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10/15/1991 - Packet AGENDA ****************************************** **** MEETING IS AT CARROWS RESTAURANT **** ****************************************** ECONOMIC DEVELOPMENT COMMITTEE MEETING TUESDAY, OCTOBER 15, 1991, 7 :30 A.M. CARROWS RESTAURANT - 10900 S.W. Pacific Highway, TIGARD, OR 1 . TOUR OF THE TIGARD TRIANGLE o meet in Carrows parking lot 2 . CALL TO ORDER 3 . ROLL CALL: SAVORY DE BERNARDIS PULLIAM ETCHEMENDY ORLANDINI MOORE 4 . APPROVE MINUTES 5 . TRIANGLE PLAN o review of the plan status o discussion/recommendations 6 . ADJOURNMENT TO ENSURE A QUORUM TO CONDUCT BUSINESS, PLEASE CALL LIZ NEWTON AT 639-4171, EXTENSION 308 IF YOU ARE UNABLE TO ATTEND TIGARD TRIANGLE 0 A F L Available Lands Analysis II. Vicinity Analysis III. Development Trends IV. Development Potential L AVAILABLE LANDS ANALYSIS A. Existing Land Use Conditions Within the Tigard Triangle area there are three primary land uses: 1. General Commercial There are 178 acres zoned for this use and 86 acres are presently in use. Ninety-two acres are available for future development. These uses are spread throughout the Tigard Triangle and consist primarily of one story buildings covering approximately 30% of their sites. These are somewhat stable uses by long-term tenants or owners. 2. Professional Commercial There are 132 acres zoned for this use divided into two sub-uses: office and retail. Approximately 119 acres are zoned office of which 67 acres are in use, with 40% lot coverage at an average of three stories. This 2,718,000 square feet of office use is largely confined to the south angle at Route 217 and I-5, and the lower part of the north angle in the interior of the triangle between I-5 and Route 99. Offices are primarily Class B, centered in three major developments that are likely to maintain their quality and stability for the long term. There are 52 acres of land available for future office development in the Triangle. There is 170,000 square feet of retail development, along Route 99, primarily in one story buildings covering 30% of 13 acres. Retail development is of the "strip commercial" type prevalent along Route 99 throughout Tigard. There is no further land available zoned for retail in the Triangle. 3. Residential There are thirty acres in use in single family housing, with slightly more than 600 units, located in two large areas within the center of the triangle. Fifty-nine percent are single family homes and 41% are multi-family units. Residences are valued generally below the average for Tigard. There is no further land available zoned for housing in the Triangle. Page 2 B. Existing Demographic Conditions 1. Resident Population The population of the Triangle has been stable at an average of 1400 persons since 1980, and is projected to decline by the U.S. Census. Residents have the lowest education level of any neighborhood in Tigard and the second lowest income level. Residents also have the lowest percentage of employment in the executive/managerial and professional categories. 2. Employment There were 7,711 jobs in the Triangle in 1987 in the following economic sectors: Manufacturing 21% Retail 16% Finance, Insurance, Real Estate 14% Services 14% Wholesale 10% All other <10% The U.S. Census projects a 24% increase in employment in the area by 1995 and a 61% increase by 2010. II. VICINITY ANALYSIS The Tigard Triangle is surrounded by four distinct development areas, defined by the confluence of major highways and arterials that create the Triangle. 1. East, Across Interstate 5 Two major residential developments are nearing build-out in this area: 1) Mountain Park, a new community with 1534 single family and 1918 multi-family housing units and attendant commercial space of about 200,000, and 2) Westlake, a residential community of approximately units. In addition, two major community resources, each occupying large tracts of land, exist in this area: Portland Community College's Sylvan Campus and the Church of Jesus Christ of Latter Day Saints Portland Temple. Page 3 2. Southeast, Kruse Way Corridor This corridor is developing as a Class A office parkway, with individual commercial developments interspersed among large office park buildings. Streets are wide and parkway-like; landscaping and pedestrian path amenities are to a high standard. There now exist twelve office buildings totaling 881,483 square feet, approximately 500,000 square feet of commercial space, and a major hotel. Another 500,000 square feet of office and commercial development and a 90,000 square foot church are expected within the next five years. South of this area, west of Boones Ferry Road and east of I-5, is a residential area that is experiencing significant in-fill and redevelop- ment of existing homes. It has become an active residential redevel- opment area, as land in Lake Oswego becomes increasingly scarce. 3. Southwest, across Route 217 This dog-leg shaped area extends from Route 99 on the west, south of Route 217, east along I-5, and bounded on the southwest by the railroad line. It has been an area of intense development during the last six years, especially with distribution and flex office/industrial space within industrial parks. Almost one million square feet of such space has been constructed or is planned. 4. Northwest, across Route 99 to Washington Square This area is remarkably similar to the Tigard Triangle Area in demographics and development activity. Office development is concentrated along Route 217; there is a commercial strip along Route 99; and housing, both single family and multi-family, is concentrated in the center away from major roads. Wetlands have been a significant development consideration in the Route 217 Corridor. Office and commercial development is part of the Washington Square area of influence, except along Route 99, where development is similar to other retail development along that corridor. Demographic characteristics of the residents of the area are similar to those in the Tigard Triangle, with income, education levels, and property values well below the average for the City of Tigard. Unlike the Triangle area, however, census projections are for increased population and improved demographics by 2010. HL DEVELOPMENT TRENDS A development plan was prepared for the Tigard Triangle exactly twenty years ago in 1971. It is interesting to note that the Triangle then was much as it is today. Residential areas, the Route 99 commercial strip, the elementary school, and Farmers Insurance were all in place. Page 4 Development since then has been limited to one and two story office complexes primarily in the Hampton Road area, and some scattered commer- cial. The high growth period of the 1980's produced the following new development within the Tigard Triangle: Development Type Square Feet No. of Projects Office 147,585 4 Medical Clinic 7,000 1 Retail 3,800 1 Theatre 50,000 2 There was no new housing, either single or multi-family within the Triangle during this period. This slow pace of development is particularly notable in light of the explosive development that has taken place in the vicinity of the Triangle. Twenty years ago Washington Square was proposed, but not built; Kruse Way was not an extension of Route 217; Mountain Park was in its early stages of development; Westlake and the Kruse Way Corridor were unknown; and the "flex" projects of light industrial/office parks south of Route 217 were not even imagined. Why did the Tigard Triangle change so little in twenty years while develop- ment around it thrived? What can be done to ensure that the Triangle joins in the development patterns that are sure to continue around it? IV. DEVELOPMENT POTENTIAL Why did the Tigard Triangle escape the explosive growth of office, industrial, and residential development in surrounding areas? We believe there are possibly two reasons: o First, surrounding development has occurred as large tract single uses such as Washington Square's retail on site and tangential uses, Mountain Park and Westlake's residential communities, Kruse Way office development, and light industrial development south of Route 217 and west of Interstate 5. Those large developments have absorbed most of the market growth in those uses. They have been high visibility projects, both visually and in the marketplace. o Second, the interior of the Triangle lacks visibility, and the perimeter on two sides, along Interstate 5 and Route 2179 lacks direct access. There are few landmarks that characterize the Page 5 area to passersby. The Ford dealership on I-5 and the Farmers Insurance complex are the only "landmark" developments notice- able from the perimeter. The unimproved interior road system gives a rural character to the interior area, and topography precludes the visibility of newer office uses. Traffic tends to go past the Triangle area, rather than through it. Limited development brings few people to the area. And no major developments have served as a magnet to the Triangle. A. Development Potential of the Tigard Triangle It may be, however, that the Triangle's time has come. Major surrounding developments are approaching build-out, and there are virtually no large tracts of land available in the vicinity for future development. The Tigard Triangle has several notable strengths as a development area: 1. Most important is its location. It is close to downtown Portland, the center of a fast growing region, and lies along a concentric line which is the focus of suburban development in the region. Another important locational advantage is the area's proximity to the Cities of Tigard and Lake Oswego, highly desirable places within the region for business and residential location. 2. The area has near perfect access. Obviously, location along an interstate, including a key interchange, a limited access state highway, and a highly traveled state arterial, offer choices and great opportunity to bring people in and out of the area. Present parcelization of land and planned and unimproved roads offer choices for access, and can be easily redesigned for future development. 3. The topography offers variety and some points of visual interest and is almost entirely buildable. The wetland can be turned into a desirable feature if surrounding development is integrated into it. 4. The Triangle's visibility dichotomy (high visibility of the perime- ter and low visibility of the interior) could be turned to good purposes. Many development clients, such as Farmers Insurance, seek a location of high visibility and exposure. Others prefer a location that offers low visibility and less exposure. The Triangle can offer both. Page 6 5. Uses within the Triangle are presently segregated. Therefore, we would anticipate little conflict among users if the pace of development were to be accelerated. In addition, much land is in large holdings and could be converted to large scale development. And the option of a renewal area remains a logical redevelopment tool. 6. The absence of completed infrastructure could also be turned to advantage. No public investment would be forsaken if redevelop- ment were to occur. And the area offers a "clean slate" for large scale development that is now unique in the larger area. The Tigard Triangle has very few weaknesses as a developable area, and none is insurmountable: 1. Present residents may oppose redevelopment of the area. However, their property will increase in value as development pressures mount, a fact that often persuades land owners to support redevelopment, making their properties available for acquisition and aggregation by developers. And the City could make certain that the redevelopment planning and implementation processes were inclusive and supportive of landowner objectives. 2. The lack of present infrastructure improvements will necessitate significant investments by the City and the development community if development is to occur. However, a clean slate can be an invitation to the development community for large scale redevelopment, especially if the City is willing to invest in the area in cooperation with developers. 3. Present market conditions are sluggish at best. The area surrounding the Triangle is seeing slowed absorption rates for all uses. However, periods of economic downturn can be excellent times to plan, without the pressures that come from the development community and property owners for development approvals when growth is vigorous. B. Development Potential by Land Use The development potential for the Tigard Triangle by land use is examined carefully in Exhibit which details the strengths and weaknesses of each use in the area. The following conclusions are drawn from this analysis. Page 7 Residential The best future for residential development in the Triangle will be for high density residential, perhaps in mixed use projects which offer employment and shopping to residents. Commercial Office There appear to be two options for this use. First, present trends indicate a continued market for two and three story office uses. This is a unique product in the larger area where higher density Class A office prevails. Second, office uses could be developed at higher densities and in mixed use projects. Commercial Retail Retail development in the surrounding area is presently over- built, particularly given present market conditions. However, the stretch along Highway 99 could be substantially upgraded. Retail uses in other parts of the Triangle are probably not viable except as part of high density, mixed use projects. Industrial There is virtually no future for this use within the Triangle. The marketplace has created an area south of Route 217 and west of I-5 where light industrial/flex office parks are being developed. This area is preferable for such development because of the existence of rail, its ease of access to I-5, and the tendency of such businesses to aggregate together and buffer themselves from surrounding land uses. �' Page 8 TIGARD TRIANGLE POTENTIAL DEVELOPMENT MATRIX RESIDENTIAL Strengths o large land holdings o land assembly possibilities o close to employment and shopping o close to elementary school o good access to interior o buildable terrain Weaknesses o land values escalating o present residential development is undesirable 0 office and other development is now encroaching o isolated from other residential in the area Market Conditions o market softening in the surrounding area o with economic upturn, could be among last land in the area for this use COMMERCIAL OFFICE Strengths o good access o buildable terrain o large tracts where assembly is easy o provides link between office development in Kruse Way and Washington Square, natural infill area o high visibility from perimeter Weaknesses 0 low visibility in interior Page 9 Market Conditions 0 overbuilt o has been most consistent development in Triangle for past five years COMMERCIAL RETAIL Strengths o buildable terrain o easy access and visibility from Highway 99W Weaknesses o no access except from 99 o not enough density within Triangle to support Market Conditions 0 overbuilt o Route 99 corridor could be upgraded o could be supported by increased density within Triangle INDUSTRIAL Strengths o large land assembly possible o access to perimeter by highway o buildable terrain Weaknesses o no rail o truck traffic to interior could be a problem for office and residential users o land values could go too high Market Conditions o generally good, but approaching overbuilt 0 strong competition from Route 217/I-5 dog-leg to the south