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04/25/1988 - Packet AGENDA CITY CENTER PLAN TASK FORCE MONDAY, APRIL 25, 1988, 5:30-7:00 CIVIC CENTER 13125 SW HALL BLVD. , TIGARD, OR 1. CALL TO ORDER 2. ROLL CALL: ASH COHEN DEFERDING JUAREZ MARR MONAHAN MORLEY 3. APPROVE MINUTES 4. 5:30 - 6:15 P.M. TASK FORCE MEETS WITH CONSULTANT TEAM IN COMMUNITY DEVELOPMENT CONFERENCE ROOM 5. 6:15 - 7:00 P.M. CONSULTANT TEAM PRESENTATION TO COUNCIL AND TASK FORCE IN TOWN HALL CONFERENCE ROOM NOTE: SANDWICH MAKINGS, SALADS, DESSERTS AND BEVERAGES AVAILABLE FORM 5:15. CITY CENTER PLAN TASK FORCE Meeting of April 19 , 1988 , 6 : 30 P.M. Tigard Civic Center, Town Hall Room. Members Present: Jolynne Ash, Richard Morley, Pam Juarez, Mike Marr, Stuart Cohen, Bill Monahan Others Present: Liz Newton, Duane Roberts , Peggy Weston-Byrd, Sumner Sharpe, Wally Hobson, Eric Tinus, Gerry Cach, Valerie Johnson, Joy Hinkley Chairman Cohan opened the meeting at 6 : 45 . The minutes of the March 31 , 1988 , meeting were accepted as written. Discussion Items: Cruisin ' Tigard - Mike reported that he has secured a booth for the committee in front of the Washington Federal Bank for the day of the event. Capital Improvement Projects - Jolynne stated that it was her impression that a downtown project could be included in the Transportation Advisory Committee ' s recommended CIP if a specific project could be recommended. The committee discussed the issue and decided to endorse a Burnham Street project which combines intersection improvements at Burnham and Main Street with street widening of Burnham. Valerie noted that the Council has not discussed projects yet. They are discussing dollar amounts to arrive at a bond measure package at a cost of around $ . 85 per thousand. On May 2 the Council will meet with the Transportation Advisory Committee. By mid June a short list should be available. Jolynne will draft a memo to Randy Wooley advocating the Committee' s selection of Burnham Street as the key downtown project. Breakfast Meeting - Duane reported that the Council has authorized $200 for the catering of the breakfast meeting. The major cost is the postage. The goal is to send invitations by Friday with Committee members following up by phone on May 2 and 3 . Jolynne distributed call lists to members. Consultant Report - Hobson and Associates representatives were present to give their draft marketing study report in anticipation of an April 25 meeting with the Committee and Council . Wally apologized for not being able to distribute a draft for Committee review before the meeting. He noted that there will be ample time for comments and revisions before the final product is submitted. He then outlined the approach taken by the firm to analyse the market. He noted that retail is seen 1 as the prime opportunity while hotel and industrial development is secondary. Industrial is too land intensive for much future development. Hotel development would be limited because of lack of character for medium or luxury scale hotels. He noted that a budget hotel is not compatible with the vision statement. Eric presented the market analysis results and distributed a draft for Committee review. The firm looked at 22 retail centers in the area to assess them for the size and type of tenants to compare to the downtown area. They found that there is ample demand to lease up the two shopping centers now under construction in Tigard, that the 99W area is sound, and the vacancy rate in Washington County is only 6% . The outlook is optimistic. Valerie noted a discrepency with the population estimates in the report compared to Tigard' s own estimates. The projections in the report were generated by METRO and, Wally explained, are the correct type of projection for an economic analysis . Tigard ' s estimates are based upon land use potential build out and are not valid for this type of study. He suggested that the revised draft can show a range of projections. He noted that he feels that the market is in equilibrium with supply meeting demand. The issue isn' t how much demand there will be for future retail , but what can the city do to capture as much of the demand as possible to the downtown. The consultants estimate that there will be one half million square feet of new retail development in the next 17 years within five minutes driving time of the downtown. He stated that jobs will drive the growth. Summary of the consultant' s analysis: Retail . They found the following to be advantages: - banks generate daily traffic - the Post Office generates significant traffic - Stevens Marine is a major destination point - automotive accessory shops are a strong draw (there may ber some related uses that could be drawn to the area) Office. Class A construction is occurring at Kruse Way and the Lincoln Center. High visibility and good access to the freeway are needed along with the availability of commercial support. Class A involves a certain amount of prestige and serves a regional community. Opportunities are not present to tap this market for the downtown Class B has a 20% vacancy rate. The consultants are not optimistic that the downtown can compete for Class A or B office space. 2 Housing. They noted that Tigard has a strong market within the overall Washington County market. They feel that thge City can absorb about 250 multi- family units per year to 2005. About 50% of the recent multifamily development has been of the upscale type. So, there could be a demand for 90 to 120 upscale units per year in Tigard. They noted that developers have been looking at 99W and the Scholls Ferry Rd. areas. Hotels. The market does not seem ripe for hotel development. Occupancy rates have decreased steadily over the past five years making developers skeptical . Wally noted though that there are some anomalies in the market. Quality of traffic passing a site is the key for hotel potential , not volume alone. Pacific Highway has volume without the necessary quality. Light Industrial . In the short term the consultant feels the area market conditions, land area requirements, and access circulation will work against this type of development. Eric reported on the consultant ' s interviews of area brokers and developers. Their perceptions are that the area in general looks tired. Outdoor storage is sen as a visual problem for developemnt of the SeaFirst land. Other problems noted were: - lights on Pacific Highway leading to Main - the lack of pedestian access - the area is thought of as "down there" , it is hard to get to and not visible - uncertainty of the continuation and location of Ash Street - uncertainty of Fanno Creek Park development and how it will impact the SeaFirst land - along Main Street there are short sighted perceptions; - poor access - limited signage allowed - the office market is pessimistic because of - pedestrian access, lack of retail support, difficulties at traffic lights, need the creek to become open and accessible - concern related to the ease of going through the City permit process Sumner presented the Potential Development concept drawing. It shows the extension of Ash Avenue, a splitting of the SeaFirst land and a new street right of way leading to the land. They suggest an improvement to the creek with a lake or amphitheatre while preserving the wetlands value. Numerous points of public access are suggested. A frontage road along the south side of the railroad right-of-way is proposed along with better landscaping. 3 Sumner noted a number of opportunities: - SeaFirst land for new development - A-Boy land for redevelopment, possibly with a major restaurant - specialty retail infill on the west side of Main Street propmoting a village atmosphere - design improvements to the north end retail area to make it more active - multifamily development in the 15 to 25 units per acre range with some upscale units at the SeaFirst site - the mobile home site is an opportunity for renewal . He noted that a displacement problem could result, however, relocation assistance could be available from the County - restaurants will follow employment opportunities - small parking opportunites are suggested as part of the development of blocks on the east side of Main Mike asked how the potential development concept descriptions match up with the market opportunities . The consultant noted that the results are achievable as the demand will be greater than the opportunities in the downtown. Sumner stated that the major issue is the City must make a choice of how to proceed. Some existing uses are fixed unless the City is willing to use aggressive renewal techniques such as condemnation and land assembling. For example, he cited the GTE maintenance facility. The City could aquire and relocate the facility making the land available for retail or offices along the creek. Without public intervention, the facility will remain in its present use indefinitely. He suggested that the City needs to consider the public expense and timing while it formulates its plan and implementation strategy. They see getting the Fanno Creek Park to the point that it functions as a park as an important first step. Gerry Cach distributed a petition containing the signatures of downtown business people supporting the expansion of Stevens Marine. The Committee suggested that based on what the consultant was reporting, it is possible that Stevens could remain and expand, however, improvements are necessary to the appearance of the facility as it relates to Fanno Creek Park and the facility must fit into the overall plan. Peggy suggested that Stevens could possibly showcase and display better, taking advantage of the site. Wally distributed a Framework for a Stategy Decision. He noted: - a movie theatre is not realistic - a small facility for performing arts is not realistic in the short term, but possibly a store front theatre or amphitheatre would work - pedestrian ways leading to access retail facilities from the rear would pose security problems 4 - a quality hotel would not be the most advantageous use of the SeaFirst site. No other area of the downtown is likely for this type of development - several small parking lots are needed. He felt that the parking problem needs to be examined in total With the refinements noted, the consultant found that the vision statement is feasible within the marketplace. Wally stressed the need for clearcut goals and policies for the downtown. The consultant noted the need for public participation and a commitment. They suggested starting with public investments based on a master paln with zone revisions. Then public improvements must be evaluated along with the means of financing. Wally noted that getting housing downtown was an important element. The consultants urged the Committee to look at the tax increment financing approach with caution. Next the consultant will expand the framework for strategy to be part of the May 9 report. At the City Council meeting of April 25 they will focus on the scope of work elements and seek input. Peggy presented the Committee with a check in the amount of $1,500 from the Downtown Council of the Tigard Area Chamber of Commerce as a contribution to the marketing study. The meeting concluded at 9 :45 . The Committee will meet next on April 25 with the Council . Submitted by: William A. Monahan 5 ITINERARY (TENTATIVE) Salem Tour Saturday, May 21, 1988 9:00 a.m. Depart Tigard City Hall parking lot 10:00 a.m. Arrive Salem City Hall, 555 Liberty Street SE Park in ground level lot 10:00-11:00 a.m. Assemble in Room 305, southeast corner• of third floor Presentation by Dick Hayden, Urban Development Administrator: 1 . Overview of Urban Development Plan 2. Financial tools used to implement Plan 3 . Dollar• leveraging methods 4. Public/private roles 5. Hotel project 6. Riverfront project 11:00 a.m-.Noon Downtown walking tour Noun-1:30 or 2:00 p.m. Lunch meeting with Mr. Hayden and board members in Nite Deposit banquet room Tables configured for meeting Order individually from menu Payment by City 2:00 p.m. Depart Salem 3 :00 P.M. Arrive Tigard City Hall sb/4539D THE TIMES, Week of April 28-May 4, 1988 Page 3A Report favors shops p for downtown area TIGARD—Downtown Tigard could feasibly become a home for a microbrewery or an upscale apartment complex,but a fancy hotel probably is not in the cards. That was part of the message City Council and staff members heard Monday night from several consultants who recently complet- ed a marketing study of the city center. Wally Hobson, president of Hobson and Associates, a Portland marketing and development analysis firm,said the city center could be a prime spot for construction of small-scale retail outlets. A written report compiled by the consultants states that the current supply and demand for retail are balanced, and the report lists small shopping centers,specialty shops and restaurants as possible uses for downtown property. Hobson listed two types of retail sales:"Type A,"involving larg- er outlets that would draw customers from around the region,and "Type B," with smaller stores. The city center probably would not accommodate Type A stores because not enough land is available, but Type B retail would be more feasible,he said. In response to a question from Councilor Valerie Johnson,Hob- son said residential and retail uses could be mixed within the same building.Although investors sometimes shy away from that type of land use,it may become more common,he said. "Personally,I think that would be delightful,"he said. Industrial and retail uses also could be combined,such as with a microbrewery that includes a pub or a woodworking shop attached to a retail store that sells the shop's work,he said. The written report states that hotels, movie theaters and office space probably are not practical prospects. The market for office space is"soft,"with 20 percent vacancy rates in the area,according to the report. The report lists small shops, historic structures, professional buildings, the Civic Center, Fanno Creek Park and the Tri-Met transfer center as the city center's biggest strengths. Hobson & Associates Urban Land Economics/Market& Development Analysis MEMORANDUM TO: City Center Plan Task Force FROM: Hobson & Associates Cogan Sharpe Cogan DATE: May 3, 1988 SUBJECT: Draft of Strategy Section of Tigard Market Study. This document is the draft of the strategy section of the market study pursuant to our agreement on a revised time table for completing the market study. Also attached is the revised schedule of due dates and meeting times which we discussed at our last meeting. We look forward to meeting you on Tuesday, May 10 to discuss the strategy section. 813 Southwest Alder Street,Suite 800 Portland,Oregon 97205 (503) 226-6616 TIMEFRAME FOR REPORT COMPLETION Date and Time Requirements 1 . May 3, 1988 Deliver Market Strategy Report to Committee 2 . Tuesday, May 10, 1988 Meet with Committee 3 . May 17, 1988 Draft Report 4 . May 19, 1988 7 : 00 P.M. Work Session 5 . May 26, 1988 Submit Final Draft Report 6 . June 1, 1988 Third Workshop; Review Final 7 : 00 P.M. Draft 7 . June 13, 1988 6 : 30 P.M. Final Presentation to Council 8 . June 24, 1988 7 : 00 A.M. (Tentative) Breakfast Meeting Hobson&Associates DRAFT MARKET OPPORTUNITIES AND REVITALIZATION STRATEGIES The principal problem to be solved is to identify the kind of product that needs to be developed in Tigard to penetrate the marketplace. Currently, the product offered by downtown Tigard is not competitive in this marketplace with respect to identity and image. It is a tired product in need of revitalization. The central thesis of a strategy to develop the Tigard City Center Study Area is that public investment is first needed to stimulate private investment and that the two together, over time, a long period -)f time ( 10 to 20 years) will eventually result in revitalization and renewal of downtown Tigard. An important part of this strategy is to create an activity center that will draw people to downtown Tigard. future commercial uses on Main Street then become a spin-off of this activity center. The best opportunity for the City of Tigard to create this activity center is to improve Fanno Creek Park. This section first addresses which market opportunities exist now or could be created, and establishes the correlation between these market opportunities and public involvement with regard to: 1 . The level of control the community has over the quality and type of new development; 2 . The timeframe over which new development could occur; 3 . The extent to which the private sector is involved and committed to new development. Based on the relationship between market opportunities and public involvement, the framework of a strategy, or plan of action, is then outlined, and recommendations on an appropriate strategy are presented . The strategic recommendations are based on: 1 . The objectives in the "Vision Statement" for downtown Tigard. 2 . Available physical resources ( land) ; 1 Draft--Tigard Strategy Hobson&Associates 3 . Market reality (How the market will respond) ; 4 . Public actions and intervention and level of financial resource commitment. MARKET OPPORTUNITIES Market opportunities for Study Area development are first determined by assessing the resources which accommodate development. This assessment is made within the following context: 1 . Vision : Is it realistic , and do the market opportunities support the objectives of the Vision? 2 . Land: What land within the Study Area is available for development and what locations are suitable for new development? 3 . Market Perception: Where and how would the market respond to different locations within the Study Area? 4 . What methods of public involvement are available, and what level of public commitment is entailed in those methods? THE VISION The Vision Statement prepared by the City of Tigard was reviewed to determine whether it was realistic given market conditions . This vision statement is as follows : VISION FOR DOWNTOWN TIGARD The Vision for downtown tigard is a living and growing downtown, with a special character and identity. The major unifying feature is the image 2 Draft--Tigard Strategy Hobson&Associates 1. of a "City in the Park. " This image has as its centerpiece Fanno Creek Park, a large publicly owned area of land dedicated to public use and enjoyment in the heart of the City. Contributing to the image are fingers of green extending throughout the downtown in the form of leafy trees overhanging streets , richly planted pedestrianways, greenway entrance points, and the region' s only tea test garden. This clear and compelling image shows the value that Tigard' s citizens give to quality of life. As attractive as this image is , the Vision recognizes that it is the people who make the town . To this end, the Vision foresees a multitude of people drawn to the downtown not only be an appealing environment , but by available government, social, financial, and professional services, and above all by a strong retain core, with many unique, one-of-a-kind businesses . Other elements that make the downtown alive and contribute to an ample nightlife , such as restaurants, street vendors, movie theaters, and facilities for performing arts events are an important part of the Vision. Close-in housing and a high-quality hotel assist the central area economy. To facilitate economic revival , the Vision foresees improved access to downtown from many directions and, within the area, a grid system of streets to increase frontage sites and improve traffic circulation. Seen also are several small parking lots set interior to the block to minimize the visual impact on downtown and to disperse the parking to serve the most businesses . As a primary circulation system that connects activities throughout the downtown, the Vision foresees a network of pedestrianways leading to the back entrances of buildings . Integral to the Vision is the belief that the past is worth preserving. Accordingly, the Vision foresees the preservation and restoration of the downtown' s few remaining buildings of historical significance. These contribute to preserving our memory of the origin of the City. Co-existing with historical buildings are attractive new buildings set flush with the street to create a 3 Draft--Tigard Strategy Hobson&Associates sense of enclosure and place. To delineate the downtown area, the Vision foresees clearly defined edges and entrance points . We believe this vision statement describes a city center, with its own individuality, that is livable and worth being in. Table A summarizes the feasibility of each type of land development and how it realizes the objectives of the Vision. As shown, retail , Class B office , residential and recreational uses are considered to be realistic in the eyes of the marketplace and support the objectives of the Vision. Retail development will encourage people to come downtown and make the downtown more lively and urban in character. Office development supports retailing throughout the business day. However, mid-rise Class A office found on Kruse Way and around Washington Square is not feasible because, except for the Seattle First site, there is insufficient land area, and Tigard lacks the freeway feasibility and image for this type of use. Furthermore, four or five story office space may not be compatible with the village atmosphere envisioned for Tigard. Residential development is very important because it provides continuous support for commercial development and establishes an image that the downtown ' is a good place to be. Residential uses are what makes a downtown come alive. In most situations, recreational development or active uses of public open space would not be primary strategies in urban redevelopment. However, in this case, the Park is the focal point for long-term public development and thus provides an excellent opportunity to create an activity center which in turn supports retailing as a secondary activity. Industrial development, while feasible, is not compatible with the Vision Statement except in certain locations such as in existing industrial zones and adjacent to the railroad tracks . Mixed development of second story office over retail may be feasible long-term (five years or more) . As the historic configuration of urban commercial buildings, mixed development would positively complement a village atmosphere. With the exception of four specific items, the Vision is considered to be achievable. The four items which are 4 Draft--Tigard Strategy Hobson&Associates Table A MARKET FEASIBILITY BY TYPE OF DEVELOPMENT Type of Development Feasible Impact/Comment Retail Yes Positive; heightens public activity; draws people to area. Office No Not a Class A office site. (Class A) Requires greater visibility and higher image. Office Yes Positive; creates employment (Class B) center; Sustains commercial activity. Recreational Yes Positive; directly tied to Park im- provement, creating activities which attract potential shoppers and builds identity of "City in the Park. " Mixed Development Yes On a long-term basis--second story retail may be feasible, but unlikely in the short to medium term. Residential Yes Positive; Resident base provides captive activity in downtown. Industrial Yes Potentially Negative; not compatible with Vision Statement. Quality Hotel No Tigard location does not support quality hotel . Movie Theatre No Small Movie Theatre cannot compete in Market. Hobson&Associates considered to be unrealistic are described below: 1 . A single-screen movie theatre has marginal feasibility. As video tape machines have became normal household appliances, demand for theatres has decreased, particularly for second run films . Responding to this trend, movie theatre owners are developing multi-screen theatres with special designs and services . This type of theatre can be profitable, by providing a number of screening opportunities simultaneously, and by rotating films which begin to draw fewer customers into smaller viewing rooms . 2 . As discussed in the hotel market analysis in the previous section, it is unlikely that a hotel will be developed in the foreseeable future that would be of the quality desired in the Vision Statement. Rather, a more likely form of hotel development in Tigard would be a budget motel, similar to a Motel 6 . 3 . As a matter of retailing practice, "pedestrian ways leading to the back entrance of buildings" would not be generally acceptable to retailers, because second entrances can cause security problems . The same principle applies to many office buildings as well . 4 . In addition, the suggested series of small interior parking lots may be only a partial solution to parking problems and may not be the best solution. A final qualification of the Vision Statement, is that a facility for performing arts would most likely be successful in the form of a storefront theatre, such as the one located in Lake Oswego . Such a theatre could also provide opportunities for film workshops or classic/art film shows in lieu of a commercial movie theatre. Another important opportunity for performing arts events could be an outdoor amphitheatre associated with the proposed Fanno Creek park. 6 Draft--Tigard Strategy Hobson&Associates LAND ANALYSIS Because a market opportunity cannot be captured without adequate developable sites, it is important to study the land resources of the Study Area with respect to location, size, type, ownership, and other physical characteristics . The Tigard City Center Study Area, as shown in Figure 1, is a 180-acre triangular area bounded by the Pacific Highway to the northwest, multi- and single family residential development to the southwest, and Hall Boulevard to the east. The terrain is generally flat with gently rolling hills along the western edge of the area. Fanno Creek flows from north to south through the western portion of the Study Area. The Burlington Northern and Southern Pacific Railways run north and south bi-secting the Study Area. Traffic volume on these railways is approximately six trains per day. The main vehicular thoroughfare is Main Street which allows two points of access from Highway 99 W (Pacific Highway) . The central portion of Main Street, near the rail road crossings, lies below the Pacific Highway overpass . Access to the Study Area is also possible from Hall Boulevard onto Burnham, which runs north onto Main Street. The most recent Oregon State Highway Department average daily traffic counts show that 1986 traffic volume was 13, 900 on Hall Boulevard 0 . 01 miles south of Burnham Street and 29, 500 on Pacific Highway 0 . 01 miles south of McDonald Avenue. The predominant land uses surrounding the Study Area are residential to the west and south; strip commercial along Pacific Highway to the north; and commercial or industrial to the east and southeast . The Study Area lies approximately 0 . 3 miles west of Highway 217 and is not visible to traffic along that route. Figure 2 displays existing land uses in the Study Area. The dominant land use in the area is retail/commercial . Commercial activity has developed in a strip along Pacific Highway and Main Street with smaller amounts of commercial activity along Scoffins Street, Commercial Street , and Burnham Street. Light industrial development is concentrated to the south of the retail strip on Main Street along the Burlington Northern and Southern Pacific Railroad tracks, as well as Burnham and Commercial Streets . Multi-family residential development is located along Hall Boulevard, 7 Draft--Tigard Strategy Hobson&Associates Figure 1 TIGARD CITY CENTER STUDY AREA S � m Q y�Y2i 9� y9 �c D0F w SW Walnut :: ... w ..........:... w z Study - Area Pg SW McDonald Bonita J > J Q Q c �. = N Z � ~ U � 4 U 4Q 3 SW Durham co River 4 �P �♦�� \\ C tea: EXISTING LANo USE Figure 2 99 PARK FANNO CREEK ✓` COMMERCIALPARK SINGLE FAMILY PARR iiiaMOBILE Scoffins Street, and Commercial Street in the northeast portion of the Study Area and along McKenzie and Hill Streets in the southwest portion of the Study Area. Single- family residential development is located on sites along Hall Boulevard, Scoffins Street, Burnham Street, and Ash Avenue . Public and quasi-public land uses are located mostly in the southern corner of the Study Area and include the Tigard Civic Center and the Tigard Senior Center. Public open space is found near the Civic Center along Fanno Creek, and at both intersections of Main Street with Pacific Highway. Table B shows existing land uses by type and land area. The Study Area is comprised of 170 tax lots, ranging in size from 0 . 01 to 8 . 45 acres . The most notable characteristic about the Tigard Study Area is the lack of developable vacant land, and the large number of separate tax lots and ownerships, making land assembly time consuming and costly. Table C displays a breakdown of the vacant acreage located in the Study Area. Approximately 30 acres or 16 percent of total land within the Study Area are presently vacant. Of this vacant land, the largest parcel is 17 contiguous acres owned by a single property owner (SeaFirst) , with as much as 25 percent lying within the Fanno Creek floodplain. In addition, the City Public Works is planning to relocate and will vacate an additional 3 . 15 acres . Of the entire 180- acre Study Area, an estimated 25 to 30 acres under different ownerships lie within the Fanno Creek floodplain. MARKET PERCEPTION The real estate market reacts to many obvious and subtle qualities of a site and a location. And, different land uses have different site characteristic requirements . Factors such as the general location, land values, the image created by surrounding land uses, access and circulation, parking opportunities, and many other factors affect the marketability and suitability of a site for various land uses . In order to assess existing and potential market opportunities in the Tigard Study Area, it is necessary to understand what the market requires for a particular activity. The following discussion describes the market' s perception of the Study Area based on interviews with 10 Draft--Tigard Strategy Hobson&Associates DRAFT Table B ESTIMATED ACRES OF LAND BY TYPE OF USE 1/ Tigard City Center Study Area Percent Use Acres of Total Commercial 2/ 35 19% Industrial 2/ 25 14% Public 29 16% Single Family 11 6% Multi-family 12 7% Mobile Homes 2 1% Vacant 15 17% Public Circulation and Right-of Way 36 205 TOTAL 180 100% 1/ Does not include circulation or railroad rights of way. 2/ GTE site divided to reflect industrial and office uses . Source: City of Tigard; Hobson & Associates ( 1988) Hobson&Associates Table C STATUS OF VACANT ACREAGE TIGARD CITY CENTER STUDY AREA Acres Status 17 . 0 Single property owner; 25 percent in the floodplain. 2 . 7 2 City-owned; 1 in floodplain. 7 . 5 3 private ownerships in Fanno Creek floodplain. 1 . 5 Potential expansion of boat store. 0 . 8 Hall Boulevard south of Pacific Highway; currently for sale. 0 . 6 Between Commercial Street and the railroad between Main and Hall . Total 30 . 1 Acres Source: Hobson & Associates ( 1988 ) . Hobson&Associates developers and other real estate professionals, followed by a summary of the site location requirements for different types of uses . Retail Development As shown in the retail market analysis, Pacific Highway supports a substantial amount of strip commercial and neighborhood shopping centers . At present, the most likely locations for new commercial development in the Study Area are found on the SeaFirst property at the south end of Main Street, and along Main Street. The current perception in the marketplace, however, is that other sites along the Pacific Highway generally provide better retail development opportunities than sites within the Study Area. Some of the most common site requirements for retail development mentioned by retail developers include: 1 . Close proximity to a large resident population. 2 . Direct exposure to traffic (typically 25, 000 cars per day or more) 3 . Location near a signalized intersection 4 . Sufficient traffic capacity of streets; ease of ingress and egress 5 . Good visibility from a major arterial . 6 . Location in an established retail area and employment center with compatible adjacent uses . 7 . Sufficient parking usually at a ratio of 4 to 5 spaces per 1000 square feet of net usable building area. While market indicators suggest that sufficient demand is available for further retail development, the Study Area suffers competitive disadvantages relative to existing retail uses along Pacific Highway and other vacant retail sites . The disadvantages cited most often are summarized as follows : 13 Draft--Tigard Strategy Hobson&Associates 1 . Poor visibility and access; existing signalization at intersections of Hall and Main with 99 W are considered barriers; 2 . Lack of suitable vacant sites with the exception of the SeaFirst property; 3 . Retailers are not allowed to have more visible signage; 4 . Parking problems; 5 . Poor overall image and appearance of the downtown; 6 . Uncertainty to what extent developers will be made financially obligated for costs of Ash Street extension and Fanno Creek improvements; and 7 . Limited pedestrian atmosphere and facilities along Main Street. The types of new retail development which are considered to be most feasible at present by retail developers are freestanding specialty retail stores along Main Street, and a specialty or neighborhood shopping center on the SeaFirst site with a unique specialty anchor. Suggested anchors include an off price retailer similar to Costco, or a grocery store like Cub Super Markets or Food4less . With respect to a grocery anchor, it should be noted that six shopping centers along the Pacific Highway are anchored by grocery stores . Over the short to medium term ( 1 to 5 years ) , the grocery market is probably well-served by existing centers . Office Development As discussed in the office market analysis, the type of office development most suitable for the Study Area both now and in the future is Class B office space. The office market analysis indicates demand for Class B office space will be generated from projected office employment within the market area. Four types of office space fit within this category: 1 . Speculative office space (space constructed for lease) 14 Draft--Tigard Strategy Hobson&Associates 2 . Owner-occupied office space (professional firms such as engineers, architects, attorneys, etc. ) 3 . Medical office space 4 . Institutional or government offices With respect to owner-occupied office space, demand from within a market area can be projected, although it is difficult to predict where this type of office space might locate. The owners , location decision is made internally, and is not necessarily dependent on the lotion or availability of speculative office space available for lease. Interviews with office developers and brokers suggest that speculative Class B office development in the Study Area is very unlikely if the Study Area environment and character remain the same. The constraints to development cited most often are similar to those described above for retail development. Most notable, is the perception that Main Street and adjacent areas appear "run-down" and "tired" . The exception to a generally negative opinion concerning office development given the present situation, is again the SeaFirst site. The frontage along the Pacific Highway is considered to provide sufficient exposure to traffic , although the quality of the view of Fanno Creek is diminished by the existing outdoor storage behind buildings along the east . side of the creek. This site could also be appropriate for medical office space, which functions more like destination retail space, with respect to site requirements . Residential Development As part of the Vision Statement, "close-in housing" (i. e. housing which is adjacent to urban activity) is considered desirable as a development possibility in the Study Area. The market research found there exists a demand for mid- and upscale multi-family rental housing. Based on the current inventory of available vacant sites within the Study Area, only the SeaFirst property presents an existing opportunity for major apartment development. Constraints to apartment development on this site include: 15 Draft--Tigard Strategy Hobson&Associates 1 . Difficult access 2 . View amenity diminished by outdoor storage and industrial character of development to the east. 3 . High asking price by property owner. SITE LOCATION CRITERIA Site characteristics needed for the above land uses are used for subsequent analysis of market opportunities at specific locations within the Study Area. Typical site location criteria by type of use are summarized in Table D. In addition to the market ' s current perception, the development plans of business and property owners in the Study Area show how the market may respond if the existing characteristics of the Study Area were to remain unchanged. Table E lists each known improvement or development plan according to the street on which .the owner' s property is located. plans . As indicated, the largest planned development is 30, 000 square feet of mini-warehouse space along Burnham Street. Other planned improvements include exterior repairs and painting of structures along Main Street, as well as possibly rebuilding a store and new restaurant, and converting a house on Commercial Street into a workshop or storage area . These potential improvements , although significant to existing businesses , do not provide substantial realization of the goals implied by the Vision Statement. PUBLIC RESOURCES The Vision Statement has suggested what the community may want. These desires were then matched with the realty of the marketplace. The translation of these desires into realty depends on the availability of land resources, and the market' s perception of the Study Area. In addition, public action and intervention can be pursued at varying 16 Draft--Tigard Strategy Hobson&Associates Table D TYPICAL SITE LOCATION CRITERIA BY TYPE OF DEVELOPMENT Retail Direct Exposure to 25, 000 or more Average Daily Traffic High Visibility to drive by traffic Location near signalized intersection Location within concentrated population centers Sufficient Traffic Capacity of Streets Ease of Ingress and Egress Sufficient Parking opportunities, typically at 4-5 spaces per 1000 sq. Location in established retail area and employment center with compatible adjacent uses . Class B Office High Visibility View possibilities desirable Pedestrian access Supporting adjacent commercial uses Moderately sloped topography Compatible adjacent uses Site situated to allow awareness and significance of structure Multi-Family Residential Upscale 1/ 4 acres or more land area Varied Topography View Possibility or other site amenity are desirable Able to create own environment Existing Upscale Identity Compatible Surrounding Uses Minimal Noise Impact Proximate to professional or white collar employment centers Hobson&Associates Table D (Continued) TYPICAL SITE LOCATION CRITERIA BY TYPE OF DEVELOPMENT Midscale 2/ 4 acres or more land area Level Topography Minimal noise impact Proximate to Employment Centers Proximate to Public Recreation 1/ Upscale multi-family housing is defined as apartment projects with approximately 75 units or more renting for $0 . 55 per square foot or more. 2/ Mid-scale housing is defined as apart- ment projects with approximately 75 units or more renting for less than $0 . 55 per square foot. Source: Hobson & Associates ( 1988 ) . Hobson&Associates Table E PLANNED IMPROVEMENTS OR DEVELOPMENT City Center Study Area Planned Building Improvements or Development on Main Street Back Addition or Upper Story Addition of Upper Story Refurbishment for Office Use Exterior Remodel; Add Second Story Remove House for Parking Build New Store and Restaurant Expand Restaurant Dining and Kitchen Facilities Replace Porch and Repair Exterior Renovation Painting and Signage Improvements for 17, 500 sq. ft. . Non-profit Charity Store potential lessee. Repair and Paint Paint Exterior Planned Building Improvements or Development on Burnham Street 31, 000 sq. ft . mini-warehouse expansion Boat Store expansion Planned Building Improvements or Development on Commercial Street Minor Facade Improvements Interior and Exterior Improvements of 15, 000 sq. ft. Warehouse Retail Expansion Convert House to Workshop or Storage Area Source: City of Tigard ( 1988) . Hobson&Associates levels to enhance or create market opportunities in Downtown Tigard . Table F shows examples of levels of public involvement and commitment, in ascending order of magnitude. These means of public involvement require varying degrees of commitment in the form of money, time, and energy. The level of commitment which the community is willing to give can be differentiated into three strata with regard to the level to which the market can be influenced: 1 . Minimal to none (Planning) : market forces are directed as to where development can occur but are not controlled in terms of when that development takes place. 2 . Moderate (Public/Community Actions ) : market forces are influenced so that some control over the timing and quality of development is exercised. 3 . Aggressive ( Intervention) : a market opportunity which otherwise would not exist is created by assembling the product to which the market will respond. An example of minimal commitment is illustrated as follows : A zoning designation clarifies on which site a desired use would be permitted to locate. However, if that site is unattractive is the marketplace because it does not meet the required site location criteria, development of the desired type and quality within the desired timeframe is unlikely to take place. If no other public involvement were to occur, a minimal commitment will lead to little to no new development. Moderate Commitment: If the site is unattractive only because it lacks adjacent public improvements , such as sidewalks, landscaping, adequate streets, etc. , the public could act by providing those improvements, thus enhancing the market opportunity. This type of commitment can be considered moderate in its influence on the market--action is a means of enhancing opportunities and exercising control over the timing of development. Aggressive Commitment (Intervention) : If the same site is generally suited for a particular use, but it is too small, or occupied by an incompatible vacant building, or an 20 Draft--Tigard Strategy Hobson&Associates Table F EXAMPLES OF PUBLIC INVOLVEMENT OPTIONS Option Impact Plannincr Master plan and Traffic Sets direction and goals; Studies provides for orderly and Comprehensive Plan and efficient growth towards Zoning Amendments those goals--and provides the Ordinances means to control the quality Design Controls of growth. Public/Community Actions Infrastructure Improvements Makes area more accessible Vehicular and sympathetic to visitors Pedestrian and local users Recreation Mandate by Ordinance Building Upkeep Painting Facade Improvements Improves Visual Image Screening Better Signing Grounds Clean-up Community Events Builds community spirit and Merchant Associations pride; links private funding . Non Profit Organizations with public funding Neighborhoods Economic Development Programs Invites and pursues targeted businesses to locate in community Financial Incentives Provides direct economic Tax Abatement incentives to private sector Low Interest developers that mitigate and Land Subsidies and compensate for other Equity Participation negative site and location factors . Intervention Land Assembly Creates developable sites and Relocation Funding Market Opportunities Hobson&Associates DRAFT operating business, the public may need to assemble the necessary amount of land, and relocate businesses or residences . Land assembly by public agencies is usually accomplished through condemnation. This level of commitment to a particular type of development is considered aggressive--the public intervenes in the marketplace in order to realize a desired outcome. The degree to which the public acts to enhance opportunities by intervention is related to the amount of money available to devote towards revitalization efforts . Table G lists various sources of public monies . Subsequent analysis of specific market opportunities which could be enhanced or created in the Study Area is discussed below in relationship to some public funding methods . However, it is not possible in this study to anticipate the degree to which the public sector is willing to involve itself in a revitalization effort. ANALYSIS OF MARKET OPPORTUNITIES To analyze market opportunities in the Study Area, specific locations have been delineated and shown in Figure 3 based on: 1 . Market perception of the Study Area; 2 . Site location criteria; 3 . Existing patterns of development; 4 . Possible public actions and intervention. Each area shown in Figure 3 is described in Table H based on its present physical character, and assigned a potential future use which would support the objectives of the Vision Statement. Under the column heading "Secondary Potential Future Use" is listed the types of development which may be feasible in the long-term, but would probably not occur in the short to medium term ( 1 - 10 ) years, with the exception of Area 5, where industrial infill is feasible, but not 22 Draft--Tigard Strategy Hobson&Associates Table G EXAMPLES OF PUBLIC FINANCING METHODS Financing Method Systems Development Charges Grants ( Institutional) Grants (Private Donations -- Business Associations ) Urban Renewal/Tax Increment Financing Local Improvement Districts Special Taxes (e.g. hotel tax) Low Interest Loans General Fund Source: Hobson & Associates ( 1988 ) . Hobson&Associates x Table H Continued �. PfyP 24TIAL DSVEWPKENT AREAS Estimated Direct Visibility Size Access to to Drive by Surrounding Existing Potential Future U Area (Acres) Major Arterial Traffic Land use Character Primary Sezary 0 10 26-29 Yes Yes General Cam:ercial Retail Center Retail and Service Center Office Frontage on Hall and Pacific (D 11 9-1-1 Yes Yes Fanno Creek Public/ Civic Complex — Hall Blvd. Hall Blvd. Industrial Institutional] Railroad Office Source: necessarily compatible with the objectives identified in the Vision Statement. Retail Development Commercial land uses in an urban core create the vibrancy and character of a community. Retail and other commercial uses generate the traffic that keeps a community lively and interesting. A key strategy to revitalize the Study Area is to increase the level of this type of commercial activity. An analysis of the retail trade area presented in Section 3 indicates that the environment in which the Study ARea competes consists primarily of neighborhood or strip commercial shopping centers, with only one major discount general merchandise store (Fred Meyer) . Because of the characteristics of land within the Study Area and the competitive commercial environment , it is extremely important that steps taken by the public to enhance or create retail market opportunities be directed towards creating an environment which is antithetical to the strip commercial environment of Pacific Highway. Creating a special environment is also necessary because many destination retailers are present at Washington Square , which has a competitive advantage over the Study Area because of better access to the regional highway system and an established regional trade area. The relatively close proximity of Washington Square limits some of the opportunities for certain types of goods in downtown Tigard, such as soft goods , particularly clothing. A possible exception is off-price clothing stores like Ross ' Dress For Less, TJ Max, or small specialty used clothing stores . Attracting private investment in retail development in the Study Area requires the help of the community to create the traffic necessary to support more retail and commercial land uses . The first step in this process is the development of Fanno Creek Park, coupled with an aggressive community marketing effort, such as sponsoring public events that utilize a park environment. The key concepts of a commercial revitalization strategy are as follows : 27 Draft--Tigard Strategy Hobson&Associates 1 . Generate traffic by fulfilling demand for public recreation with Fanno Creek Park and community sponsored activities . 2 . Generate traffic by creating a unique retail environment in addition to the existing Main Street commercial uses . This step will require initiation by the public sector. Successful implementation of these two steps will lead naturally to increased interest in private investment along Main Street . A discussion of the types of retail development which could benefit the Study Area is outlined below. The area-by-area presentation in Table H is condensed by type of future retail development that could be expected to occur in the Study Area. As shown in Table I, there are three basic categories : Conventional commercial/shopping centers; land extensive warehouses; and infill shops . The first category is likely to occur at the SeaFirst site (Area 1 ) and in renovated space at the Payless Shopping Center (Area 10) . Both of these sites have frontage on the Pacific Highway and will be occupied or developed in all likelihood without any assistance or intervention by the City of Tigard . Examples of conventional commercial/shopping centers are shown in Table J. Areas 5, 6, and 7 which have a strong industrial character are suitable for retailers which need inexpensive, warehouse-type buildings for showrooms , inventory, and merchandising space. This type of retailing is becoming more and more popular with factory seconds outlets , volume discounting, and warehouse showrooms for a variety of merchandise. Another strong candidate for this type of land extensive retailer is an Oregon Products warehouse/customer outlet, wherein small specialty food producers could combine direct customer sales with warehousing and distribution networks . The freeway proximity directly benefits this type of use. Table K shows examples of land extensive retail uses . The final type of retail use consists of a wide range of specialty retailers, eating and drinking establishments, antique, and home furnishings stores for the existing shop space and future infill retail development. These uses are appropriate along Main Street in the established retail/commercial district. This development pattern is 28 Draft--Tigard Strategy Hobson&Associates Table I SUMMARY OF RETAIL OPPORTUNITIES BY AREA Type of Future Time Retail Development Examples Area Frame 1 . Conventional Furniture, Home Im- 1, 10 1-5 Yrs . Commercial/Shopping provement, Off-Price, Centers Medical Office, Discount Drug 2 . Land Extensive Costco, Showrooms, Ex- 5, 6, 7 1-20 Yrs . Warehouse, Show- hibition Space, Oregon rooms Products Warehouse/ Customer Outlets, Micro Brewery 3 . Infill Shops Restaurants, Specialty 3,4 1-20 Yrs . Retailers, Home Furnish- ings, Sporting Goods, Personal Services Source: Hobson & Associates ( 1988 ) . Hobson&Associates Table J EXAMPLES OF CONVENTIONAL SHOPPING CENTER DEVELOPMENT Furniture Carpets/Floor Covering Home Electronics Home Improvement Fabric Store Supermarket Off-Price Apparel (Ross, TJ Max) Table R EXAMPLES OF LAND EXTENSIVE RETAILERS Type of Business Retail Activity Stash Tea Tea sampling room and garden. Sausage & Smoke House Specialty prepared meats . Sponsor outdoor barbecues . "Harris Wine Cellars" Discount Oregon & Import wines; Wine tasting room. Cabinet Maker Hand crafted furniture. Display and demonstration room. Glass Blower Specialty glassware. Demon- strations & showroom. Ceramic Maker/Potter Ceramic items; Showroom and classroom. Specialty Food Condiments such as mustards or Producers jelly; Retail and sampling room. Textiles Seconds or Off-price woolen goods or other Factory Outlet clothing. Golf Club Manufacturer Custom made golf clubs . Fitting area, demonstration area. Hobson&Associates Table K (Continued) EXAMPLE OF LAND EXTENSIVE RETAILERS Type of Business Retail Activity Custom Small Boat Manufacturer Display room for wooden boats . Seafood Company Package and distribute fresh sea- food. Retail seafood counter area. Boat Store Recreational boat retailer. Display room. "Costco" Type Store off-price general merchandise. Micro Brewery Brew pub and tap room. Winery Vintner with sampling room. Special Exhibition or Small hobby exhibitions; trade Seasonal Product shows; Farmers ' Market; other Facility community events . Hobson&Associates DRAFT also very important to the realization of the Vision Statement. Examples of these types of retail uses are shown in Table L. Unlike the conventional shopping center development or renovation of Areas 1 and 10, the land extensive retail outlets in the industrial district are less straight forward and requires more public and private imagination and creativity. The Stash Tea operation is an excellent building block for this concept. Attracting similar food manufacturers or retail showrooms will require a concerted effort to market the vacant industrial buildings or parcels to retailers rather than typical industrial users . Promotion of downtown Tigard as a location for inexpensive retail space for special exhibits or factory outlets would be a long-term project. together with the development of Fanno Creek Park, downtown Tigard could become an attractive place to shop and spend time and money. With showroom and discount retailers and the park as important activity centers and traffic generators, a healthier climate for small retailers on Main Street will be achieved. Consequently, the consolidation of Main Street as a shopping district becomes a natural result of the traffic produced by larger retailers in the current industrial area. This is a key concept. Without this internal activity, it will be more difficult to induce more Main Street merchandising based on development of the SeaFirst and Payless sites alone, because these latter developments will not generate significant pedestrian circulation. Office Development In the Market Analysis section of this report, the market demand for office space in a five-minute trade area was analyzed. The overall market share, or that portion of the new market demand which the Tigard Study Area may capture is based on a number of factors including location, size of the Study Area sites , the characteristics and proximity of competitive office projects, transportation access, parking, and the prestige of the location. 32 Draft--Tigard Strategy Hobson&Associates Table L EXAMPLES OF SPECIALTY AND INFILL RETAILERS Food Stores Specialty Food Meat & Fish Fruit & Vegetable Market Health Food Candy & Nuts Dairy Products Bakeries Home Furniture, Furnishings Drapery/Curtain/Upholstery Bedding/Linen Lamps/Shades Household Appliances Eating and Drinkina Cafe' s Fast Food Delicatessen' s Family Dining Fine Dining Taverns, Bars Coffee Shops Yogurt Shops Ethnic Restaurants Miscellaneous Retail Drug Stores Liquor Stores Used Books, Antiques, Musical Instruments, Art, Clothes, Records and Tapes Sporting Goods Books Stationery Hobby, Tops Gift/Novelty Sewing/Needlework Florists Artists Supplies Hobson&Associates Table L Continued EXAMPLES OF SPECIALTY AND INFILL RETAILERS Personal Services Laundry/Dry Cleaning Coin-Op Laundry Upholstery Cleaning & Repair Beauty/Barber Shoe Repair Medical or Health Services Travel Agent Real Estate Agent Tax Preparation Source: Hobson & Associates ( 1988) . Hobson&Associates Considering these factors, the following types of office development could occur in the Study Area: 1 . Owner-occupied professional space for tenants such as accountants , attorneys , engineers , and architects . 2 . Health services space for physicians, dentists, and other professionals . 3 . Speculative Class B multi-tenant office space for smaller, general commercial tenants . 4 . Government or institutional office space. Space in most office projects is offered on a for-lease basis . As construction and operating costs and, consequently, rents continue to increase, many more office projects are being developed on an owner-occupied basis . Small professional firms such as attorneys , advertising agencies, and service firms who have smaller-scale fixed space needs are the principal tenants of this type of space. Location, as it relates to transportation, markets, and parking, is very important to these types of tenants . Owner-occupied office space could be an infill type of development in a variety of areas, including Areas 3, 6, 7, 8, 9, 10, and 11 . The professional office building for health care professionals is another office development alternative for the Study Area . Small multi-doctor facilities which accommodate two to seven doctors are a potential in-fill use in the areas where owner-occupied office development may occur. A large multi-doctor facility, however, will produce more interest in the Study Area and is better able to provide for property diversification of medical specialties and related amenities . Depending on the number of doctors and patronage drawn from the trade area, supplementary commercial uses such as the pharmacies , opticians , and coffee shops may be generated by this type of development. A potential site for a larger-scale medical office building is the SeaFirst property at the south end of Main Street. The Study Area' s location, however, may be a drawback to the development of a larger-scale medical facility because these types of developments generally are located near major hospitals . 35 Draft--Tigard Strategy Hobson&Associates In addition to owner-occupied and medical office space, speculative Class B office space is a potential longer-term use in the Study Area. If an attractive environment is created by the improvements to Fanno Creek Park, a location for Class B space is Area 7 where the GTE office building and Civic Center provide an office identity. It is also conceivable that some small office buildings ( 10,000 square feet or less) could be added as infill along Main Street. If the office identity of Area 11 were strengthened by improving the environment (i.e. , clean and modern) both in terms of the immediate surroundings as well as the visual impact on traffic along Hall Boulevard, government or institutional office space is a potential use near the Civic Center and GTE Building. Multi-Family Residential Development Multi-family housing is considered to be an important development option for revitalizing the Study Area, because it provides a higher density form of housing which can serve to maintain and create public activity within the area. Typical suburban multi-family density ranges from 10 to 25 per acre and includes apartments, rental duplexes, tri- plexes, and four-plexes . It is possible that a density of 20 units per acre could occur on suitable sites in the Study Area. As noted in Table H above, locations which could support multi-family housing are found in Areas 1 and 9 . Area 1 with its varied topography could support a more upscale project, while Area 9 might support midscale multi-family housing. The creation of a public park along Fanno Creek will have a major impact on the view amenity of development in Area 1 . the site could provide an ideal living environment with strolling paths along the creek leading to retail stores on Main street. 36 Draft--Tigard Strategy Hobson&Associates In addition to varying sizes of apartment projects, smaller multiplexes such as duplexes and tri-plexes can provide a good mechanism for in-filling smaller sites, which may not support retail or office development. This type of infill development is important not only because it is flexible in its site requirements with respect to size and location, but also because it can provide a varied and interesting visual effect with different building arrangements and architectural styles . SUMMARY OF DEVELOPMENT OPPORTUNITIES The vitality of Tigard' s Study Area is closely related to the economic growth of Washington County and the Portland Metropolitan Area. As the region' s economic base grows, employment and population in the region will increase and create new demand for real estate development of all types . In general, the amount of new development which the Study Area will capture depends on the competitive position of the Study Area relative to other locations in the region and the level and type of public involvement in the downtown development process which will enhance the area' s competitive position. The market potential for three primary uses in the Study Area--retail, office, and residential--was addressed in this report. Demand for new real estate uses in the Study Area is generated by three sources : existing population and employment base in the market area, the projected new demand based on growth in the market area, and demand drawn away from existing uses . For example, if the retail environment along Main Street became more unique and attractive, it would become more competitive in the marketplace and draw demand away from other existing competitive retail centers . If the Study Area evolves into a special or unique environment, it also can expand its trade area. For example, if more destination retailers such as the existing boat store or fly fishing supply store, located in the downtown and created a stronger destination center, market demand would no longer need to be drawn primarily from a five-minute trade area, but could be attracted on a ten to fifteen-minute or sub-regional basis . Table M shows the Study Area potential for new commercial and residential development over the 1988 to 2005 projection 37 Draft--Tigard Strategy Hobson&Associates Table N PRWBCTED DEMAND FOIL LAND IN THE STWr ARFA 1988-2005 Market Capture Rate 01 108 208 308 Projected Amount of Required Amount of Required Amount of Required New Demand Building Land Area Building Land Area Building Land Area Tyre of Lard Use 1988 - 2005 Space (Acres) Space (Acres) Space (Acres) Retail/Office 1,500,000 sq. ft. 150,000 sq. ft 14 300,000 sq. ft 28 450,000 sq. ft 41 m Total Multi-Family Residential 3,600 units 360 units 18 720 units 36 1,080 units 54 Upscale 1,800 units 180 units 9 360 units 18 540 units 27 m Midscale 1,800 units 180 units 9 360 units 18 540 units 27 Total: 32 64 95 Note: Lard Coverage ratios are as follows: Retail/Office 258 Residential 20 Units/Acre Source: Hobson & Associates (1988). Mn period based on 10 percent, 20 percent, and 30 percent capture rates . As discussed previously, the Study Area' s capture of new demand depends on the level and type of public intervention in the development process . As shown in Table M, based on a capture rate of 10 percent, the Study Area will experience a demand for approximately 150, 000 square feet of retail/office space and 360 multi- family residential units over the projection period . Approximately 32 acres of land would be needed to accommodate the projected demand in the Study Area, based on a 25-percent land coverage for commercial uses and a density of 20 units per acre from residential uses . If a 30-percent capture rate was achieved, 450 , 000 square feet of retail/office development and 1, 086 new residential units would be added in the Study Area. These uses would require 95 acres of land in the Study Area over the 1988 to 2005 projection period. After estimating the new demand for various types of uses in the Study Area, it is necessary to compare projected demand with the existing supply of land in the Study Area. As shown in the land analysis section, the total supply of land within the Study area, excluding land in the Fanno Creek floodplain and land used for traffic circulation, is approximately 110 acres . Excluding land constrained by floodplain and land currently in public or private use, the Study Area currently contains 15 acres of vacant, buildable land. It is important to note that a turnover factor resulting from re-use, rehabilitation, expansion, or demolition of existing structures will affect the supply of existing space or vacant land in the Study Area. A comparison of supply and demand shows that 32 acres of land would be required to support new demand in the Study Area from 1988 to 2005, using a 10-percent capture rate and 95 acres are needed through 2005 based on a 30-percent capture rate. The existing supply of vacant buildable land in the Study Area is approximately 15 acres . The current supply of vacant land is not adequate to meet the projected demand based on a 30-percent capture rate. Extensive redevelopment of most areas in the Study Area would be required if this rate is to be achieved. Thus, it is not unreasonable to anticipate a 10-percent capture rate of the market area' s projected demand for retail/office and residential uses over the 1988 to 2005 projection period. 39 Draft--Tigard Strategy Hobson&Associates In summary, projected new demand for the types of development discussed above is considered sufficient to support revitalization of the Study Area. However, projected market demand is not so great that revitalization will occur solely as a result of market forces . Rather a comprehensive strategy of public action and intervention will be important to stimulate private investment in new development. IMPLEMENTATION STRATEGIES An implementation strategy for the Study Area is the framework which gives order to the overall planning and implementation of an urban renewal effort and defines the goals and objectives of that effort. The framework is established based on the resources available to implement that effort. The primary objective of the strategy is to encourage private investment which supports the Vision . This section presents : 1 . The framework for a strategy; 2 . Examples of where and how the public sector can stimulate private investment in the study area; 3 . Recommended public action priorities; 4 . Summary of recommended planning strategies . Strategy Framework Establishment of a strategy framework must consider whether the objectives of the strategy (i.e. realizing the vision) are realistic in terms of potential market support, as well as determine the level to which the strategy is supported by the public both politically and financially. The following outlines the elements to be included in a revitalization strategy. 40 Draft--Tigard Strategy Hobson&Associates Is the Vision Realistic given Market Conditions? As was stated earlier, the Vision is generally supported by the market analyses, with some specific exceptions . Goals and Policies The next step is to develop community consensus on goals, policies, and strategies which are documented, accepted by the community and adopted and promoted by the City Council through public decision processes . The first step in developing that consensus is to complete a master plan and traffic analysis which is both future-oriented in terms of the Vision, but also realistic in terms of the attitudes of the populace, with respect to the value and importance of the Study Area as perceived by the community, and its role in developing community pride and an expanded tax base. A master plan should address three key items : A. How much community consensus is there about the importance of the downtown? B. What would the future look like, i. e. , street system, development concepts, public improvements to the park, etc. ? A master plan should produce a tangible representation of the Vision. A traffic study will need to be completed as a part of the master plan to solve circulation and access problems . C. What public and private strategies will be needed to implement the plan? What regulatory changes or additions are needed to promote and protect the Vision? How much will it cost? Who pays for it? Should other incentives for reinvestment be included and will these work in Tigard? How long will implementation take? What is the appropriate sequence of actions, public and private, given the need to change and enhance the image of the downtown and to finance these actions? 41 Draft--Tigard Strategy Hobson&Associates Implementation Implementation approaches should consider both public and private roles; however, it appears that based on the current market perception of the Study Area and availability of suitable sites the initial steps must come from the public sector to send a signal to the private sector that Tigard is committed to redevelopment . Two basic approaches should be considered: A. A phased approach which relies on a sequence of actions over a period of time requires sustained political and financial commitment and has the advantage of working within the limitations of present and future budgetary and political constraints . However, it also has the potential to lose its vitality and commitment, resulting in marginal results for the dollars expended. B. A comprehensive approach, tied to both projected budgets and new funding sources requires a major up-front commitment, but once the pieces are in place, it develops a momentum of its own. To sell it requires a carefully developed plan of action which is realistic and accepted. The down side is that if this approach fails at the outset, it could result in a loss of momentum, and an obvious political setback which may be difficult to overcome in the near future. A combination of these approaches is possible; the decision about how to proceed is the community's, and should be an outcome of the Master Planning process described above. A wide range of strategies and possible actions are worth considering at this time. However, the specific combination and timing of strategies in the form of a political approach should be an outcome of the planning process . Presented below is a description of these options : A. Ordinances and legislative actions that set clear goals, policies, and standards including zoning, design guidelines, and parking requirement. 42 Draft--Tigard Strategy Hobson&Associates Figure 3 0 8� o .� o0 oho o a Do Q, oO�: �I O • ° O �j. ,�•�� �, Q rid O II 11 0 qq LAND AREAS TIGARD CITY CENTER STUDY Figure 4 Q CED o � o j g D�o�ao 0 0 o o a Ona. 0 08 0 oa D d I D o0 oo � Da \ o 0 O �o I IQ ltnEf�!pr (T) POTENTIAL STREET IMPROVEMENTS TIGARD CITY CENTER STUDY B. Private actions developed through existing organizations including a Chamber-sponsored fix- up, or storefront improvement. C. Public improvements including improvements to the park, street improvements , street additions , parking, pedestrian walkways , and other public infrastructure development. D. Public intervention in the market place, such as land assembly, grants , tax abatements , low- interest loans, and displacement assistance. 43 Draft--Tigard Strategy Hobson&Associates Means of Financing Sources of financing could include: local improvement districts, general fund, block grants and other grants, private donations , tax increment financing, systems development charges , and special taxes ( e . g. , room tax) . In all likelihood, financing should come from various sources, and in combination are adequate to carry out the elements of the plan which are essential to changing the image and improving the quality of the area as a viable center for living and commerce. The financial plan should be as concise as possible, including identification of the activities , the sequence of activities, and a time line. Public Enhancement and Creation of Market Opportunities As previously discussed, one of the major constraints to development, other than limited availability of vacant developable sites, is a poor overall image of the downtown. Improving the appearance of the Study Area is considered to be a crucial need for attracting private investment. A plan to improve that image should begin by focusing on the most visible areas of the Study Area both within and outside its boundaries . Gateways to Downtown The Study Area is physically situated such that three major visual "gateways " are perceived as the cornerstones of the downtown: 1 . The intersection of Hall and Pacific Highway is the most visible and highly traveled area. This area needs to be seen as an anchor, not just in terms of a major attractor, such as a retail anchor, but also in terms of visual image and its impact on travelers as an invitation to come downtown. 2 . The intersection of the south end of Main Street with Pacific Highway is the other major entrance to Main Street. This area should also be anchored by a commercial attractor. Development here would 44 Draft--Tigard Strategy Hobson&Associates DRAFT preferably be architecturally significant, and bring visual attention to the downtown. Because of the topography of this area, visual access to the downtown from the Pacific Highway south of Main Street is limited, and attention might be given to strategically placed signage combined with an entry statement along the Pacific Highway. 3 . The intersection of Burnham and Hall located near the Civic Center is another major access point to the Study Area. In a small community, the city hall is traditionally a focal point of public activity and attention should be directed towards strengthening the identity of the areas adjacent to the Tigard Civic Center. The Burnham/Hall intersection should be made visually inviting through landscaping and an entry statement. In order to give a more urban character to this area, screening along the southeast edge of Hall Boulevard is recommended to lessen the negative impact of the adjacent industrial areas . Because Main Street in its entirety is viewed by traffic on the Pacific Highway, it is considered very important to improve Main Street' s appearance by taking measures to enhance the appearance of the existing buildings . Steps should be taken to mitigate the visual impact created by the existing roof tops , perhaps by creating false roofs as determined through design codes, and to enhance buildings ' appearances by painting existing structures or improving facades . Other improvements could include landscaping of public rights of way, although care should be taken to enhance rather than impair the view of Main Street from the highway. A Development Concept A development concept is a guiding force in creating a product that will appeal to the consumer. The concept establishes the appeal and identity which differentiates a product from other competitive products within the market place. The same principle applies within the community. A community differentiates itself from others by virtue of a unique heritage, tradition or special appeal . Based on the market analysis, site location criteria, and the market' s perception of the Study Area, it is 45 Draft--Tigard Strategy Hobson&Associates apparent that in order to better compete for new retail and office development, the Study Area must be differentiated from existing development along the Pacific Highway. It must become a destination in and of itself. This need is represented in the Vision Statement and provides the basis for an important preliminary development concept: "The major unifying feature is the image of a 'City in the Park' . " The potential for development of a city park along Fanno Creek is considered to be a vital asset in creating market opportunities for future development within the Study Area. An urban park is a key element to a city' s quality of life. It provides an opportunity for community pride and interaction . Compared to many other suburban centers, the city of Tigard has a unique competitive advantage in that it has the land resources to create a public park in the downtown. A park in downtown Tigard could provide a major impetus for heightened public activity which would encourage and support more private investment. A public park could provide the impetus to promote sales within the downtown, and an opportunity to link public and private resources in a marketing effort. For example, the existing business community in cooperation with the Tigard Chamber of Commerce, which is already located on Main Street, could help to sponsor community events such as picnics or other public events in conjunction with special sales of retailers ' goods . A park with a pond similar to Laurelhurst Park in southeast Portland could be an opportunity for activities such as duck feeding or fly fishing classes . Frontage on a park could provide outdoor dining opportunities or a visual amenity for restaurants or a tea garden. Bicycle or pedestrian paths could allow people to access the retail core from neighboring residential areas , or provide an opportunity for consumers to test ride bicycles sold at a store downtown. An amphitheatre in a park could provide an opportunity for evening summer entertainment such as music or theatre performances . 46 Draft--Tigard Strategy Hobson&Associates Enhancement and Creation of Market Opportunities Specific examples of the ways in which the public could interact with the marketplace to achieve private investment is described below referring again to the areas shown in Figure 3 . The discussion of each land area illustrates considerations to be given in the master planning effort, and possible opportunities for public intervention to improve the marketability of certain land parcels . 1 . Starting at the southwest corner, at the intersection of Pacific Highway and Main Street, the SeaFirst property is the largest parcel of vacant land available for private investment. It is recommended that the property be developed as commercial/retail on the Pacific/Main frontage, with mid- to upscale multi-family housing to the rear, with a view of the Fanno Creek Park. The goal in developing the retail/commercial use is to establish an identity for the downtown and to provide an opportunity for a major activity center, one that will draw people off of Pacific Highway. The Seafirst site is the only large developable site available now, and it is possible that the public would want to intervene in the market for that site to: a) Capture the tax increment; and b) Have better control over the type and quality of development which occurs on that site. 2 . Fanno Creek Park should be developed to the extent that it becomes more attractive as open space which will help in marketing the SeaFirst property, and enhance the image of other properties with frontage along the Fanno Creek floodplain. 3 . The frontage along Main Street should continue to develop as a "village" retail/office area. Some new infill buildings can be anticipated, and as reinvestment occurs, changes in some uses in the older buildings is anticipated as retailers look for opportunities . This is an area of smaller structures which create the "village" atmosphere and existing buildings could be renovated to relate to Main Street. This area is the gateway 47 Draft--Tigard Strategy Hobson&Associates to the downtown, and an effort should be made to improve its appearance, pedestrian environment, and ease of access . 4 . The property on the southwest corner of Burnham and Main should be seen as an opportunity block to create an anchor which will attract people onto Main Street. A type of use that seems appropriate is a family-oriented restaurant such as the Old Spaghetti House or a micro-brewery serving food and ale, which will cater to the lunch and evening trade. This site offers access to the Park and is large enough to accommodate on-site parking. Proper use and design of this block will set a tone for the "village" atmosphere. 5 . The properties to the rear of Area 4, are now utilized by Stevens Marine, Familian, and Stash Tea. These are land-extensive uses as compared to the smaller-scale "village-type" retail activities along Main Street. The storage areas of Familian and Stevens Marine should be cleaned up and screened to enhance the development potential of the SeaFirst property. Stash Tea should be encouraged to add a retail outlet and a "tea garden" along the proposed park. Expansion of Stevens Marine is appropriate, particularly if the storage area is cleaned up and an attractive structure is built to accommodate the new showroom. The entire length of Burnham Street to the GTE building could eventually become another important attractor utilizing the land extensive retail concept including food and beverage producers with retail outlets on Burnham and sit-down areas in the park, and factory seconds outlets . 6 . The properties on the north side of Burnham to the railroad right-of-way provide opportunities for mixed land-extensive retail and commercial (professional office development in the area east to the site of the Water District property) . Limited infill or replacement opportunities exist now, and this is an area where private and public assembly of the land will help encourage new investment. 48 Draft--Tigard Strategy Hobson&Associates 7 . Between Fanno Creek and Burnham, east of Ash Street, is the Public Works property which will soon become available . This is a possible location for land-extensive retail or commercial development . The property also provides an opportunity for extension of the park northward in combination with new development. New investments on this property may encourage private investment along the frontage properties . A long-term opportunity, and one deserving further consideration during the master planning process, is to look at the feasibility of moving the GTE Maintenance Center and the business park which is located between the Public Works site and City Hall . If these properties were combined and existing activities could be relocated within the City, perhaps east of Hall Boulevard where vacant industrial land currently exists, this area could provide a site for small office buildings on the Burnham Street frontage and multi-family housing to the rear along the proposed park. 8 . The south tip of Area 8 could become public open space to enhance the view from Hall, and fit with the identity of Area 11 . The area north of the railroad tracks to Commercial street is the location of the Tri-Met Park and Ride and free- standing industrial uses . Some industrial infill could occur at this location, but this infill may not be compatible with nearby housing opportunities and the Vision Statement in general . 9 . On the north side of Commercial Street is an area of mixed residential and commercial uses and a church. A major redevelopment opportunity for mid-scale apartments exists at the site of the mobile home park. However, public intervention is necessary to help with displacement of the mobile home owners and with improvements to encourage private investment. Consideration could be given to expanding the residential development opportunities by helping some of the businesses along Commercial to relocate, perhaps to the area north of Burnham. At least one of these retail activities, the fly-fishing equipment store, is an attractor for the downtown area and should be relocated, perhaps close to Stevens Marine or preferably on Main Street. 49 Draft--Tigard Strategy Hobson&Associates 10 . To the north of this area, the existing shopping center could be redeveloped to create a more "village-like" atmosphere, consistent with the Vision . This area should be the northern attractor for downtown. The most feasible retail theme at this location could be household furnishing and appliances . This activity will work well with Smith ' s Home Furnishings and Directors in Park 217 . Cross shopping between these facilities and Park 217 will occur, this bringing people closer to the downtown area providing additional cross shopping possibilities. Improved access from Hall Boulevard is needed, as well as better internal circulation within the center. There is also the possibility of moving some of the smaller retail structures in this area to a configuration which is more in keeping with the Vision . The properties at the corner of Pacific and Hall should be privately or publicly assembled and made more attractive, as the northerly edge of the downtown is the most visible point of the Study Area If these changes are made, then Hall Boulevard could become another downtown access, through this center. As part of the strengthening of Hall Boulevard, consideration could be given to moving residential single-family structures to other downtown sites as infill opportunities, such as along Northwest 23rd Avenue in Portland. 11 . The properties on Hall Boulevard, including the Water District site and Civic Center/library site should be viewed as a civic complex, which should be improved with walkways, landscaping and public open space to unify the identity of this area. 12 . This area contains the Tigard Senior Center and single-family housing. Additional residential infill might be considered to increase the density. 13 . This area is occupied primarily by multi-family housing, with some single-family use. Residential infill might be considered in order to increase the density here as well . 50 Draft--Tigard Strategy Hobson&Associates Finally, street additions and improvements are suggested in Figure 4 which provide a more urban- type atmosphere, improved circulation. This would provide more development opportunities for investors by increasing the number of street frontages and corners of blocks desired for commercial uses . For example, a frontage road on the south side of the railroad tracks might help buffer development and provide additional development opportunities . Also portrayed are opportunities for public access to the Park, by bringing frontage roads to the edge of the Park. Not depicted in the figure are improvements such as landscaping of the railroad right-of-way, an improved railroad grade crossing, and small parking lots with direct access from streets which can serve more than a single structure. These lots should be sited during the master planning process. Recommended Priorities The following summarizes the recommended priorities of a revitalization effort: 1 . The first priority is to establish the revitalization plan by completing a community master plan approved by community consensus . 2 . Based on the Master plan, zoning should be established and implemented so that it is clear where and what type of development is allowed. 3 . In order to improve and maintain the unity and attractiveness of existing and future development, downtown ordinances and design guidelines should be implemented and enforced. 4 . Because the amount of available public monies will ultimately determine to what extent private investment will occur, the establishment and implementation of an urban renewal district with tax increment financing should be a major priority, while opportunity sites such as the 51 Draft--Tigard Strategy Hobson&Associates SeaFirst property exist, as well as identifying and pursuing other sources of revenue. 5 . Because the public park along Fanno Creek is a vital community asset, and in the heart of the Vision Statement of a "city within a park: , public resources should first be committed to creating this park. The park draws the potential of being a major recreation attractor and spin-off commercial benefits will occur as more people are brought into the downtown. Furthermore, Fanno Creek Park will do much to stimulate the interest of private investors , public assembly of land within the floodplain and improvement of the land as a public park is an important priority. Within the park a lake or pond is critical and a public outdoor amphitheatre should be considered 6 . The revitalization of the retail core on Main Street will occur as more people are attracted to downtown area by the park and the retail activity at both ends of Main Street. The second major public improvement priority should be to improve the visual image of Main Street. a. Establishing major entry statements to downtown Tigard (including the entrance from Hall Boulevard at Burnham Street; b. Improving streets and sidewalks to facilitate vehicular traffic, and promote pedestrian use of the downtown; C . Improving other public infrastructure such as landscaping, signing, and lighting; d. Alleviating parking problems; e. Providing incentives to property owners to improve facades of buildings . f . A final improvement that could result in significant benefits would be to assemble enough land in the central portion of Main Street to develop a third commercial attractor. This will encourage people to come to the center of the town and will make the small shops between the central attractor and the two commercial attractors at both 53 Draft--Tigard Strategy Hobson&Associates ends of Main Street significantly more viable. This central portion of Main Street would be an ideal location for something like the Oregon Showcase concept. 7 . In order to create opportunities with increased block faces and facilitate traffic circulation, interior vehicular and pedestrian circulation particularly parallel to Main Street, should be improved consistent with the final Masterplan. 8 . Any other public improvements identified in the Masterplan study should be implemented. 9 . Consideration of land assembly to create major opportunity areas including relocation and displacement assistance to existing users should be considered. Summary of Recommended Strategies The overlying objective of the revitalization strategy is to stimulate private investment in downtown Tigard through public commitment and investment. In order to stimulate private investment , the public needs to capture future market opportunities in downtown Tigard by creating a product with an upgraded image, perception, and identity. The means through which this is accomplished include: a. Physical enhancements (visual and logistical) ; b. Promoting community spirit , cooperation, participation, and enthusiasm to communicate a positive image to the general public and the private sector; C. Sponsoring special events to attract people and call attention to Tigard; d. Developing an economic development program including public advertising and promotion. It is recommended that the community build on the strengths of the existing Study Area business environment by developing an action program to retain and enhance existing retail and professional businesses in downtown Tigard. 54 Draft--Tigard Strategy Hobson&Associates Because Main Street is the major commercial center of the Study Area, additional retail and office uses (professional and medical ) should be aggressively promoted. In order to maintain a spirit of cooperation within the business community, it is recommended that a neutral position with respect to existing industrial uses in the study area be taken, allowing the masterplan to be the guiding document with respect to future industrial uses . While community events and increased commercial activity can build the level of public activity in the downtown, it is also recommended that residential uses in downtown Tigard, both infill and, in particular, on opportunity sites, be aggressively pursued. Residential uses will place people in downtown Tigard and people, whether visiting or residing in the Study Area, will provide the impetus for commercial redevelopment. Finally, it is recommended that attention also be directed outside the Study Area to city, county and regional policies and actions which may have implications on revitalization of the Study Area. Examples include the proposed development of the Light Rail Transit (Max) from downtown Portland to Washington County; and development of the proposed Western Bypass which would link Interstate Highway 5 near Interstate Highway 205 with the Sunset Highway near 185th or 216th Avenues . The light rail could stimulate development of the Study Area if it stopped in the downtown. The Western Bypass could retard new commercial development if a portion of the existing drive-by traffic on Pacific Highway were redirected along the new freeway. In order to influence such proposed projects, or gain funding for other types of public infrastructure improvement or development, the Tigard jurisdiction should aggressively lobby its position in the county, regional and state government forums . 55 Draft--Tigard Strategy Hobson&Associates 4 f x 8- M M 0 Table 9 POrENrIAL DEVEL0PMW AFZPLS p Estimated Direct Visibility Size Access to to Drive by Surrounding Existing Potential Future U w Area (Acres) Maior Arterial Traffic Land use MAr r*nrP,ri�y� Secondary c� 1 5-10 No Yes Residentia�� Vacant Raw Land Multi-Family Farmo Creell 2 25-30 No Yes Vacant) Wetland Public Park — 1ndustrials Unimproved Residential; Retails Public/Office; 3 18-20 Yes Yes Fanno Creek] Conoercial Retail Office Limited Industrials Strip Residential; 4 2-3 Yes Yes Fanno Creeks Retail Retail Limited Retail Industrial 5 3-4 No Limited Fanno Creek Industrial Land Extensive Industrial Retail Retails Destination Industrial Retail Vacant Office Residential 6 5-8 No No Industrial Industrial Lard Extensive Retails Professional Offices Vacant 7 12-14 NO No Fanno Creeks industrial Land Extensive Retails Multi-Family Housings Industrial Professional Office Office 8 4-6 No No Railroads Industrial Industrial Comnercial Tri-Met Transfers Residential 9 9-11 Limited No Publics Residential Midscale Multi-family — Frontage Industrials on Hall Blvd. Retails Residential;