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09/14/2011 - Packet Completeness Review for Boards, Commissions ® and Committee Records CITY OF TIGARD City Center Advisory Commission Name of Board, Commission or Committee September 14, 2011 Date of Meeting I have verified these documents are a complete copy of the official record. Caren Frykland Print Name Signature 11/8/11 Date n = � City of Tigard TIGARD City Center Advisory Commission Agenda MEETING DATE: Wednesday, September 14, 2011 — 6:30-8:30 p.m. MEETING LOCATION: Tigard Public Library- 2nd Floor Conference Room 13500 SW Hall Blvd., Tigard, OR 97223 1. Welcome and Introductions......................................................................................................6:30 — 6:35 2. Review / Approve August Minutes .........................................................................................6:35 — 6:40 3. Non-Agenda Items/ Public Comment....................................................................................6:40 — 6:45 4. Five Year Assessment of Urban Renewal................................................................................6:45 — 7:30 Power Point presentation on report with Q and A (Chris Zahas, Leland Consulting) 5. Third Quarter Review of CCAC Goals ...................................................................................7:30 — 7:45 (Sean Farrelly) 6. Discussion of Downtown Organization...................................................................................7:45 — 8:15 Discussion of Michele Reeves recommendation prior to November 15 CODA workshop (Chair Murphy,Vice-chair Shearer, and Commissioner Craghead) 7. Formation of CCAC Downtown Public Art Subcommittee.................................................8:15 — 8:20 Action item- appoint member to CCAC Downtown Public Art Subcommittee (Sean Farrelly) 8. CCAC Executive Session*..........................................................................................................8:20 — 8:30 Property purchase discussion 9. Adjourn .........................................................................................................................................8:30 p.m. *EXECUTIVE SESSION:The Tigard City Center Advisory Commission will go into Executive Session to discuss real property transaction negotiations under ORS 192.660(2) (e).All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4),but must not disclose any information discussed.No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. Upcoming meetings of note: October 12, CCAC Regular Meeting,Library 2nd Floor Conference Room,6:30-8:30 PM October 18, CCDA Workshop,Five Year Assessment of Urban Renewal,6:30 PM November 9, CCAC Regular Meeting,Library 2nd Floor Conference Room,6:30-8:30 PM November 15, CCDA Workshop, discussion of Downtown organization,6:30 PM CITY CENTER ADVISORY COMMISSION AGENDA— September 14, 2011 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 1 503-639-4171 1 www.tigard-or.gov I Page 1 of 1 City Center Advisory Commission Meeting Minutes Date of Meeting: September 14, 2011 Location: Tigard Public Library—2nd Floor Conference Room Called to order by: Chair Thomas Murphy Time Started: 6:31 p.m. Time Ended: p.m. Commissioners Present: Carolyn Barkley; Alexander Craghead; Ralph Hughes; Peter Louw; Chair Thomas Nfurphy; Linli Pao (arrived 7:00); price Chair Elise Shearer; Philip Thornburg Commissioners Absent: Alice Ellis Gaut Others Present: Chris Zahas, Leland Consulting; Councilor Marland Henderson; Deanie Bush Staff Present: Sean Farrelly, Redevelopment Project Nfanager; Caren Frykland, Sr. Administrative Specialist AGENDA ITEM #1: Welcome and Introductions Introductions were made. AGENDA ITEM #2: Approve Minutes 1\Iotion by Commissioner Craghead, seconded by Commissioner Thornburg, to approve the minutes of the August 10, 2011 meeting with the following corrections: • Add Councilor Marland Henderson to list of others present. • Add "in consideration of the impact on business" to Commissioner Louw's question on page two, second paragraph from the bottom. The secretary will make the corrections. The motion passed. AGENDA ITEM #3: Non-Agenda Items/Public Comment Sean Farrelly said that it was recruitment season, and that the CCAC is recruiting to fill two alternate and three commissioner positions. He said that the deadline to apply is October 24, 2011. CCAC Meeting Minutes for September 14,2011 Page 1 of 5 AGENDA ITEM#4: Five-Year Assessment of Urban Renewal Sean Farrelly introduced Chris Zahas, from Leland Consulting Group. He said that he had asked Leland Consulting to conduct a five-year assessment of what has been accomplished in the urban renewal district and where they should go from here. Chris Zahas presented the five-year assessment report. His presentation included the purpose of the five-year assessment; a market analysis overview; discussion of completed projects; suggestions for development strategy and a list of prioritized projects. Commissioner Thornburg asked why the projections for future expenditures on the priority list were significantly higher for 2012-13. Chris said that those projections included the Main Street Green Street project and the Fanno Creek project. Sean said that those expenditures could be moved depending on various factors. Commissioner Pao asked if the plan was to continue reviewing the plan every five years as mentioned in the report. Sean said that it was a good idea to continue checking in every five years. Chris said that they should look at the report every year,with a more in depth review every four to five years. Commissioner Pao asked what the relevance of the demographic information in the report was. Chris said that the main take away from the demographic information was that the short-term view of urban renewal should focus on urban housing, including senior housing, affordable housing and market rate apartments, as opposed.to retail or office space. Commissioner Craghead asked what they were not doing that they should be regarding housing. Chris said that they were doing many of the right things including marketing. He said that there were financing opportunities in senior and affordable housing and that they could focus on those in the short-term. Commissioner Craghead said that he would like to see the breakdown of funding from the city versus other public funds on Table 1 on page 8 of the report. Commissioner Louw asked how the goals of the urban renewal report fax with the goals of Michele Reeves's work. Sean said that this was a five-year review of the urban renewal plan which included mostly capital projects, and that the reports are complimentary in that they both recommend creation of a downtown organization. Chris said that both the capital projects and downtown organization are important to the success of urban renewal. AGENDA ITEM #5: Third Quarter Review of CCAC Goals Sean Farrelly talked briefly about the status of some of the items on the CCAC 2011 Goals matrix. He said that an interim landscaping project was completed at the 99W/Hall Gateway, and that the Downtown Public Art Subcommittee would consider the area as a location for public art. He also CCAC Meeting Minutes for September 14,2011 Page 2 of 5 said that the Tigard Street Trail project was not selected for MTIP grant funding,but that PRAB still had the trail ranked highly for park bond consideration. He said that the former Tigard Fitness Center property was awarded a$25,000 matching grant for facade improvement as part of a larger project to divide the building space into smaller units. He said that Public Works would present the results of their feasibility study of an at-grade crossing at Ash Avenue in executive session at the October 251h City Council meeting. Commissioner Thornburg asked if there was still regular CCAC representation at PRAB and HCT meetings and if there would be a joint CCAC/PRAB meeting. Sean said that a joint PRAB/CCAC meeting will be scheduled once there was a clear list of possibilities for the downtown plaza property. AGENDA ITEM #6: Discussion of Downtown Organization Chair Murphy and Commissioner Craghead lead a discussion on the process of establishing a downtown organization. `rice Chair Shearer said that she had talked with some of the downtown business owners and they are interested in being involved in a downtown organization. Commissioners Thornburg and Louw had also spoken with downtown business owners had heard the same thing. Commissioner Craghead said that the should talk about what other cities do that works or doesn't work and figure out what the CCAC's role is in the downtown organization. He said that successful organizations had stable funding, often with public funding such as parking meter profits, economic improvement district taxes or business improvement district income,with a plan to become self- supporting over time. He said that this funding allowed successful organizations to have, at least, part--time staff and that organizations that did not have staff did not succeed. He said that successful organizations tended to be broad-based and represented the economic health of the entire downtown,were generally public benefit organizations and not clubs. He said that common failures included having one or only few people running the organization. There was discussion about other comparable cities and neighborhoods with downtown organizations. Commissioner Craghead mentioned how the city of Portland was utilizing the Oregon Main Street program in its neighborhoods. Commissioner Craghead said that the CCAC needed to determine what level the city is involved in the downtown organization;if the city should fund the organization and, if so, how much and for how long; and are there things they want the organization to do in exchange for the city's participation and funding. Commissioner Thornburg asked if there was seed money to start a downtown organization. Sean said that there was $50,000 to implement Michele Reeves's recommendations. CCAC Meeting Minutes for September 14,2011 Page 3 of 5 Chair Murphy said that the goal was to make some kind of recommendation to City Council as to how to utilize that money and other potential resources. He asked how they view the city's role in building organizational capacity in downtown. Deanie Bush said that there is excitement among the downtown businesses to create an organization,but they did need leadership and funds to get things growing. Commissioner Pao suggested that they revisit the meeting minutes from the last time a downtown organization was explored. Chair Murphy said that he had some clear ideas for what a downtown organization should do to get the city's money-and other support. Several commissioners said that they would like to see a list of those ideas. Chair Murphy said that Michele Reeves's recommendations were the starting point, with some items being non-negotiable and others being more flexible. Commissioner Lou%, suggested they could come up with a list of objectives for the downtown organization leader,get the funding,provide technical support and let the organization do the work. Vice Chair Shearer said that one of Reeves's recommendations is that downtown needs to be managed similar to a shopping mall,with someone giving direction as well as leading the planning. Chair Murphy said that they should determine what questions they would ask in an RFP for a downtown organizational leader or group. Some suggested questions were: • V Vat are your ideas for leveraging the city's financial contribution into more funding? • What is your timeline for establishing long term funding? • What is the base of your organization? Is it only downtown or does it expand broader, and if so, how does that help downtown? Chair Murphy asked if they were talking about a downtown-specific organization or were they looking at a broader base? Commissioner Louw said that he would prefer the organization be downtown specific. Commissioner Craghead said that they needed to look at bringing other organizations and people into downtown, such as neighborhoods adjacent to downtown or St. Anthony's. He also asked if they were looking at downtown as Main Street only or if they were talking about the entire urban renewal district. Chair Murphy asked the commissioners to email questions they would like included in an RPP to set up a downtown organization to him, Commissioner Craghead, Vice Chair Shearer or Sean Farrelly. Commissioner Hughes asked if they wanted input from the downtown business people at this point. Commissioner Craghead said that they needed to know what kind of support businesses were looking for from a downtown organization. CCAC Meeting Minutes for September 14,2011 Page 4 of 5 Chair Murphy said that they would have a chance to put a proposal together for the joint meeting with CCDA in November. Deanie Bush asked if the CCAC wanted her to poll the downtown businesses about what they wanted from a downtown organization. Chair Murphy said that she could. Commissioner Craghead said that she should ask about what support they needed and what are they looking for from a downtown organization. Commissioner Pao said that it was important they have multiple channels of communication. Commissioner Louw said that it was important to use alternatives to email as well to accommodate all downtown businesses. AGENDA ITEM #7: Formation of CCAC Downtown Public Art Subcommittee Sean said that they had formally appointed six members and an alternate to the subcommittee at the previous meeting. He said that there was one more interested person, Sharon Francis, who would be submitting an application in the next few days. He said that he would forward her application to the CCAC by email for informal approval, then formalize her appointment at the October meeting. He said that the subcommittee was ready to get to work and he didn't want to delay that any further. AGENDA ITEM #8: Executive Session* *The City Center Advisory Commission went into Executive Session at 8:35 p.m. under the provisions of ORS 192.60(2) (c) to discuss real property transaction negotiations. All discussions within this session are confidential; therefore, nothing from this session may be disclosed by those present. Executive Session concluded at 8:47 p.m. AGENDA ITEM #9: Adjourn The meeting adjourned at 8:49. Caren Frykland, OAC Secretary 9 r(- ATTEST: _ -- Chair Thomas Mu by CCAC Meeting Minutes for September 14,2011 Page 5 of 5 MOW- y � ��l•./ .LL• ;� t l .AFM„ ` 'y ' -4 T' .v rr•, !"7� 1!r'�v^ S ; .`��'•a VIM r ►�aCJ!: ;'iJ.Y hL' �+►' i� t.� - - Tigard City Center Advisory Commission Five Year Urban Renewal Assessment PREPARED FOR PREPARED BY City of •a • Chris Zahas LID LELAND CONSULTING GROUP People Places Prosperity TIGAAD ------------------------------------------------------------------------------------------------------------ Agenda Item 4 Presentation Overview • Project Purpose • Market Analysis Overview Completed Projects • Development Strategy • Prioritized Projects Tigard Urban Renewal Five-year Assessment 14 September2011 Page 1 Agenda Item 4 1Market Overview r ■ ndaAmer■ cas Population : From Pyramid to R6cf6ngle 1940 1960 2020 Age 85 and over Baby Boom 80 to 84 75 to 79 Male Female Male Female 70 to 74 Male Female 65 to 69 60 to 64 55 to 59 50 to 54 45 to 49 40 to 44 35 to 39 30 to 34 25 to 29 20 to 24 15 to 19 10 to 14 5 to 9 0to41 1 1 15 10 5 0 5 10 15 5 0 5 10 15 10 5 0 5 10 15 Millions Millions Millions Note: The reference population for these data is the resident population. Source: U.S. Bureau of the Census, 1943, Table 2. For full citation, see references at end of chapter. Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 3 Demographic Sea Change Agenda Item 4 Households With and Without Children 100% 80% 72% 67% Without children 60% 52% 40% 48% 33% With children 20% 28% 0% 1960 2000 2025 Source:Arthur C. Nelson, US Census, Leland Consulting Group. Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 4 Nationwide Household Growth , 2010-2020 ( Millions)dt Younger households: Middle-age households: Older households: Modest growth Net decrease; minority Significant growth, households increase particularly in white households 2.5 — 2.0 1.5 — 1.0 - — 0.5 — 0.0 -0.5 -1.0 -1.5 — = Non-Hispanic white Minority -2.0 - -2.5 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75 and Age of Householder over L7 Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 5 Agenda Item 4 Development Prospects , 2011 r - - ------ ------- ------ ------- -- ----- -----i I � I Apartment Property Types with I I near Fair Senior Housing Development Prospects in 2011 Infill and In-Town Housing �- --- -- ----- -- ----I Industrial Single-Family Homes Hotels Retail Office 0 5 9 Abysmal Fair Excellent Source:ULI Emerging Trends 2011, Leland Consulting Group. Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 6 Portland Area Submarket Apartment Vacancy and Rents, Qtn 2011 Rent 2 Bed/1 Bath —Vacancy $1,400 ------ 5% $1,200 , 4% $1,000 $800 , 3% $600 2% $400 i 1% $200 $0 0% e) e�a IS oto 5°J NO �G G� LTigard Urban Renewal Five-year Assessment 14 September 2011 Page Depreciation Rates of Existing Detached Homes Q1 201 Ggttr 'Ql 2011 Milwaukie/Clackamas Northeast Portland NW Washington County Overall Yamhill County Lake Oswego/West Linn West Portland North Portland Southeast Portland -------------- ---- ----- ---------- ----- , ' Tigard/Wilsonville --------------------------- ----- ----- Beaverton/Aloha Columbia County Gresham Troutdale Oregon City/Canby Hillsboro/Forest Grove Mt. Hood/Govt Camp/Wemme -25% -20% -15% -10% -5% 0% LTigard Urban Renewal Five-year Assessment 14 September 2011 Page 8 Office SubmarketVacancy Agenda Item 4 Submarket 1Q11 Vacancy AL A A Tualatin/Wilsonville 32.5% Sunset Corridor 24.5% Columbia Corridor 23.9% Camas 21 .6% Orchards 21 .0% Cascade Park 19.3% Wash.Sq/Kruse Way 19.2% Clackamas Sunnyside 18.0% SW/Beaverton/Sylvan 16.3% Johns Landing/Barbur Blvd 15.7% Vancouver 13.6% Hazel Dell/Salmon Creek 11 .0% Eastside 10.6% St. Johns/Central Vancouver 10.3% Northwest 9.5% Vancouver Mall 8.6% Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 9 "•` Completed o III y TKK�y 1 Ash Avenue Extension, Scoffins to ' o r. '.{ �;. geoid@ Item 4 Infrastructure Burnham Fagade Improvements •{ �,►.' ��. �l�l 2Hall Blvd/Highway 99W Intersection New Construction + ` 3 Greenburg Road/Highway 99Wp p 2$ ' Private Capital improvements ti Intersection Planning & Design Assistance . '. 4 Burnham Street + t !' • Y . ir!.r .-y ' 217 5 Main Street 6 W ES Station Park and Ride '', # ' 7 Tigard Liquor Store 24 deft 2 5 8 Underwater Works "'� _.`i` sw. Y 19 -_ 9 Main St. Stamp & Stationery 10 American Family Insurance Building 11 Tigard Wine Crafters ' 12 12460 Main (former lab 33) 23 V' =5 '1 , `� , Ilk 13 Wei Li Acupuncture ff ,. •' ;11 ,' A��'- f 14 Tigardville Station 2 31 1�e7 + �' 15 Tigard Vision Center ` 16 Harris McMonagle Office Building X13, '29a •` 17 217 Self Storage �` �' �• 18 Knoll at Tigard �,�• _,. ; 19 McDonald's .' ;,�. �» ►o 20 Tigard Senior Center 21 Rite Aid ;0 ' 22 Luke Dorf 23 Muse Music School 24 Brake Team Addition ' 25 SW Garden Place Russ Auto Lot ri F• ' i.. ,.M,f hr .• y1� r Y 27 Skate Park r 28 Jo-Ann Fabrics Remodel r 29 Fanno Creek Brew Pub 30 Ballroom Dance Company • � air 31 Stone Gallery rehabilitation of former Cash's Realty Building The Knoll Agenda Item 4 '1� I 14 September 2011 Page 12 Tigard Urban Renewal Five-year Assessment r r j A fi• +r 4` - `::,tip Burnham Gateway ANUMPOW 14 September 2011 Page 13 Tigard � H r r ,• to;' 0 0 U ' ys• .. � :4' -. 3" � i�'�;,• ►'S,,t3�+,y. -,yon +�S,,.r ! �I Urban • Five-year 14 September 2011 - Page 14 Tigard Urban Renewal Five -year Assessment Tigard Liquor Store Agenda Item 4 Hwy 99 and I Street •y \ 14 September 2011 Page 15 Tigard � w r � . r !Y .". _ tib.. •.F. Urban RenewalFive-year Agenda Item 4 Main Street Stampand Stationery C � �t 1' NZ Main Street Stamp Station ery . Y MON t —_ Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 16 Agenda Item 4 N RT p E o W,, c2 S E s R F T 7- V T G G Y S B EpX- _�C�) � S Development Strategy Le Development St Agenda Item 4 Jul • Encourage and Facilitate Redevelopment Projects in Downtown • Improve Fanno Creek Park and e � Develop an Open Space System in j. c® Downtown = �— • Develop Comprehensive Street and Circulation Improvements in Downtown • Develop Organizational Leadership and Capacity in Downtown Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 18 Agenda Item 4 ' r- _ P Priority Projects r'tel' Encourage and Facilitate Redevelopment Projects in Downtown J Pro , ect SelectionCriteria Agenda Item Tax Increment Creation • Catalytic potential - ' Housing amenity • Project readiness „ Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 20 endaN w Development GrLoan ProgramItem • Loans and/or grants • Commercial or residential • Burnham ripe for housing THE • Projects will support tax increment • • Budget = $200,000 per fiscal o year 2012-2016 Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 21 ramRehabilitation/Redevelopment Grant and Loarf'Prbg • Property rehabilitation and redevelopment : • ��. rPL�bl.>S�1 SP Fa ade improvements - a � p . • Five year focus on Main and Burnham to leverage recent :; ... investment • Budget = $75,000 per fiscal Under water works 0 year, 2011 -2016 Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 22 TechnicalssIstanceProgram Agenda Item 4 • Provide technical assistance: �•- ;, :De• velopment Opportunity V*11A ✓ f r Studies • Market Studies • Feasibility analyses, • Engineering and design • Other activities • Five year focus = Main St, •:•I Burnham St, or other housing opportunity sites • Budget = $60 ,000 per fiscal year, 2011 -2016 Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 23 Property Acunto� I I I n Agenda Item 4 • Acquire property from willing '"= sellers 01 Assemble land • l� �c • Cost can be recovered or land can be written downrovidin - p g incentive • Fiveear focus = housing Y g opportunity sites r I A I`. 11 • Budget = TBD Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 24 Redevelop PublicWorks Yard Agenda Item 4 • Ideal housing site t • Adjacent to Fanno Creek • Close to library • Explore opportunities to relocate - • Budget = TBD Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 25 Fanno Creek Park I Agenda Item • Downtown asset p, • Amenity to attract residents N • Restore andp reserve sensitive areas r a .o • Make Ash St and Main St park entrances more prominent • Budget = $400, 000 in 2012-2013 Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 26 Plazas Agenda Item 4 • Encourage broader range of t� - activities downtown • Draw visitors and residents . • Concerts markets and festivals 'a F • Continue to search for a site • Budget = TBD y -year Assessment 14 September 2011 Page 27 Tigard Urban Renewal Five Main Street Green Street Agenda Item 4 • Landscaping features • Street furniture . • Stormwater catchment systems � • Sewer upgrades • Leverage grant from Metro • Urban renewal Budget = $255,000 in 2012-2013 Be 18c: Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 28 High CTransit Agenda Item 4 • Long-term regional vision • Planning underway • Connection to DT Tigard .1 • Can integrate with downtown and support land uses Vit, • Budget = TBD Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 29 Downtown Organization Agenda Item 4 • Increase organizational capacity 7� WNPLAN - : -- - - IMP�EMEN1ATION • Support business growth a • Marketing a► ,QA�� aN • Events • Link with other priority _ projects --� • Budg et = $50 ,000 in 2011 -2012 - Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 30 ■ Agenda Item 4 Project Schedule and FundingMatrix Projected Costs per s sMr, .0w Encourage and Facilitate Redevelopment Projects in Downtown New Development Grant/Loan Program $0 $200,000 $200,000 $200,000 $200,000 Rehabilitation/Redevelopment Grant/Loan Program $75,000 $75,000 $75,000 $75,000 $75,000 Technical Assistance Program $60,000 $60,000 $60,000 $60,000 $60,000 Property Acquisition TBD TBD TBD TBD TBD Redevelop Public Works Yard TBD TBD TBD TBD TBD Improve Fanno Creek Park and Develop an Open Space System in Downtown Fanno Creek Park Improvements $0 $400,000 TBD TBD TBD Plazas TBD TBD TBD TBD TBD Develop Comprehensive Street and Circulation Improvements in Downtown Main Street Green Street Related Projects $70,000 $255,000 $0 $0 $0 High Capacity Transit TBD TBD TBD TBD TBD Downtown Gateways $120,000 $0 $0 $0 $0 Develop Organizational Leadership and Capacity in Downtown Downtown Organization $50,000 TBD TBD TBD TBD Carry Over Projects $89,330 Five Year Total $464,330 $990,000 $335,000 $335,000 $335,000 Tigard Urban Renewal Five-year Assessment 14 September 2011 Page 31 a J�5 "�Kid St iu r. Agenda Item 4 LELAND CONSULTING GROUP People Places Prosperity Portland I Bend I Texas I New York 503.222.1600 www.lelandconsultinggroup.com Development Advisors to the Public and Private Sectors Agenda Item 4 CITY OF TIGARD, CITY CENTER DEVELOPMENT AGENCY PREPARED FOR City of Tigard TIGARD DOWNTOWN STRATEGY UPDATE/ PREPARED BY Leland Consulting Group FIVE YEAR ASSESSMENT OF URBAN RENEWAL (DRAFT) Me L 1AND CONSULTING GROUP People Places Prosperity September 2011 Agenda Item 4 Contents Introduction ................................................................................................................ 1 KeyFindings ....................................................................................................................................1 SituationAssessment ................................................................................................ 3 PlanningContext..............................................................................................................................3 KeyProjects.....................................................................................................................................6 2011 Market Snapshot............................................................................................. 10 UrbanHousing ...............................................................................................................................10 Retail: Current Retail and Fundamentals.......................................................................................12 Office and Employment Uses ........................................................................................................13 DemographicTrends......................................................................................................................14 MarketOutlook...............................................................................................................................17 Urban Renewal Financial Outlook............................................................................ 19 Urban Renewal Project Selection Criteria................................................................ 20 Development Strategy ............................................................................................. 21 Project Schedule and Funding Matrix............................................................................................23 Conclusion ............................................................................................................... 25 Appendix.................................................................................................................. 26 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment . September 2011 . DRAFT Agenda Item 4 Acknowledgments Tigard City Council/City Center Development Agency Craig Dirksen, Mayor Gretchen Buehner, Council President Marland Henderson, Councilor Nick Wilson, Councilor Marc Woodard, Councilor City Center Advisory Commission Tom Murphy, Chair Elise Shearer,Vice Chair Carolyn Barkley Alexander Craghead Alice Ellis Gaut Ralph Hughes Peter Louw Linli Pao Phil Thornburg Staff: Liz Newton, Interim City Manager Ron Bunch, Community Development Director Sean Farrelly, Redevelopment Project Manager Consultant: Leland Consulting Group Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ August 2011 ■ DRAFT Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Introduction The health of a community can quickly be diagnosed by observing the health of its downtown. A downtown is the civic and cultural heart of a community and its condition reflects community pride, civic leadership, and their willingness to invest in the central place. Downtown revitalization is, therefore, primarily about economic development. Healthy downtowns help attract employers that recognize how a high quality of life, a vibrant downtown, diverse housing options, and a healthy community in turn combine to attract quality employees. Recognizing the importance of a strong downtown, Tigard's citizens approved the creation of the City Center Urban Renewal District(the District)on 16 May 2006, putting into place a $22 million urban renewal district to revitalize downtown Tigard and strengthen its role as the heart of the community. The District has now been in place for five years.As with any plan, periodic reviews are an important way to document past successes, plan for the future, and evaluate if any course corrections are warranted. The recent recession and the reshaped economy that is emerging make this assessment all the more important. This Downtown Strategy Update,therefore, catalogs the public and private investments that have been made in downtown Tigard since the District's formation. Following this summary, the report presents an outlook of market conditions to identify trends and opportunities to capture new investment over the next five years. Finally, the report revisits the existing development strategy and updates it with a new list of prioritized actions and investments that poises the District to leverage these new market conditions and trends. Such a strategy is essential since the list of potential projects authorized ES Station 8t Tigard in the City Center Urban Renewal Plan far exceeds the District's $22 million maximum indebtedness.With more projects than WES service started in 2009, linking revenues, a strategy helps to ensure that the limited available downtown Tigard by rail with Wilsonville resources are spent on projects that maximize leverage and and Beaverton.Ash Avenue was recently further the goals of the Plan. extended to connect to the park and ride lot, increasing Downtown connectivity. Key Findings Since the District's formation in 2006, the country entered the greatest economic recession in the past 50 years, leading to high unemployment and the virtual extinction of traditional development financing. Despite this challenge, several public r and private investments have been made in downtown Tigard, both demonstrating the desirability of downtown as a location for housing and business and simultaneously laying the groundwork for further investment once the market recovers. At the same time, major demographic shifts are taking place that will drastically change the type and scale of housing and services that will be needed in the future. Combined, these conditions point to a very positive outlook for downtowns in general, and downtown Tigard specifically. Some of the key findings from this five-year assessment include: • The City recently completed the reconstruction of Burnham Street, transforming it from a rutted, pedestrian-unfriendly street to an attractive one with sidewalks, street trees, and 1 ample on-street parking. This improvement sets the stage for private investment in the area. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 1 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 • TriMet opened the Westside Express Service (WES)commuter rail in 2009, linking downtown Tigard by rail with Wilsonville and Beaverton. • Community Partners for Affordable Housing opened the 48-unit The Knoll senior affordable housing project in April 2011. • Three property owners have utilized matching urban renewal grants to invest in fagade improvements on their buildings, demonstrating a commitment to downtown as a retail destination. • The first of the Baby Boom generation turned 65 in 2011, setting the stage for a massive shift toward smaller housing in urban locations. • Retail and other consumer trends are increasingly favoring smaller and more walkable environments. • The District's finances are healthy, reflecting considerable tax base growth even through the recession, largely from utility properties in the District. There will be a projected total of$2.1 million in new tax increment revenue through fiscal years 2011/2012 and 2015/2016. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 2 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Situation Assessment Planning Context The situation assessment begins with a brief summary of key policy statements that have guided the development and prioritization of projects, both over the past five years of the District and going forward. Tigard Downtown Improvement Plan (TDIP), September 2005 Developed with extensive stakeholder and community input, the TDIP provides a long-term vision and guiding principles for downtown revitalization. The stated purpose of the plan is to"provide the blueprint for the evolution of Downtown Tigard into a vital, vibrant, mixed-use and pedestrian-friendly environment over the next 20-30 years."The TDIP identifies a series of catalyst projects intended to facilitate downtown revitalization. City Center Urban Renewal Plan, December 2005 The City Center Urban Renewal Plan (the Urban Renewal Plan)describes the goals, objectives, and boundary of the urban renewal area, and the projects that can legally be funded through urban renewal funds. The plan has a maximum indebtedness of$22 million and duration of 20 years, meaning that no new debt can be issued after Fiscal Year 2025/26. Substantial amendments to the plan such as an increase in the size of the urban renewal district, increase in maximum indebtedness, or duration would require voter approval. Any addition or expansion of a project that is materially different from the list of projects established in this plan would require approval by City Council by resolution to amend the plan. The Urban Renewal Plan has five main goals and objectives: 1. Revitalization of the Downtown should recognize the value of natural resources as amenities and as contributing to the special sense of place. 2. Capitalize on Commuter Rail and Fanno Creek as catalysts for future investment and development. 3. Downtown's transportation system should be multi-modal, connecting people, places and activities safely and conveniently. 4. Downtown's streetscape and public spaces should be pedestrian-friendly and not visually dominated by the automobile. 5. Promote high quality development of retail, office and residential uses that support and are supported by public streetscape, transportation, recreation and open space investments. Urban renewal funding can be used for a list of specific projects, all of which fall under the following seven classifications: 1. Street Improvements 2. Streetscape Improvements 3. Bike/Pedestrian Facilities 4. Parks 5. Public Spaces Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 3 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 6. Public Facilities 7. Planning and Development Assistance Additionally,funds can be used for property acquisition from willing sellers within the district. Tigard Downtown Streetscape Design Plan, September 2006 This plan provides conceptual design to guide streetscape improvements (a TDIP catalyst project) including the recently completed Burnham Street project, the Main Street Green Street and gateway features. Downtown Tigard Comprehensive Plan Chapter, April 2007 This Comprehensive Plan chapter adopted in 2007 provides the goals, policies, and action measures to guide land use actions in the Downtown. The stated goals include facilitating the development of an urban village; developing and improving the open space system and integrating natural features; and developing comprehensive street and circulation improvements for pedestrians, automobiles, bicycles, and transit. Development Strategy for Downtown Tigard, October 2007 The Tigard Development Strategy (a.k.a. "the Leland Report") made several recommendations to guide future development in Downtown Tigard and to help the City and community partners achieve downtown planning goals and objectives set forth in the Tigard Downtown Improvement Plan (TDIP), the City Center Urban Renewal Plan, and other relevant planning documents. The Strategy Matrix in Table 7 (see appendix)shows the current status of each of these recommendations. Many of the Organizational and Policy Recommendations either have been completed or are currently in progress. These recommendations were meant to increase organizational capacity and leadership early in the process, in order to lay the foundation for success with larger redevelopment projects in later phases. It is now time to update this document with a new timeline and strategy for the next five years. Fanno Creek and Plaza Master Plan, February 2008 A master plan provides for the restoration of Fanno Creek and the design of a new public plaza to further the"green heart" identified in the TDIP. Tigard Downtown Implementation Strategy, July 2008 The Downtown Implementation Strategy was developed to guide the City of Tigard's implementation of urban renewal goals, objectives, and projects. It included a 3-Year Action Plan and a 1-Year Work Program,which summarized priorities and actions to be taken in the start-up phase of the urban renewal plan. The strategy and work plan is meant to be updated on a regular basis in order to measure progress, address current economic situations and move projects that were once considered to be long- term or mid-term projects onto the short-term project list as applicable, or to remove projects that are no longer considered viable. Indeed, this is the purpose of this Downtown Strategy Update. The four key strategies addressed in the Downtown Implementation Strategy are as follows: • Encourage and Facilitate Redevelopment Projects in Downtown • Improve Fanno Creek Park and Develop an Open Space System in Downtown • Develop Comprehensive Street and Circulation Improvements in Downtown • Develop Organizational Leadership and Capacity in Downtown Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 4 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Tigard Downtown Future Vision, January 2009 This study provides a visual representation of the TDIP and provides a tool to communicate how the downtown could develop over the next 50 years. Downtown Design Guidelines, February 2010 Tigard Downtown Development and Design Standards have been developed and successfully integrated into the zoning code. The code amendments incorporated some form based code elements, allowing denser development with design standards that require pedestrian orientation. Tigard High Capacity Transit Land Use Plan, in progress Spurred by Metro's identification of the SW Corridor as the next priority corridor for high capacity transit, the Tigard HCT Land Use Plan will take a closer look at existing and potential land uses for potential station areas in the general vicinity of the Pacific Highway corridor, including downtown. The plan will develop land use concepts (or"typologies")of vibrant station area communities/neighborhood centers that could support future transit investments. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 5 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Key Projects Although development has perhaps been slower than desired for the District, many steps have been made in the right direction, laying the groundwork and establishing a strong base from which to realize a successful urban renewal district. Key public and private projects that have occurred in the District over the past five years are listed in Table 1 and shown on the map in Figure 1. This list includes projects that were the direct result of urban renewal actions or funding as well as private projects–the purpose is to catalog successes that have occurred in the District, not only to gain an understanding of the status of projects funded through urban renewal, but also to The Knoll at Tigard show how the District has leveraged private and other The Knoll is a 48-unit,seniors-only(55+) government funds. The projects are categorized based on affordable housing project,recently funding mechanisms and type of project: infrastructure projects developed within the District by the which have received a majority of their funding through city gas Community Partners for Affordable tax,Washington County, Metro, ODOT and other local Housing(CPAH).The project is located on government sources with minor urban renewal contributions; fagade improvement and rehabilitation projects which are a bus line,near the WES station, and in funded through urban renewal and in some cases require walking distance to other amenities such matching funds from the property owner; new construction as the library and senior center.The total projects which were wholly funded without urban renewal development cost of the project was$10.8 assistance; and other smaller capital improvements which were million,with$40,000 provided through the also funded without urban renewal assistance. City's affordable housing subsidy funds and$425,000 from Community • Infrastructure.The major infrastructure projects include the Development Block Grants for the public Pacific Highway/99W intersections, Burnham Street, and improvements along Hall Boulevard, the new WES station. Over$21.5 million has been spent in Hunziker Street,and Knoll Drive.The the District, with less than $500,000 coming from urban project was completed without any urban renewal funds. Other projects have been recommended for renewal funds.The units were quickly the 2011-12 urban renewal budget such as gateways at absorbed;according to CPAH,there was a Main and Pacific Highway and a surface parking lot. waiting list longer than the number of units • Fagade Improvement/Rehabilitation. The Fagade before the project even opened in April Improvement program is focused on Main Street. Urban 2011. renewal funds spent to date total $58,403 in the form of architectural/design assistance and matching grants. These programs have leveraged $107,599 of total value spent and have helped nine properties,three of which have followed — – through with physical storefront improvements. • New Construction. New construction projects include a two-story office building, an affordable housing project = _ serving seniors, and a self-storage facility, all of which have .F added nearly$11 million in value to the district, although the �r senior housing development, The Knoll, is tax exempt and therefore will not add tax increment. However, it may spur other development in the area and add residents who will help to support businesses located nearby. • Other Private Capital Improvements. Other private capital improvements include remodels, additions, and other improvements (the Figure 1 map shows those that were valued over$30,000.)This is a positive sign for the District, as it shows that even during a recession property owners are willing to put money into improving properties. This will signal to other property owners and developers that there is an increasing interest in the area, which will raise the values of all properties. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 6 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 • Planning and Design Assistance. In addition to the capital projects noted above, several properties received design assistance through the Fagade Improvement program. Separately five development opportunity studies were conducted to evaluate the feasibility of redevelopment, including basic pro formas and conceptual site plans. Finally, the plans for the Main Street Green Street have been refined to the 60 percent level in anticipation of construction in 2012. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 7 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Table 1. Completed Projects UrbanMap Projects in the . . (October00 . . Date Value Renewal Contribution Public Infrastructure 1 Ash Avenue Extension, Scoffins to Burnham 2011 $1,000,000 $0 2 Pacific Hwy/Hall Blvd. Intersection 2011 $6,000,000 $0 Improvements 3 Greenburg Road/Highway 99W Intersection 2011 $6,500,000 $0 Improvements 4 Burnham Street& Streetscape Improvements 2011 $7,000,000 $458,000 6 WES Commuter Rail Station Park and Ride 2009 $1,000,000 $0 27 Skate Park 2007 $500,000 $0 Subtotal $22,000,000 $458,000 Fagade Improvement-Matching Grants 7 Tigard Liquor Store 2010 $80,000 $25,000 8 Underwater Works 2011 $19,422 $9,711 9 Main St. Stamp&Stationery 2011 $8.970 $4.485 Subtotal $127,599 $58,403 Private New Construction 29 Fanno Creek Brew Pub 2007 $211,620 n/a and 2nd story renovation 30 Ballroom Dance Company 2007 $166,000 n/a 16 Harris McMonagle 2 story office building 2008 $780,000 n/a 17 217 Self Storage 2008 $3,800,000 n/a 18 Knoll at Tigard Senior Affordable Housing 2011 $6,400,000 n/a Subtotal $11,357,620 n/a Other Private Capital Improvements 28 Jo-Ann Fabrics Remodel 2006 $600,000 n/a 31 Stone Gallery rehabilitation of former Cash's 2007 $36,000 n/a Realty Building 19 McDonald's Tenant Improvement 2008 $65,000 n/a 20 Tigard Senior Center addition 2008 $208,000 n/a 21 Rite Aid rooftop mechanical 2010 $90,000 n/a 22 Luke Dorf(non profit) Remodel and Addition 2010 $639,000 n/a 23 Muse Music School Tenant Improvement 2010 $56,700 n/a 24 Brake Team addition 2011 $250,000 n/a (due to intersection improvements) Subtotal $1,944,700 n/a Total All Capital $35,429,919 $516,403 Improvement Projects Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 8 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Figure 1. Map of all Projects within the Urban Renewal Area Key 1 Ash Avenue Extension,Scoffins to Infrastructure Burnham Fagade Improvements 2 Hall Blvd/Highway 99W Intersection New Construction 3 Greenburg Road/Highway 99W Private Capital Improvements Intersection Planning&Design Assistance " 4 Burnham Street 5 Main Street f• 22 217 6 W ES Station Park and Ride 7 Tigard Liquor Store 24' $ Underwater Works 9 Main St.Stamp&Stationery I 10 19 21 10 American Family Insurance Building 9 'IN g 11 Tigard Wine Crafters 12 12460 Main(former lab 33) 14 23 " 13 Wei Li Acupuncture 14 Tigardville Station 2317 15 Tigard Vision Center 15 16 Harris McMonagle Office Building 1 29 17 217 Self Storage f" 1 18 Knoll at Tigard c ' 19 McDonald's v 20 Tigard Senior Center ±' 21 Rite Aid ! a" 22 Luke Dorf 23 Muse Music School 24 Brake Team Addition 25 SW Garden Place Russ Auto Lot , 27 Skate Park , fr 28 Jo-Ann Fabrics Remodel ° 29 Fanno Creek Brew Pub t 30 Ballroom Dance Company 31 Stone Gallery rehabilitation of former Cash's Realty Building o Source:City of Tigard, Google Earth, Leland Consulting Group Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 9 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 2011 Market Snapshot Economic conditions during the first five years of the Urban Renewal Plan have been tumultuous to say the least. It was created at the peak of the housing bubble when prices were skyrocketing and development booming. Then the bubble burst, prices plummeted, massive layoffs ensued and the economy went free- fall into a recession. Even during this difficult time, several projects, discussed above, were realized within the District. Other positive events during the recession include Tigard voters passing a $17 million bond measure in November 2010 for the acquisition of parks, 10 percent of which can be used for downtown open space. Also, Tigard's bond rating by Moody's increased from Al to Aa2, and Standard and Poor's rated the city for the first time, giving it a AA rating (equivalent to the Moody's rating), noting "strong financial policies and practices."These improved ratings mean that the City will be able to borrow money at a lower interest rate which will save residents about$1.1 million over the life of the parks bond.' This section of the report provides a snapshot of market and economic conditions in order to identify development prospects for the next five years. It begins with a broad overview of regional and national trends and then translates those shifts to the local level, in order to identify what is likely to be achievable in downtown Tigard. Urban Housing felps no Creek Brew Pub Strong interest in urban housing has grown in the past two restaurants add a key amenity which decades. Nationally, the dramatic growth in urban housing to attract downtown residents.The continued through the past decade—but stopped abruptly o Creek Brew Pub, built in 2007, along with virtually all other real estate development at the to activate Main Street and draw onset of the recession in 2007. Over the long term, several visitors downtown. It sits adjacent to factors—strong interest in urban environments across many Fanno Creek. segments of society, smaller households, and aversions to long commutes—will drive urban housing development. The problems in the housing market are largely associated with single-family homes, and in fact the multifamily housing market has benefitted in many ways during the recession. As of spring 2011, the Portland metropolitan area has the distinction of having the lowest apartment vacancy rates in the nation. Tigard is no exception and has one of the lowest vacancy rates in the region, with overall vacancy rates in the _ Tigard/Tualatin submarket just above two percent as of the second quarter of 2011, as shown in Figure 2. 1 Local Focus,League of Oregon Cities,April 2011 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 10 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Figure 2. Portland Area Submarket Apartment Vacancy and Rents, Q1 2011 Rent 2 Bed/1 Bath —Vacancy $1,400 5% $1,200 4% $1,000 $800 3% $600 2% $400 1% $200 $0 0% oa G°J oJ`a �Jaa o � \�aJ �P y° �`a� o � Q oda cmc �c ca\ 5�Q \�•� L�° S\� �a tiQ tiQ c /\4 5°J�r°P \�G� °a e �o Ia° � O° e G� G\a Source:Portland Multifamily Report, Q1 2011, Norris Beggs&Simpson The low vacancy rate can be attributed to multiple factors, among which is the fact that apartment construction has been below average since 2009, evidenced by the dip in multifamily residential building permits issued in Washington County since 2009. From 2003 to 2008 Washington County issued building permits for an average of 1,022 units annually, but only 332 in 2009, 238 in 2010 and only 35 during the first quarter of 2011.2 Credit markets are still tight, making it difficult for developers to get financing for large projects.Also, people who may have lost their homes through foreclosure are now moving into the rental market. That combined with demographic trends—namely the two largest generations, the Baby Boom and Gen-Y, collectively moving into their prime rental years—bodes well for the multifamily housing market in the near term. These demographic shifts are not just short-term phenomena, but are expected to boost demand for apartments for the next 10 years. As for ownership housing, there is evidence, as shown in Figure 3, that single-family homes in the Tigard/Wilsonville submarket have some of the highest depreciation rates in the region, having dropped 12.4 percent in value from the first quarter of 2010 to the first quarter of 2011, whereas the overall average for the region was a 9.0 percent drop. For urban locations such as downtown Tigard, ownership housing is most likely to take the form of condominiums or townhomes. Given the current housing recession, ongoing credit crisis, and demographic shifts, little to no ownership housing should be expected in downtown Tigard over the next five years. 2 Multifamily Market Analysis, PSU Real Estate Quarterly,May 2011 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 11 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Figure 3. Appreciation Rates of Existing Detached Homes from Q1 2010 to Q1 2011, Portland Submarkets Milwaukie/Clackamas Northeast Portland NW Washington County Overall Yamhill County Lake Oswego/West Linn West Portland North Portland Southeast Portland Tigard/Wilsonville Beaverton/Aloha Columbia County Gresham Troutdale Oregon City/Canby Hillsboro/Forest Grove Mt.Hood/Govt Camp/Wemme -25% -20% -15% -10% -5% 0% Source: Residential Market Analysis, PSU Real Estate Quarterly, May 2011. Retail: Current Retail and Fundamentals 2010 was a very, very tough year for retailers, retail developers, and commercial property owners, as demonstrated by a sharp drop in consumer spending, the bankruptcy of the nation's second largest mall operator, General Growth Properties, and many store closures. In recent years, retail has evolved such that, today, retail is about more than shopping—it's an experience.With many big box retailers having gone out of business in 2009 and 2010, "power center"development saw a sharp decline, while walkable outdoor lifestyle centers and freestanding retail development grew. Retail has also evolved beyond the mere purchasing of goods and services. Successful retail is centered around experiences and lifestyle choices. Small format grocery stores and neighborhood markets that provide a more intimate and sensory-oriented experience are examples of the type of smaller retail formats that are on the rise. An overview of key local retail trends is provided below. • Several Main Street retailers have taken advantage of fagade improvement and rehabilitation programs offered through the CCDA to improve their storefronts. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 12 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 • The other main retail concentration in the District consists of two auto-oriented shopping centers at the intersection of Hall Boulevard and Pacific Hwy/99W. There has been limited investment in Tigard Plaza with a new JoAnn Fabrics, but the shopping center is otherwise in need of refurbishment.Across the street, the Rite Aid and Value Village shopping center is a significant redevelopment opportunity but suffers from fractured property ownership. In both cases, the ongoing Tigard Liauor Stora credit crisis makes any new investment challenging. The Tigard Liquor Store is one example of • Big box stores are beginning to develop smaller store a business which used matching grants to formats, as the sales per square foot are higher than improve the storefront. The$25,000 grant larger stores and they can open more stores in closer leveraged an additional$55,000 in private proximity within a given market.' investment. It now features rock siding on the building and an attractive water • Target has announced plans to expand grocery options at feature,adding character and ambience to the Tigard location (near Washington Square)along with a key intersection along Main Street. several others in the Portland Metro region.Wal-Mart also has plans to expand grocery options at existing stores and plans for expansion in the Portland Metro region.4 efore • Restaurants and other food and drink establishments will ' be an important part of the retail mix in the District, as 4 they will activate the area and provide an amenity thatt',�� directly supports the housing trends discussed above. r • Consultant Michele Reeves, who led several workshops in -- attended by downtown stakeholders in the first half of 2011, made several recommendations on the development of a marketing and revitalization strategy. She recommended the formation of a Downtown organization, leveraging themes and connecting to the community; improving community events; strengthening downtown stakeholder ties, and increasing participation in the storefront improvement program. Office and Employment Uses f Office and employment space is one of the toughest building types to attract to small, emerging downtowns.Almost all significant office and employment development takes place within major office districts, where employers can take advantage of existing transportation and other infrastructure, - >r!- large numbers of skilled employees, and nearby customers, U suppliers, and collaborators. In addition, new office development often requires significant parking, which drives up the cost in constrained locations. Like retail, most new office users in the District will first move into historic buildings, residential conversions, or other vacant spaces. These employers will tend to be small, professional, local-serving, "commercial office" users, such as insurance agents, banks, title companies, lawyers, architects, doctors, and dentists who can often fill first-floor retail spaces. According to an analysis of four regional brokerage companies, the market-wide office vacancy remains high throughout the Portland metropolitan region with a median of 14.8 percent vacancy as of the first quarter of 2011. Suburban markets near and including Tigard are well above this average. The 3 Norris,Beggs&Simpson, First Quarter 2011 4 Retail Market Analysis,PSU Real Estate Quarterly,May 2011 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 13 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Tualatin/Wilsonville submarket continues to have the highest office vacancy of the region at 32.5 percent. The Washington Square/Kruse Way submarket has a vacancy of 19.2 percent. The District is not well positioned for office uses in the near-or mid-term, especially considering the weakness in surrounding submarkets.Along the periphery of the District, it is possible that some freestanding, new office construction could be built once the market for office space improves. Overall, the District is well located for such uses given its easy access to Highway 217 and proximity to other regional employment and retail destinations. Table 2. Suburban Office Submarket by Vacancy Rate Submarket -2916 1 Q1 Tualatin/Wilsonville 32.5% Sunset Corridor 24.5% Columbia Corridor 23.9% Camas 21.6% Orchards 21.0% Cascade Park 19.3% Wash.Sq/Kruse Way 19.2% Clackamas Sunnyside 18.0% SW/Beaverton/Sylvan 16.3% Johns Landing/Barbur Blvd 15.7% Vancouver 13.6% Hazel Dell/Salmon Creek 11.0% Eastside 10.6% St. Johns/Central Vancouver 10.3% Northwest 9.5% Vancouver Mall 8.6% Source: Office Market Analysis,PSU Real Estate Quarterly,May 2011, Grubb&Ellis Office Report Q1 2011. Demographic Trends The demographics in Tigard closely resemble those of the Portland Metropolitan region and Washington County, with a few slight variations. The average annual growth rate of 1.54 percent between 2000 and 2010 is right between a slightly higher growth rate for Washington County and a slightly slower rate for the region as a whole. The median household income of$64,830 is about$3,000 per year higher than the regional average, but slightly below the Washington County average. Average household size is about the same as the region, and slightly lower than Washington County. Tigard also has a high percentage of one and two person households, with over 60 percent of the households in this category. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 14 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Table 3. Demographics bernographic Tigard Washington Portlanke MetropolitanCounty AL Total Population, 2000 (Census) 41,223 445,342 1,927,881 Hispanic Origin, 2000 (Census) 8.9% 11.2% 7.4% Total Population, 2010 (Census) 48,035 529,710 2,226,009 Hispanic Origin, 2010 (Census) 13.8% 16.4% 11.3% Average Annual Growth Rate, 2000-2010 1.54% 1.75% 1.45% Median Household Income, 2010 (est.) $64,830 $66,490 $61,823 Per Capita Income, 2010 (est.) $30,800 $30,900 $29,095 Average Household Size, 2010 (est.) 2.52 2.64 2.56 1 & 2 Person Households, 2010 (est.) 61.1% 58.0% 60.3% Median Age, 2010 (est.) 36.6 34.6 36.4 Source: ESRI,Leland Consulting Group. As seen in Figure 4, Tigard has a slightly higher percentage of residents over the age of 65 and in the baby boom generation, but otherwise has an age profile relatively similar to that of the County and the region as a whole. The bottom line from these demographic numbers is that Tigard is not unlike any other city in the region and all of the broader shifts and trends discussed above will present similar opportunities for downtown Tigard. Figure 4. Population by Age, 2010 30% 25% 20% 15% 10% — 5% — 0% Age 0-14 Age 15-34 Age 35-44 Age 45-64 Age 65+ ■Tigard ■Wash Co Portland Region U5 Source: ESRI, Leland Consulting Group. Several national trends will impact the future development potential of the District. These include: • The oldest of the baby boomer generation turns 65 this year(2011). Between 2010 and 2040, the US Census projects that the number of Americans over the age of 65 will double—from approximately 40 million today, to 80 million in 2040. Beginning in January of this year, and over the next 19 years, at least 10,000 boomers per day will turn 65. Figure 5 shows the dramatically changing shape of Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 15 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 America's population over the past half-century. As more Americans enter retirement, their needs and preferences for housing will shift as they seek more affordable and easy to maintain lifestyles. • Generation Y(also known as the echo boomers), which encompasses youth born approximately between 1982 and 2000, is the largest generational group in the United States with approximately 80 million people. • Both the baby boomers and Generation Y have similar consumer preferences. Generally, they both share a desire for quality over quantity, a sense of community and place, and a desire to live in more urban environments. Combined, these two generations will greatly impact how cities evolve over the next 20 years, driving more demand for infill in urbanized areas and significantly increasing the demand for multifamily housing. • Livability is an economic development draw. Particularly for the technology and knowledge-based industries that will comprise most job growth in the future, the quality of life of the community is a major factor in business location decisions.Whereas in previous years employees moved to be close to their jobs, a new paradigm is emerging where it is the employers who move in order to be close to the talented workers they need to be successful. More and more, those workers are mobile and choose to live in communities with quality physical environments, outdoor recreation opportunities, cultural amenities, accessible transportation options, good schools, mixed-use urban centers, and other factors. • More people are moving to downtowns and places that offer an "urban" lifestyle. Across the country, growing numbers of people—particularly young professionals, baby boomers and young families—are settling in downtowns. Convenient access to shopping, amenities, entertainment, services, dining and recreational options within a short walk, bike ride, or drive, reduced commute times to work, and the convenience of living in a smaller home that requires less maintenance are just some of the reasons why downtown living is appealing to people of varied ages and demographics. Figure 5. America's Population: From Pyramid to Rectangle 1940 1960 2020 Age 85 and over Baby Boom 80 to 84 75 to 79 Male Female Male Female 70 to 74 Male Female 65 to 69 60 to 64 55 to 59 50 to 54 45 to 49 40 to 44 35 to 39 30 to 34 25 to 29 20 to 24 15 to 19 10 to 14 5to9 Oto4 15 10 5 0 5 10 15 0 5 10 15 10 5 0 5 10 1S Millions Millions Millions Source: US Bureau of Census, Leland Consulting Group. What this means for housing Figure 6 underscores the scale of the growth in older households nationwide, while also illustrating some additional elements of the nation's changing demographics. This data also portends a growing need for smaller dwelling units with a richer variety.As referenced above, the greatest amount of overall household Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 16 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 growth during the coming decade will come from the baby boomer generation.Younger households, with heads-of-households younger than 40 years of age, will also grow—though at a slower pace. In particular, households aged 25 to 34—a key demographic that drives apartment demand and development—will experience strong growth. The number of middle-age households, however,will decrease, because of the relatively small number of"Generation X" households compared to baby boomers. The decrease in this age group—which has the largest percentage of families and children—suggests that the single-family housing market will continue to stagnate for some time. However, there will be a growth in the number of minority-headed middle-age households. Figure 6. Nationwide Household Growth, 2010–2020 (Millions) Younger households: Middle-age households: Older households: Modest growth Net decrease; minority Significant growth, households increase particularly in white households 2.5 2.0 — 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 Non-Hispanic White —Minority -2.0 -2.5 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75 and Age of Householder over Source:Joint Center for Housing Studies at Harvard University,Leland Consulting Group. Market Outlook In summary, the five-year outlook for development in downtown Tigard is as follows: • Multifamily housing.Apartments of all types will be viable, even during the short term when the larger housing market is still in recovery mode. Multifamily housing types may include market-rate apartments, workforce apartments (affordable market-rate or subsidized), and senior housing. Condominiums and other attached ownership housing types are not likely to be viable in the short term. • Retail development. The retail market will continue to evolve, with big-box retailers rolling out smaller format stores. Downtown Tigard will primarily attract smaller independent retailers, with an emphasis on food such as restaurants, bars, and cafes. Food-related businesses will support the desired housing growth and will build on the authentic downtown ambiance, which cannot be replicated at other competing retail districts such as Washington Square, Highway 99W, or Bridgeport Village. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 17 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 • Arts and culture.The District currently has limited cultural facilities including the library, a glassblowing studio, and a dancing studio.Additional development of Live Laugh Love Glas, galleries, performing arts, and other venues would A new glass blowing studio,opened in continue to support retail growth and would provide 12011 offers classes in the art of glass additional amenities to attract housing. The viability of such uses will be dependent on strong leadership from blowing and a gallery showcasing entrepreneurs, nonprofits, or other organizations and the handmade items for sale. availability of suitable sites or existing buildings. The Main Street Green Street project will also include a public art component and the development of an urban plaza would create a venue for outdoor events. • Mixed-use development.Any of the above uses could conceivably be built in a mixed-use setting, either vertically incorporated into the same building or horizontally integrated onto the same site. Mixed-use development tends to be more expensive and IL # complicated to develop, so it is likely that short-term opportunities will focus on single-use buildings or - horizontally mixed uses on the same site. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 18 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Urban Renewal Financial Outlook This section provides a snapshot of the District's financial situation in order to frame the discussion of potential projects with a realistic assessment of revenue expectations over the next five years. This financial forecast was derived from a study recently completed by Tashman Johnson LLC on behalf of the City. Table 4 highlights the five-year projections of tax increment revenues from fiscal year 2011/2012 through fiscal year 2015/2016. It takes into consideration current economic conditions including lower than normal building permit activity due to the recession, low to no property appreciation due to the housing crisis and recession and the fact that the urban renewal district is still fairly young. The largest project to date was a non-profit affordable housing project which will be exempt from property taxes and therefore does not add to the increment. Other considerations are as follows: • Incremental assessed value based on projection of 1.4 percent appreciation in assessed value of existing property, for a conservative estimate, but anticipates modest recovery later in projection period. • Undercollection and compression loss projected at 5 percent. • Revenues projected to range from approximately$320,000 to$500,000 per year over the next 5 years. • Sum total of$2.1 million projected net tax increment revenue from FY 2011/2012 through 2015/2016. Table 4. Projected Tax Increment Revenues Projected Total Assessed Value $95,604,035 $97,442,491 $99,806,686 $103,203,980 $107,148,836 $111,648,919 Frozen Base $69,207,378 $69,207,378 $69,207,378 $69,207,378 $69,207,378 $69,207,378 Appreciation% 1.4% 1.4% 1.4% 1.4% 1.4% Appreciation$ $1,338,456 $1,364,195 $1,397,294 $1,444,856 $1,500,084 New Development Value $500,000 $1,000,000 $2,000,000 $2,500,000 $3,000,000 Incremental Assessed Value $26,396,657 $28,235,113 $30,599,308 $33,996,602 $37,941,458 $42,441,541 Consolidated Billing Rate 12.9589 12.882 12.81 12.6481 12.4582 12.4461 Tax Increment Revenues $342,072 $363,725 $391,977 $429,991 $472,681 $528,231 Net Tax Increment $324,968 $345,538 $372,379 $408,492 $449,047 $501,819 Revenues @ 95% Source: Cashman Johnson LLC. FY 2011-2012 Budgeted Urban Renewal Projects Description Main Street Green Street Related Projects Burnham Street Public Parking Lot $50,000 Parking Management Assistance $5,000 Wayfinding Implementation $15,000 Downtown Gateways at Main Street and Pacific Highway $120,000 Fagade Improvement Program $75,000 Development Opportunity Studies and Real Estate Consulting $60,000 Downtown Marketing Implementation $50,000 Total Budgeted Projects $375,000 Source:City Center Development Agency, 2011-2012 Budget,adopted 14 June 2011. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 19 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Urban Renewal Project Selection Criteria The next step in developing a development strategy is to identify project selection criteria to evaluate and prioritize potential urban renewal projects. As with most urban renewal areas, the list of Streetscape Improvements potential projects is likely to be longer than the ability to fund them, at least in the short term. Therefore, using criteria to screen Recent Streetscape improvements that potential projects is a valuable way to ensure that the projects that improve pedestrian safety and help define are prioritized will support broad community objectives. the Downtown should be leveraged by concentrating future resources in areas The project evaluation criteria are: that have received recent investments. • Tax increment creation: Does the project or action increase Hall&Burnham Gateway private property values? Does it increase property values indirectly? Since urban renewal funding is generated by the growth of property taxes in the District, it is essential that projects directly or indirectly support new investment. Likewise, the leverage of the project(the ratio of the tax increment creation to the level of public investment)should be considered in comparison to the leverage of other possible projects. w _ • Catalytic potential: Leverage will be higher when a project is able to create momentum or leverage other follow-on projects rather than be a standalone investment. Priority projects will serve as catalysts for the District, attracting other investment Burnham&Main Intersection nearby or removing barriers to further investment. • Housing amenity: As shown in the market summary, urban housing will be one of the greatest market opportunities over the next five years. Housing is also one of the greatest ways to Y revitalize downtowns and create an 18-hour environment, where residents will create activity on the streets seven days a week, support downtown merchants, and foster the creation of a sense of place and community. Priority projects will provide amenities for current and future residents. • Project readiness: Priority projects must be realistically achievable given challenging financial times and limited Main Street Green Street Improvements resources. Programs that are already in place or are time- tested in other communities can be put into action quickly and effectively. Conversely, projects that are labor-intensive ` relative to their potential impact or that would require legal or policy changes in order to be put into place may not become priorities. Evaluation Process Using a project matrix, each of the potential projects was evaluated , against the above criteria,with graphical notations depicting the evaluation. This initial screening is important to verify that the projects under consideration do indeed further the goals of the plan and attract investment. Not every project rates strongly on every criterion, of course. This is not to say that such projects should be excluded—indeed, strength in one area may outweigh weaknesses in another. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 20 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Development Strategy This Strategy helps to ensure that projects over the next five years will be effective at attracting investment and achieving the Urban Renewal Plan's goals for downtown Tigard.With only$22 million in total potential spending over the Plan's lifetime, not all projects mentioned in the Plan will be able to be funded through urban renewal money–a strategic prioritization of projects provides guidance on where to spend limited public resources so that they best respond to current market conditions and downtown development opportunities. The Development Strategy for the next five years builds upon the review and analysis described above and distills it into an achievable five-year work plan for action.While the Main Street Stamp&Stationery Urban Renewal Plan, the Tigard Downtown Improvement Main Street Stamp&Stationery received Plan, and other documents provide long-term guidance and design assistance and a matching facade vision for the area, the Development Strategy is a improvement grant for new paint,signage deliberately short-term program to guide immediate investment activity, project budgets, and human resources. and awning. All of the projects in this Strategy support the goals of the Before Urban Renewal Plan. Taking cues from the market analysis and building upon projects already underway or completed, . the project priorities were evaluated against the project , selection criteria and then allocated budgets that match the S anticipated urban renewal revenues.s The projects that were gsrmaneav evaluated were drawn from all of the planning documents listed beginning on page 3. To this list were added additional projects suggested by staff and the consultant team. The Development Strategy builds upon the Implementation Strategy completed in 2008. It is organized into four main categories: • Encourage and Facilitate Redevelopment Projects in Downtown • Improve Fanno Creek Park and Develop an Open Space System in Downtown < • Develop Comprehensive Street and Circulation -4b—tSt—_n&stauoo Improvements in Downtown - � • Develop Organizational Leadership and Capacity in Downtown The remainder of this section describes the priority projects that were identified for each category. Each project includes a brief description and an explanation of the rationale for including it in the five-year work plan. Encourage and Facilitate Redevelopment Projects in Downtown New Development Grant and Loan Program: Offer loans and/or grants for new development, either residential or commercial. The five-year focus should be on residential development in the Burnham Street area. This reflects the market analysis findings that urban housing will be a growing market 5 The Development Strategy assumes that the City will fund urban renewal projects on a"pay as you go"basis,only spending from annual cash flow. If the City instead issues a bond,the available resources would be considerably higher. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 21 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 opportunity in the short term. Secondly, the Burnham area is ripe for housing development given the recent streetscape improvements; the proximity to Fanno Creek Park, the library, and commercial services on Main Street; and the sizeable redevelopment opportunity sites located in this area. New development in this area will immediately increase the tax base, providing tax increment to support further projects in the future. Moreover, residential development will bring in new residents who will activate the neighborhood and patronize downtown businesses. Rehabilitation/Redevelopment Grant and Loan Program: Continue to offer loans and/or grants for property rehabilitation and redevelopment of existing buildings, including fagade improvement grants for commercial development. Building upon the recent improvements to Burnham Street and the upcoming Main Street Green Street project, the five-year focus should be on Main Street and Burnham Street to leverage these significant public infrastructure investments. In addition to exterior improvements, the program could be expanded to support interior improvements and tenant improvements. For tenant improvements (e.g., restaurant equipment and lighting and other fixtures), a business loan program could be used if there is concern about directly granting money to businesses. Similarly, the program could be structured to only be eligible for more permanent types of improvements that would stay in place even if the current tenant changes. One way to ensure this would be to make interior grants or loans only eligible for the building owner, not the tenant. Technical Assistance Program: Continue to provide technical assistance to property owners such as development opportunity studies, market studies,feasibility analyses, engineering and design, and other activities directly related to development of property. While the Technical Assistance Program is available to any property owner in the District,the focus over the next five years should be on properties on Main Street, Burnham Street, or anywhere else where residential development is likely. Property Acquisition: Acquire property from willing sellers in order to assemble land for redevelopment. Particularly in a downtown location where parcels are small and ownerships are fragmented, land assembly can be a significant barrier to development and redevelopment. By assembling property and then selling larger sites to developers, the City can play a catalytic role in making projects feasible. Depending on the finances of the project, property acquisition costs can be recovered by selling the properties to developers, returning money to the District for further acquisitions or other projects. Alternately, the land costs can be"written down"to provide a financial incentive to developers. Property acquisitions over the next five years should focus on residential development opportunity sites. Redevelop Public Works Yard: The City's Public Works facility located on Burnham Street is an ideal opportunity site for housing. It is adjacent to Fanno Creek Park, is close to the r'"rnham Public 1ll1-1— V-1 library, and would build upon the new pedestrian-oriented The Public Works facility situated along streetscape recently completed on Burnham Street. The City Fanno Creek is an excellent should explore opportunities to relocate the facility so that the redevelopment opportunity which could site can be freed up for development. Initial work should focus on finding relocation sites, while later efforts would be on provide housing and leverage recent exploring development concepts and recruiting developers. streetscape improvements along Burnham Street. Improve Fanno Creek Park and Develop an Open Space , System in Downtown Fanno Creek Park Improvements: Fanno Creek Park is one of downtown Tigard's greatest assets and is a key amenity that can attract residents to the area. Plans are already in place and some funding is already lined up to make significant upgrades and improvements to Fanno Creek Park, — including the preservation and restoration of environmentally — sensitive areas. Urban Renewal funding can help fill the gap to build these improvements, including the replacement of pedestrian bridges over Fanno Creek Park, making the Ash Avenue and Main Street park entrances more prominent Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 22 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 would be another important improvement Plazas: Public plazas and gathering spaces encouraging a broader range of active and passive recreational uses in downtown are recommended in numerous downtown Tigard planning documents. Large plazas can serve as the location for citywide events, drawing families and visitors to the downtown for concerts, markets, and festivals. Smaller plazas can also be located throughout the downtown to provide opportunities for smaller events or to serve as small pocket parks. This project would include funding to continue the evaluation of potential sites for acquisition and development as a plaza. Develop Comprehensive Street and Circulation Improvements in Downtown Main Street Green Street: Beginning in 2012, Main Street will be rebuilt with the addition of landscaping features, street trees, street furniture, stormwater catchment and retainment systems, and sewer upgrades. To leverage the grant funding awarded by Metro, urban renewal funds will contribute to this project. High Capacity Transit: A long-term vision for the region is to serve the corridor in the vicinity of Highway 99W with high capacity transit service, including a connection to downtown Tigard.While construction of a new transit system or facilities is many years away, planning is already underway. Support from the urban renewal can assist in the ongoing planning to ensure that future transit service integrates well in downtown and that it supports and is supported by the downtown land uses. Develop Organizational Leadership and Capacity in Downtown Downtown Organization: An active downtown organization is an essential component of every successful downtown. Consultant Michelle Reeves recently completed an analysis of downtown Tigard and made recommendations increase the organizational capacity to support business growth, marketing, and events.While the applicability of urban renewal money to ongoing organizational development is limited, the mission and strategy of the organization should be closely linked with the other priority projects in this strategy. Project Schedule and Funding Matrix Table 5, below, provides the total project cost and funding timeline for projects identified as priority projects. These expenditures are detailed for each year over the next five year period. Several project categories such as property acquisition cannot be determined until specific sites or more detail is identified, so the total sum of projects may exceed the District's five year revenues. As in the past, the City will seek to leverage urban renewal revenues with other funding sources, grants, and possibly even private financing, so the annual urban renewal revenue projection does not necessarily need to constrain the list of potential projects. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 23 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Table 5. Project Schedule and Funding Matrix Projected Costs per Fiscal Year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Encourage and Facilitate Redevelopment Projects in Downtown New Development Grant/Loan Program $0 $200,000 $200,000 $200,000 $200,000 Rehabilitation/Redevelopment Grant/Loan Program $75,000 $75,000 $75,000 $75,000 $75,000 Technical Assistance Program $60,000 $60,000 $60,000 $60,000 $60,000 Property Acquisition TBD TBD TBD TBD TBD Redevelop Public Works Yard TBD TBD TBD TBD TBD Improve Fanno Creek Park and Develop an Open Space System in Downtown Fanno Creek Park Improvements $0 $400,000 TBD TBD TBD Plazas TBD TBD TBD TBD TBD Develop Comprehensive Street and Circulation Improvements in Downtown Main Street Green Street Related Projects $70,000 $255,000 $0 $0 $0 High Capacity Transit TBD TBD TBD TBD TBD Downtown Gateways $120,000 $0 $0 $0 $0 Develop Organizational Leadership and Capacity in Downtown Downtown Organization $50,000 TBD TBD TBD TBD Carry Over Projects $89,330 Five Year Total $464,330 $990,000 $335,000 $335,000 $335,000 Source:City of Tigard, Leland Consulting Group. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 24 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Conclusion Since the District was created in 2005, many public and private investments have been made that have improved downtown Tigard. Despite the economic downturn that began in 2007, investments and development activity has continued. The diversity of these projects, ranging from street improvements, new transit services, affordable housing, new retail development, and others continue the diverse mixed- use character of downtown. While in 2011 the market continues to struggle, there are bright spots on the horizon. In particular, demographic shifts and market trends will greatly increase the demand for apartments and other types of attached housing, especially in walkable, mixed-use, urban environments like downtowns. As such,the Strategy Update focuses on investments that support housing development over the next five years, as this is Tigard's best opportunity to draw new investments that also support the goals of a vibrant downtown. The prioritization of recommended projects focuses them geographically in areas that best leverage recent public investments such as the rebuilding of Burnham Street and the upcoming Main Street Green Street project, while also applying throughout the District projects that will create amenities to attract residents. In addition to capital projects that are funded by urban renewal, other concurrent efforts should continue. These include the ongoing retail marketing efforts currently being completed by Michelle Reeves as well as efforts to strengthen the downtown organization. Great downtowns result from the coordinated cooperation of public and private leaders—the capital investments provided by urban renewal must be matched by a strong and active organization. Finally, this Strategy is based on the assessment of current conditions and opportunities at a single point in time.While it anticipates future market conditions, they are always subject to change. Therefore, the Strategy should be considered a living document, subject to revision and updates over time, with progress reviews done at least annually, and full updates (such as this document)done every five years. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 25 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Appendix Table 6. City Center Urban Renewal Plan Projects Status Report Urban (from UR Plan) C=corn pie te, Total Costs Renewal IP=in progress,P=partial, Through 2026 Fund W notyet (Urban Renewal Contribution started Report) to Date (or projected A Street Improvements $4,419,098 $258,000 1.Ash Avenue Extension,Scoffins to Burnham,Including C/IP Extension to Commuter Rail $0 RR Crossing parking lot completed.Feasibility study started for at-grade rail crossing 2.Scoffins Street/Hall Boulevard/Hunziker Re-Alignment NP 3.Hall Blvd/Highway 99W Intersection Improvements C ODOT,County,and City project $0 4.Greenburg Road/Highway 99W Intersection C ODOT,County,and City project $0 Improvements 5.Burnham Street Improvements IP $258,000 B.Streetscape Improvements $4,419,098 $455,000 1.Main Street IP Project at 60%design $255,000- 2.Burnham Street C $200,000 3.Commercial Street N 4.Ash Avenue P 5.Scoffins Road N 6.Center Street N C.Bike/Pedestrian Facilities $546,841 1.Commuter Rail Access C Completed by TriMet 2.Hall Blvd.sidewalks P Some sidewalk infill done as part of Knoll project 3.Scoffins Street N 4.Tigard Street bike lane N 5.Highway 99W sidewalks C ODOT project 6.Center Street N 7.Enhanced Pedestrian Bridge over Fanno Creek N Connecting to Ash Avenue 8.Conversion of Existing North Rail Corridor into a Multi- IP ODOT rail and rail line have use Pedestrian Trail started the abandonment project 9.Tigard Street/Grant Bicycle/Pedestrian Crossing N D.Parks $3,885,376 1.Fanno Creek Park Improvements N 2.Skateboard Park C $0 E.Public Spaces $3,118,445 $0 1.Green Corridor/Urban Creek N 2.Plazas P Fanno Creek Park and Plaza Master Plan completed.New sites being evaluated 3.Urban Green Spaces P Fanno Creek Park and Plaza Master Plan completed 4.Public Market N F.Public Facilities $765,216 $50,000 1.Performing Arts Center N 2.Public Parking Facilities IP 20 space surface lot to be built $50,000' FY11-12 3.Post Office Relocation N 4.Public Market Area N 5.Public Restrooms N G.Planning and Development Assistance $2,756,003 $88,402 1.Rehabilitation/Redevelopment Grant/Loan Program IP Fagade Improvement Grant $58,402 Program 2.New Development Grant/Loan Program IP matrix of potential Developer Incentives developed 3.Technical Assistance Program IP DOS $30,000 4.Commercial Fagade Improvement Loans N Grant program instead Property Acquistion-From Willing Sellers $956,351 ? Subtotal(minus projected costs) $546,402 Total Estimated Costs $20,866,428 $851,402 'Projected Cost Source:City of Tigard, Urban Renewal Report, 2005 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 26 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Table 7. Development Strategy Matrix-Current Status of 2007 "Leland Report' Recommendations Downtown Development Strategy Recommendations and Current Status Recornmiandations Status IP=in progress, N=not yet started Organizational Recommendations 1.Establish a strong Downtown organization. IP In progress.Michele Reeves effort has led to new interest in an organization. 2.Strengthen coordination between the CCDA and other Downtown IP In progress.CCAC has good working relationship with CCDA.TCBDA organizations. _ (Downtown business association)has gone on"hiatus." 3.Increase property owner and developer outreach. IP In progress.Staff have made numerous contacts with property/business.A developers roundtable will be organized in fall/winter 2011. 4.Develop a branding campaign for Downtown Tigard. IP In progress.Michele Reeves led workshops with business and property owners. . 5.Appoint a Downtown liaison within the City's Current Planning Division C Redevelopment Project Manger serves as ombudsman for Downtown to serve as a"go-to"person for private sector developers,and property development applications. and business owners. 6.Create a"success audit"for Downtown Tigard. N Internal assessment has been done,but not the public/promotional document recommended. Policy Recommendations 1.Follow through with projects that are planned or currently underway. IP In progress. Greenburg/Hall/99W intersection and Burnham projects completed. I Main St.currently being designed.Rail-to-trail corridor is progressing. 2.Revisit,prioritize and amend specific elements of planned and IP In progress Five Year Assessment of Urban Renewal will assist in prioritization. proposed projects identified in the TRIP and the City Center Urban Renewal Plan to ensure that public dollars are maximally leveraged and affect the greatest impact. 3.Implement Downtown Tigard Urban Renewal District Comprehensive IP Implementation of adopted Comprehensive Plan is on-going, Plan policies and action measures. 4.Amend existing zoning standards to promote land use and C Completed.Development Code Amendments adopted Feb.2010. development that is consistent with the TRIP vision. 5.Establish design standards for Downtown Tigard. C Completed.Development Code Amendments adopted Feb.2010. 6.Institute expedited permitting process. C Completed.Applications within the urban renewal district receive priority. Housing Recommendations 1. Assemble land for housing Downtown IP In progress:City has purchased property on Burnham that could be developed as housing. 2.Conduct design and feasibility studies for housing and mixed-use N Not yet pursued due to delay in Urban Plaza project.Alternative sites are being development on parcels adjacent to the Urban Plaza evaluated. 3.Create a Development Opportunities Study(DOS)Program to IP In progress.DOS have been completed on 5 downtown properties. encourage property owners to explore redevelopment. 4.Offer density bonuses to encourage housing development Downtown. C Completed.Development Code Amendments adopted Feb.2010.Development code update allows increased density in vicinity of Commuter RailRgard Transit station. 5.Relocate Tigard's Public Works yards to make the site available for IP In progress.This is a long term project,but initial discussions are ongoing. housing development. 6.Redevelop the Tigard Public Warks Building property at the N Not yet pursued.The final disposition of the property has not been determined, intersection of Hall Boulevard and Burnham Street. but it may become the new police station. Retail Recommendations 1.Form a relationship with a commercial broker to work with property N Not yet pursued. owners and retailers to attract desired retail development Downtown. 2.Create a Main Street commercial redevelopment loan or grant program N Not yet pursued,in lieu of the Main Street fagade improvement program. to encourage development along Main Street that is consistent with the TRIP vision. 3.Create a Main Street storefront improvement program. C Completed.Program established.12 properties have received design assistance and 3 matching grants(total$64,1 have been awarded 4.Create a retail-focused DOS program for Main Street and the section N Not yet pursued.The DOS program has not focused on retail,but potential of Burnham between Ash Avenue and Main Street. mixed use and housing development. 5.Facilitate redevelopment ofthe two shopping centers at the N Not yet pursued. intersection of Hall Boulevard and 99W. Access,Transportation and Parking Recommendations 1.Implement long-term plans to increase connectivity to and within the IP In progress.Draft connectivity plan will go to public hearing in fall/winter,2011. Downtown. 2.Establish a shared parking program. IP In progress.Shared parking is currently permitted by code.Consultant Rick Williams has developed a draft parking management plan. 3.In collaboration with the Downtown organization,pursue a very modest IP In progress.Consultant Rick Williams worked with Downtown property/business parking strategy. owners on a parking management plan.(a Downtown organization has not yet been established). Source: City of Tigard,April 2011 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 27 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Table 8. Project Evaluation Matrix Key: High Medium Low O Not Applicable n/a Priority Projects in yellow Project Name Description Reference Type of Tax Catalytic Housing Project Urban project Increment Potential Amenity Readiness Renewal Creation/ Contribution Leverage Encourage and Facilitate Redevelopment Projects in Downtown New Development Loans and/or grants for new UR Plan direct Up to$1 Grant/Loan Program development,either residential or project incentive million over commercial.Five-year focus is on * 0 (3 0 five years residential development in the Burnham Street area. Rehabilitation/ Loans and/or grants for property UR Plan direct Up to Redevelopment Grant/rehabilitation and redevelopment, project incentive $500,000 Loan Program including fagade improvement grants overfive for commercial development.Five-year 0 0 ( i years focus on Main Street and Burnham Street to leverage streetscape investments. Technical Assistance Technical assistance including UR Plan direct $60,000 Program development opportunity studies, project incentive per year market studies,feasibility analyses, engineering and design and other • 0 • activities directly related to development of property.Five-year focus on Main Street,Burnham Street, and residential development projects. Property Acquisition Acquire property from willing sellers in UR Plan direct TBD order to assemble land for project incentive redevelopment.Five-yearfocus on © 0 n/a residential development opportunities. Redevelop Public Relocate public works yard to support Development direct TBD Works Yard redevelopment of the site for housing. Strategy incentive 0 0 project Shopping Center Network with private developers and Development direct Redevelopment continue to pursue property owners Strategy incentive that may be willing to sell or redevelop project • • • the shopping center at the intersection of Hall Blvd/Pacific Hwy/99W. Performing Arts Performing arts center will provide new capital/ Center entertainment and recreation infrastructure 0 ; i opportunities to attract residents and visitors to downtown. Post office relocation Relocate the existing downtown post UR Plan direct -10 ` office. project incentive continued on next page. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 28 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment im Agenda Item 4 Project Name Description Reference Type of Tax Catalytic Housing Project Urban project Increment Potential Amenity Readiness Renewal Creation/ Contribution Leverage Improve Fanno Creek Park and Develop an Open Space System in Downtown Enhanced Pedestrian Facilitate access between residential UR Plan capital/ Bridge over Fanno neighborhoods west of Fanno Creek project infrastructure Creek Connecting to and downtown,while minimizing Ash Avenue impacts to sensitive areas and preserving wetlands buffers. Fanno Creek Park Upgrades and improvements to Fanno UR Plan capital/ $350,000 Improvements Creek Park,as well as the preservation project infrastructure and restoration of environmentally (10 sensitive areas.Includes replacement of bdd es. Conversion of Existing Convert north rail corridor into a multi- UR Plan capital/ North Rail Corridor into use trail,increasing pedestrian access project infrastructure a Multi-use Pedestrian and providing new recreational (11 CJ J Trail opportunities for residents,workers and visitors. Green Corridor/Urban Development of a green corridor/urban UR Plan capital/ Creek creek extending from the intersection project infrastructure of Hwy 99 and Hall Blvd through downtown to Fanno Creek,with bio- • swales,native vegetation,pervious pavement and other low impact stormwater conveyance features. Plazas Public plazas and gathering spaces UR Plan capital/ encouraging a broader range of active project infrastructure • i and passive recreational uses in downtown. Urban Green Spaces Urban green space similar to the plaza, UR Plan capital/ designed to promote the preservation project infrastructure • ! of environmentally sensitive areas Public Market Public market space near Fanno Creek UR Plan capital/ Q • • project infrastructure Public Parking Create a surface public parking lot on UR Plan capital/ $50,000 Burnham St project infrastructure Public Restrooms Provision of public restrooms in public UR Plan capital/ . gatheringspaces. project infrastructure Develop Comprehensive Street and Circulation Improvements in Downtown Ash Avenue Railroad Gain approval from ODOT Rail for an UR Plan capital/ Crossing at-grade RR crossing at Ash Ave by project infrastructure Q closing a RR crossing in another part of Tigard. Main Street Green Addition of landscaping features,street UR Plan capital/ $255,000 Street trees,street furniture,stormwater project infrastructure • * • catchment and retainment systems. Sewer upgrades. Scoffins StreetlHall Connect Scoffins to Hunziker Road UR Plan capital/ Boulevard/Hunziker Re where they cross Hall Blvd. Impact on project infrastructure 0 0 4 0 Alignment existing a artment development Street Connectivity Implement additional proposed street Development capital/ TBD Plan implementation connections in connectivity plan(to be Strategy infrastructure 0 (3 O adopted) project Commercial Street Addition of landscaping features,street UR Plan capital/ Streetscape trees,street furniture and other project infrastructure (10 physical enhancements Scoffins Street Addition of landscaping features,street UR Plan capital/ Streetscape trees,street furniture and other project infrastructure r♦ physical enhancements Center Street Addition of landscaping features,street UR Plan capital/ Streetscape trees,street furniture and other project infrastructure physical enhancements Center Street Provide sidewalks and bike lanes on UR Plan capital/ sidewalks and bike Center Street project infrastructure 3 la (3 Q lanes continued on next page. Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 29 Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment Agenda Item 4 Project Name Description Reference Type of Tax Catalytic Housing Project Urban project Increment Potential Amenity Readiness Renewal Creation/ Contribution Leverage Develop Comprehensive Street and Circulation Improvements in Downtown Hall Blvd.sidewalks Eliminate gaps in the sidewalk on the UR Plan capital/ east side of Hall Blvd.and repair project infrastructure + • sidewalks and curbs on both sides as needed. Scoffins Street Install bike lanes and sidewalks on UR Plan capital/ Bike/Ped Scoffins Street,which lacks both types project infrastructure (3 (3 of facilities Tigard Street bike lane Provide a new bike land on the south UR Plan capital/ side of Tigard Street and upgrade the project infrastructure • bike lane on the north side to standard conditions Tigard Street/Grant New at-grade bike/pedestrian crossing UR Plan capital/ Bicycle/Pedestrian extending from the intersection of project infrastructure Crossing Tigard Street and Grant Street to the north side of the railroad tracks to (3 © « Q facilitate circulation and access by non- motorized vehicles. Gateway Features Gateways at major entrances to Streetscape capital/ $120,000 downtown Plan project infrastructure 3 (3 Q (3 Downtown Way-finding Create pedestrian-oriented signage Metro grant capital/ , i infrastructure High Capacity Transit Regional high capacity transit route is Regional capital/ currently being planned for the area project infrastructure and may include a station in the urban 0 0 4111 0 renewal district.Reserve funding for potential UR support. Develop Organizational Leadership and Capacity in Downtown Downtown Support a downtown organization and Development direct $50,000 for Organization implement the recommendations made Strategy incentive first two by Michele Reeves. project years. Program should be self- sustaining after that (or will secure g rant funding) Tigard Downtown Strategy Update/5-Year Urban Renewal Assessment ■ September 2011 ■ DRAFT 30 Agenda Item #5 CAC 2011 GoalsQuarter Update I. Project Infrastructure a. Oversee, review and provide input including a. the following key projects: i. CCAC updated on 60% design i. Main Street/Green Street Phase 1 ii. New Downtown open space sites actively ii. Open Space/Downtown Park/Plaza Site being explored iii. Burnham Street Completion iii. COMPLETE iv. 99W/Hall Gateway iv. $2,000 interim landscaping project v. Lower Fanno Creek completed (using intersection project vi. Transit Center Revitalization budget). Area will be included as a potential vii. Tigard Street Trail Pedestrian/Bike site for public art. Boulevard vii. Tigard St. trail not selected for MTIP viii. Full Utilization of WES Park&Ride grant funding. Highly ranked by PRAB for park bond consideration II. Economic Development a. Work with Metro consultant to develop a. marketing plan for downtown i. Reeves presented recommendations to July i. Engage neighborhoods, business owners, joint CCAC/CCDA meeting property owners,potential tenants and developers within the consultant process b. Advocate for implementation of approved b. Funds to implement recommendations plan included in FY`11-12 CCDA budget III. Development a. Promote downtown Tigard a. Staff has made several developer contacts i. Outreach to developers/Solicit businesses ii. Land assembly and direct development options b. Advise CCDA on possible incentives b. COMPLETE c. Improve our knowledge of the downtown businesses and customer base using census information, cultural demographics, trends, and other statistics IV. Facade Improvement Program a. Continue to promote and expand program a. i. Consider expanding program onto streets in i. Former Tigard Fitness property awarded a addition to Main $25,000 matching grant. Architectural ii. Pursue endorsements from participants assistance services being provided to A-Boy iii. Develop evaluation metrics that are and Sherrie's Jewelry Box. qualitative and quantitative 1 Agenda Item #5 V. Circulation Plan a. Review recommendation before final adoption b. Engage in regular communication with b. CCAC members attended HCT CAC HCTCAC to ensure HCT transportation plan meetings meets needs and values of downtown and the eater community c. Continue discussing about the "Heart" of downtown d. Deep focus on RR crossing at Ash Avenue d. Public Works feasibility study of at-grade and opening to WES park and ride rail crossing consolidations to be presented in Council executive session VI. Communication a. Liaise with PRAB, HCTCAC and other a. Regular CCAC representation at HCT boards CAC and PRAB meetings b. Engage in on-going communication with b. Council and Staff i. Two joint CCAC/CCDA meetings held in i. Attendance as warranted at council and CCDA 3rd quarter meetings ii. Representation at downtown project meetings c. Engage in on-going communication with hircd c. Michele Reeves and Leland Consultants consultants briefed the CCAC d. Engage in on-going communication with citizens of Tigard e. Publish a Five-Year Report of e. CCAC subcommittee to work on accomplishments f. Begin a long-range plan to cover the 5, 10 and f. 5 year UR review will provide guidance for 15 years left in the URD long range URD plan VII. Ongoing Processes a. Continually improve CCAC processes and a. procedures including,but not limited to: i. Draft annual calendar distributed at March i. Annual calendar development meeting ii. Continue to evolve meeting efficiency ii. Staff meets monthly with CCAC Chair and and agendas Vice-Chair to setagendas b. Increase awareness of the impact our work has on the community i. Continually work to increase transparency with citizens ii. Establish a quarterly financial report of Urban Renewal Funds c. Perform other duties as assigned by CCDA 2