to Tigard and ensure that its residents have permanently affordable housing. In the same vein, the Amendment of Tigard Code 3.50 Tax Exemption for Non-Profit Affordable Housing would support the development of affordable housing. It is a critical part of making affordable housing developments pencil. Currently, Proud Ground has multiple opportunities to purchase land in Tigard to create permanently affordable homes, but we cannot afford to hold the land during pre-development of the projects without tax exemption. This amendment would allow for Proud Ground and our affordable housing partners to land bank. A land banking program is already in early stages of development for the SW Corridor and this amendment would ensure that Tigard is part of that strategy. Supporting the Construction Excise Tax and Exemption Amendment are the first steps to being part of the affordable housing solution. �u�rnre Stwzt 1J101.t. 5288 N INTERSTATE AVE., PORTLAND, OREGON 97217, 503.493.0293, www.proudground.org IVIETPOPOLIT ,A. N.1. -- LAND GROUP NILO November 5, 2019 SUPPLEMENTAL PACKET Mayor Jason Snider and Members of the City Council FOR l- S C2C'/`1 City of Tigard (DATE OF MEETING) 13125 SW Hall Blvd., /� Tigard, Oregon 97223 4161i`/`'t- RE: Construction Excise Tax Dear Mayor Snider and Members of the City Council, Unfortunately, I'm unable to attend this evening's Council meeting but wanted to offer comments for consideration during the public hearing of the Construction Excise Tax. In alignment with comments that will be submitted by the Home Builders Association, we respectfully request the City hold off approving a Construction Excise Tax (CET) until a companion effort is moved forward to amend certain aspects of System Development Charges (SDC). The following two SDC reform ideas would benefit the entire housing industry while minimizing the impact to local jurisdictions: • Vest SDC rates upon the submission of a land use review application. Currently, SDC rates are determined upon the issuance of a building permit. Because rates change annually—and often times dramatically— it is extremely important for a builder to properly identify SDC rates early on in the development process. However, builders are unable to lock in SDC rates until they complete the lengthy review process. As such, the City should provide SDC rate vesting at the submission of a complete land use review application. • Collect SDCs prior to the issuance of certificate of occupancy. Currently, SDCs are collected at the issuance of a building permit to help offset the impact that new projects have on the City's infrastructure. Given the nexus between impacts and SDCs, the most appropriate point of collection is prior to the issuance of certificate of occupancy. As such, the City should collect SDCs prior to issuance of certificate of occupancy. Thank you for considering this request. Sincerely, gl/L. Marc Farrar Director of Government and Community Relations 17933 NW EVERGREEN PKVVY, SUITE 300, BEAVERTON, OREGON 97006 PHONE (503) 597-7100 FAx (503) 597-7149 AIS-4022 5. Business Meeting One Meeting Date: 11/05/2019 Length (in minutes):20 Minutes Agenda Title: Legislative Public Hearing:Consider Ordinance Amending TMC 3.50 Tax Exemptions for Non-Profit Affordable Housing Prepared For: Schuyler Warren,Community Development Submitted By: Schuyler Warren,Community Development Item Type: Motion Requested Meeting Type: Council Business Meeting Ordinance - Main Public Hearing-Legislative Public Hearing: No Publication Date: I Information ISSUE Shall Council adopt amendments to Tigard Municipal Code Chapter 3.50 to provide tax exemptions for land banking for affordable housing by non-profit developers? STAFF RECOMMENDATION / ACTION REQUEST Staff recommends adoption of the amendments. KEY FACTS AND INFORMATION SUMMARY The Affordable Housing Plan adopted by Council in June provides a recommendation that the tax exemption program be updated to bring it in line with state law and to allow for tax exemptions for land banking. In 1985, the Oregon Legislative Assembly adopted statutes that allow local jurisdictions to provide property tax exemptions to non-profit affordable housing developers. Tigard was an early leader in adopting a tax exemption program under state law,becoming the second Metro-area jurisdiction to do so in 1996. Since that time,this exemption has helped lower annual operating costs for non-profit affordable housing providers and aided new development by helping providers demonstrate these lowered costs to lenders. In recent years,two non-profit housing providers have utilized this program to exempt taxes across five Tigard properties. Of these properties, four are operated by Tigard-based provider Community Partners for Affordable Housing. In 1997, the Legislative Assembly updated the state law to allow for tax exemptions for land held for the purpose of developing affordable housing. Tigard's municipal code implementing this program has not been updated since its original adoption,and as a result has fallen behind these updates to state law. This means that the city is missing a key incentive for the development of affordable housing-land banking.This strategy is especially important with the potential development of the Southwest Corridor light rail line. Land banking allows non-profit providers to "lock up" property for development before property values rise significantly and hold the land for development until funding for construction is available. This strategy is also important because land banking is one of the key components of the Metro regional affordable housing bond passed by voters in 2018. Metro has reserved 10 percent of the bond proceeds to acquire properties. OTHER ALTERNATIVES Council could decline to adopt the amendments, and the non-profit affordable housing tax exemption program will continue in its current format. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS June 2017 - Adoption of the Affordable Housing Plan DATES OF PREVIOUS COUNCIL CONSIDERATION June 2016 -Adoption of the Tigard Affordable Housing Plan Attachments Ordinance Exhibit A Presentation .% . Affordable Housing Tax Exemption Program Update City Council .111 . November 5, 2019 TIGARD Cite ofTigard Tax Exemption Adoption • Allowed by state law passed in 1985 - ORS 307.540 - 548 - For qualified affordable housing - Must be operated by non-profit - Exempts only city taxes - Each taxing district must adopt own exemption - If districts representing 51 % of tax bill value adopt exemption, then a full exemption is granted. City ofT igard Tigard Tax Exemption Program • Tigard adopted in 1996 - Second Metro-area jurisdiction to do so - Program has not been updated since - TTSD and Tigard together represent more than 51 % of tax value Cin ofTigard Program Procedure • Program requires annual application - Non-profits must apply for each property - Staff reviews materials and makes recommendation - Council adopts resolution approving exemption • TTSD - Practice is to adopt exemption annually on a per- property basis City ofTigard Properties Exempted in 2019 • Community Partners for Affordable Housing - Village at Washington Square (26 units) - Greenburg Oaks (84 units) - Knoll at Tigard (48 units) - Four-bedroom single detached house • Resident Resources - Hawthorn Villa (118 units) AH Tax Exemption City ofTigard _ .. Future Properties Likely to Qualify • Community Partners for Affordable Housing - Red Rock Creek Commons (48 units) • Community Development Partners - 72nd and Baylor (80 units) • Northwest Housing Alternatives - Senior Center Housing ("50 units) AH Tax Exe A - - City ofTigard Changes in State Law • ORS 307.540 now allows: - properties held for later development (land banking) to qualify for exemptions - clawback provisions that allow a city to assess back taxes in the event a property leaves affordability or is not developed Cih ofTigard Why Land Banking? • Lowers holding costs for developers during assembly of the financing stack which can sometimes take years • Allows developers to buy properties at lower costs • Supports equitable housing in the Southwest Corridor • Aligns with the land purchase goals of the Metro regional affordable housing bond passed in 2018 City ofTigard Why a Clawback? • Protects city in the event that a development leaves affordability or is never developed City ofTigard Thank You. Questions ? CITY OF TIGARD, OREGON TIGARD CITY COUNCIL ORDINANCE NO. 19- AN ORDINANCE AMENDING TIGARD MUNICIPAL CODE 3.50 NON-PROFIT CORPORATION LOW-INCOME HOUSING TO INCLUDE TAX EXEMPTIONS FOR LAND BANKING AND REMEDIES FOR PROPERTIES THAT T.FAVE AFFORDABILITY WHEREAS,there is an identified need for affordable housing in the City of Tigard;and WHEREAS, in 1985, the Oregon Legislative Assembly adopted legislation that allows cities and counties to exempt qualified affordable housing operated by non-profit corporations from property taxes;and WHEREAS,in 1996,the City Council adopted a local property tax exemption program for affordable housing operated by non-profit corporations under the provisions of the state law;and WHEREAS,in 1997, the Oregon Legislative Assembly adopted amendments to state law that allows cities to extend the non-profit affordable housing exemption to land planned for development;and WHEREAS,the City Council adopted an Affordable Housing Plan in June of 2019;and WHEREAS, a key recommendation of that plan is an update to the city's affordable housing tax exemption program to bring it into concordance with subsequent changes to state law and to support land banking for affordable housing;and WHEREAS, Goal 10 of the City of Tigard's Comprehensive Plan is to "provide opportunities to develop a variety of housing types that meet the needs, preferences, and financial capabilities of Tigard's present and future residents";and WHEREAS,property tax exemptions reduce carrying costs for non-profit affordable housing providers;and WHEREAS, the Council desires to continue to encourage and support the development and operation of affordable housing. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Chapter 3.50 of the Tigard Municipal Code is hereby amended, as shown on the attached Exhibit A. SECTION 2: This ordinance shall be effective 30 days after its passage by the council, signature by the mayor,and posting by the city recorder. PASSED: By vote of all council members present after being read by number and title only,this day of ,2019. ORDINANCE No. 19- Page 1 Carol A. Krager,City Recorder APPROVED: By Tigard City Council this day of ,2019. Jason B. Snider,Mayor Approved as to form: City Attorney Date ORDINANCE No. 19- Page 2 TIGARD MUNICIPAL CODE Chapter 3.50 NON-PROFIT 3.50.020 Nonprofit Corporation Low CORPORATION Income Housing; Exemption; LOW-INCOME HOUSING. Criteria. Sections: A. Property that meets all of the following criteria shall will be exempt from taxation as 3.50.010 Definitions. provided in this section. 3.50.020 Nonprofit Corporation Low Income Housing; Exemption; 1. The property is owned or being Criteria. purchased by a corporation described in that is 3.50.040 Application For Exemption. exempt from income taxes under section 501(c)(3) 3.50.050 Determination Of Eligibility or(4) of the Internal Revenue Code that is exempt For Exemption; Notice To from income taxation under section 501(a) of the County Assessor. Internal Revenue Code as amended before 3.50.060 Termination of Exemption. December 1, 1984. 2. Upon liquidation, the assets of the 3.50.010 Definitions. corporation are required to be applied first in payment of all outstanding obligations, and the A. "Governing body" means the City of balance remaining, in cash and in kind, to be Tigard City Council. distributed to corporations exempt from taxation and operated exclusively for religious, charitable, B. "Low-income" means: income at or scientific, literary or educational purposes or to the below 60 percent of the area median income as State of Oregon. information from the United States Department of 3. The property is_ occupied—by—few (Ord. 96-34) . 1. For the initial year a person a. Occupied by low income occupies property for which an application for persons; or exemption is filed under this chapter, income at or below 60 percent of the area median income as b. Held for the purpose of future determined by the Oregon Housing Stability development as low-income housing. Council based on information from the United States Department of Housing and Urban 4. The property or portion of the Development; and property receiving the exemption, is actually and exclusively used for the purposes described in 2. For every subsequent consecutive section 501(c) (3) or (4) of the Internal Revenue year that the person occupies the property, income Code as amended before December 1, 1984. at or below 80 percent of the area median income as determined by the Oregon Housing Stability 5. The exemption has been approved Council based on information from the United as provided in section 3.50.050. States Department of Housing and Urban Development. B. For the purposes of subsection(1)of this section, a corporation that has only a leasehold 3-50-1 SE Update: 12/01 TIGARD MUNICIPAL CODE interest in property is deemed to be a purchaser of exempted amount of each property being applied that property if: for under this chapter; 1. The corporation is obligated under 41-. A description of the property for the terms of the lease to pay the ad valorem taxes which the exemption is requested; on the real and personal property used in this activity on that property; or 52. A description of the charitable purpose of the project and whether all or a portion 2. The rent payable by the corporation of the property is being used for that purpose; has been established to reflect the savings resulting from the exemption from taxation. 63. A certification of income levels of low income occupants; C. A partnership shall will be treated the same as a corporation to which this section applies 74. A description of how the tax if the corporation is: exemption will benefit project residents;-aod 1. A general partner of the partnership; 85. A declaration that the corporation and has been granted an exemption from income taxes under 26 U.S.C. section 501(c) (3) or (4) as 2. Responsible for the day to day amended before December 1, 1981..1 operation of the property that is the subject of the exemption. (Ord. 96-34) 9. A description of the development of the property if the property is being held for future 3.50.040 Application For Exemption. low income housing development; and A. To qualify for the exemption provided by 10. Any other information required by 3.50.020, the corporation shall must file an state or local law or which is otherwise reasonably application for exemption with the governing body necessary to effectuate the purposes of this chapter for each assessment year the corporation wants the at the time the application is submitted. exemption. The application shall must be filed on or before March 1 of the assessment year for which C. The application must include the the exemption is applied fef, except that when the following statements: property designated is acquired after March 1 and before July 1, the claim for that year shall must be 1. That the applicant is aware of all filed within 30 days after the date of acquisition. requirements for property tax exemption imposed The application shall must include the following by this chapter; information: 2. That the applicant's property 1. The applicant's name, address, and qualified or, upon completion of the rehabilitation telephone number; improvements and subsequent occupancy by low income persons, will qualify for exemption at the 2. The assessor's account number for time of application approval or within 30 days of each site; the March 1 application deadline; 3. The number of units and the 3. That the applicant acknowledges 3-50-2 SE Update: 1 2/0 1 TIGARD MUNICIPAL CODE responsibility for compliance with the Tigard owner(s) by mailing the notice to the last known Municipal Code, regardless of whether the address of the owner(s), and to every known applicant obtains the exemption provided by this lender, by mailing the notice to the last known chapter;and address of every known lender. The notice will state the reasons for the proposed termination and 4. That the applicant agrees to furnish require the owner(s)to appear at a specified time, other information which is reasonably necessary to not less than 20 days after mailing the notice, to fulfill the objectives of this chapter. show cause, if any,why the exemption should not be terminated. CB. The applicant shall must verify the information provided in the application as required B. If the owner(s) fail to appear and show by subsections B and C above by oath or cause why the exemption should not be terminated, affirmation. (Ord.96-34) the governing body will notify every known lender, and allow any lender not less than 30 days 3.50.050 Determination Of Eligibility after the date the notice of failure to appear and For Exemption; Notice To show cause is mailed to cure any noncompliance or County Assessor. to provide adequate assurance to the governing body that all noncompliance will be remedied. A. Within 30 days of the filing of an application under section 3.50.040, the governing C. If the owner(s) fail to appear and show body shall will determine whether the applicant cause why the exemption should not be terminated, qualifies for the exemption under 3.50.020. If the and the lender fails to cure or give adequate governing body determines the applicant qualifies, assurance of the cure of noncompliance, the the governing body shall will certify to the assessor governing body will adopt a resolution stating its of the county where the real property is located that findings that terminate the exemption. Within 10 all or a portion of the property shall be exempt days of the adoption of the resolution,a copy of the from taxation under the levy of the certifying resolution will be filed with the county assessor governing body. and sent to the owner(s) at the owner(s)' last known address and to the lender at the last known B. Upon receipt of certification under address of the lender. subsection (4-) A of this section, the county assessor shall will exempt the property from D. Upon the county assessor's receipt of the taxation to the extent certified by the governing city's termination findings: body.(Ord. 96-34) 1. The exemption granted to the 3.50.060 Termination of Exemption. housing unit or portion under this chapter immediately terminates, without right of notice or A. If the governing body determines that appeal; property that has received an exemption under this chapter in anticipation of future development of 2. The property will be assessed and low-income housing is being used for any purposes taxed as other property similarly situated is other than the provision of low-income housing,or assessed and taxed;and that any provision of this chapter is not being complied with,the governing body will give notice 3. Notwithstanding ORS 311.235, of the proposed termination of the exemption to the there will be added to the general property tax roll 3-50-3 SE Update: 12/01 TIGARD MUNICIPAL CODE for the tax year next following the presentation or discovery, to be collected and distributed in the same manner as other real property tax,an amount equal to the difference between the taxes assessed against the property and the taxes that would have been assessed against the property had it not been exempt under this chapter for each of the years,not to exceed the last 10 years, during which the property was exempt from taxation under this chapter. E. The assessment and tax rolls will show potential additional tax liability for each property granted an exemption under this chapter if the property is being held for future development of low-income housing. F. Additional taxes collected under this section will be deemed to have been imposed in the year to which the additional taxes relate. ■ 3-50-4 SE Update: 12/01 COMMUNITY PARTNERS P.O. Box 23206*Tigard, OR 97281-3206* cpahinc.org C PA FOR AFFORDABLE HOUSING Tel:503.293.4038 * Fax:503.293.4039 *TTY/VCO:800.735.2900 November 4, 2019 City of Tigard SUPPLEMENTAL PACKET 13125 SW Hall Blvd., FOR NQV"S f Tigard, Oregon 97223 (DATE OF MEETING) ,glenda- Hems RE: Letter of support for tax exemptions for land banking for affordable housing by non-profit developers and a construction excise tax of one percent on certain new residential and commercial Nb• BC J°• 5- construction to fund affordable housing programs. Dear Mayor Jason Snider Council President John Goodhouse Councilor Liz Newton Councilor Tom Anderson Councilor Heidi Lueb I am writing on behalf of Community Partners for Affordable Housing (CPAH) in support of two important local policy changes that will further the development and stabilization of affordable housing. I had the privilege of participating in the City of Tigard Affordable Housing Task Force and I know that the Affordable Housing Plan adopted by Council in June provided these important recommendations ; it is gratifying to participate in a community planning effort that results in real staff proposals, consideration, and ultimately policy changes. The savings to organizations developing affordable housing from a tax exemption for land banking are real; at Red Rock Creek Commons property taxes were $5000 a year while we were waiting to assemble financing. Other parcels could have significantly higher taxes. The value provided by holding a parcel for development is particularly meaningful when looking at places where there are likely to be significant cost increases in land value in the near future, especially as a result of an investment of public resources. Certainly the SW Corridor is such a place, and the need for affordable housing along this corridor is great. Decreasing the holding costs connected to land dedicated to affordable housing can assist with more land being attained for such a use. Additionally, a construction excise tax,a key Task Force recommendation, will allow the city to pursue opportunities to purchase land, will provide a funding source so that the city can direct local funds to important affordable housing projects, and can be dedicated to both rental and homeownership programs. The city of Tigard has been a leader in affordable housing and we are pleased to be part of the conversation and process of adding units. Thank you for considering these important polices. Thank you. hcAdia Rachael Duke Executive Director CPAI-does not discriminate against any person on the basis of age,race,color,religion,sex,sexual orientation or gender A identity,disability(physical,mental or developmental),familial or marital status,or national origin,in admission or access to,or treatment of,residents,employees or volunteers in any of its projects or programs. E'�«+ ` SUPPLEMENTAL PACKET FOR /l/i v . (DATE OF MEETING) Community Housing Fund A_leod& 1-/-,C✓hS 3700 SW Murray Blvd.,#190 • „O f/ '( �a C Beaverton,OR 97005 N 't Oc 503.846.5794 November 5, 2019 City of Tigard Mayor Jason Snider And City Council Members 13125 SW Hall Blvd. Tigard, OR 97223 RE: Comments on Consideration of Construction Excise Tax (CET), and Amendment of Tigard Code 3.50 Tax Exemptions for Non-Profit Affordable Housing Dear Mayor Snider and City Council Members: The Community Housing Fund would like to express its support for two of the items being considered on the November 5, 2019 agenda. CHF had the opportunity to participate in the development of your most recent Affordable Housing Plan (adopted in June). We see both ordinances as critical to actualization of that plan, as well as to achievement of the City Council's goal to "grow and develop in a smart and inclusive manner." As you are aware,ten other local jurisdictions have adopted Construction Excise Tax ordinances (CET's) since SB 1533 in 2016 made this strategy available. Most of these adoptees are small cities like Tigard, who have had to carefully balance the decision to charge additional fees for development,with the pressing needs of current and future residents. Unfortunately,the preponderance of Tigard residents with severe rent burdens is part of what drove the City to update its Affordable Housing Plan. Without clear and decisive action on the strategies in that plan, the number of households who are rent-burdened will remain constant, or even increase. The is one of the few strategies available to the City to generate additional funds for affordable housing. We have reviewed the staff recommendation and analysis, and believe the recommended rate will not place undue burden on new developments,the list of additionally exempted developments is thoughtful, and the proposed uses match your housing plan and goals (housing incentives, flexible gap for affordable housing, and homeownership programs). Similarly,the updating proposed for your Non-Profit Affordable Housing Tax Exemption will allow the City to pursue goals expressed in the Affordable Housing Plan. Allowing for land banking, particularly as SW Corridor planning continues and market options decrease in number and increase in price, is an important strategy. Updating income targeting to match changes in the regulatory framework of the projects most frequently associated with this program (Low Income Housing Tax Credit, or LIHTC) makes good sense. The City of Tigard has demonstrated leadership in Washington County when it comes to planning for and supporting affordable housing. The City's motto ("a place to call home") is important for households of all incomes.Thank you for reflecting this, once again, in the policies you consider and adopt. Sincerely, Sheila Greenlaw-Fink Executive Director SUPPLEMENTAL PACKET I FOR I/- - ao/� PROUD (DATE OF MEETING) GROUND ,4ykkiw 1 e� November 5, 2019 RE: Comments on Consideration of Construction Excise Tax and Amendment of Tigard Code 3.50Tax Exemption for Non-Profit Affordable Housing I am the Deputy Director of Proud Ground, the region's Community Land Trust. We provide permanently affordable homeownership opportunities for low- and moderate- income households. In 2018, Proud Ground's Board of Directors made the strategic decision to focus on the City of Tigard as part of a larger effort to mitigate displacement along the SW Corridor. Proud Ground has worked collaboratively with the City, Metro, local developers, and non-profit partners on the feasibility of developing permanently affordable homes within the City. As a member of Tigard's Affordable Housing Task Force who helped develop the City's Affordable Housing Plan, I am in support of both ordinances. Construction Excise Tax and the Tax Exemption for Non-Profit Affordable Housing will leverage new sources to develop affordable housing in the City and mitigate displacement of its residents. The Construction Excise Tax was one of the key recommendations of the Affordable Housing Task Force. It is essential to pursuing the other recommendations within the plan, including the ability purchase land and support first-time homeownership programs. It is also critical that this type of funding has defined uses that support the community's needs. As part of Unite Oregon SW Corridor Cohort, it is clear that the community need centers around affordable housing. We are in support of the community development staff's proposed programming, which includes an affordable homeownership program managed by a community land trust to provide down-payment assistance and permanent affordability. This programming is flourishing in Beaverton and Hillsboro. With CET, we can bring this program to Tigard and ensure that its residents have permanently affordable housing. In the same vein, the Amendment of Tigard Code 3.50 Tax Exemption for Non-Profit Affordable Housing would support the development of affordable housing. It is a critical part of making affordable housing developments pencil. Currently, Proud Ground has multiple opportunities to purchase land in Tigard to create permanently affordable homes, but we cannot afford to hold the land during pre-development of the projects without tax exemption. This amendment would allow for Proud Ground and our affordable housing partners to land bank. A land banking program is already in early stages of development for the SW Corridor and this amendment would ensure that Tigard is part of that strategy. Supporting the Construction Excise Tax and Exemption Amendment are the first steps to being part of the affordable housing solution. �uime Stint ?/enu 5288 N INTERSTATE AVE., PORTLAND, OREGON 97217, 503.493.0293, www.proudground.org AGENDA ITEM No.5 Date: November 5, 2019 TESTIMONY SIGN-UP SHEETS Please sign on the following page(s) if you wish to testify before City Council on: PUBLIC HEARING ON ORDINANCE AMENDING TMC 3.50 TAX EXEMPTIONS FOR NON-PROFIT AFFORDABLE HOUSING This is a City of Tigard public meeting,subject to the State of Oregon's public meeting and records laws. All written and oral testimony become part of the public record and is openly available to all members of the public. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. Due to Time Constraints City Council May Impose A Time Limit on Testimony AGENDA ITEM No.5 Date: November 5, 2019 PLEASE PRINT This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony become part of the public record and is openly available to all members of the public. The names and addresses ofpersons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. Proponent—(Speaking In Favor) Opponent—(Speaking Against) Neutral Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Shec1a 376 a M u-ry .((vt, &-aAr eA( G'12-`)7o c c (-o (oss "11 `( Name,Address &Phone No. Name,Address&Phone No. Name,Address&Phone No. elte-0) GT; Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. AIS-4021 6. Business Meeting One Meeting Date: 11/05/2019 Length (in minutes):45 Minutes Agenda Title: Receive Update on Local Option Levy Planning Prepared For: Marty Wine,City Management Submitted By: Carol Krager,Central Services Item Type: Update,Discussion,Direct Staff Meeting Type: Council Business Meeting -Main Public Hearing: No Publication Date: Information ISSUE Receive information and findings from recent planning activities to seek a Local Option Levy in May 2020, including: •An update on the status of facility planning efforts •Feedback about the levy received from outreach efforts and events underway this fall •A report of the work and advice of the Levy and Bond Task Force •A report from DHM Research providing survey findings from the recent survey of Tigard voters STAFF RECOMMENDATION /ACTION REQUEST Council is asked to consider and discuss the appropriate criteria to seek a local option levy with Tigard voters. Staff recommends criteria to determine whether or not to pursue a local option levy, such as: •Sufficient time to establish the need for a levy with the community. •Explain and educate about the city's budget,and for the city to understand public perception about a levy and fee increases. •Present a clear,defined proposal that illustrates benefits to the community. •Council's unanimous support to refer a measure. •Survey indicates a clear path of voter support for the levy from a majority of likely voters (60%+),with up to 40%+ of strong support. Council is requested to identify questions and additional information needed about a decision to move forward. Based on today's information, staff recommends that the city should not seek a local option levy in May 2020 at this time based on the above criteria. KEY FACTS AND INFORMATION SUMMARY Update on Facilities Planning.While implementing the Levy Communications and Engagement Plan, Council asked that planning for a future Police facility would continue.The city is working with FFA Architecture + Design to determine priorities for a new facility. FFA has completed a space needs review for a future building,and programmatic (more in-depth) space planning.Today's update provides findings from the latest FFA report,including diagrams and renderings for the project. Levy Communications &Engagement Plan. In April,the Council approved a communications and engagement plan divided into three phases. Phase I was to Inform and Consult the Community about the Levy(June to September),with a goal of enaging the public about the cost and value of city services. On September 25,Council received a report about these activities and feedback the Tigard community has given about the proposal.We are now in Phase II: Refining the Levy Proposal(October 2019 to January 2020),in which the City Council and staff are focused on refuting and conveying key messages and refining the levy proposal.Various meetings,mailings and outreach are planned and Council will receive a report about what has been done and what we've heard so far. Outreach underway includes connecting with board and committees,hosting Council Outreach events, and adding a tax calculator to the city's website so the community can determine the financial impact to their household. Staff is beginning now to work with the Oregon Secretary of State's office on getting safe harbor for materials that will be used if a levy is referred. Levy and Bond Task Force. The Levy and Bond Advisory Task Force adds an important voice in pursuing the City Council's goal regarding a levy.The task force has met for a third and final meeting to discuss the services voters value and are willing to pay for.The Task Force received the survey results at their October 18 meeting and developed a final report to the Council,which is attached.The Task Force suggests that a May 2020 ballot measure is not recommended,although they will support the Council's decision.They recommend that more time is needed to educate and advocate.The Task Force has other input for Council,including information voters need to better understand the city finances and service levels,and the most effective communication tools and messages. Survey. Tigard has contracted with DHM Research to conduct up to three surveys.The purpose of the survey is to understand satisfaction with police services generally,test messages that would cause a voter to support or oppose a measure,and gauge support for a local option levy for police patrol and neighborhood safety.The findings of the first telephone (landline and text-to-online) survey was conducted with Tigard voters October 3-8,and a presentation of results is attached.The survey results will be presented at this Council meeting by DHM. OTHER ALTERNATIVES If the City Council chooses to refer a local option levy to voters for the May 2020 election,the decision to go to voters or not would be made in late January 2020. COUNCIL GOALS,POLICIES,APPROVED MASTER PLANS City Council Goal 1: Ensure the City's continued financial stability and sustainability while providing mandated services. Seek ways to fund and increase services valued by the community. Strategic Plan Goal 4: Fund the vision while maintaining core services. DATES OF PREVIOUS COUNCIL CONSIDERATION 3/26/2019 -Initial Discussion of Potential Local Option Levy and/or Bond 4/23/2019 -Discuss Local Option Levy and Facility Bond Alternatives 6/25/2019 -Receive Presentation on Safe Routes to Schools Infrastructure Projects Levy Proposal 6/25/2019 -Discussion on Timing for the Police Facilities Bond 8/13/2019 - Consider Resolution to Appoint Members to the Levy&Bond Task Force 9/24/2019 - Receive Update on Local Option Levy Planning • Attachments Survey presentation Levy Bond TF Recommendation Staff presentation 1 s Ill TIGARD City of Tigard October 29, 2019 City of Tigard 13125 SW Hall Blvd. Tigard, OR 97223 Re: Levy Bond Task Force guidance Honorable Mayor Snider and City Councilors, Knowing there is much interest surrounding the city's operations and funding sources, we understand that any ask of the voters is not something taken lightly. We know there's a need to assess and thoroughly examine conditions before any decision is made regarding additional funding. We also want to ensure that if the City of Tigard moves forward with a local option levy, that such an effort is successful. In the eyes of the Levy Bond Task Force, success is, among other things, the thorough development of a funding package that focuses solely on one issue. Success is developing an ask that promotes a safe community. And success is being strategic and intentional, in thought and action, which would bring these recommendations from ideas to implementation. In simple terms, success will be contingent upon showing the need. We feel that before any ask is made, the city needs to embark on an educational campaign, where the city's story is told, and finances are explained. The community should see and clearly understand the benefit of a successful levy passage -what it includes and why we need these resources. After much discussion amongst the Levy Bond Task Fore members, a few themes emerged.The group clearly stated that we would support whatever decision Council makes. That said, the guidance provided includes: A May 2020 ballot measure is not recommended. More time is needed to educate and advocate. Any measure should have a sole focus. In this instance, the focus should be on police services. y- Don't focus on selecting a date. Spend energy working on addressing perceptions, explaining finances, including the need for additional funding, and building partnerships that can help with the effort. 13125 SW Hall Blvd. • Tigard, Oregon 97223 • 503.639.4171 TTY Relay: 503.684.2772 • www.tigard-or.gov With that said, we want to thank you for the opportunity to serve on the Levy Bond Task Force. Although our work as a group is coming to an end, we do look forward to continuing the conversation, and being part of the solution. Sincerely, 2019 Levy Bond Task Force Ahsha Miranda Alan Miles Brenda Frank Carl Switzer Chris Middaugh Christopher Staggs Clifford Rone Darlene Dick, Chair Erin Scheller Holly Koontz Jamie Watson John Roberts Kate Rogers Linda Monahan Marc Woodard Melody Graeber Mitch Friedman CITY OF TIGARD Respect and Care I Do the Right Thing I Get it Done TIGARD Planning: Local Option Levy City Council Briefing I November 5, 2019 CITY OF TIGARD For Review Tonight Reminder — Phase II : Refine Levy Proposal Facility Planning Communications: Outreach and Engagement Levy & Bond Task Force Survey results Recommendations for now Discussions, Questions, and Direction CITY OF TIGARD UPDATE : What we've done... • Contract with FFA Architecture and Interiors, Inc. • Scope included : • Working with stakeholder teams to update and refine space needs. • Assessment of potential structural and architectural upgrades to determine the feasibility of expanding the existing PD. • Updating the 2016 Facility Condition Assessment. • Investigation of available alternative sites in Tigard for a new public safety facility. • Diagrammatic adjacency space planning. CITY OF TIGARD UPDATE : What we've heard ... • Additional space is needed, in all divisions, to improve efficiency. • Security, including secured parking, is a priority. • The current facility was built to allow a second floor. • There are few properties currently available in Tigard large enough for a new public safety facility. • Programming results indicate the need for a facility that is almost 50,000 square feet. • The total square footage requirement for a site is approximately 74,680. CITY OF TIGARD UPDATE: What we've done... In-Person Engagement • Outreach efforts did not stop after the previous levy. • 94 events attended by City of Tigard : 5 Pop Up in the Park events _ t., - f 4 Chat with the Chief events }_! r , r 2 Emergency Preparedness Fairs 1 Police Open House t • Other events include: Tigard Chamber Forum, Just Compassion Forum, Latino Festival, 5th Tuesdays. CITY OF TIGARD UPDATE : What we've done... Digital Engagement • Social Media 27 posts on Facebook, lnstagram, Nextdoor and Twitter 63,968 people reached • Original Content 17 original articles 3 Mayor's Corners shared with 22,169 Cityscape subscribers 3 videos: 'Minutes Matter', 'Safety Comes First', and State of the City 1 City Report Card sent to all utility billing customers CITY OF TIGARD UPDATE : What we've done... • Survey about "safe routes" • Levy Bond Task Force: Aug. 21, Sept. 18, Oct. 16 • Tigard Police Open House: September 21 • Council discussions: April 29, Sept. 24, Oct. 1, Nov. 5 • Council Outreach • Performance Audit- recommendations and metrics • Survey CITY OF TIGARD UPDATE : What we've heard... Takeaways from Our Outreach Efforts 1. People are surprised by the number of , I 1 patrol officers. aY 7174 y .« 2. Communication must be consistent, i v .- 0 , ::v J concise, and jargon-free. 4 : 3. We need to explain how this levy is different than the previous levy. 4 4. We must balance data with stories. 5. We need a diverse group of messengers. CITY OF TIGARD Levy & Bond Task Force: What we've done... • Reconvened LBTF in August 2019. 12 returning members. Five newly appointed . • Met three times: Aug. 22, Sept. 18, Oct. 16. • Presentation topics included 2018 levy efforts, proposed 2020 levy package, city finances, outreach and engagement, Safe Routes to Schools, police operations, messaging, and ballot titles. • Letter to Council . CITY OF TIGARD UPDATE : What we've heard ... • A May 2020 ballot measure is not recommended. More time is needed to educate and advocate. • Any measure should have a sole focus. In this instance, the focus should be on police services. • Don't focus on selecting a date. Spend energy working on addressing perceptions, explaining finances, including the need for additional funding, and building partnerships that can help with the effort. CITY OF TIGARD DHM Presents: Survey Results • From October 3 to 8, DHM Research conducted a voter survey. • Purpose: • Understand satisfaction with police services generally • Test messages that would cause a voter to support or oppose a measure • Gauge voter support for a local option levy • Information for Council to inform go/no-go decision • John Horvick and Tony laccarino, DHM Research CITY OF TIGARD Council Discussion : Levy Refinement & Go/No- Go Decision • Reminder: referral would be end of January 2020 • What are the criteria Council will use to decide? • Should the levy package be refined? How? • What's needed if Tigard moves forward with a ballot measure? CITY OF TIGARD Recommended Criteria : • Sufficient time to establish the need. • Explain and educate about budget: optics, perceptions, and fee increases. • Present a clear, defined proposal that illustrates benefits. • Unanimous support amongst Councilors. • Survey with support in the 60%+ range, with 40%+ of strong support. CITY OF TIGARD Staff Recommendations: • Do not move forward with a measure for May 2020. • Create a city-wide strategic communications plan . • Educate about city operations and budget. • Implement performance audit recommendations. • Other things to learn from another survey? • Continue identifying service needs, including long-term facilities plan . • Report back to Council with quarterly status reports. P ' t r W • • ! . . r rII � " R _ , / i , .r t ..j.* , . •.. , ,, ,1/4,.. ,,,,4 ,....„ 0004*°.- ' -000 il a d. ry• 4 -, ijj x K r, ; r " R i :-t• ''' 14 If i • • T".y � � " dam. 0 0 ' . , .1.a 4 .:all � r -, . ___ o I v Ilk pf '`fijrV i t x .•lam. • :., •... a ,,,, „ .1. lk 4 $ , >.'4 0 . .I .fi ' +� N--1 1i 1 r r .. t r U ql + .. 4 I(.. . , . 1 SU • i illic,"‘ i Pi: ,I,- 1 . • ;„ \-- ., . - - i. • --may , e •r. �1 • City of Tigard Public Safety Levy October 2019 . " dhm TIGARD RESEARCH Research purpose ■ Measure voter support for five-year City of Tigard local-option levy for police patrol and neighborhood safety ■ Identify strongest reasons to support and oppose Tigard levy ■ Assess impact of possible Washington County public safety levy on support for Tigard levy ■ Evaluate alternative funding measures, including police station bond , and bond to fund building to house all City services DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 Methodology ■ Hybrid telephone and online survey of 300 Tigard voters ■ Conducted October 3-8, 2019; 16 minutes to complete ■ Quotas set and data weighted by age, gender, party, and precinct to ensure a representative sample ■ Margin of error ±5.6% ■ Due to rounding , some totals may differ by ±1 from the sum of separate responses DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 Key takeaways: general mood ■ Voter sentiment in Tigard is positive, with most voters feeling confident that things in Tigard are heading in the right direction . ■ Overall satisfaction with police and public safety in Tigard remains high . ■ A majority of Tigard voters feel as safe now as they have felt in the last few years. DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 Key takeaways: opposition to levy ■ Support for a police patrol and neighborhood safety levy is low and soft, with opposition higher and stronger. ■ Concerns about housing affordability and cost of living are the primary reasons why voters oppose funding the levy. ■ Affordability concerns are shared across every demographic group. DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 Key takeaways : support for levy ■ Support increases as voters learn more about the levy, but is still not enough to reach a majority. ■ Voters respond well to arguments that the levy will: ✓Enhance police capacity to deal with population growth and multiple emergencies ✓Offer additional officer training and resources to address mental illness and homelessness ✓Provide kids with safer routes between school and home ■ Knowing that only a small portion of the levy is dedicated to safety improvements along school routes boosts support significantly. DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 General perceptions of the City of Tigard A solid majority of Tigard voters feel things are headed in the right direction, though there's been a slight decline since 2017. 76% 68% Right 65% direction 21% Don't • 18% know 19%• 11% 17% Wrong track Jan. 2017 Dec. 2017 Oct. 2019 DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 8 Voters express high levels of satisfaction with police and public safety, though there's been a slight decline since 2017. 2017 Total satisfaction 2019 Total satisfaction 96% 92% 65% Somewhat 53% satisfied % Very 38 32% satisfied Jan. 2017 Oct. 2019 DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 Most voters consider Tigard as safe as it was a few years ago, but those who consider it less safe outnumber those who view it as more safe. More safe M 11% Less safe 21% DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 10 ini a) >i a) ra ■ E Support for the police patrol and neighborhood safety levy is low and soft, with opposition higher and stronger. 54% 38% 23% 21% 31% 8% Certain 16% MEE Yes No Don't know DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 Clarifying that the levy would increase taxes for the typical homeowner by $125 per year boosts support slightly. 52% 54% 42% f 38% 22% 31% 31% ° 8% Certain 19% 16% 6/° Test Pre-test Test Pre-test Test Pre-test Yes No Don't know DHM RESEARCH CITY OF TIGARD PUBLIC SAFETY LEVY OCTOBER 2019 Reasons to support the levy Two of the top-tier reasons to support the levy are about enhancing police capacity to deal with population growth and multiple emergencies. Very Very good Good Poor poor Don't know Provide enough officers to respond to multiple emergencies 35% 41% 13% 70/0 50/ Hire ten new officers to keep up with population growth and keep our 31% 11.1 41% 16% 8% community safe DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 15 Two other top-tier reasons are about additional officer training and resources to address mental illness and homelessness. Very Very good Good Poor poor Don't know Provide officers with advanced training in crisis intervention and de-escalation strategies to help people suffering from 34% 36% 14% 17% mental illness Hire new officers who work full time to connect the homeless with services and help get them off the streets 30% 0 15% 9% DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 16 A final top-tier reason is about keeping kids safe when traveling between home and school. Very Very good Good Poor poor Don't know Provide kids with safer routes between school and home 35% 36% 14% 11% DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 17 Lower-tier reasons are about enhancing community policing, reducing response times, protecting the economy, and adding school safety officers. Very Very good Good Poor poor Don't know Enhance community policing 24% 41% 21% 8% 6% Hire ten new officers to reduce response times 23% 44% 21% 9% Protect businesses and investments .. .. in homes 21% 10% ' . Provide school resource officers to 22% 1110 38% IMO 21% 13% 7% keep young people safe DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 18 Reasons to oppose the levy Affordability issues top the list of reasons to oppose the levy. Very Very good Good Poor poor Don't know Increasing property taxes will make housing even less affordable and make it harder for most families to make ends 42% 33% 13% 8% meet Property taxes are already too high. We just can't afford to pay any more 39% 32% 16% 9% 10. DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 20 Middle-tier reasons to oppose the levy include voter frustration with repeated funding requests and likely competition from other funding measures. Very Very good Good Poor poor Don't know City leaders keep asking us for money. This has got to stop. 27% 35% 21% 11% 7% There are more important funding measures on the ballot next year. 20% 38% 22% 12% 7% DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 21 Lower-tier opposition arguments are that voters do not trust Tigard to spend money wisely, that it already possesses sufficient police capacity, and that the City is doing just fine. Very good Good Poor Very poor Don't know I don't trust the City of Tigard to spend 22% 24% 29% 16% 9% funds wisely There are plenty of police patrols and public safety presence now and Tigard 17% 28% 28% 18% 8% doesn't need more Things in Tigard are just fine. We don't 16% r !°. 28% 19% 7% need more government services DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 22 Cl) a) 1 L. >i% a) -J After learning more about the levy, general voter support increased, though still falls short of a majority. 51% 54% 43% 38% 21% NW (14%) 20%` Renters (13%) Precinct 405 (7%) Seniors (7%) Certain 24% ° 30% 31% 6% 8% Children in HH (5%) 16/° Test Pre-test Test Pre-test Test Pre-test Increases between Yes No Don't know Pre-test and test DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 Knowing that only a very small portion of the levy is dedicated to safety improvements along school routes helps increase support significantly. Much Somewhat Somewhat Much Don't more likely more likely less likely less likely know 2-3¢ (out of 46¢) per $1000 22% 33% 18% 18% 9% assessed value DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 25 Alternative funding measures and approaches If a Washington County public safety levy were on the same ballot it would have little impact on support for the Tigard levy. 42% 44% 43% 26% YES on both NO on YES on Tigard Police Tigard, YES 18% Tigard, NO Levy re-test on Wash Co 11% on Wash Co total support DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 27 Voter were also asked about a bond to fund a new police station ; support was low and soft, opposition was stronger and harder. 50% 40% 25% 31% 9% Certain 15% Yes No Don't know DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 60% of voters prefer that some public safety funding measure be placed on the ballot, but they don't provide clear guidance as to whether it should be a levy, a bond, or both. 60% 27% 23% 23% i 4' o 12% Neither levy nor Levy and bond Levy now, bond Bond now, levy Don't know bond now now later later DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 If given a choice, voters prefer one big ask to fund a building to house all City services, rather than multiple smaller asks for a police station and other needs though many voters are uncertain. 50% Ask voters only "I once to fund a building that includes all 28% Ask voters to fund ° services now, the police building 22 /0 and don't ask now and come back for multiple tax to ask for other increases over needs later. time. Don't know DHM RESEARCH I CITY OF TIGARD PUBLIC SAFETY LEVY I OCTOBER 2019 30 Additional Considerations Washington County Vote Share by Party in Primary Elections of Presidential Years Democrat / Republican / NAV/other R +2 D +15 D+ 9 D+ 15 16 /o 0 11% 13% 12% 31% 39% 31% 42% 56% 48% 56% 40% 2004 2008 2012 2016 Washington County Vote Share by Party in General Elections of Presidential Years Democrat / Republican / NAV/other R +3 D +10 D +9 D +15 25% 23% 27% 29% 0 39% 33 0 32% 28% 36% 43% 41% 43% 2004 2008 2012 2016 Polling comparisons to consider Turnarounds • Salem police facility: failed in 2016, passed in 2017 • Portland transportation funding: street fee to gas tax Pulled • Jackson County jail bond • Tualatin civic center Additional research considerations • Test cost sensitivity: would a lower rate improve likelihood of passage • Test alternative packages: would a different mix of services change support (e.g., focus on homelessness or traffic safety) • Measure changes: awareness of problems, opinions about public safety, and support for additional funding • Qualitative research with key stakeholders: business leaders, neighborhood associations, active members of NextDoor John Horvick jhorvick@dhmresearch.com allingi Tony laccarino tiaccarino@dhmresearch.com RESEARCH dhmresearch.com . City of Tigard, OregonIII I' Affidavit of Posting TIGARD In the Matter of the Proposed Ordinance(s) STA 1'F, OF OREGON ) County of Washington ) ss. City of Tigard ) I, (-vc liZ) A- j`-'. ! 49 e ir- , being first duly sworn (or affirmed),by oath (or affirmation), depose and say: That I posted in the following public and conspicuous places, a copy of Ordinance Number(s) I ' , / ? ,which were adopted at the City Council / meeting of / V') '-) • -57 I'' ,with a copy(s) of said Ordinance(s) being hereto attached and by reference made a part hereof, on the 1, 6 f day of �l/V—C4'14/' ,20 I % . 1. Tigard City Hall, 13125 SW Hall Blvd.,Tigard, Oregon 2. Tigard Public Library, 13500 SW Hall Blvd.,Tigard, Oregon 3. Tigard Permit Center, 13125 SW Hall Blvd.,Tigard, Oregon /7)-1 12144 r Signature of Person who Performed P frog Scribed d sworn (or affirmed) before me this day of Abwieeniee>v , 20 /9 / / OFFICIAL STAMP EDGARDO MALDONADO Signature • ' otary Public for Oregon :r NOTARY PUBLIC OREGON 'J.r COMMISSION NO.991417 MY COMMISSION EXPIRES OCTOBER 01,2023 L•uam1dthyYonnslpost ordinance 20013.doc CITY OF TIGARD, OREGON TIGARD CITY COUNCIL ORDINANCE NO. 19-'6 AN ORDINANCE ENACTING A CITYWIDE CONSTRUCTION EXCISE TAX e, tw iteteel WHEREAS,there is an identified need for affordable housing in the City of Tigard; and WHEREAS, in 2016, the Oregon Legislative Assembly passed Senate Bill 1533, which allows cities and counties to collect construction excise taxes to fund affordable housing;and WHEREAS,the City Council adopted an Affordable Housing Plan in June of 2019;and WHEREAS, a key recommendation of that plan is the adoption of a construction excise tax to fund affordable housing programs within the city;and WHEREAS, Goal 10 of the City of Tigard's Comprehensive Plan is to "provide opportunities to develop a variety of housing types that meet the needs, preferences, and financial capabilities of Tigard's present and future residents";and WHEREAS,the Council desires to continue to develop a sustainable affordable housing program to ensure an adequate supply of housing for all of Tigard's residents;and WHEREAS, in 2018, Council adopted an exemption from city systems development charges (SDCs) for affordable housing developments;and WHEREAS,a construction excise tax provides a means to offset lost revenue from SDC exemptions;and WHEREAS,the 2019-2021 Council Goals prioritized adoption of a citywide construction excise tax. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Chapter 3.90 of the Tigard Municipal Code is hereby adopted, as shown on the attached Exhibit A. SECTION 2: If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect the other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. This City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the ordinance be enforced. SECTION 3: This ordinance shall be effective January 1,2020. ORDINANCE No. 19-/a PASSED: By 2GWt0,1dil.Q--? vote of council members present after being read by number and title only,this � day of ay council ,2019. ` 'Q4c/4 , 7(� , Carol A. Krager,City Recorder APPROVED: By Tigard City Council this 5-14"day of ./(/!L`e.� -e-t ,2019. a . Snider,Mayor Approved as to form: CY,(---- City Attorney iti sl aota Date ORDINANCE No. 19- 1 6 Pace 2 Exhibit A TIGARD MUNICIPAL CODE Chapter 3.90 CONSTRUCTION EXCISE "Commercial" means any structure designed TAX. or intended to be used, or actually used, for occupancy for other than residential purposes and Sections: includes structures otherwise categorized or described as industrial. 3.90.010 Purpose. 3.90.020 Definitions. "Construct" or "construction" means 3.90.030 Tax Imposed. erecting, constructing, enlarging, altering, 3.90.040 Administration and repairing, improving, or converting any building Enforcement. or structure for which the issuance of a building 3.90.050 Exemptions. permit is required pursuant to the provisions of 3.90.060 Failure to Pay. Oregon law. 3.90.070 Failure to Maintain Units as Affordable. "Improvement" means any improvements to 3.90.080 Expenditure of Funds. real property resulting in a new structure, 3.90.090 Statement of Entire Value of additional square footage added to an existing Improvement Required. structure, or additional living space to an existing 3.90.100 Penalties and Interest. structure. 3.90.110 Enforcement by Civil Action. 3.90.120 Refunds. "Median family income" means median 3.90.130 Appeals. family income by household size as defined annually by the Housing and Urban Development 3.90.010 Purpose. (HUD) for the Portland-Vancouver Metropolitan Statistical Area(MSA). This chapter establishes a construction excise tax ("CET") on commercial and residential "Net revenue" means revenues remaining improvements to provide funding for affordable after refunds and the administrative fees described housing in the City of Tigard. in Section 3.90.080.A are deducted from the total construction excise tax collected. 3.90.020 Definitions. "Residential" means any structure designed As used in this chapter, unless the context or intended to be used, or actually used, for requires otherwise: occupancy for residential purposes including any residential structure,dwelling, or dwelling unit. "Building official" means the building official for the City of Tigard, or his or her "Value of improvement" means the total designee. value of the improvement as determined by the construction permit(s) or building permit(s) for "City"means the City of Tigard, Oregon. the improvement, regardless of the number of separate permits issued. The city building official "City manager" means the city manager for will calculate the total value in accordance with the City of Tigard, or his or her designee. OAR 918-050-0100, Statewide Fee Methodologies for Residential and Commercial Permits, or as otherwise provided by law. 3-90-1 Exhibit A TIGARD MUNICIPAL CODE the date of issuance of the building permit on which the improvement value is based and that 3.90.030 Tax Imposed. remain affordable. For purposes of the initial determination of eligibility for this exemption,the A. Each person who obtains a permit to city will use the median family income for the construct a commercial improvement in the city year prior to the date of issuance of the permit on must pay a commercial CET in the amount of one which the improvement value is based. percent(1%)of the value of the improvement. Continuing affordability will be determined based on the median family income for the prior B. Each person who obtains a permit to calendar year. construct a residential improvement in the city must pay a residential CET in the amount of one 2. Accessory dwelling units. This percent(1%)of the value of the improvement. exemption is repealed automatically on July 31, 2023, after which date the full CET value will be C. The CET is due and must be paid at the assessed. time of issuance of a building permit. The CET amount is assessed at the time of submittal of a 3. Construction or improvements building permit application. having a total improvement value of less than fifty thousand dollars($50,000.00). 3.90.040 Administration and Enforcement. 4. Construction or improvements to a residential structure that was partially or The city manager is responsible for the completely destroyed by unintentional means, implementation, administration, and enforcement such as fire or act of nature, where such of this chapter. The city manager may adopt such construction or improvement results in a net policies and procedures as are necessary to increase of living area of ten percent(10%)or less efficiently and effectively carry out that over the living area of the destroyed structure. responsibility, consistent with the provisions of this chapter. 5. Cottage clusters, courtyard units, and quads, as defined by Title 18.200 of the 3.90.050 Exemptions. Tigard Community Development Code (2019), from -frfttlyereerrt—f50.707 of the CET. The A. Notwithstanding TMC 3.90.030, the emaining fifty percent is due and payable as following are exempt from payment of the CET: provided in Section 3.90.030.C. This exemption is repealed automatically on July 31, 2023. 1. Residential housing units, including detached housing, that are subject to a deed 6. Public and private school restriction or other mechanism acceptable to the improvements. city ensuring that the unit(s) are affordable under guidelines established by the United States 7. Public improvements as defined in Department of Housing and Urban Development, ORS 279A.010. to households that earn no more than eighty percent (80%) of the median household income 8. Public or private hospital for a period of at least twenty (20)years following improvements. C75-p ia) amen/id/ 3-90-2 ‘7 L Exhibit A TIGARD MUNICIPAL CODE the CET will immediately be due and payable as 9. Improvements to religious facilities of the date the unit no longer qualifies as primarily used for worship or education associated affordable, together with interest and penalties as with worship. provided in Section 3.90.100. The amount of the CET will be calculated using the CET in effect at 10. Long-term care facilities, as the time the unit ceases to qualify. The owner of defined in ORS 442.015, operated by a not-for- record of the unit at the time the unit ceases to profit corporation. qualify will be obligated to pay. The seller and buyer, jointly and severally, will be obligated to 11. Residential care facilities, as pay if the unit ceases to qualify as the result of a defined in ORS 443.400, operated by a not-for- sale, including a sale to a person occupying or profit corporation. intending to occupy the unit whose income exceeds the median family income determination 12. Continuing care retirement for the prior year. communities, as defined in ORS 101.020, operated by a not-for-profit corporation. 3.90.080 Expenditure of Funds. 13. Any improvements required to be A. The city may retain up to four percent exempted from this CET by state law. (4%) of the tax collected for payment toward administrative expenses related to collection and B. The city may require any person seeking distribution of the tax. an exemption to demonstrate that the improvement is eligible for an exemption and to B. After deducting the administrative fee establish all necessary facts to support the authorized by subsection A, the net revenue from exemption. the tax on residential improvements will be allocated by the city as follows: 3.90.060 Failure to Pay. 1. Fifteen percent (15%) of net The City may not issue a building permit to revenue will be remitted to the Oregon any person required to pay the CET unless the Department of Housing and Community Services person has paid the full amount of CET alleged by to fund home ownership programs. the city to be due. 2. Fifty percent (50%) of net revenue 3.90.070 Failure to Maintain Units as will fund incentives for the development and Affordable. construction of affordable housing authorized by the city as provided by state law. The exemption for affordable units provided in Section 3.90.050.A.1. automatically terminates 3. Thirty-five percent (35%) of net if the unit ceases to qualify as affordable at any revenue will fund programs and activities related time during the twenty (20) year period of to affordable housing. affordability. For purposes of this section, affordability is calculated using the median family C. After deducting the administrative fee income determination for the preceding calendar authorized by subsection A, fifty percent(50%)of year. At any time, if the exemption terminates, the net revenue from the tax on commercial 3-90-3 Exhibit A TIGARD MUNICIPAL CODE improvements will fund programs of the city within thirty (30) days of notice from the city that related to housing. the tax is due. C. Penalties and Interest Merged with Tax. Any accrued interest and imposed penalties under 3.90.090 Statement of Entire Value of this section will be merged with and become a Improvement Required. part of the CET required to be paid under this chapter. This amount becomes the new base for A. It is a violation of this chapter for any calculating new interest amounts. person to fail to state or to misstate the full value of any improvement. 3.90.110 Enforcement by Civil Action. B. Additional CET will be due on any The CET, and any assessed interest and increase in the value of the improvement arising penalties, due and owing under this chapter from the value having been understated or arising constitutes a debt owing to the city by the person from construction changes that result in increased liable for the tax as set forth in Section 3.90.040. building permit fees. The city has all remedies available at law and equity. 3.90.100 Penalties and Interest. 3.90.120 Refunds. A. Interest. Interest will be due on the entire amount that the city manager determines A. The city will issue a refund to any has not been paid and assessed at the rate of ten person who has paid a CET if: percent (10%) per annum from the due date. Interest will be assessed to the 15th day of the 1. The person establishes that the tax month following the due date. Interest amounts was paid for improvements that were otherwise properly assessed in accordance with this section eligible for an exemption under Section 3.90.050 may not be waived or reduced by the city at the time of permit issuance; manager. 2. The person establishes that B. Penalties. In addition to assessing construction of the improvements had not begun interest, a penalty of five percent (5%) of the and the associated building permit was cancelled otherwise applicable CET liability will be by the city;or imposed upon: 3. The city manager determines that 1. Any person who removes one or the amount of any CET, penalty, or interest was more units from the affordability exemption in erroneously collected or paid to the city. Section 3.90.050.A.1. B. The city will either refund all amounts 2. Any person who intentionally fails due within thirty (30) days of a complete request to state the full value of an improvement. for the refund or give written notice of the reasons why the request has been denied. Claims for 3. Any person who fails to pay the refunds must be made upon forms provided by the full amount of the tax, interest, and any penalty city. The request for the refund must be submitted 3-90-4 Exhibit A TIGARD MUNICIPAL CODE within three(3)years from the date of payment of the CET. C. Denial of a request for refund may be appealed as provided for in Section 3.90.130. 3.90.130 Appeals. A. A person who objects to a determination issued by the city applying the provisions of this chapter may file for review of the determination by the city's finance director. The request for administrative review must be in writing,received within ten (10) days of the determination, and must include documentation supporting the request. The finance director's determination in the administrative review will be sent by regular mail. B. The administrative review determination of the finance director may be appealed to the city manager by filing a notice of appeal with the city manager within ten (10) days of issuance of the finance director's determination. The notice must describe the basis for the appeal and the relief sought. C. The filing of any notice of appeal does not stay the effectiveness of the written determination unless the city manager so directs. D. Notwithstanding Section 3.90.060, the city may issue a building permit while an appeal is pending provided that the applicant posts with the city the full amount alleged by the city to be due.No interest will accrue to the applicant on the deposit. E. The city manager will provide a written decision by regular mail to the person who filed the appeal. The city manager's decision on appeal is the city's final decision, subject to judicial review only as provided in ORS 34.010 et seq. 3-90-5 f � CITY OF TIGARD, OREGON TIGARD CITY COUNCIL ORDINANCE NO. 19- 17 AN ORDINANCE AMENDING TIGARD MUNICIPAL CODE 3.50 NON-PROFIT CORPORATION LOW-INCOME HOUSING TO INCLUDE TAX EXEMPTIONS FOR LAND BANKING AND REMEDIES FOR PROPER IILS THAT LEAVE AFFORDABILITY WHEREAS,there is an identified need for affordable housing in the City of Tigard;and WHEREAS, in 1985, the Oregon Legislative Assembly adopted legislation that allows cities and counties to exempt qualified affordable housing operated by non-profit corporations from property taxes;and WHEREAS,in 1996, the City Council adopted a local property tax exemption program for affordable housing operated by non-profit corporations under the provisions of the state law;and WHEREAS, in 1997, the Oregon Legislative Assembly adopted amendments to state law that allows cities to extend the non-profit affordable housing exemption to land planned for development;and WHEREAS,the City Council adopted an Affordable Housing Plan in June of 2019;and WHEREAS, a key recommendation of that plan is an update to the city's affordable housing tax exemption program to bring it into concordance with subsequent changes to state law and to support land banking for affordable housing;and WHEREAS, Goal 10 of the City of Tigard's Comprehensive Plan is to "provide opportunities to develop a variety of housing types that meet the needs, preferences, and financial capabilities of Tigard's present and future residents";and WHEREAS,property tax exemptions reduce carrying costs for non-profit affordable housing providers;and WHEREAS, the Council desires to continue to encourage and support the development and operation of affordable housing. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Chapter 3.50 of the Tigard Municipal Code is hereby amended, as shown on the attached Exhibit A. SECTION 2: This ordinance shall be effective 30 days after its passage by the council, signature by the mayor,and posting by the city recorder. PASSED: By at-ad vote ofjll council members present after being read by number o and title only,this_ ¶ "day of 41ie/rt4 L— ,2019. ORDINANCE No. 19-1 7 Carol A. Krager,City Recorder APPROVED: By Tigard City Council this -� day of /l✓eiterM-+e%Z- ,2019. C Jaso . Snider,Mayor Approved as to form: City Attorney t 1 I s 9 Date ORDINANCE No. 19- 17 Page 2 • i i TIGARD MUNICIPAL CODE Chapter 3.50 NON-PROFIT 3.50.020 Nonprofit Corporation Low CORPORATION Income Housing; Exemption; LOW-INCOME HOUSING. Criteria. Sections: A. Property that meets all of the following criteria :than will be exempt from taxation as 3.50.010 Definitions. provided in this section. 3.50.020 Nonprofit Corporation Low Income Housing; Exemption; 1. The property is owned or being Criteria. purchased by a corporation described in that is 3.50.040 Application For Exemption. section 501(c)(3) 3.50.050 - Determination Of Eligibility or(4) of the Internal Revenue Code that is exempt For Exemption; Notice To from income taxation under section 501(a) of the County Assessor. Internal Revenue Code as amcndcd before 3.50.060 Termination of Exemption. December 1, 1981. 2. Upon liquidation, the assets of the 3.50.010 Definitions. corporation are required to be applied first in payment of all outstanding obligations, and the A. "Governing body" means the City of balance remaining, in cash and in kind, to be Tigard City Council. distributed to corporations exempt from taxation and operated exclusively for religious, charitable, B. "Low-income" means: income at or scientific,literary or educational purposes or to the State of Oregon. 3. The property is_ e (Ord.96-34) inseme-peFsens. 1. For the initial year a person a. Occupied by low income occupies property for which an application for Persons; or exemption is filed under this chapter,income at or below 60 percent of the area median income as b. Held for the purpose of future determined by the Oregon Housing Stability development as low-income housing. Council based on information from the United States Department of Housing and Urban 4. The property or portion of the Development; and property receiving the exemption, is actually and exclusively used for the purposes described in 2. For every subsequent consecutive section 501(c) (3) or (4) of the Internal Revenue year that the person occupies the property, income Code as amended bef re December 1 1984 at or below 80 percent of the area median income as determined by the Oregon Housing Stability 5. The exemption has been approved Council based on information from the United as provided in section 3.50.050. States Department of Housing and Urban Development. B. For the purposes of subsection(1)of this section, a corporation that has only a leasehold 3-50-1 SE Update: 12/01 TIGARD MUNICIPAL CODE interest in property is deemed to be a purchaser of exempted amount of each property being applied that property if: for under this chapter: 1. The corporation is obligated under 44-. A description of the property for the terms of the lease to pay the ad valorem taxes which the exemption is requested; on the real and personal property used in this activity on that property; or 52. A description of the charitable purpose of the project and whether all or a portion 2. The rent payable by the corporation of the property is being used for that purpose; has been established to reflect the savings resulting from the exemption from taxation. 63. A certification of income levels of low income occupants; C. A partnership shall will be treated the same as a corporation to which this section applies 74. A description of how the tax if the corporation is: exemption will benefit project residents;. 1. A general partner of the partnership; 83. A declaration that the corporation and has been granted an exemption from income taxes under 26 U.S.C. section 501(c) (3) or (4) as 2. Responsible for the day to dayamended bef fe December. 1 A84 • operation of the property that is the subject of the exemption. (Ord. 96-34) 9. A description of the development of the property if the property is being held for future 3.50.040 Application For Exemption. low income housing development;and A. To qualify for the exemption provided by 10. Any other information required by 3.50.020, the corporation shell must file an state or local law or which is otherwise reasonably application for exemption with the governing body necessary to effectuate the purposes of this chapter for each assessment year the corporation wants the at the time the application is submitted. exemption. The application shell must be filed on or before March 1 of the assessment year for which C. The application must include the the exemption is applied fef, except that when the following statements: property designated is acquired after March 1 and before July 1, the claim for that year shall must be 1. That the applicant is aware of all filed within 30 days after the date of acquisition. requirements for property tax exemption imposed The application shall must include the following by this chapter; information: 2. That the applicant's property 1. The applicant's name, address, and qualified or, upon completion of the rehabilitation telephone number; improvements and subsequent occupancy by low income persons, will qualify for exemption at the 2. The assessor's account number for time of application approval or within 30 days of each site: the March 1 application deadline; 3. The number of units and the 3. That the applicant acknowledges 3-50-2 SE Update: 12/01 TIGARD MUNICIPAL CODE responsibility for compliance with the Tigard owner(s) by mailing the notice to the last known Municipal Code, regardless of whether the address of the owner(s), and to every known applicant obtains the exemption provided by this lender, by mailing the notice to the last known chapter; and address of every known lender. The notice will state the reasons for the proposed termination and 4. That the applicant agrees to furnish require the ownerfs) to appear at a specified time, other information which is reasonably necessary to not less than 20 days after mailing the notice, to fulfill the objectives of this chapter. show cause, if any,why the exemption should not be terminated. CI3. The applicant shall must verify the information provided in the application as required B. if the owner(s) fail to appear and show by subsections B and C above by oath or cause why the exemption should not be terminated, affirmation. (Ord.96-34) the governing body will notify every known lender, and allow any lender not less than 30 days 3.50.050 Determination Of Eligibility after the date the notice of failure to appear and For Exemption; Notice To show cause is mailed to cure any noncompliance or County Assessor. to provide adequate assurance to the governing body that all noncompliance will be remedied. A. Within 30 days of the filing of an application under section 3.50.040, the governing C. If the owner(s) fail to appear and show body shall will determine whether the applicant cause why the exemption should not be terminated, qualifies for the exemption under 3.50.020. If the and the lender fails to cure or give adequate governing body determines the applicant qualifies, assurance of the cure of noncompliance, the the governing body shell will certify to the assessor governing body will adopt a resolution stating its of the county where the real property is located that findings that terminate the exemption. Within 10 all or a portion of the property shall be exempt days of the adoption of the resolution,a copy of the from taxation under the levy of the certifying resolution will be filed with the county assessor governing body. and sent to the owners) at the owner(s)' last known address and to the lender at the last known B. Upon receipt of certification under address of the lender. subsection (4. A of this section, the county assessor shall will exempt the property from D. Upon the county assessor's receipt of the taxation to the extent certified by the governing city's termination findings: body. (Ord. 96-34) 1. The exemption granted to the 3.50.060 Termination of Exemption. housing unit or portion under this chapter immediately terminates, without right of notice or A. If the governing body determines that appeal; property that has received an exemption under this chapter in anticipation of future development of 2. The property will be assessed and low-income housing is being used for any purposes taxed as other property similarly situated is other than the provision of low-income housing, or assessed and taxed;and that any provision of this chapter is not being complied with,the governing body will give notice 3. Notwithstanding ORS 311.235, of the proposed termination of the exemption to the there will be added to the general property tax roll 3-50-3 SE Update: 12/01 TIGARD MUNICIPAL CODE for the tax year next following the presentation or discovery, to be collected and distributed in the same manner as other real property tax, an amount equal to the difference between the taxes assessed against the property and the taxes that would have been assessed against the property had it not been exempt under this chapter for each of the years,not to exceed the last 10 years, during which the property was exempt from taxation under this chapter. E. The assessment and tax rolls will show potential additional tax liability for each property granted an exemption under this chapter if the property is being held for future development of low-income housing. F. Additional taxes collected under this section will be deemed to have been imposed in the year to which the additional taxes relate. ■ 3-50-4 SE Update: 12/01