Exhibit A. Education Urban Renewal Plan

Transcription

1 Exhibit A Education Urban Renewal Plan May 16, 2012

2 Exhibit A

3 Exhibit A Table of Contents I. Introduction... 1 II. Urban Renewal Area Map and Legal Description... 3 A. Legal Description... 3 B. Proposed Land Uses... 3 III. Urban Renewal Projects... 7 A. Strategic Partnerships to Develop and Educate a 21 st Century Workforce... 7 B. Urban Innovation... 8 C. Research & Technology Commercialization... 9 D. Entrepreneurship E. Cluster Development F. Housing G. Planning and Administration IV. Public Buildings V. Relationship to Local Objectives A. Portland Comprehensive Plan B. City of Portland Five-Year Economic Development Strategy VI. Relocation Policy VII. Property Acquisition and Disposition Policies VIII. Plan Financing A. General Description of the Proposed Financing Methods B. Tax Increment Financing C. Prior Indebtedness IX. Procedures for Amendments to the Plan A. Substantial Amendments B. Council-Approved Amendments C. Minor Amendments X. Other Provisions A. Non-Discrimination B. Agreements to Implement this Plan C. Duration of Urban Renewal Plan D. Validity... 16

4 Exhibit A

5 Exhibit A I. Introduction In 2012, municipalities across the United States, from New York to Tennessee to Utah, are pursuing urban universities for the opportunities they present to improve a region s economic future. These communities recognize the link between a world class research university and accelerating economic growth. In New York, Mayor Bloomberg is pushing forward the Applied Sciences NYC Initiative by partnering with Cornell University to bring a new two million square foot campus to New York City by The city has pledged up to $100 million for infrastructure as an incentive to build out the campus. In Tennessee, Governor Haslam directed $50 million toward a program focusing on innovation, commercialization, investment, technology and entrepreneurship to raise Tennessee s profile in innovation-based economic development and drive growth in the creation of knowledge-based jobs. In addition to expanding the state s capacity for innovation, the governor has pledged $10 million to the Memphis Research Consortium to cultivate commercialization partnerships. In 2006 Utah launched the Utah Science and Technology Research Initiative (USTAR). The program invested more than $100 million in the state's universities. The goal was to recruit top researchers in key economic areas from around the world, who are now creating real economic value. Jobs in the state s technology sector grew from about 60,000 in 2006 to more than 72,000 in At the same time, the University of Utah took steps to make it easier to turn cutting-edge research into a business and to connect business students to the engineers and scientists doing the research. Last year, venture capital investment in Utah increased by 54 percent. The Portland region is fortunate to have an urban university with world class potential in its own backyard. Portland State University ( PSU ) is Oregon s largest and most diverse research university with a regional impact of more than $1.4 billion annually. Providing close access to the city s business, technology, and cultural resources, PSU considers its mission to both let knowledge serve the city, and to serve the greater community and region. The university, with its current 50-acre campus, is forecasting growth in enrollment from 30,000 in 2012 to more than 50,000 by This predicted growth occurs at a time when PSU is taking an increasingly aggressive approach toward research, which has already led to the establishment of Centers of Excellence such as the Institute for Sustainable Solutions (the ISS ). These centers have generated more than $65 million in sponsored research and expect to exceed $100 million by The combination of more students and greater ambitions to attract the best researchers and faculty requires increased and improved academic space, a need that will exceed 4.2 million square feet. Such growth positions PSU as an even more prominent employer, purchaser, researcher, real estate developer, and community partner. As proposed, this Education Urban Renewal Plan ( Plan ) directs tax increment resources to the 144- acre Education Urban Renewal Area ( EDURA or Area ). The Plan sets forth long-term partnerships between PSU, Portland Public Schools ( PPS ), Multnomah County ( County ), and the City of Portland ( City ) with the objectives of creating an environment of educational excellence, attracting private investment, enhancing blighted properties and developing the region s workforce. The Plan is Education Urban Renewal Plan Page 1

6 Exhibit A forecasted to provide up to $169 million for investments that leverage research facilities, business accelerators, affordable housing, and private development. This is a timely, unique opportunity for urban renewal to help grow a great urban university that will serve a great city. The implementation of the Plan is envisioned to bring regional benefit through a continuum of educational advancement and job growth. Designed to be consistent with PDC s mission and strategic plan, as well as PSU s strategies for evolving into a world class university, these investments will provide a platform for job creation and private sector commerce through research and commercialization and other partnerships. Reduction of blight will also occur through both taxable and non-taxable development on low-density properties. The objectives of the Plan will prioritize job growth and economic development projects through the following categories of investment: Strategic Partnerships to Develop and Educate a 21st Century Workforce; Urban Innovation; Research and Technology Commercialization; Entrepreneurship; and Cluster Industry Firms These objectives will lead the progression of a district that will connect an educational environment and job generation to physical development as follows: Investing in the Portland Public Schools 11-acre site in Goose Hollow will provide an improved learning environment to aid the development of our future workforce. An enhanced academic environment at PSU provides the foundation for attracting new research dollars which also spurs greater entrepreneurship and small business development within the campus. Outward expansion evolves as entrepreneurs commercialize their ideas into startups and highgrowth companies that attract additional cluster industries to gain a presence in private development within the EDURA. Education Urban Renewal Plan Page 2

7 Exhibit A II. Urban Renewal Area Map and Legal Description The Area shown in Figure 1 totals 144 acres and can generally be described as lying west of 1 st Avenue, east of Interstate-405 and south of Jefferson Street, but including Portland Public School District property west of I-405. The Area includes a portion of the Portland State University District and planned growth area as outlined in the PSU Framework Plan. The Area also overlaps portions of the Goose Hollow Foothills League, Portland Downtown Neighborhood Association and South Portland Neighborhood Association boundaries. A. Legal Description The legal description of the Area is attached as Exhibit 1, with an associated map as Exhibit 1.A. B. Proposed Land Uses The City s Comprehensive Plan and implementing ordinances govern land use within the Area. Any adopted change in the Comprehensive Plan or implementing ordinances shall automatically amend this Section, as applicable, without the necessity of any further formal action. This Section shall thereafter incorporate the relevant amendments, additions or deletions. To the extent this Section conflicts with the Comprehensive Plan or Zoning Code, the Comprehensive Plan and Zoning Code shall govern. Title 33, Portland City Code is incorporated herein to establish the maximum densities and building requirements to be implemented under this Plan. Table 1. Existing Comprehensive Plan Designations of Tax Lots within Area Comprehensive Plan Designation Acreage Square Feet Percentage Central Commercial (CX) ,214,627 53% Central Residential (RX) ,082,462 26% Institutional Residential (IR) ,800 11% Open Space (OS) ,011 10% Total ,205, % *Source: City of Portland Bureau of Planning and Sustainability Education Urban Renewal Plan Page 3

8 Exhibit A At the time of the release of this Plan, the Bureau of Planning and Sustainability is also seeking Portland City Council ( Council ) approval of the proposed Portland Plan. The EDURA intentionally is built on strong public partnerships which align resources for regional benefit. The Plan also provides an opportunity to advance many of the integrated strategies of the Portland Plan listed below: Thriving Educated Youth: A culture of high expectations and achievement for all Portland youth Shared ownership of student success Neighborhoods and communities that support youth Facilities and programs that meet 21 st century challenges and opportunities Economic Prosperity and Affordability: Business cluster growth Urban innovation Growing employment districts Access to housing Education and job training Household economic security Healthy Connected City: Public decisions that benefit human and environmental health Vibrant neighborhood hubs Coordinated interagency approach Education Urban Renewal Plan Page 4

9 Exhibit A Figure 1. Education Urban Renewal Area Boundary Map Education Urban Renewal Plan Page 5

10 Exhibit A Figure 2. Education Urban Renewal Area Comprehensive Plan Map Education Urban Renewal Plan Page 6

11 Exhibit A III. Urban Renewal Projects In order to achieve the objectives of this Plan, the following projects will be undertaken in the Area by PDC, in accordance with applicable federal, state, county and city laws, policies and procedures. Such projects may be modified, expanded or eliminated as needed to meet the objectives of this Plan as set forth herein, subject to Section IX, Procedures for Amendments to the Plan. A. Strategic Partnerships to Develop and Educate a 21 st Century Workforce The boundaries of the EDURA include Lincoln High School which is one link in the PPS chain of K-12 facilities. A partnership with PPS better positions the school district to achieve a redevelopment vision of that campus. The EDURA also features a collaborative redevelopment between PSU and the County. Synergy to develop long term partnerships among all three institutions will bring significant benefit to the region. 1. Multnomah County A development project will serve as a home for functions of the County Department of Human Services. PSU will strive to co-locate compatible academic and research programs with this project. A synergistic co-location will leverage PSU's academic and research expertise with the County's proficiency in service design and delivery to advance programs supporting social and community prosperity. 2. Portland Public Schools Portland Public Schools owns an 11-acre site in the Goose Hollow neighborhood, which includes Lincoln High School. Current zoning and floor area ratio allowances provide development capacity of more than 1.7 million square feet above the existing 200,000 square foot facility. This Plan provides an opportunity for PDC to partner with PPS for investments that improve the educational environment and the intensity of development on the site. Education Urban Renewal Plan Page 7

12 Exhibit A B. Urban Innovation Portland enjoys the unique advantage of a national reputation as a leader in urban development. Innovative approaches to building efficiency, reduced carbon use through environmental design, the provision of local energy and transportation systems have helped support a growing number of firms in the local technology sectors, while simultaneously building the City s reputation for livability. This combination is a powerful draw for entrepreneurs. It has also helped position PSU to make significant investments in sustainability. 1. EcoDistrict Development PSU is at the heart of one of the City s five pilot EcoDistricts, an effort to pursue comprehensive action and accelerate sustainable development at the neighborhood scale by integrating building and infrastructure projects with community engagement. Funds could be used to support development of district-scale projects, such as energy, water and stormwater management, smart grid, demand management or resource sharing. Such projects in the Area would directly benefit PSU s operations and research development as well as clean technology cluster firms involved in design, development and construction. Demonstration projects, such as district energy, will also keep PSU and Portland at the forefront of next generation development practices, including high-performance buildings, integrated district systems, and existing building retrofit. 2. Energy Efficiency/Modernization Access to capital for energy retrofits can simultaneously lower operating costs while making the neighborhood more appealing and capable of absorbing an accumulation of companies. Demonstration projects can serve the dual benefit of enhancing the City s image and providing local firms with exportable experience and exposure. The upgrade and enhancement of existing commercial buildings owned by PSU and adjacent private properties will achieve utility savings for the university and adjacent businesses, reduce energy use, interface with ISS-led research in the energy efficiency field, and support the growth of the efficiency sector in Portland. 3. Enhance PSU s Academic Capacity PSU will re-invest in older buildings and construct new ones to handle the demands of a growing student population. One such project is Neuberger Hall, one of the largest academic buildings on campus. Current deterioration in the building has limited the use of several rooms. Classroom capacity could be expanded if fundamental building systems were repaired. Another opportunity is East Hall, a campus building with historic character that serves PSU s growing international student population. The building will undergo a major retrofit. Projects such as these will enhance the academic environment and its capacity. Education Urban Renewal Plan Page 8

13 Exhibit A C. Research & Technology Commercialization A deliberate focus on attracting research dollars and top research faculty will be driven by an increase in the amount of laboratory space and other advanced office infrastructure. A byproduct of this initiative will be partnerships with private industry as well as the emergence of startup businesses which are seeded through technology transfer and commercialization. Research specific to PSU and Portland intellectual and technological competencies will generate jobs in the City s target industries. 1. Public/Private Research Facility Expansion PSU has already begun to reinforce its research capacity with the establishment of Centers of Excellence, including the Oregon Built Environment and Sustainable Technologies ( BEST ) Center, the Food Industry Leadership Center, the Center for Life in Extreme Environments, and the Institute on Aging. Substantially increasing research capacity by expanding these Centers of Excellence and creating new ones will lead to enhanced regional innovation. The Institute for Sustainable Solutions ( ISS ) is a sign of PSU s commitment. The ISS took great strides through the successful pursuit of a $25 million grant from the James F. and Marion L. Miller Foundation, the largest gift in the history of PSU and among the largest single gifts supporting sustainability in U.S. higher education history. The ISS facility has become a hub for connecting research, education and services to local companies and creating new alliances with major think tanks at Intel, Cisco, IBM and General Electric. The prominence of the ISS has helped differentiate PSU from its peers by infusing sustainability as a core competency at levels that draw national attention. Funds may be available to assist with the expansion of PSU research facilities with a priority given to projects that encourage 1) cross-disciplinary research and development and 2) partnerships with private-sector firms and industry. Research Centers of Excellence would provide enhanced infrastructure for the development and commercialization of leading edge technologies. 2. PSU Classroom and Research Facility Expansion PSU currently has research expenditures of approximately $65 million annually. This has increased by as much as 20% per year in recent years, creating a significant demand for expanded research facilities in a variety of disciplines, including engineering and physical sciences. Funds may be available to assist with the expansion of existing PSU research facilities that contribute directly to PSU s research and development growth and to the knowledge base of Portland s cluster industries. Education Urban Renewal Plan Page 9

14 Exhibit A D. Entrepreneurship PSU is in the process of building a robust entrepreneurial ecosystem. The City and PDC are also achieving significant results from strategies intended to make Portland more attractive to early-stage startups by increasing the pool of local capital available to people with such aspirations. Traction has been gained through efforts such as the Portland Seed Fund, the Portland 100 Mentoring Program, place-based entrepreneurial efforts in the Central Eastside and Old Town/Chinatown, and a newly launched commercialization grant program with both Oregon Health & Science University ( OHSU ) and PSU. Entrepreneurship will gain a powerful partner when leveraged with PSU's goals to improve direct training, provide technical assistance and mentoring city-wide, and an overall expansion of the resources for startup businesses. OHSU has become increasingly reliant on the PSU School of Business to draw on business development expertise. Further development of these partnerships will result in greater benefit for the region. 1. PSU/Private Partner Business Accelerator University-based accelerators help incubate and advance startup technologies and science companies while creating a living laboratory for the community. Funds may be available to assist with the construction of new accelerators and to expand existing facilities such as Portland State Business Accelerator ( PSBA ), OHSU s startup wet labs or other institutional incubator facilities. 2. Startup Accelerator Fund As a result of partnerships between PSU, PDC, the private investment community and others, funds may be available to assist early stage entrepreneurial firms in areas such as capital funding gaps. 3. Expansion of the PSU School of Business With a current total enrollment of almost 2,800 undergraduate and 600 graduate students, the existing 69,000 square foot School of Business facility is undersized when compared to peer institutions. Funds may be used to expand this facility, which, at completion, is anticipated to be more than double its current size to meet the needs of a 20 to 30% increase in enrollment. Studies have shown that a majority of PSU School of Business graduates remain in the Portland area, adding to the region s workforce. Education Urban Renewal Plan Page 10

15 Exhibit A E. Cluster Development The City's Five-Year Economic Development Strategy (the Strategy ) identifies four target industry clusters where Portland and the region have competitive advantages at a national level. These clusters include Advanced Manufacturing, Athletic and Outdoor, Clean Technology and Software/Technology. Most of these industries have a natural affinity to collaborate within a strong academic research-driven environment. The nearly 30-year build out of the EDURA with some of the more than 100 private property owners will be important for upgrading and replacing office space and a built environment which was largely constructed prior to The Area will see a progressive transformation of surface parking lots and very low intensity parcels to accommodate demand from cluster firms and the related need for a more diverse mix of neighborhood amenities. 1. Target Industry Recruitment & Expansion Fund Funds may be available to assist business recruitment and expansion efforts geared toward attracting research and development-intensive companies to strategic commercial properties in the Area, including the recruitment of early-stage firms to accelerator facilities. 2. Small Business/Real Estate Programs PDC provides a number of smaller scale programs intended to improve the quality and efficiency of buildings and to position small businesses in a manner that gives them increased opportunities for prosperity and growth. These include storefront grants, green features grants, business finance programs and other tools intended to promote private investment. F. Housing The City of Portland Tax Increment Financing Set Aside Policy for Affordable Housing will apply to this Plan. The 30% Set Aside resources will be administered by the Portland Housing Bureau. TIF-supported housing investments in this URA will be guided by the investment priorities in the Portland Housing Bureau s Strategic Plan and other applicable City housing policies. In the fall of 2012, PHB will develop specific income guidelines for the EDURA and seek public comment. PHB s Strategic Plan is available at G. Planning and Administration PDC will undertake program development and project planning activities necessary to achieve the objectives described in Section I of this Plan. PDC will also undertake administration of all aspects of this Plan in a manner consistent with the Plan s objectives. Education Urban Renewal Plan Page 11

16 Exhibit A IV. Public Buildings Projects undertaken by PSU under this Plan may include public buildings that serve or benefit the Area in one or more of the following ways: Increase density on underutilized parcels Enhance academic facilities to prepare the future workforce of the Area and region Develop or expand training and educational facilities that accelerate the creation of knowledge-based jobs Leverage private development that will increase the tax base of the Area Provide housing and neighborhood commercial services for students, Area residents, and employees Provide opportunities for reducing energy costs and carbon footprint PSU projects include, but are not limited to, the following: Energy efficiency/modernization projects at the Marston House, East Hall, Montgomery Court, the Fourth Avenue Building, and the Smith Memorial Student Union Expansion of the School of Business Neuberger Hall and Cramer Hall renovations Expansion of engineering and physical science classrooms and research facilities Upgraded laboratory space, potentially in partnership with OHSU and others Knowledge Commons, a building that combines high tech classrooms and student services functions Potential expansion of the existing PSBA and related programs Potential co-location of services and departments with the County As described in Section III.A. of this Plan, a potential project with PPS on its 11-acre site in Goose Hollow will benefit the Area by investing towards a higher density development within the central city. Development on this site may include private development, directly benefiting the tax base of the Area and providing a better utilization of the site. As described in Section III.A. of this Plan, a development with the County will strive to co-locate the County Department of Human Services and PSU academic functions. This resulting investment will benefit the Area by providing a new real estate project that will strengthen connections between health and higher education and creates a pipeline for the delivery of services and workforce training. Education Urban Renewal Plan Page 12

17 Exhibit A V. Relationship to Local Objectives A. Portland Comprehensive Plan This Plan conforms to the City s Comprehensive Plan and its supporting neighborhood and area plans, as a whole, relative to the improvement of residential neighborhoods, commercial districts, and employment centers within the Area. B. City of Portland Five-Year Economic Development Strategy The Strategy was adopted by Council on July 8, The Strategy sets forth the approach for building the most sustainable economy in the world, with the goal of creating 10,000 new jobs in five years. Building a sustainable economy requires a balanced focus on job growth, innovation in sustainability and equality of economic opportunity through competitiveness, urban innovation and neighborhood business vitality. This Plan meets Strategy Goals 1 and 2 as follows: 1. Competitiveness Maximize industry competitiveness and generate robust job growth by creating opportunities for existing, emerging or relocating traded-sector businesses to enter new markets and access financial and human capital resources. This Plan provides financial and technical assistance resources to assist target industry cluster businesses and high-growth firms. Strategies include assisting firms with export and global branding opportunities, supporting higher education innovation efforts, enhancing startup activity and business incubation opportunities, and aligning university workforce development resources with the skills needed in target industries. This Plan will support substantially increasing PSU s research capability and the conversion of research into commercially viable businesses, contributing to job growth throughout the City. 2. Urban Innovation Maintain a leadership position in sustainability by constantly striving to produce an innovative urban setting that fosters creativity and invention and aligns with clean technology industry activities. This Plan will assist in the implementation of demonstration projects that enhance Portland s reputation as an early adopter of advanced green development approaches and solutions a living laboratory for innovation, including: Energy efficiency: Pursue commercial and institutional building retrofits to improve building performance and support Portland s energy efficiency industry; capture off the shelf technical and financial solutions to ensure replicable and exportable new approaches and skills. Integrated district utilities: Pursue partnerships with property owners and private firms to realize district scale and integrated district solutions (water, wastewater, energy, waste, transportation). High performance new construction: Pursue new development that supports industry growth in high performance design and engineering; green materials development and deployment; and energy and water management. Education Urban Renewal Plan Page 13

18 Exhibit A VI. Relocation Policy All relocation activities will be undertaken in accordance with the requirements of ORS , PDC Relocation Policies and Procedures and any other applicable law or regulation. VII. Property Acquisition and Disposition Policies Although no real property acquisition is presently anticipated, PDC may acquire real property by any means within the Area, if necessary, to achieve the objectives of this Plan. Prior to such future acquisitions, the Board shall adopt a Resolution identifying the property and finding that the acquisition thereof is necessary to achieve the objectives of this Plan. VIII. Plan Financing A. General Description of the Proposed Financing Methods PDC may borrow money and accept advances, loans, grants and any other form of financial assistance from the federal government, the state, city, county, or other public body, or from any sources, public or private, for the purposes of undertaking and carrying out this Plan, or may otherwise obtain financing as authorized by ORS 457 and Chapter XV of the City Charter. Upon request of PDC, Council may from time to time issue revenue bonds, certificates, debentures or promissory notes to assist in financing project activities as provided by Section of the City Charter. The funds obtained by PDC shall be used to pay or repay any costs, expenses, advancements and indebtedness incurred in planning or undertaking project activities or in otherwise exercising any of the powers granted by ORS 457 and Chapter XV of the City Charter in connection with the implementation of this Plan. The total maximum indebtedness which may be incurred to complete this Plan is $169,000,000. B. Tax Increment Financing This Plan may be financed, in whole or in part, by funding allocated to PDC as provided in Section 1c, Article IX of the Oregon Constitution and ORS through ORS C. Prior Indebtedness Any indebtedness permitted by law and incurred by PDC or the City in connection with preplanning for this Plan shall be repaid from tax increment revenues from the Area when and if such funds are available. Education Urban Renewal Plan Page 14

19 Exhibit A IX. Procedures for Amendments to the Plan This Plan may be reviewed and evaluated periodically, and may be amended as needed, in conformance with statutory requirements. All amendments to this Plan shall be made pursuant to the following procedures. A. Substantial Amendments Substantial amendments are solely amendments that: 1. Add land to the Area, except for an addition of land that totals not more than one percent of the existing Area; or 2. Increase the maximum amount of indebtedness that can be issued or incurred under the Plan. Substantial amendments shall require the same approval process as required for initial plan adoption including the approval process as provided in ORS and the notice requirement set forth in ORS B. Council-Approved Amendments Council-approved amendments are solely amendments that: 1. Extend the last date to issue debt; or 2. Identify a project that includes a public building. Council-approved amendments require approval by PDC s Board of Commissioners (the Board ) by resolution and by Council, which may approve the amendment by resolution. Council-approved amendments do not require any of the procedural or notice requirements found in ORS Chapter 457 including, but not limited to, the procedures set forth in ORS (4) and (5). To the extent that a Council-approved amendment involves a public building, such amendment shall explain how the building serves or benefits the urban renewal area. C. Minor Amendments Minor amendments are amendments that are neither substantial, nor Council-approved amendments. Minor amendments may include changing the goals of the Plan or removing land from the Area. Minor amendments are effective upon adoption of a resolution by the Board approving the amendment. Education Urban Renewal Plan Page 15

20 Exhibit A X. Other Provisions A. Non-Discrimination In the preparation, adoption and implementation of this Plan, no public official or private party shall take any action or cause any person, group or organization to be discriminated against on the basis of age, race, color, religion, gender, sexual orientation, marital status, citizenship status, or national origin. B. Agreements to Implement this Plan PDC will implement this Plan through vehicles such as partnerships between PDC and other public agencies, private sector property owners, for-profit developers and non-profit development organizations. It is the intention of PDC to utilize agreements such as memorandums of understanding, development agreements or other mechanisms with Area property owners and developers to guide and specify public investments and private development. These agreements will be utilized throughout the life of this Plan to ensure activities are in conformance with this Plan. C. Duration of Urban Renewal Plan No indebtedness, as defined by applicable state law, for which taxes divided under ORS are to be pledged, shall be issued under this Plan (and under any and all projects undertaken with respect to this Plan) after: (i) the date that maximum indebtedness is reached; or (ii) June 30, 2041, whichever occurs first. D. Validity Should a court of competent jurisdiction find any word, clause, sentence, section or part of this Plan to be invalid, the remaining words, clauses, sentences, sections or parts shall be unaffected by such findings and shall remain in full force and effect for the duration of this Plan Education Urban Renewal Plan Page 16

21 Exhibit A Exhibit 1 LEGAL DESCRIPTION THE EDUCATION URBAN RENEWAL AREA PORTLAND, OREGON Commencing in the Northwest one-quarter of Section 3, Township 1 South, Range 1 East, Willamette Meridian, City of Portland, County of Multnomah, State of Oregon, at the northeasterly corner of Block 149 of the plat of the City of Portland, which at the intersection of the southerly right-of-way line of SW Columbia Street as dedicated in said plat, with the westerly right-of-way line of SW 4 th Avenue as dedicated in said plat, Assessor Map 1S 1E 3BC for the POINT OF BEGINNING of the Education Urban Renewal Area Boundary Line; 1. Thence easterly, along the southerly right-of-way line of SW Columbia Street as dedicated in the plat of the City of Portland, a distance of 820 feet, more or less, to the westerly right-of-way line of SW First Avenue, Assessor Map 1S 1E 3BC and Assessor Map 1S 1E 3BD; 2. Thence southerly, along the westerly right-of-way line of SW First Avenue as dedicated in the plat of the City of Portland, a distance of 460 feet, more or less, to the northerly right-of-way line of SW Market Street as dedicated in said plat, Assessor Map 1S 1E 3BD and Assessor Map 1S 1E 3BC; 3. Thence southwesterly, crossing the right-of-way of SW Market Street, a distance of 117 feet, more or less, to the westerly right-of-way line of SW First Avenue at the southeasterly end of a foot radius curve at the northeasterly corner of Block A of the plat of South Auditorium Addition, Assessor Map 1S 1E 3CB; 4. Thence southerly, along the westerly right-of-way line of SW First Avenue as dedicated in the plat of South Auditorium Addition, a distance of feet, more or less, to the point of curvature of a foot radius curve at the southeasterly corner of the plat of Harrison East Condominiums, Assessors Map 1S 1E 3CB; 5. Thence southwesterly, along the right-of-way line at the intersection of the westerly right-of-way line of SW First Avenue with the northerly right-of-way line of SW Harrison Street as dedicated in the plat of South Auditorium Addition and shown in the plat of Harrison East Condominiums, along the arc of a foot radius curve, an arc distance of feet, more or less, to a point of tangency on the northerly right-of-way line of SW Harrison Street, which is also a point on the boundary line of the North Macadam Urban Renewal Area, Assessor Map 1S 1E 3CB; The following courses are in common with the boundary line of the North Macadam Urban Renewal Area. Page 1 of 9

22 Exhibit A 6. Thence westerly, along the northerly right-of-way line of SW Harrison Street as dedicated in the plat of South Auditorium Addition and it s westerly extension, a distance of feet, more or less, to the westerly right-of-way line of SW 4 th Avenue, Assessor Map 1S 1E 3CB; 7. Thence southerly, along the westerly right-of-way line of SW 4 th Avenue as dedicated in the plat of the City of Portland, a distance of feet, more or less, to the southerly right-of-way line of SW Harrison Street, Assessor Map 1S 1E 3CB; 8. Thence easterly, along the southerly right-of-way line of SW Harrison Street as dedicated in the plat of South Auditorium Addition, a distance of feet, more or less, to the point of curvature of a foot radius curve at the northeasterly corner of Block B of the plat of South Auditorium Addition, Assessor Map 1S 1E 3CB; 9. Thence southeasterly, along the right-of-way line at the intersection of the southerly right-of-way line of SW Harrison Street with the westerly right-of-way line of SW First Avenue as dedicated in the plat of South Auditorium Addition, along the arc of a foot radius curve, an arc distance of feet, more or less, to a point of tangency on the westerly right-of-way line of SW First Avenue, Assessor Map 1S 1E 3CB; 10. Thence southerly, along the westerly right-of-way lines of SW First Avenue as dedicated in the plat of South Auditorium Park, a distance of feet, more or less, to the point of curvature of a foot radius curve at the southeasterly corner of Block B of the plat of South Auditorium Addition, Assessor Map 1S 1E 3CB; 11. Thence southwesterly, along the right-of-way line at the intersection of the westerly right-of-way line of SW First Avenue with the north right-of-way line of SW Lincoln Street as dedicated in the plat of South Auditorium Addition, along the arc of a foot radius curve, an arc distance of feet, more or less, to a point of tangency on the north right-of-way line of SW Lincoln Street, Assessor Map 1S 1E 3CB; 12. Thence westerly, along the north right-of-way line of SW Lincoln Street as dedicated in the plat of South Auditorium Park, a distance of 393 feet, more or less, to the most easterly corner of that tract of land conveyed to the City of Portland for street purposes by deed recorded October 20, 1980 in Book 1477, Page 1676, Multnomah County Deed Records, Assessor Map 1S 1E 3CB; 13. Thence westerly, along the north right-of-way line of SW Lincoln Street as conveyed in said Book 1477, Page 1676 and it s westerly extension, a distance of 130 feet, more or less, to the west line of that tract of land conveyed to the City of Portland by city of Portland Ordinance No filed April 20, 1979, Assessor Map 1S 1E 3CB; 14. Thence southerly, along the west line of said City of Portland tract conveyed in city of Portland Ordinance No , a distance of feet, more or less, to the south rightof-way line of SW Lincoln Street as dedicated in the plat of South Auditorium Park, Assessor Map 1S 1E 3CC; 15. Thence westerly, along the south right-of-way line of SW Lincoln Street as dedicated in the plat of South Auditorium Park, a distance of 165 feet, more or less, to the point of curvature of a foot radius curve at the southwesterly corner of Block B of the plat of South Auditorium Addition, Assessor Map 1S 1E 3CC; 16. Thence westerly, crossing SW 4 th Avenue, a distance of 112 feet, more or less, to the southeast corner of Block 21 of the plat of Caruthers Addition to Caruthers Addition, Assessor Map 1S 1E 4DD; 17. Thence southerly, along the west right-of-way line of SW 4 th Avenue as dedication in the plat of Caruthers Addition to Caruthers Addition, a distance of 92 feet, more or less, to Page 2 of 9

23 Exhibit A the westerly extension of the south right-of-way line of SW Lincoln Street as dedicated in the plat of South Auditorium Addition, Assessor Map 1S 1E 4DD; 18. Thence easterly, along the south right-of-way line of SW Lincoln Street as dedicated in the plat of South Auditorium Addition and it s westerly extension, a distance of 245 feet, more or less, to the northeast corner of that tract of land conveyed to ANR L.L.C. by statutory warranty deed recorded May 20, 2002 in Document No , said deed records, Assessor Map 1S 1E 3CC; 19. Thence southerly, along the east line of said ANR L.L.C. tract, a distance of 127 feet, more or less, to a point of curvature, Assessor Map 1S 1E 3CC; 20. Thence southwesterly, along the southeasterly line of said ANR L.L.C. tract, along the arc of a foot radius curve, an arc distance of feet, more or less, to a point of tangency, Assessor Map 1S 1E 3CC; 21. Thence westerly, along the south line of said ANR L.L.C. tract, a distance of 106 feet, more or less, to the southwest corner thereof, Assessor Map 1S 1E 3CC; 22. Thence, leaving the boundary line of the North Macadam Urban Renewal Area, westerly, along the westerly extension of the south line of said ANR L.L.C. tract, a distance of 126 feet, more or less, to the west right-of-way line of SW 4 th Avenue as dedication in the plat of Caruthers Addition to Caruthers Addition, Assessor Map 1S 1E 3CC; 23. Thence southerly, along the west right-of-way line of SW 4 th Avenue as dedication in the plat of Caruthers Addition to Caruthers Addition, a distance of 87 feet, more or less, to the south right-of-way line of SW Grant Street, Assessor Map 1S 1E 4DD; 24. Thence easterly, along the easterly extension of the south right-of-way line of SW Grant Street as dedicated in the plat of Caruthers Addition to Caruthers Addition, a distance of 35 feet, more or less, to the right-of-way centerline of SW 4 th Avenue, Assessor Map 1S 1E 3CC; 25. Thence southerly, along the right-of-way centerline of SW 4 th Avenue as dedicated in the plat of South Auditorium Addition, and it s southerly extension, a distance of 811 feet, more or less, to the westerly extension of the south right-of-way line of SW Sheridan Street as dedicated in the plat of South Auditorium Addition, Assessor Map 1S 1E 3CC; 26. Thence easterly, along the south right-of-way line of SW Sheridan Street as dedicated in the plat of South Auditorium Addition and it s westerly extension, a distance of 228 feet, more or less, to the point of curvature of a foot radius curve at the northeasterly corner of Block E of the plat of South Auditorium Addition, Assessor Map 1S 1E 10BB; 27. Thence southeasterly, along the right-of-way line at the intersection of the south right-ofway line of SW Sheridan Street with the west right-of-way line of SW 3 rd Avenue as dedicated in the plat of South Auditorium Addition, along the arc of a foot radius curve, an arc distance of feet, more or less, to a point of tangency on the west rightof-way line of SW 3 rd Avenue, Assessor Map 1S 1E 10BB; 28. Thence southerly, along the west right-of-way line of SW 3 rd Avenue as dedicated in the plat of South Auditorium Addition and it s southerly extension, a distance of feet, more or less, to the right-of-way centerline of SW Arthur Street, which is now vacated by City of Portland Ordinance No , recorded January 25, 1972 in Book 836, Page 813, said deed records, Assessor Map 1S 1E 10BB; 29. Thence westerly, along the right-of-way centerline of SW Arthur Street as dedicated in the plat of South Auditorium Addition and it s westerly extension, said right-of-way Page 3 of 9

24 Exhibit A now vacated, a distance of feet, more or less, to the west right-of-way line of SW Barbur Boulevard as dedicated in the plat of South Auditorium Addition, Assessor Map 1S 1E 10BB; 30. Thence northerly, along the west right-of-way line of SW Barbur Boulevard as dedicated in the plat of South Auditorium Addition, a distance of 502 feet, more or less, to the south right-of-way line of SW Sheridan Street as dedication in the plat of Caruthers Addition to Caruthers Addition, Assessor Map 1S 1E 9AA; 31. Thence northerly, crossing SW Sheridan Street, a distance of 61 feet, more or less, to the southeast corner of Block 25 of the plat of Caruthers Addition to Caruthers Addition, Assessor Map 1S 1E 4DD; 32. Thence northerly, along the west right-of-way line of SW 4 th Avenue as dedication in the plat of Caruthers Addition to Caruthers Addition, 590 feet, more or less, to the northeasterly right-of-way line of Interstate Highway 405 Stadium Highway, said point being southerly, feet from the northeast corner of Lot 3, Block 23 of the plat of Caruthers Addition to Caruthers Addition, Assessor Map 1S 1E 4DD; 33. Thence northwesterly, along said northeasterly right-of-way lines of Interstate Highway 405 Stadium Highway as shown in the Oregon Department of Transportation Drawing No. 1A-16-25, a distance of 212 feet, more or less, to the south right-of-way line of SW Grant Street as dedication in the plat of Caruthers Addition to Caruthers Addition, said point being westerly, feet from the northeast corner of Lot 8, Block 23 of said plat, Assessor Map 1S 1E 4DD; 34. Thence westerly, along the south right-of-way line of SW Grant Street as dedication in the plat of Caruthers Addition to Caruthers Addition, 66 feet, more or less, to the east right-of-way line of SW 5 th Avenue, Assessor Map 1S 1E 4DD; 35. Thence northerly, along the east right-of-way lines of SW 5 th Avenue as dedicated in the plat of Caruthers Addition to Caruthers Addition and the plat of the City of Portland, a distance of 527 feet, more or less, to the southerly right-of-way line of SW Jackson Street as dedicated in the plat of the City of Portland, Assessor Map 1S 1E 4DD and Assessor Map 1S 1E 4DA; 36. Thence westerly, crossing SW 5 th Avenue, a distance of feet, more or less to the northeast corner of Block 157 of the plat of the City of Portland, Assessor Map 1S 1E 4DA; 37. Thence southerly, along the westerly right-of-way line of SW 5 th Avenue as dedicated in the plat of the City of Portland and the plat of Caruthers Addition to Caruthers Addition, a distance of 37 feet, more or less, to the westerly right-of-way line of realigned SW 5 th Avenue as shown in the Oregon Department of Transportation Drawing No. 1A-16-25, Assessor Map 1S 1E 4DA and 1S 1E 4DD; 38. Thence southerly, along the westerly right-of-way line of realigned SW 5 th Avenue as shown in the Oregon Department of Transportation Drawing No. 1A-16-25, a distance of 175 feet, more or less, to the northerly right-of-way line of Interstate Highway 405 Stadium Highway, Assessor Map 1S 1E 4DD; 39. Thence westerly, along the northerly right-of-way line of Interstate Highway 405 Stadium Highway as shown in the Oregon Department of Transportation Drawing No. 1A-16-25, a distance of 45 feet, more or less, to the northeasterly right-of-way line of realigned SW 6 th Avenue as shown in the Oregon Department of Transportation Drawing No. 1A-16-25, Assessor Map 1S 1E 4DD; 40. Thence northwesterly, along the northeasterly right-of-way line of realigned SW 6 th Avenue as shown in the Oregon Department of Transportation Drawing No. 1A-16-25, a Page 4 of 9

25 Exhibit A distance of 256 feet, more or less, to the southerly right-of-way line of SW Jackson Street as dedicated in the plat of the City of Portland, said point being easterly, feet from the northwest corner of Block 157 of said plat, Assessor Map 1S 1E 4DD and Assessor Map 1S 1E 4DA; 41. Thence westerly, along the southerly right-of-way line of SW Jackson Street as dedicated in the plat of the City of Portland, a distance of feet, more or less, to the northeast corner of Block 194 of said plat, Assessor Map 1S 1E 4DA; 42. Thence southerly, along the westerly right-of-way line of SW 6 th Avenue as dedicated in the plat of the City of Portland and the plat of Caruthers Addition to Caruthers Addition, a distance of 134 feet, more or less, to the northwest corner of that portion of SW 6 th Avenue vacated in the City of Portland Ordinance No passed January 2, 1975, Assessor Map 1S 1E 4DA and Assessor Map 1S 1E 4DD; 43. Thence easterly, along the north line of that portion of SW 6 th Avenue vacated in the City of Portland Ordinance No accepted January 2, 1975, a distance of feet, more or less, to the northeast corner thereof, Assessor Map 1S 1E 4DA and Assessor Map 1S 1E 4DD; 44. Thence southerly, along the east line of that portion of SW 6 th Avenue vacated in the City of Portland Ordinance No accepted January 2, 1975, a distance of feet, more or less, to the southeast corner thereof, said southeast corner being on the easterly extension of the south line of Lot 1, Block 31 of the plat of Caruthers Addition to Caruthers Addition, Assessor Map 1S 1E 4DA and Assessor Map 1S 1E 4DD; 45. Thence westerly, along the south line of that portion of SW 6 th Avenue vacated in the City of Portland Ordinance No accepted January 2, 1975, which is also along the easterly extension of the south line of Lot 1, Block 31 of the plat of Caruthers Addition to Caruthers Addition, a distance of feet, more or less, to the southeast corner of said Lot 1, Assessor Map 1S 1E 4DA and Assessor Map 1S 1E 4DD; 46. Thence northwesterly, along the northeasterly right-of-way lines of Interstate Highway 405 Stadium Highway as shown in the Oregon Department of Transportation Drawing No. 1A-16-25, a distance of 221 feet, more or less, to the easterly right-of-way line of SW Broadway Avenue, which is at the southwesterly corner of that tract of land conveyed to GRS Properties, LLC, by statutory warranty deed recorded October 8, 2002 in Document No , said deed records, and referred to as Parcel 3 therein, Assessor Map 1S 1E 4DD and Assessor Map 1S 1E 4DA; 47. Thence northwesterly, crossing SW Broadway Avenue, a distance of 92 feet, more or less, to the southwesterly corner of that tract of land conveyed to the State of Oregon by warranty deed recorded January 11, 1963 in Book 2150, Page 205, said deed records, and referred to as Parcel 2 therein, Assessor Map 1S 1E 4DA; 48. Thence northwesterly, along the northeasterly right-of-way lines of Interstate Highway 405 Stadium Highway as shown in the Oregon Department of Transportation Drawing No. 1A-16-25, a distance of 210 feet, more or less, to the easterly right-of-way line of the north bound portion of SW Park Avenue, said point being southerly, feet from the northwest corner of Block 196 of said plat, Assessor Map 1S 1E 4DA; 49. Thence northerly, along the easterly right-of-way line of the north bound portion of SW Park Avenue as dedicated in the plat of the City of Portland, a distance of feet, more or less, to the northerly right-of-way line of SW Jackson Street, Assessor Map 1S 1E 4DA; 50. Thence westerly, along the northerly right-of-way line of SW Jackson Street as dedicated in the plat of the City of Portland, a distance of 140 feet, more or less, to the easterly Page 5 of 9

26 Exhibit A right-of-way line of the south bound portion of SW Park Avenue, Assessor Map 1S 1E 4DA; 51. Thence northerly, along the easterly right-of-way line of the south bound portion of SW Park Avenue as dedicated in the plat of the City of Portland, a distance of 260 feet, more or less, to the northerly right-of-way line of SW College Street, Assessor Map 1S 1E 4DA; 52. Thence westerly, along the northerly right-of-way line of SW College Street as dedicated in the plat of the City of Portland, a distance of feet, more or less, to the westerly right-of-way line of the south bound portion of SW Park Avenue, Assessor Map 1S 1E 4DA; 53. Thence northerly, along the westerly right-of-way line of the south bound portion of SW Park Avenue as dedicated in the plat of the City of Portland, said right-of-way now vacated as shown in the City of Portland Ordinance No dated May 5, 1971, a distance of 720 feet, more or less, to the southerly right-of-way line of SW Montgomery Street, Assessor Map 1S 1E 4DA; 54. Thence easterly, along the southerly right-of-way line of SW Montgomery Street as dedicated in the plat of the City of Portland, a distance of feet, more or less, to the easterly right-of-way line of the south bound portion of SW Park Avenue, Assessor Map 1S 1E 4DA; 55. Thence northerly, along the easterly right-of-way line of the south bound portion of SW Park Avenue as dedicated in the plat of the City of Portland, a distance of 520 feet, more or less, to the southerly right-of-way line of SW Market Street, Assessor Map 1S 1E 4AD; 56. Thence westerly, along the southerly right-of-way line of SW Market Street as dedicated in the plat of the City of Portland, a distance of feet, more or less, to the westerly right-of-way line of the south bound portion of SW Park Avenue, Assessor Map 1S 1E 4AD; 57. Thence southerly, along the westerly right-of-way line of the south bound portion of SW Park Avenue as dedicated in the plat of the City of Portland, a distance of 200 feet, more or less, to the northerly right-of-way line of SW Mill Street, Assessor Map 1S 1E 4AD; 58. Thence westerly, along the northerly right-of-way line of SW Mill Street as dedicated in the plat of the City of Portland, a distance of 200 feet, more or less, to the easterly right-of-way line of SW 10 th Avenue, Assessor Map 1S 1E 4AD; 59. Thence, westerly, crossing SW 10 th Avenue as dedicated in the plat of the City of Portland and referred to therein as 8 th Street, a distance of 85 feet more or less, to the intersection of the right-of-way centerline of SW Mill Street, which is now vacated by City of Portland Ordinance No , accepted March 19, 1969, with the westerly right-of-way line of SW 10 th Avenue, Assessor Map 1S 1E 4AD; 60. Thence westerly, along the right-of-way centerline of SW Mill Street, which is now vacated by City of Portland Ordinance No , accepted March 19, 1969 and City of Portland Ordinance No , accepted November 26, 1938, a distance of 480 feet, more or less, to the easterly right-of-way line of SW 12 th Avenue, Assessor Map 1S 1E 4AD; 61. Thence northerly, along the easterly right-of-way line of SW 12 th Avenue as dedicated in the plat of the City of Portland and referred to therein as 10 th Street, a distance of 230 feet, more or less, to the southerly right-of-way line of SW Market Street, Assessor Map 1S 1E 4AD; Page 6 of 9

27 Exhibit A 62. Thence westerly, along the southerly right-of-way line of SW Market Street as dedicated in the plat of the City of Portland, a distance of 280 feet, more or less, to the easterly right-of-way line of SW 13 th Avenue, Assessor Map 1S 1E 4AC; 63. Thence northerly, along the easterly right-of-way line of SW 13 th Avenue as dedicated in the plat of the City of Portland and referred to therein as 11 th Street, a distance of 580 feet, more or less, to the northerly right-of-way line of SW Columbia Street, Assessor Map 1S 1E 4AC and Assessor Map 1S 1E 4AB; 64. Thence westerly, along the northerly right-of-way line of SW Columbia Street as dedicated in the plat of the City of Portland, a distance of 360 feet, more or less, to the westerly right-of-way line of SW 14 th Avenue, Assessor Map 1S 1E 4AB; 65. Thence northerly, along the westerly right-of-way line of SW 14 th Avenue as dedicated in the plat of the City of Portland and referred to therein as 12 th Street, a distance of 510 feet, more or less, to the south line of that tract of land conveyed to Jacob Kamm by deed recorded March 11, 1876 in Book 29, Page 25, said deed records, Assessor Map 1S 1E 4AB; 66. Thence westerly, along the south line of that tract of land conveyed to Jacob Kamm by deed recorded March 11, 1876 in Book 29, Page 25, said deed records, a distance of 1080 feet, more or less, to the easterly right-of-way line of SW 18 th Avenue, Assessor Map 1S 1E 4AB; 67. Thence northerly, along the easterly right-of-way line of SW 18 th Avenue as conveyed to the City of Portland by Resolution No accepted August 29, 1929 and shown in the plat of Opening, Lay-Out and Establishing of Jefferson Street and Chapman Street by Resolution No , a distance of 157 feet, more or less, to an angle point in said east right-of-way at the south line of that tract of land conveyed to the City of Portland for right-of-way purposes by deed recorded August 7, 1997 in Document No , Assessor Map 1S 1E 4AB; 68. Thence easterly and northerly, along the southerly and easterly right-of-way lines of SW 18 th Avenue as conveyed to the City of Portland for right-of-way purposes by deed recorded August 7, 1997 in Document No , a distance of 241 feet, more or less, to the southerly right-of-way line of SW Salmon Street, Assessor Map 1S 1E 4AB; 69. Thence easterly, along the south right-of-way lines of SW Salmon Street as conveyed to the City of Portland by Ordinance No , dated May 4, 1927 and shown in the plat of Opening, Lay-Out and Establishing of Salmon St. and Lownsdale St. by Resolution No , a distance of 1022 feet, more or less, to the westerly right-of-way line of SW 14 th Avenue, Assessor Map 1S 1E 4AB; 70. Thence southerly, along the westerly right-of-way line of SW 14 th Avenue as dedicated in the plat of the City of Portland and referred to there in as 12 th Street, a distance of feet, Assessor Map 1S 1E 4AB; 71. Thence easterly, perpendicular to the last described course, a distance of 360 feet, more or less, to the easterly right-of-way line of SW 13 th Avenue, which is also on the boundary line of the South Park Blocks Urban Renewal Area, Assessor Map 1S 1E 4AB and Assessor Map 1S 1E 4AA; The following courses are in common with the boundary line of the South Park Blocks Urban Renewal Area. 72. Thence southerly, along the easterly right-of-way line of SW 13 th Avenue as dedicated in the plat of the City of Portland and referred to therein as 11 th Street, a distance of 457 Page 7 of 9

28 Exhibit A feet, more or less, to the southerly right-of-way line of SW Jefferson Street, Assessor Map 1S 1E 4AA; 73. Thence easterly, along the southerly right-of-way line of SW Jefferson Street, which is also feet southerly of, measured perpendicular thereto, the east-west centerline of Block D of the plat of the City of Portland and it s easterly extension, a distance of 280 feet, more or less, to the easterly right-of-way line of SW 12 th Avenue, Assessor Map 1S 1E 4AA; 74. Thence northerly, along the easterly right-of-way line of SW 12 th Avenue as dedicated in the plat of the City of Portland and referred to therein as 10 th Street, a distance of 148 feet, more or less, to the northwesterly corner of that tract of land conveyed to the City of Portland by Warranty Deed Statutory Form recorded July 18, 2001 in Document No , said deed records, Assessor Map 1S 1E 4AA; 75. Thence easterly, along the northerly line of that tract of land conveyed to the City of Portland by Warranty Deed Statutory Form recorded July 18, 2001 in Document No , said deed records, a distance of 200 feet, more or less, to the northeasterly corner thereof, which is on the westerly right-of-way line of SW 11 th Avenue, Assessor Map 1S 1E 4AA; 76. Thence southerly, along the westerly right-of-way line of SW 11 th Avenue as dedicated in the plat of the City of Portland and referred to therein as 9 th Street, a distance of 141 feet, more or less, to southerly right-of-way line of SW Jefferson Street, Assessor Map 1S 1E 4AA; 77. Thence easterly, along the southerly right-of-way line of SW Jefferson Street as dedicated in the plat of the City of Portland, a distance of 620 feet, more or less, easterly right-of-way line of the south bound portion of SW Park Avenue; Assessor Map 1S 1E 4AA and Assessor Map 1S 1E 4AD; 78. Thence northerly, along the easterly right-of-way line of the south bound portion of SW Park Avenue as dedicated in the plat of the City of Portland, a distance of 780 feet, more or less, to the south right-of-way line of SW Salmon Street, Assessor Map 1S 1E 4AA and 1S 1E 3BB; 79. Thence easterly, along the south right-of-way line of SW Salmon Street as dedicated in the plat of the City of Portland, a distance of 80 feet, more or less to the westerly rightof-way line of the north bound portion of SW Park Avenue, Assessor Map 1S 1E 3BB; 80. Thence southerly, along the westerly right-of-way line of the north bound portion of SW Park Avenue as dedicated in the plat of the City of Portland, a distance of 1040 feet, more or less, to the southerly right-of-way line of SW Columbia Street, Assessor Map 1S 1E 3BB, Assessor Map 1S 1E 4AA, and Assessor Map 1S 1E 4AD; 81. Thence easterly, along the southerly right-of-way line of SW Columbia Street as dedicated in the plat of the City of Portland, a distance of 860 feet, more or less, to the right-of-way centerline of SW 5 th Avenue, Assessor Map 1S 1E 4AD and Assessor Map 1S 1E 3BC; 82. Thence southerly, along the right-of-way centerline of SW 5 th Avenue as dedicated in the plat of the City of Portland, a distance of 1175 feet, more or less, to the westerly extension of the southerly line of that tract of land conveyed to the City of Portland by statutory bargain and sale deed recorded December 20, 2002 in Document No , said deed records, Assessor Map 1S 1E 3BC and Assessor Map 1S 1E 3CB; 83. Thence easterly, along the southerly line of that tract of land conveyed to the City of Portland by statutory bargain and sale deed recorded December 20, 2002 in Document No , said deed records, and it s westerly extension, a distance of 240 feet, Page 8 of 9

29 Exhibit A more or less, to the westerly right-of-way line of SW 4 th Avenue, Assessor Map 1S 1E 3CB; 84. Thence northerly, along the westerly right-of-way line of SW 4 th Avenue as dedicated in the plat of the City of Portland, a distance of 135 feet, more or less, to the southerly right-of-way line of SW Montgomery Street, Assessor Map 1S 1E 3CB; 85. Thence westerly, along the southerly right-of-way line of SW Montgomery Street as dedicated in the plat of the City of Portland, a distance of 200 feet, more or less, to the easterly right-of-way line of SW 5 th Avenue, Assessor Map 1S 1E 3CB; 86. Thence northerly, along the easterly right-of-way line of SW 5 th Avenue as dedicated in the plat of the City of Portland, a distance of 1040 feet, more or less, to the southerly right-of-way line of SW Columbia Street, Assessor Map 1S 1E 3CB and Assessor Map 1S 1E 3BC; 87. Thence easterly, along the southerly right-of-way line of SW Columbia Street as dedicated in the plat of the City of Portland, a distance of 200 feet, more or less, to the westerly right-of-way line of SW 4 th Avenue as dedicated in said plat and the POINT OF BEGINNING, Assessor Map 1S 1E 3BC. The Education Urban Renewal Area contains 144 acres, more or less. Page 9 of 9

30 Exhibit A N W E S Because the world is a spatial place TM rd Avenue Forest Grove OR T:

31 Exhibit B Report Accompanying the Education Urban Renewal Plan May 16, 2012

32 Exhibit B

33 Exhibit B Table of Contents I. Introduction... 1 II. Description of Existing Physical, Social, and Economic Conditions and Expected Impact... 1 A. Physical Conditions... 1 B. Social Conditions... 6 C. Economic Conditions... 6 D. Expected Impact on Municipal Services... 9 III. Reasons for Selection of Each Urban Renewal Area in the Plan IV. Relationship Between Each Project and Existing Conditions in the Urban Renewal Area A. Strategic Partnerships to Develop and Educate a 21 st Century Workforce B. Urban Innovation C. Research & Technology Commercialization D. Entrepreneurship E. Cluster Development F. Housing V. Estimated Total Cost of Each Project and the Sources of Moneys to Pay Such Costs VI. Anticipated Completion Date for Each Project VII. Estimated Amount of Tax Increment Revenues Required and Anticipated Year in which Indebtedness will be Retired VIII. Financial Analysis of the Plan IX. Impact of Tax Increment Financing, both until and after the Indebtedness is Repaid, upon all Entities Levying Taxes upon Property in the Urban Renewal Area X. Relocation Report XI. Compliance with Statutory Limits on Assessed Value and Acreage in Urban Renewal Areas... 19

34 Exhibit B

35 Exhibit B I. Introduction This Technical Report ( Report ) accompanying the Education Urban Renewal Plan ( Plan ) contains background information and project details for the Education Urban Renewal Plan. This Report is not a legal part of the Plan but is intended to provide additional information and a basis for the findings made by the Portland City Council ( Council ) as part of its approval of the Plan. II. Description of Existing Physical, Social, and Economic Conditions and Expected Impact A. Physical Conditions 1. Land Use and Zoning The Education Urban Renewal Area ( Area ) shown in Figure 1 below contains 144 acres, including public right-of-way. The Area is predominantly within the I-405 Freeway Loop in the southwestern edge of downtown Portland. There are 234 tax lots within the Area, totaling 96.6 acres. Existing land use and zoning of the area are detailed in Tables 1 and 2 below. The proportion of land uses within the Area is typical of a central city environment. A majority of land is commercial (68%); a far smaller percentage is residential (21%) and recreational (11%). More than 10 of the 96.6 acres are stand-alone surface parking lots or are currently vacant. Table 1: Existing Land Use of Tax Lots within Area Property Class Acreage Square Feet Percentage Commercial ,877,662 68% Multi-Family ,753 15% Recreational ,630 11% Residential ,832 6% Total ,202, % *Source: Multnomah County Office of Assessment and Taxation There are four different zoning designations within the Area, shown in Figure 2 below. In summary, commercial zones cover approximately 53% of the Area. Residential zoning applies to about 37%, and open space, which includes the South Park Blocks, is 10%. Table 2: Existing Zoning of Tax Lots within Area Zoning Designation Acreage Square Feet Percentage Central Commercial (CX) ,214,627 53% Central Residential (RX) ,082,462 26% High Density Residential ,800 11% Open Space (OS) ,011 10% Total ,205, % *Source: City of Portland Bureau of Planning and Sustainability Report Accompanying the Education Urban Renewal Plan Page 1

36 Exhibit B Figure 1. Education Urban Renewal Area Boundary Map Report Accompanying the Education Urban Renewal Plan Page 2

37 Exhibit B Figure 2. Education Urban Renewal Area Zoning Map Report Accompanying the Education Urban Renewal Plan Page 3

38 Exhibit B 2. Building Condition In 2009, PBS Engineering and Environmental completed a building hazardous materials study for the Portland Development Commission ( PDC ). Their report identified that, in general, buildings constructed prior to 1978 were likely painted with a lead-based or lead-containing paint and likely have light fixtures which contain polychlorinated biphenyls ( PCBs ). Additionally, the report indicated that buildings constructed prior to 1980 likely contain asbestos. There are 31 buildings within the Area that are owned or leased by Portland State University ( PSU ). Sixty-five percent of those buildings were built prior to 1978 and have not gone through major renovations, indicating a likely presence of lead-based paint, PCBs and asbestos. These buildings are identified in Figure 4 below. Because of possible safety issues arising from the presence of lead-based paint, PCBs and asbestos, these buildings are unfit for their intended purpose due to the defective quality of physical construction and are therefore blighted in accordance with ORS (1)(a)(A). 3. Street Conditions The Portland Bureau of Transportation provided information regarding the condition of rights-of-way within the Area. Table 3 and Figure 3 below show that 24% of street segments within the Area need to be rebuilt or are in bad condition, with an additional 19% needing some work. Such inadequate rightsof-way constitute blight in accordance with ORS (1)(e). Table 3: Existing Street Conditions in Area Description (Rating) Length (feet) Percentage Rebuild (<40) 1,323 5% Bad Condition (40-64) 4,756 19% Needs Some Work (65-74) 4,794 19% Good Condition (75-84) 7,716 30% Very Good Condition (85-100) 7,019 27% Total 25, % *Source: Portland Bureau of Transportation Report Accompanying the Education Urban Renewal Plan Page 4

39 Exhibit B Figure 3. Street Conditions Report Accompanying the Education Urban Renewal Plan Page 5

40 Exhibit B 4. Parks and Open Space The Area includes 11 acres of parks and open space. This differs from the Open Space zoning above because it also includes some rights of way that are considered green streets. This area includes some of Portland's most historically and architecturally significant spaces such as the South Park Blocks, Ira Keller Fountain, Pettygrove Park, and Lovejoy Fountain. B. Social Conditions According to 2010 Census data, the total population of all Census blocks completely within the Area is 5,836. Race and ethnic backgrounds are shown in Table 4. Table 4: Population Detail Race % of Total White 77% Black or African American 3% American Indian and Alaska Native 1% Asian 13% Native Hawaiian and Other Pacific Islander <1% Other 2% Two or More Races 5% Ethnicity % of Total Hispanic 6% *Source: 2010 Census According to the 2010 Business Analyst estimates, median household income in the Area is $33,344. This is 39% less than the median household income for the Portland area ($54,350) and 46% less than the median household income for the seven-county region ($61,783). C. Economic Conditions 1. Taxable Value The 2011/2012 taxable value of land, improvements and personal property in the Area is $608,816,897. This does not include utility value, which will be determined by the County Assessor upon Plan approval. 2. Development Capacity The City of Portland Bureau of Planning and Sustainability ( BPS ) Development Capacity Model identifies 18% of the tax lot acreage in the Area as significantly underutilized. This model measures development capacity by comparing the amount of existing development to what is allowed. Additionally, Area-wide, 64% of allowable building square footage is not being realized. More than one quarter of this development capacity is within tax lots designated as underutilized by BPS. 3. Improvement and Land Values One tool for assessing the economic health of an area is an improvement to land ratio ( I:L ) analysis. The ratio between the real market value of the land and the value of its accompanying improvements Report Accompanying the Education Urban Renewal Plan Page 6

41 Exhibit B provides an indication of the economic viability of the area. Low ratios indicate a larger benefit from redevelopment. Low ratios also indicate a prevalence of depreciated values, and underutilization. According to a 2012 analysis by Johnson Reid, LLC, properties in the Area with I:L ratios below 2.5:1 were identified as underutilized compared to their potential capacity and productivity. Table 5 and Figure 4 below show that about 50% of the total Area has an I:L ratio of 2.5:1 or less. These properties can be identified as demonstrating a growing lack of proper utilization of the area, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to the public health, safety and welfare of the Area, and therefore constitute blight in accordance with ORS (1)(h). Table 5: Improvement to Land Ratio in Area Improvement to Land Ratio Acreage % of Total to % to % to % to % to % to % to % Subtotal (Underutilized) % > 2.50: % Not applicable % Total % *Source: Multnomah County Office of Assessment and Taxation The stagnant and unproductive condition of land, combined with the defective quality of physical construction of buildings and inadequate rights-of-way set forth above result in the Area, as a whole, being blighted in accordance with ORS (1). Report Accompanying the Education Urban Renewal Plan Page 7

42 Exhibit B Figure 4. Blight Indices Report Accompanying the Education Urban Renewal Plan Page 8

43 Exhibit B D. Expected Impact on Municipal Services The fiscal impact of tax increment financing on taxing districts that levy taxes within the Area is described in Section IX of this Report. This section discusses the fiscal impacts resulting from potential increases in demand for municipal services. Given the Area s location in Portland s downtown core with full public services in place, the implementation of this Plan is not anticipated to result in significant additional public service requirements such as police, fire, etc. Property redevelopment should reduce the fire and life safety needs of buildings, as they would be in better overall condition. Development assistance would add value to properties, thereby potentially adding to the tax base and providing revenue during the length of the Plan and once the Plan is terminated. Infrastructure improvements directly associated with strategic economic development projects may be funded through tax increment resources. This can help reduce the need to finance those improvements through other municipal resources, which allows resources to be used in other ways. Business development programs, which are intended to help improve and expand office and commercial space for targeted tenants, are not expected to have a negative fiscal impact in terms of dramatically increasing demand on municipal services. The assistance would add value to properties, thereby potentially adding to the tax base and providing increment for further investment over the duration of the Plan and tax revenues for other jurisdictions once the Plan is terminated. Capacity for various municipal services is also built into existing City policies through the use of tools such as system development charges (SDCs). SDCs for the Parks and Transportation Bureaus apply to each new development to help offset increased demand on municipal services. In addition, a City business license fee would help augment the general fund to pay for services. The City of Portland Tax Increment Financing Set Aside Policy for Affordable Housing will apply to the Plan. Housing investments which use tax increment resources will be guided by City housing policy and investment strategies administered by the Portland Housing Bureau (PHB). It is also anticipated that PSU and private property owners will be looking for opportunities to supply new workforce and affordable housing in the future. Other municipal resources would not have to be used for this purpose, which would allow the funds to be used for other services. Providing low-income and workforce housing in the Area, in close proximity to jobs, retail and light rail transit, helps eliminate traffic and resulting pollution by reducing automobile trips. It also supports the retail trade in the Area, thereby maintaining a healthy economy and a socio-economic balance. These potential housing developments will turn stagnant and unproductive land into land which contributes positively to the overall public health, safety and welfare of the Area. The combination of business development, property redevelopment, infrastructure and housing assistance in the Area will address a lack of proper utilization that is resulting in stagnant and unproductive land. This assistance will result in a positive benefit to the overall public health, safety, and welfare of the community by addressing factors of blight. Report Accompanying the Education Urban Renewal Plan Page 9

44 Exhibit B III. Reasons for Selection of Each Urban Renewal Area in the Plan The reason for selection of the Area is the prevention and reduction of blight and to leverage concurrent investment to make PSU a world class urban research university and to increase opportunities for collaboration with Portland Public Schools, Multnomah County and other public and private partners. IV. Relationship Between Each Project and Existing Conditions in the Urban Renewal Area A. Strategic Partnerships to Develop and Educate a 21 st Century Workforce Strategic partnerships with Multnomah County and Portland Public Schools will develop underutilized properties within the Area, addressing the existing conditions described in Section II.C. of this Report. B. Urban Innovation Projects in this category will rehabilitate a portion of the existing built environment, addressing the deteriorated quality of physical construction as described in Section II.A.2. of this Report. C. Research & Technology Commercialization It is the intention of commercialization investments to increase the amount of laboratory space and other advanced office infrastructure in the Area. Projects in this category will reduce the underutilization of property in the Area described in Section II.C. of this Report. D. Entrepreneurship Entrepreneurship-related projects will expand the available space for Portland start-ups and support for entrepreneurial activity, including the development of additional accelerator facilities which will likely occur on underutilized property in the Area described in Section II.C. of this Report. E. Cluster Development Investments such as redevelopment of current office space and energy retrofits provide opportunities for research and development-intensive companies to co-locate with or near institutional resources. At the same time, these investments will reduce the underutilization of property in the Area described in Section II.C. of this Report. F. Housing Median household income in the Area is 39% less than that of the Portland area. Housing projects that utilize resources from this Plan, as determined by the Portland Housing Bureau, could preserve and create rental housing that remains affordable to low-income families and individuals, such as those described in Section II.B. of this Report. Report Accompanying the Education Urban Renewal Plan Page 10

45 Exhibit B V. Estimated Total Cost of Each Project and the Sources of Moneys to Pay Such Costs Table 6 shows the estimated total cost of each project known at the time of preparation of the Plan. The sources of moneys to pay for these costs are from the projection of tax increment revenues in Section VIII of this Report. Table 6: Project Costs Report Accompanying the Education Urban Renewal Plan Page 11

46 Exhibit B VI. Anticipated Completion Date for Each Project Projects and programs will be ongoing throughout the life of the Plan. Scheduling for projects will occur during the annual budgeting process for the Area. The Plan s last date to issue debt is June 30, While it is difficult to precisely forecast the start and end date of specific development projects over a span of nearly three decades, it is anticipated the following projects will begin within the first five years of the Plan: The expansion of the PSU School of Business Housing Set Aside investments Neuberger Hall Renovation Marston House and East Hall Energy Retrofits Tenant improvements and other assistance through the Target Industry Recruitment and Expansion Fund, the Startup Accelerator Fund, and Small Business/Real Estate Programs Additionally, the Multnomah County project referenced in Section III.A of the Plan is anticipated to be completed or substantially under way by Report Accompanying the Education Urban Renewal Plan Page 12

47 Exhibit B VII. Estimated Amount of Tax Increment Revenues Required and Anticipated Year in which Indebtedness will be Retired Table 7 shows the yearly tax increment revenues and their allocation to loan repayments, debt service and debt service reserve funds. It is anticipated that all debt will be retired by the end of FY 2044/45. Table 7: Tax Increment Revenues, Debt Service and Debt Repayment Report Accompanying the Education Urban Renewal Plan Page 13

48 Exhibit B Report Accompanying the Education Urban Renewal Plan Page 14

49 Exhibit B Report Accompanying the Education Urban Renewal Plan Page 15

50 Exhibit B VIII. Financial Analysis of the Plan Table 8 shows the existing assessed value of the Area and projected incremental assessed value. It also shows the tax rates applied to the incremental assessed value, the tax revenues allocated to the Area and to the taxing jurisdictions due to the sharing provisions of ORS 457, and the reduction of these revenues by compression, delinquencies and discounts. Table 8: Projected Incremental Assessed Value, Tax Rates and Tax Increment Revenues Report Accompanying the Education Urban Renewal Plan Page 16

51 Exhibit B Report Accompanying the Education Urban Renewal Plan Page 17

52 Exhibit B IX. Impact of Tax Increment Financing, both until and after the Indebtedness is Repaid, upon all Entities Levying Taxes upon Property in the Urban Renewal Area The impact of tax increment financing on overlapping taxing jurisdictions consists primarily of the property tax revenues foregone on permanent rate levies as applied to the growth in assessed value within the Area. The Plan has a last date to issue debt of June 30, The debt associated with the Area is expected to be repaid by FY 2044/45. Over that period of time, overlapping taxing jurisdictions will forego approximately $229 million in property taxes. This does not include the taxes allocated to overlapping taxing jurisdictions through revenue sharing, which is forecast to begin in FY 2024/25, when tax increment revenues equal three percent of maximum indebtedness. Taxes returned through revenue sharing are approximately $80 million The tables below provide details on total taxes foregone (Table 9) and taxes allocated to overlapping taxing jurisdictions through revenue sharing (Table 10). Table 11 provides an estimate of the increase in tax revenues to overlapping taxing jurisdictions generated by the permanent tax rates that would occur after termination of the tax increment financing in FY 2045/46. Table 9: Foregone Revenues by Taxing Jurisdiction Table 10: Shared Revenues Report Accompanying the Education Urban Renewal Plan Page 18

53 Exhibit B Table 11: Revenues Gained by Taxing Jurisdictions after Termination of Area X. Relocation Report At the time of creation of the Plan, it is not anticipated that relocation will be necessary for businesses or residents in the Area. XI. Compliance with Statutory Limits on Assessed Value and Acreage in Urban Renewal Areas ORS requires that urban renewal areas not exceed 15% of the total assessed value or 15% of the total land area of the City. Table 12 shows that the Plan is in compliance with ORS This Plan is proposed for approval concurrently with the Twelfth Amendment to the South Park Blocks Urban Renewal Plan, which removes property from the South Park Blocks Urban Renewal Area. This table makes the assumption that the amendment to the South Park Blocks Urban Renewal Plan is adopted on or around the same date. With the adoption of this Plan and the South Park Blocks amendment, total remaining acreage under this statute is 690 acres. Report Accompanying the Education Urban Renewal Plan Page 19

54 Exhibit B Table 12: Compliance with Statutory Limits on Assessed Value and Acreage Frozen Base Assessed Value Acres Total City of Portland 1 $ 43,634,351,239 92,768.0 Existing Urban Renewal Areas Airport Way $124,710,302 1,841.4 Central Eastside $224,626, Downtown Waterfront $55,674, Gateway Regional Center $307,174, Interstate Corridor 2 $1,290,430,925 3,990.0 Lents Town Center $736,224,033 2,846.3 North Macadam $192,609, Oregon Convention Center 3 $248,951, River District $461,577, South Park Blocks $376,066, Willamette Industrial $481,443, nd Avenue NPI $81,011, Cully Blvd NPI $81,000, Parkrose NPI $80,493, Rosewood NPI $78,774, Division-Midway NPI $80,201, nd Avenue and Division NPI $81,523, Total Existing Urban Renewal Areas $4,982,494,268 13,140.2 % City in Existing Urban Renewal Areas 11.4% 14.2% Proposed 12th Amendment to South Park Blocks 4 -$255,318, Proposed Education Urban Renewal Area $608,816, Total Proposed Urban Renewal Areas $353,498, Combined Total - Existing and Proposed $5,335,992,834 13,225.8 % City in Existing and Proposed Urban Renewal Areas 12.2% 14.3% 1 Total City of Portland AV less incremental AV in Urban Renewal Areas (OMF) 2 Frozen base value represents AV added to ICURA in July 2011 amendment. Actual frozen base will be determined by the County Assessor. Acreage reflects July 2011 amendment. 3 Frozen base value represents 11/12 OCC Frozen Base and is overstated for estimation purposes. As a result of the 20th Amendment to OCC (July 2011), the reduced frozen base will be determined by the County Assessor. Acreage reflects 20th Amendment. 4 Estimated assessed value to be removed from SPB. As a result of the 12th Amendment to SPB, the reduced frozen base will be determined by the County Assessor. Report Accompanying the Education Urban Renewal Plan Page 20

55 Exhibit C Memorandum DATE: February 21, 2012 TO: Portland Development Commission FROM: JOHNSON REID, LLC SUBJECT: Assessment of Threshold Improvement to Land Value Ratios, Education District This memorandum presents results of an analysis of property utilization in a hypothetical Education Urban Renewal District in the area of Portland State University s downtown campus (see map on Page 3). This analysis provides a measure of the current utilization of various properties within the district in comparison to their potential capacity. The Improvement to Land (I:L) Ratio is the primary indicator used in this analysis. As discussed below, JOHNSON REID estimates that the threshold I:L ratio in the study area is 2.5. Improvement to Land Ratio The threshold I:L ratio represents the estimated ratio of Improvement Value to Land Value below which a property might be considered underutilized compared to its potential capacity and productivity. A property which demonstrates a ratio that is higher than the threshold is estimated to have sufficient value in its current improvements that it might be considered well utilized, or a poor candidate for redevelopment for the foreseeable future. A property which features a ratio at or below this threshold may be expected to redevelop in the foreseeable future, because the current built space on the property has relatively low value compared to the value of the land. This is an indicator that the land may be more valuable and productive under a different use than under the current use. Figure 1 provides an example of the I:L ratios of two properties with identical land values, but different building improvements. FIGURE 1: EXAMPLE IMPROVEMENT TO LAND RATIOS Example: Improvement (Building) Value: Land Value: Improvementto Land Ratio: Property A $50,000 $100, Property B $400,000 $100, PDC Education District I:L Ratio 1

56 February 2012 Exhibit C Property A has a lower improvement value than land value, yielding an I:L ratio of 0.5. Property B has a higher value building, yielding an I:L ratio of 4.0. This example demonstrates that as a general rule a lower I:L ratio will correspond to a lower value improvement, and a higher I:L ratio corresponds to a higher value improvement. In a relatively small geographic area where parcels share the same or similar zoning entitlements, the value of land should be fairly consistent. Therefore, major variations in I:L ratio can generally be attributed to the improvement side of the ratio. In the example presented above, the I:L ratio can be used as an indicator of which property may or may not be considered underutilized. Property A, with its relatively low I:L ratio is a stronger candidate for redevelopment than Property B. The higher improvement value of Property B indicates that it perhaps holds a larger, newer, and/or higher quality building than Property A. Any or all of these make Property B a less likely candidate for redevelopment. The property would be too expensive for a developer to purchase just to reuse the land, and there are likely to be less expensive properties available in the area, such as Property A. In contrast, Property A has a smaller, older, and/or lower quality improvement. It is a stronger candidate for redevelopment. In a sense, the nearby Property B is a case in point that there are higher value uses for land in the area. I:L Ratio and Highest and Best Use The I:L ratio can be one indicator of whether properties are currently under their highest and best use (HBU). The HBU of a property is that use which is permitted, feasible and results in the highest value for the property. From a purely economic perspective, the HBU represents the best and most productive utilization of land. Just because a property is not currently under its highest and best use does not mean that it is automatically a candidate for redevelopment. Many properties are under a lower value use, but their current use still retains enough value to make them too expensive as redevelopment sites. Therefore, a property must have a sufficiently low total value (land plus improvements) to make an affordable redevelopment site. The I:L ratio is one indicator of whether the value of the current use is low enough to make the site a feasible candidate for redevelopment. Education District Threshold I:L Ratio The threshold I:L ratio below which a property may be considered underutilized, varies depending on the submarket. In stronger submarkets, such as the Brewery Blocks area, the threshold is higher because land is more valuable and there is greater potential to put redeveloped properties to more productive use. In weaker submarkets, such as Chinatown, the threshold is lower. PDC Education District I:L Ratio 2

57 February 2012 Exhibit C Based on an assessment of current land and improvement values in the preliminary Education District boundaries, JOHNSON REID estimates a threshold I:L ratio of 2.5 for the area. This means that properties featuring an I:L Ratio between zero and 2.5 are more likely to redevelop over a 25 to 30 year period than those with a ratio of 2.6 or greater. Properties in the study area which have an I:L ratio of 2.5 or lower may not currently feature the most economically productive use of the land. The closer to zero the ratio falls the more likely it is that higher value uses exist for the property. It is important to note that I:L ratio is best used as a general estimate of the total area (acreage) of likely redevelopment land in a district. Any specific property will feature a range of additional factors which will make redevelopment more or less likely. These factors include overall real estate market conditions, lending conditions, owners preferences, physical site factors, etc. PDC Education District I:L Ratio 3

58

59 Exhibit D

60 Exhibit D Jeff. Cogen Multnomah County Chair 501 SE Hawthorne Blvd., Suite 600 Portland, Oregon Phone: (503) mult.chair@co.multnomah.or.us April 26, 2012 Dear Members of the Central City Urban Renewal Evaluation Committee: I regret that I am not able to be with you in person to voice my support for the Education Urban Renewal Area that is before you. Preexisting travel plans have me on a plane as this meeting kicks off, and I simply have not yet figured out how to be in two places at once! When a proposed new urban renewal area for downtown Portland was first unveiled in the fall of 2010, it covered a 350-acre swath of downtown Portland and lacked a compelling strategic purpose that would guide investments of increasingly scarce public dollars. During the ensuing months, I and others voiced concerns that a new URA would only make sense if it was smaller and more targeted. I appreciate that Mayor Adams and the Portland Development Commission listened and that the Education URA before you is responsive to these concerns. This URA is designed to deliver important region-wide economic benefits through a smaller and more-targeted approach that seeks to minimize the fmancial impact on local governments and the public schools. By helping Portland State University increase its capacity both to prepare more residents for 21 st century jobs and to drive regional economic growth in an innovation-based economy, the Education URA will help position our region for long term economic uccess. As Chair of Multnomah County, however, I am well aware that a plan that calls for regional economic success by redirecting tax revenues away from our critical human services is not a recipe for creating economic success for everyone in the region. For that reason, I am pleased that Mayor Adams, PSU, and the PDC were willing to sit down and find ways that this URA can support Multnomah County's work to empower all residents to succeed. These discussions led to an Intergovernmental Agreement that, at its essence, embeds into the URA's economic development focus a commitment to pursuing our community's value that everyone deserves a real chance at economic prosperity. The Education URA, like all urban renewal areas, will cost Multnomah County significant tax revenue. However, by assisting with a building for the County's Department of Human Services, which significantly lowers the County's facilities costs, the net fiscal impact on Multnomah County is slight. In light of this, earlier today the Multnomah County Board of Commissioners approved this agreement. Because the Education URA, in its current form, is appropriately targeted as to strategic focus, geography, and maximum indebtedness, I and the Multnomah County Board of Commissioners are supporting it. I am optimistic that after tonight's presentation and discussion, the Evaluation Committee will share our sentiment that the Education URA has struck a delicate balance and therefore should remain unchanged. Since ely, nomah County Chair

61 Exhibit D

62 Exhibit D PORTLAND STATE UNIVE1.111( College of Urban and Public Affairs Nohad A.Toulan, Dean Emeritus Post Office Box 751 Portland, Oregon PHONE: FAX: toulann@pdx.edu April 3, 2012 Mayor Sam Adams 1221 SW 4 th Avenue, Rm 340 Portland, OR Dear Mayor Adams: I am writing to encourage you and the Portland City Council to support the proposed Urban Renewal Area in the South downtown area around Portland State University. As you know, tax increment financing has played a significant role in the development of our City and the University District. Since the 1960's Portland leaders have selectively used urban renewal resources to leverage other public and private resources toward investments that have grown the University. As a result, today we have a campus that serves, enriches, and enhances our City. Looking forward, our University intends to make considerable new investments in academic and research facilities, housing, transportation infrastructure and urban public spaces. Our planning suggests that, in the next three decades, our research and enrollment growth will require over four million added square feet. This means we will be almost doubling the scale of our current campus. We expect this growth will stimulate considerable private investment and partnership also. We will need the City to be our close partner in realizing this vision, and Urban Renewal will be an essential part of this partnership. The proposed URA is appropriately focused on the University District and the promotion of educational, research and economic development goals. Given the budget constraints that many public bodies are facing a broader URA might not be possible, while a smaller URA might not have the capacity to support potential growth. As you know, the Education URA will also address very real needs for affordable housing and improved human services through collaboration with the County. Please give careful thought to this opportunity and make this long term investment in the future of our City, its university and its citizens. I would be happy to speak to you about this further if you would like. Sincerely, e it/y-4(1'14 Dr. Nohad A. Toulan, Dean Emeritus of the College of Urban and Public Affairs Portland State University

63 Exhibit D April 10, 2012 Chair Scott Andrews Portland Development Commission 222 NW 5 th Ave Portland OR Dear Chair Andrews: The Alliance has long been a supporter of urban renewal as an economic development and urban revitalization instrument. When used correctly, urban renewal can promote job creation, increase property values and tax revenues, leverage other investments and offset the higher cost associated with urban development. We have had the opportunity to review the Proposed Education Urban Renewal Area as well as the Neighborhood Prosperity Initiative and would like to offer our comments on these proposals. The Alliance is supportive of the Proposed Education Urban Renewal Area and encourages the city, Portland State University (PSU) and the overlapping taxing jurisdictions to include sufficient taxable project opportunities within the boundary to ensure the district s ability to generate increment and therefore be able to fulfill as many of the district s plan goals as possible. Additionally, any resources in the set aside that can be dedicated to PSU-supportive affordable housing projects, as well as any administrative, staffing and overhead costs that can be redirected to the development budget, are encouraged. The Alliance is supportive of urban renewal resources being made available to neighborhood districts through the Neighborhood Prosperity Initiative; however, we are concerned with the large proportion of our limited urban renewal acres that these mini-districts consume relative to the economic and tax increment generation they provide. Moving forward, we ask that the city consider alternative financing tools, such as the general fund, that could adequately address the needs of areas that do not have the capacity to generate adequate amounts of tax increment financing to fulfill plan goals. Proposed Education Urban Renewal Area The Alliance is a strong advocate for improving post-secondary education. The Alliance Jobs Summit Action Plan calls for supporting the growth of PSU and OHSU in a manner that leads to increased innovation, business spin-offs and job growth due to research and development activities at the institutions. We supported education reform bills in the Legislature that improve educational outcomes. We are pleased to see the city take a focused look at strengthening PSU s role as a regional economic development engine.

64 Exhibit D Comments on proposed Urban Renewal Area Page 2 The Alliance believes that accelerating the growth of PSU as a premier urban research university will improve partnerships with the business community, attract investment, foster additional research opportunities with OHSU and other institutions and generate economic development through research, innovation and tech-transfer. The Alliance-adopted urban renewal investment criteria call for investments in projects that create a local and widespread halo effect of economic development and private investment. Using urban renewal as one financial tool to facilitate the growth of PSU as an economic generator for the city and the region is a worthy use of tax increment financing, and for this reason, the Alliance supports a PSU-focused urban renewal district. Given the limited acreage remaining in the city s urban renewal cap, it is more important than ever to maximize the opportunities within this district to ensure that it has the financial capacity to create a significant halo effect for PSU and the surrounding area, as well as fulfill the general goals of urban renewal. In this vein, we encourage the city and the overlapping taxing jurisdictions to ensure that the boundary of the proposed district includes a strategic diversity of parcels where substantial tax increment generation is likely over a 30-year period. Given that significant portions of PSU s development projects will be tax-exempt, a strategic boundary that includes tax increment-generating parcels is critically important. Given the size and scope of this proposed district, the Alliance also encourages the city to include student housing as part of the 30 percent set aside for affordable housing. Today s PSU students are much more diverse in age and in the ability to pay for housing. The presumption that students can be supported by parents no longer holds true. Allowing PSU students that otherwise fit the set-aside income criteria would help address PSU s growth projections and allow students needing affordable housing to live near campus, additionally reducing their transportation costs. This would also allow more focus of the available resources on projects that directly generate synergies with curriculum and economic development. With respect to projected staffing overhead and administration costs for this district, we are concerned by the significant percentage assumed in the financial model. Given that this district has a relatively conservative growth projection and will have a considerable portion of non-increment generating projects, it is essential that PDC contain staffing overhead and administration costs so that as much resources are available for project development as possible. PDC and PSU should maximize staffing collaboration to the greatest extent possible so that a greater portion of TIF resources are preserved for actual project development. The Alliance observes that the parcel and right-of-way containing the streetcar track on Southwest Fourth Avenue is not included in the proposed district. While not necessarily an urban renewal project per se, the streetcar realignment on this street has been a long-held commitment by the city and its partners, and its realignment is critical to the overall flow of Southwest Fourth Avenue. Fulfilling this project

65 Exhibit D Comments on proposed Urban Renewal Area Page 3 component addresses traffic flow on a critical portal street into the central city, makes the streetcar system more efficient and re-establishes the development potential of adjoining properties that have been diminished by the current arrangement. As this area develops, we urge that, through efforts of PSU, the city and the private sector, this important project be fulfilled as part of any development scheme that occurs in this area. Neighborhood Prosperity Initiative The Alliance has also reviewed the Neighborhood Prosperity Initiative districts. We would reiterate with respect to these proposed areas that the city is nearing its statutory cap on acreage allowed in urban renewal districts. Therefore, it is very important that the remaining acreage be used in a manner that generates as much direct and indirect investment as possible. While we are supportive of urban renewal resources being made available to the neighborhood districts through this initiative, we are concerned with the large proportion of our limited urban renewal acres that these mini-districts consume relative to the economic and tax increment generation they provide. Moving forward, we ask that the city consider alternative financing tools, such as the general fund, that could adequately address the needs of areas that do not have the capacity to generate significant amounts of tax increment financing to fulfill plan goals. Thank you for your consideration of these comments. We remain committed to working with the city on preserving and promoting the use of urban renewal as a critical tool for economic development. Sincerely, Sandra McDonough President & CEO Portland Business Alliance cc: Mayor Sam Adams Aneshka Dickson John Mohlis Steven Straus Charles Wilhoite Patrick Quinton

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67 Exhibit E April 30, 2012 Mayor Sam Adams and Portland City Council Portland City Hall 1121 SW 4 th Avenue Portland, OR Subject: Education Urban Renewal Area Dear Mayor Adams and City Commissioners, At a public hearing held on April 24, 2012 the Planning and Sustainability Commission voted unanimously in support of the Education Urban Renewal Plan (EDURA) as proposed by the Portland Development Commission. In reaching our decision the Planning and Sustainability Commission finds that the proposed URA is consistent with the adopted City of Portland Comprehensive Plan and recommends that the Portland City Council adopt the EDURA as presented. The PSC further finds that the proposed URA is supportive of some of the integrated strategies of the recently adopted Portland Plan (2012) and implements the City s Economic Development Strategy (2009). In considering the EDURA, the Planning and Sustainability Commission discussed the issue of equity at some length and submits to the City Council the following observations: The EDURA benefits not only Portland State University but also appropriately Multnomah County and Portland Public Schools. However, in the process it has a small but discernible negative financial impact on each of the other five school districts in Portland. To advance the Portland Plan's equity goals, the benefits that Portland Public Schools accrues through redevelopment at Lincoln High School must be shared throughout the school district. The Planning and Sustainability Commission is concerned that the possible use of the Affordable Housing set aside for student housing would not be consistent with the goals of the Council policy establishing the set aside nor the housing goals of the Portland Plan. Equity must involve more than MWESB contracting. We place that responsibility for implementing the Portland Plan s Framework for Advancing Equity in the EDURA on the Portland Development Commission and the Portland Housing Bureau. We ask PDC and the Housing Bureau to report yearly to the Planning and Sustainability Commission on progress toward each of the 12 Portland Plan measures within the EDURA. Without a strong commitment to advancing equity on the part of these key implementing agencies, the district could fail its potential to serve all residents of Portland.

68 Exhibit E Thank you for the opportunity to participate in the review of this new and targeted use of urban renewal in the City and for considering our recommendations. Sincerely, André Baugh, Chair Portland Planning and Sustainability Commission

69 Exhibit E MEMO DATE: April 12, 2012 TO: FROM: CC: SUBJECT: Planning and Sustainability Commission Karl Lisle, Senior Planner, Central City Team Susan Anderson, Director; Joe Zehnder, Chief Planner Proposed Education Urban Renewal Area (EDURA) 1. Summary The Portland Development Commission (PDC) is proposing the creation of an Education Urban Renewal Area (EDURA) in and around the Central City s University District (see map in attachment 2). The primary goal of the EDURA is to leverage resources to accelerate the growth of Portland State University (PSU), creating jobs, attracting investment, and bringing long-lasting benefit to the Portland Metropolitan region. Creation of the EDURA will implement parts of the City s Economic Development Strategy which calls for supporting increased activity and growth at Portland State University. The EDURA will be administered by the PDC. The Planning and Sustainability Commission (PSC) is asked to review the proposed EDURA Plan and determine that it is consistent with the City's Comprehensive Plan. The PSC's recommendation will be forwarded to City Council for their consideration and action at a public hearing on May 9, 2012 and vote on May 16, Recommended Planning and Sustainability Commission Action Staff recommends the following actions: 1) The Planning and Sustainability Commission send a letter to the Portland City Council finding that the EDURA Plan conforms with the City of Portland Comprehensive Plan, and

70 Exhibit E 2) The Planning and Sustainability Commission recommend that the Portland City Council adopt the EDURA Plan along with any other recommendations of the Commission. 3. Background In 2008, after an extensive public process, the Westside Study Urban Renewal Advisory Group (URAG) recommended a series of actions including allowing the South Park Blocks and Downtown Waterfront urban renewal areas to expire, adding acreage to the River District urban renewal area in Old Town/Chinatown and studying the potential for new Central City urban renewal areas on the west side. In an evaluation committee helped create the framework that would eventually lead to the proposed EDURA. In July 2009, Portland City Council adopted the City of Portland Economic Development Strategy, a fiveyear strategy to foster economic opportunity and job growth. The strategy calls for supporting the traded sector industries in which Portland has competitive advantage Advanced Manufacturing, Athletic and Outdoor, Clean Technology and Software, increasing the global competitiveness of these engines of economic growth and to retain and create living-wage jobs. It calls for fostering urban innovation to position Portland at the cutting edge of sustainable solutions and maintaining the vibrancy of our central city. The academic, research, employment and cultural activities of Portland State University play a vital role in these areas. Portland State University worked closely with the City in to create the University District Framework Plan. This plan lays out a bold vision for a growing and ambitious university closely integrated with the surrounding urban neighborhood. The framework plan proposes a district that could accommodate up to 20,000 additional students through employing a new model of campus/city development with deliberately blurred boundaries between the public and private, the university and the city. This model suggests that approximately 40% of new development in the University District should be non-university development and lends itself to public/private partnerships. The proposed EDURA is a key implementation element to realizing this vision. 4. Overview of Proposed EDURA Key EDURA statistics: The EDURA encompasses 144 acres and includes a significant portion of the Central City s University District as well as some surrounding areas. Over 17 acres of land in this area has been identified as redevelopable. Over the life of the district, the EDURA is anticipated to provide up to $169 million for investment in research facilities, business accelerators, affordable housing, and a variety of public and private development. The EDURA is described more fully in the attached Urban Renewal Plan and Report and the attached PDC Board Report dated April 11,

71 Exhibit E 5. Urban Renewal Plan Authority Authority for the use of urban renewal was established by the Oregon Legislature and codified as Chapter 457 of the Oregon Revised Statutes (ORS). The statutes include criteria for the establishment of an urban renewal district, the development of eligible urban renewal areas, and the content of an urban renewal plan and urban renewal plan report. Chapter 15, Article 1, of the Portland City Charter assigns general powers and duties related to urban renewal to the Portland Development Commission. The Commission is designated as the body that will serve as the City s urban renewal and redevelopment agency. PDC is responsible for carrying out all urban renewal functions. Proposed urban renewal plans and urban renewal plan amendments are prepared by the Portland Development Commission staff and approved by the Portland Development Commission prior to their submission to the Portland Planning and Sustainability Commission and Portland City Council. ORS 457 also requires that the City s Planning Commission review urban renewal plans. The Planning and Sustainability Commission s recommendations on urban renewal plans are submitted to the Portland City Council for consideration and their decision on the plan. On April 11, 2012, the Portland Development Commission held a public meeting on the proposed EDURA plan and approved the proposed urban renewal area by Resolution No The EDURA Plan and accompanying Report prepared by the Portland Development Commission in accordance with ORS 457 are attached to this memo. A recommendation from the Planning and Sustainability Commission and approval by the City Council is required for the City to adopt the proposed EDURA plan. 6. Relationship to Recommended Draft Portland Plan Because EDURA documents have been prepared prior to the adoption of the Portland Plan, there is limited reference to the Portland Plan within the EDURA plan. The EDURA is however supportive of the integrated strategies of the Portland Plan as described below: Thriving Educated Youth Investments made with EDURA funding will significantly expand high-quality educational opportunities for the region s youth at Portland State University. The proposed district also includes Portland Public Schools Lincoln High School site and EDURA funds will invest in improving the educational environment and intensity of development at the site. Finally, the EDURA will invest in a new facility for the Multnomah County Department of Social Services, an agency which provides programs supporting social and community prosperity to people of all ages including many youth. Economic Prosperity and Affordability The EDURA directly supports the City s Economic Development Strategy. Specifically, the EDURA responds to the strategy s goals to maximize competitiveness and drive urban innovation. Investing in 3

72 Exhibit E PSU s growth and development directly supports the City s international strategy, higher education and workforce development priorities. The EDURA will contribute directly to strategy objectives on Central City vitality, sustainability leadership and strengthening the Portland brand. Through the City of Portland Tax Increment Financing Set Aside Policy for Affordable Housing, the EDURA also presents the opportunity to make significant investments in new affordable housing and retaining existing affordable housing in the district. Healthy Connected City Investments made with EDURA funding will bring new public and private academic, commercial, and residential uses to help transform the University District into a complete healthy urban neighborhood. 7. Relationship to Portland Comprehensive Plan ORS requires determinations and findings by the governing body that the proposed urban renewal area plan is in conformance with the City s Comprehensive Plan. Detailed legal findings of the proposed urban renewal area plan s conformance with the Comprehensive Plan, and specific area and neighborhood plans, are attached to this memo. In general, the EDURA Plan has been found to be in conformance with the Comprehensive Plan because: The plan has been formulated through a public involvement process that is consistent with the Citizen Involvement (Goal 9) and Metropolitan Coordination (Goal 1) policies of the Comprehensive Plan. The projects in the plan are supportive of Comprehensive plan goals for Urban Development (Goal 2), Neighborhoods (Goal 3), Housing (Goal 4), Economic Development (Goal 5), Transportation (Goal 6), Energy (Goal 7), Environment (Goal 8), Public Facilities (Goal 11), and Urban Design (Goal 12). The projects in the plan are supportive of many of the goals and objectives of the Central City Plan and the Central City Transportation Management Plan. Attachments: 1) Memo from PDC Chair Andrews to the PSC 2) PDC Board Report dated April 11, ) Draft Education Urban Renewal Plan & Accompanying Report 4) Findings of Fact for Consistency with City of Portland Planning Goals and Policies 4

73 April 12 th, 2012 Exhibit E Findings of Fact for Consistency with City of Portland Planning Goals and Policies As proposed, the Education Urban Renewal Plan (the Plan ) will provide tax increment resources to the 144-acre Education Urban Renewal Area. This will set forth a long-term partnership with Portland State University (PSU), Portland Public Schools (PPS), Multnomah County (the County ), and the City of Portland (the City ) intended to accelerate the region s growth and excellence, attract private investment, enhance blighted properties and educate the region s workforce. Potential investments include the development of research facilities, business accelerators, affordable housing, and private development. Among the public benefits expected to occur are increases in assessed values as low-density properties redevelop, accelerated job growth through expanded availability and breadth of research and technology commercialization activities, and greater entrepreneurial and startup activity in Portland s industry clusters. 1. City of Portland Comprehensive Plan The Education Urban Renewal Plan (EDURA) was prepared in conformity with the Portland Comprehensive Plan. The Portland Comprehensive Plan was adopted by the Portland City Council on October 16, 1980, and was acknowledged as being conformance with the statewide planning goals by the Land Conservation and Development Commission on May 1, It has been updated and acknowledged for continuing conformance to the statewide planning goals through successive periodic reviews. The first and most recent periodic review was completed in January The City is currently undergoing its second Comprehensive Plan Periodic Review update which is expected to be completed by the end of Comprehensive plans describe a variety of public goals that are to be achieved over the long term. These goals are usually complimentary but there are times when one comprehensive plan provision can only be advanced at the expense of another; or when one provision is funded while others must wait. In determining whether the EDURA conforms with Portland s Comprehensive Plan, the city must sometimes choose between competing public goals. To do this the city will apply the following definition of conform: o On balance, the purposes of the Comprehensive Plan are advanced as a whole; and o Future compliance with the Comprehensive Plan is not precluded The EDURA was prepared in conformity with the Portland Comprehensive Plan and is consistent with the following relevant Comprehensive Plan policies: Goal 1, Metropolitan Coordination, calls for the Comprehensive Plan to be coordinated with federal and state law and to support regional goals, objectives and plans. The EDURA is supportive of this goal because: 1. These findings demonstrate that the EDURA is consistent with the City of Portland Comprehensive Plan which was acknowledged by the State of Oregon as consistent with statewide planning goals. The EDURA will provide tax increment Page 1 of 21

74 April 12 th, 2012 Exhibit E revenues for physical improvements to support urban and economic development in parts of the Central City. This is supportive of the regional goals contained in Metro s Urban Growth Management Functional Plan which call for developing a compact urban form with a focus on investment in the Central City. The EDURA is also specifically supportive of the following Metropolitan Coordination Policy. Specifically, the proposed district is supportive of the following policies: Policy 1.4 Intergovernmental Coordination requires continuous participation in intergovernmental affairs with public agencies to coordinate metropolitan planning and project development and maximize the efficient use of public funds. 2. Representatives from other government agencies including Multnomah County and Portland Public Schools were included on the Potential Central City URA Evaluation Committee ( Evaluation Committee ). This group held a series of 14 meetings between May 2009 and August 2010 and helped shape the direction for future urban renewal areas in the Central City including this EDURA proposal. 3. The EDURA is consistent with this policy because all overlapping taxing jurisdictions were notified of this proposal, provided with draft authorizing documents and given the opportunity to comment. These jurisdictions include Portland Public Schools, Metro, Multnomah County and others. Any comments received will be addressed during the City Council approval process in May Goal 2, Urban Development, calls for maintenance of Portland's role as the major regional employment and population center by expanding opportunities for housing and jobs, while retaining the character of established residential neighborhoods and business centers. The EDURA is supportive of this goal because: 4. The EDURA will facilitate new urban development in the Central City with more intense academic, commercial, office, and residential opportunities than currently exist. Specifically, the proposed district is supportive of the following policies: Policy 2.1 Population Growth, seeks to allow population growth within the existing city boundary by providing land use opportunities that will accommodate the projected increase in city households. 5. The EDURA is consistent with this policy because potential development sites within the district could accommodate a variety of future housing types including public and private student housing, affordable and market rate housing. 6. The EDURA is consistent with this policy because the City Council has established an overall goal of spending 30 percent of urban renewal funding on affordable housing projects and programs. Creation of the EDURA will consequently make Page 2 of 21

75 April 12 th, 2012 Exhibit E more funding available for housing programs and projects in the district. These projects will be determined by the Portland Housing Bureau. Policy 2.2 Urban Diversity, seeks to promote a range of living environments and employment opportunities for Portland residents in order to attract and retain a stable and diversified population. 7. The proposed EDURA is consistent with this policy because it will facilitate new development and redevelopment that will expand the wide range of commercial, employment and housing opportunities within the Central City. Policy 2.9 Residential Neighborhoods, seeks to allow a range of housing types to accommodate increased population growth while improving and protecting the city s residential neighborhoods. 8. The EDURA is consistent with this policy because it will enable additional funding for housing development projects and supportive programs including public and private student housing, affordable and market rate housing. 9. The EDURA is consistent with this policy because new housing development in the Central City helps existing neighborhoods elsewhere in the in the city by absorbing some development pressure within the Central City. Policy 2.10 Downtown Portland, seeks to reinforce the Downtown s position as the principal commercial, service, cultural and high density housing center in the city and the region. Maintains the downtown as the city s principal retail center through implementation of the Downtown Plan. Policy 2.11 Commercial Centers, seeks to expand the role of major established commercial centers which are well served by transit. 10. The EDURA is consistent with these policies because it will provide resources to support the continued development of the University District and south Downtown as a major academic, research, commercial and employment center within the Central City. The area is served by two MAX light rail lines, many bus lines, and is also served by the Portland streetcar. Increasing development in this area will support transit ridership and help reduce future reliance on the automobile. Policy 2.12 Transit Corridors, seeks to provide a mixture of activities along major transit routes. 11. The EDURA is consistent with this policy because Central City is the hub of the metropolitan region s transportation system. Creation of the EDURA will facilitate mixed-use development providing a range of new commercial, employment and housing opportunities along the Portland Streetcar and MAX light rail transit lines including the newly rebuilt and extended transit mall as well as the many bus lines that serve the region. Page 3 of 21

76 April 12 th, 2012 Exhibit E Policy 2.15 Living Closer to Work, seeks to locate greater residential densities near major employment centers, including Metro-designated regional and town centers, to reduce vehicles miles traveled per capita and maintain air quality. It also calls for locating affordable housing close to employment centers. 12. The EDURA is consistent with this policy because it will support new affordable and student housing development within parts of the West End and Goose Hollow neighborhoods along with new housing, academic and employment activities in the University district. New and refurbished housing units within the EDURA will be in close proximity to and readily accessible from the public transportation network serving the region s highest concentration of employment opportunities. Policy 2.17 Transit Stations and Transit Centers, seeks to encourage transit-oriented development patterns at transit stations to provide for easy access to transit service. 13. The EDURA is consistent with this policy because the area includes MAX light rail and Portland streetcar station areas. The entire area of the EDURA is within easy walking distance of high-capacity transit. Many sites within the district boundary are ideal transit oriented development opportunities. Policy 2.18 Transit-Supportive Density, establishes average minimum residential densities and minimum floor area ratios for non-residential development. 14. Existing Comprehensive Plan Map designations in the proposed EDURA are consistent with these policies and, therefore, no changes are required as part of the district. Policy 2.19 Infill and Redevelopment, encourages infill and redevelopment as a way to implement the Livable City growth principles and accommodate expected increases in population and employment. Encourages infill and redevelopment in the Central City, at transit stations, along Main Streets, and as neighborhood infill in existing residential, commercial and industrial areas. Policy 2.20 Vacant Land, seeks full utilization of existing vacant land except in those areas designated as open space. 15. The EDURA is consistent with this policy because it will provide resources to enable redevelopment on the significant vacant and underutilized lands within the area. The Bureau of Planning and Sustainability s Draft 2011 Central City Development Capacity Report identified 17.8 acres of vacant or underutilized land with current high density zoning within the EDURA boundary. Policy 2.25 Central City Plan, seeks continued investment within Portland's Central City while enhancing its attractiveness for work, recreation and living. The Central City Plan is meant to coordinate development, provide aid and protection to Page 4 of 21

77 April 12 th, 2012 Exhibit E Portland's citizens, and enhance the Central City's special natural, cultural and aesthetic features. 16. The EDURA is consistent with this policy because it is almost completely within the Central City Plan District. Urban renewal funds and programs will help achieve the goals of the plan noted above. See also findings in Section 3 below pertaining to the Central City s Downtown Policy, Goose Hollow Policy, University District Policy and West End Policy. Goal 3, Neighborhoods, calls for preserving and enhancing the stability and diversity of the City s neighborhoods while allowing for increased density in order to attract and retain longterm residents and businesses and insure the City s residential quality and economic vitality. The proposed district is consistent with this goal because: 17. The EDURA will facilitate the improvement and revitalization of parts of the Downtown s West End neighborhood, Goose Hollow and the University District. The Findings for Comprehensive Plan Goal 4, Housing (below) also apply. Specifically, the proposed district is supportive of the following policies: Policy 3.3 Neighborhood Diversity promotes neighborhood diversity and security by encouraging diversity in age, income, race and ethnic background within the City s neighborhoods. 18. The EDURA is consistent with this policy because this district is becoming one of Portland s more diverse urban neighborhoods. Of PSU s 30,000 currentlyenrolled students, 23% are minority students and international student enrollment has increased by nearly 50% over the last 5 years. As the university continues to grow and develop, this diversity is expected to increase and begin to increase diversity in surrounding areas. Policy 3.4 Historic Preservation seeks to preserve and retain historic structures and areas throughout the city. 19. The EDURA is consistent with this policy because the area contains a mix of historic buildings that will have greater access to funding resources which can help assist with preservation tools such as inventories and improve the condition of the district s physical structures. Potential preservation activities include seismic upgrades, assistance with adaptive re-use projects and storefront renovations. Policy 3.5 Neighborhood Involvement, seeks to provide for the active involvement of neighborhoods, residents, and businesses in decisions affecting their neighborhood. 20. The EDURA is consistent with this policy because representatives from neighborhoods including the Portland Downtown Neighborhood Association, Goose Hollow Foothills League, and South Portland Neighborhood Association Page 5 of 21

78 April 12 th, 2012 Exhibit E were included on the Evaluation Committee. This group held a series of 14 meetings between May 2009 and August 2010 and provided feedback on the initial framework used in the creation of this proposed Plan. 21. The EDURA is consistent with this policy because the City and Portland Development Commission hosted ten outreach events at various locations around the west side of the Central City between October 2009 and April 2012 and will host an open house on April 17, 2012 at PSU. 22. The EDURA is consistent with this policy because all area neighborhood residents and businesses have been notified of this proposal, provided with the schedule of public hearings, and given the opportunity to comment. 23. The EDURA is consistent with this policy because the Portland Development Commission is committed to continuing a forum for involvement throughout the duration of the Plan. 24. Findings under Comprehensive Plan Goal 9: Citizen Involvement also apply. Policy 3.6 Neighborhood Plans, requires the City to maintain and enforce neighborhood plans that are consistent with the Comprehensive Plan. 25. The EDURA is consistent with this policy because EDURA funding will help support the growth and development called for in several existing neighborhood plans. The City Council has adopted neighborhood plans and amendments for the physical area that would be encompassed by the EDURA. These include but are not necessarily limited to: the Downtown Plan (1972), Central City Plan (1988), University District Plan (1995), Downtown Community Association (since renamed the Portland Downtown Neighborhood Association) Residential Plan (1996), Goose Hollow Station Area Plan (1996), and Downtown s West End Amendments (2002). 26. The EDURA is consistent with this policy because it will make these areas eligible for potential urban renewal funds and programs. Goal 4, Housing, calls for enhancement of Portland s vitality by providing housing of different types, tenures, density, sizes, costs, and locations that accommodate the different needs of current and future households. The proposed district is consistent with this goal because: 27. The City Council has established an overall goal of spending 30 percent of urban renewal funding on affordable housing projects and programs. Creation of the EDURA will consequently make more funding available for housing programs and projects in the district as determined by the Portland Housing Bureau. 28. The EDURA may provide funding to support new housing projects in the West End, Goose Hollow, and University District. Each of these areas is designated for additional housing by the Comprehensive Plan and the Central City Plan. Page 6 of 21

79 April 12 th, 2012 Exhibit E Specifically, the proposed district is particularly supportive of the following policies: Policy 4.1 Policy 4.3 Housing Availability seeks to ensure that an adequate supply of housing is available to meet the needs, preferences, and financial capabilities of Portland s households now and in the future. Sustainable Housing encourages housing that supports sustainable development patterns by promoting the efficient use of land, conservation of natural resources, easy access to public transit and other efficient modes of transportation, easy access to services and parks, resource efficient design and construction, and the use of renewable energy resources. 29. The EDURA is consistent with these policies because it will encourage new residential development in a section of Portland s Central City containing MAX light rail and bus lines, and that is served by the Portland Streetcar. This is a highly resource-efficient pattern of growth that will support bicycle use, pedestrian activity and transit ridership, and reduce reliance on the automobile. 30. The EDURA is consistent with this policy because it will facilitate a range of mixed-use development that will provide new and redeveloped academic, commercial, employment and housing opportunities in the area along the light rail transit and streetcar lines and along main street segments. Policy 4.5 Housing Conservation seeks to restore, rehabilitate, and conserve existing sound housing as one method of maintaining housing as a physical asset that contributes to an area s desired character. 31. The EDURA is consistent with this policy because it will provide funding to assist with the preservation of federally-assisted units and repair, renovation, or replacement of existing affordable housing units in the district. Policy 4.10 Housing Diversity promotes the creation of a range of housing types, prices, and rents to: 1) create culturally and economically diverse neighborhoods; and 2) allow those whose housing needs change to find housing that meets their needs within their existing community. 32. The EDURA is consistent with this policy because it will provide additional funding for housing development projects and programs including a diversity of affordable and market rate housing as determined by the Portland Housing Bureau. Policy 4.11 Housing Affordability promotes the development and preservation of quality housing that is affordable across the full spectrum of household incomes. 33. The EDURA is consistent with this policy because it will enable additional funding for affordable housing development projects, preservation and rehabilitation of Page 7 of 21

80 April 12 th, 2012 Exhibit E existing affordable housing in the area, and supportive programs as determined by the Portland Housing Bureau. Policy 4.12 Housing Continuum seeks to ensure that a range of housing from temporary shelters, to transitional, and to permanent housing for renters and owners is available, with appropriate supportive services for those who need them. Policy 4.14 Neighborhood Stability seeks to stabilize neighborhoods by promoting: 1) a variety of homeownership and rental housing options; 2) security of housing tenure; and 3) opportunities for community interaction. 34. The EDURA is consistent with these policies because it will enable additional funding for housing development projects that will create a range of housing programs in the area from very low, low, moderate, and middle-income households, including affordable housing and homeownership programs as determined by the Portland Housing Bureau. 35. The EDURA is consistent with these policies because it may provide a source of funding to help ensure that existing affordable rental housing in the district remains affordable over the long-term through programs to be determined by the Portland Housing Bureau. 36. The EDURA is consistent with these policies because the PSU campus area already provides a wide range of publically-accessible gathering places and cultural activities that promote both student and broader community interaction. These opportunities are expected to increase with the further growth of the university. Goal 5, Economic Development, calls for fostering a strong and diverse economy that provides a full range of employment and economic choices for individuals and families in all parts of the city. The EDURA is consistent with this goal because: 37. The EDURA contains properties within and adjacent to the Portland State University campus. Funds available through the EDURA will support continued institutional and private investment in this durable economic center and adjoining properties, including strategies to support the continued growth of Portland State University. 38. Retail activity contributes to the economy and quality of life in the downtown and larger Central City. The health of individual retailers is directly related to the health of other proximate businesses and the larger downtown environs (i.e., empty storefronts send a negative message to potential tenants). Funding available through the EDURA can be used to fund storefront improvements public infrastructure investment and other public/private partnerships that will improve the general retail environment within the district. 39. Funding available through the EDURA may be used to support the establishment of new or expansion of existing businesses including those within the clusters of Page 8 of 21

81 April 12 th, 2012 Exhibit E economic activity targeted for public support by the City s Five-Year Economic Development Strategy. Specifically, the proposed district is particularly supportive of the following policies: Policy 5.1 Urban Development and Revitalization, calls for encouraging investment in the development, rehabilitation and adaptive reuse of urban land and buildings for employment and housing opportunities. 40. The EDURA is consistent with this policy because the boundary contains a significant mix of existing older buildings that would have greater access to resources for preservation and redevelopment for new employment and housing opportunities through their inclusion in this district. 41. The EDURA is consistent with this policy because small business loans and funding for storefront improvements made available through the EDURA could support building rehabilitation and building reuse. Policy 5.2 Business Development, calls for sustaining and supporting business development activities to retain, expand and recruit businesses. 42. The EDURA is consistent with this policy because it will facilitate funding for public-private partnership projects and programs that will help to improve the climate for business in the district through enhanced and targeted access to financial and human capital sources. 43. The EDURA is consistent with this policy because it will help support and expand technology commercialization and business incubation programs such as the Portland State Business Accelerator a highly successful project supporting the formation and growth of Portland start-up companies. Policy 5.4 Transportation System, promotes a multi-modal regional transportation system that stimulates and supports long term economic development and business investment. 44. The EDURA is consistent with this policy because it will facilitate a range of mixed-use development that will provide a range of new and redeveloped academic, commercial, employment and housing opportunities along the MAX light rail and the Portland Streetcar lines. Policy 5.6 Area Character and Identity Within Designated Commercial Areas, promotes and enhances the special character and identity of Portland s designated commercial areas. 45. The EDURA is consistent with this policy because it will facilitate a range of mixed-use development in and around the University District. This new Page 9 of 21

82 April 12 th, 2012 Exhibit E development will strengthen the developing academic and student-oriented character of the area. Policy 5.7 Business Environment within Designated Commercial Areas, promotes a business environment within designated commercial areas that is conducive to the formation, retention and expansion of commercial businesses. 46. The EDURA is consistent with this policy because it is intended to support further growth and development of Portland State University. In their 2010 University Framework Plan, Portland State University has a placed a high importance on seeking innovative partnerships with private businesses in new development projects. As the university grows, it is anticipated there will be increased private business activity in the district as well. Policy 5.11 Science and Technology Quarter, establishes a Science and Technology Quarter as the core of the region s biomedical, bioscience, and bioengineering industries and advances these industries by encouraging and capitalizing on the strengths of Portland s academic and medical institutions and the region s technology sector. 47. The EDURA is consistent with this policy because it will support the continued growth and success of Portland State University. Portland State University is provides a critical educational and business incubation role in supporting the City s Science and Technology Quarter. Goal 6, Transportation, calls for developing a balanced, equitable, and efficient transportation system that provides a range of transportation choices; reinforces the livability of neighborhoods; supports a strong and diverse economy; reduces air, noise, and water pollution; and lessens reliance on the automobile while maintaining accessibility. The EDURA is supportive of this goal because: 48. Creation of the EDURA will facilitate new development within areas that are well served by transit and other alternative transportation modes. This will reduce the need for employees, students, and customers to rely on automobile travel; and reduce air pollution and traffic congestion on the City s street system. Specifically, the proposed district is supportive of the following policies: Policy 6.19 Transit-Oriented Development, seeks to reinforce the link between transit and land use by encouraging transit-oriented development and supporting increased residential and employment densities along transit streets, at existing and planned light rail transit stations, and at other major activity centers. 49. The EDURA is consistent with this policy because it will enable new development in a section of Portland s Central City that is served by MAX light rail, bus lines Page 10 of 21

83 April 12 th, 2012 Exhibit E and the Portland Streetcar, which is a resource-efficient pattern of growth. This pattern will support transit ridership and reduce reliance on the automobile. Policy 6.22 Pedestrian Transportation, seeks to plan and complete a pedestrian network that increases the opportunities for walking to shopping and services, institutional and recreational destinations, employment, and transit. 50. The EDURA is consistent with this policy because it may provide funding for public improvement projects to enhance the pedestrian experience including improving sidewalks and amenities, planting street trees, installing street lighting, and installing pedestrian/ bicycle connections, throughout the district. Policy 6.23 Bicycle Transportation, seeks to make the bicycle an integral part of daily life in Portland, particularly for trips of less than five miles, by implementing a bikeway network, providing end-of-trip facilities, improving bicycle/transit integration, encouraging bicycle use, and making bicycling safer. 51. The EDURA is consistent with this policy because Portland State University is one of the region s most significant bicyclist destinations. As noted above, creation of the EDURA could support public improvement projects to enhance the cyclist experience including improving bicycle facilities and safety throughout the district. Policy 6.24 Public Transportation, seeks to develop a public transportation system that conveniently serves City residents and workers 24 hours a day, seven days a week and can become the preferred form of travel to major destinations, including the Central City. 52. The EDURA is consistent with this policy because it may provide funding for a variety of projects that support the existing and expanded public transportation system. Such improvements may include but are not limited to: improving bicycle and pedestrian connections to transit stops from surrounding neighborhoods; improving transit service and facilities such as the Portland Streetcar; and increasing transit demand through redevelopment that will support improved transit service. Policy 6.41 Central City Transportation District, includes the Central City Transportation Management Plan Goal, policies, and objectives and classification maps, as part of the Transportation Element of the Comprehensive Plan. 53. The EDURA is consistent with this policy because it will help meet the goals of the Central City Transportation Management Plan by reducing vehicle miles traveled per capita in the Central City by increasing a wide range of development opportunities in the district an area with rich transit access, excellent pedestrian and bicycle facilities and a high concentration of goods and services. Goal 7, Energy, calls for a sustainable energy future by increasing energy efficiency in all sectors of the city. The EDURA is supportive of this goal because: Page 11 of 21

84 April 12 th, 2012 Exhibit E 54. Portland State University is a leader in green technologies and innovation. The EDURA will support further development of academic and research facilities and programs at Portland State that will improve efficiency technologies in the future. 55. Portland State University is one of the City s pilot EcoDistrict areas with a commitment to neighborhood-scale sustainability. The EDURA will help support the physical and economic development of the EcoDistrict and ultimately significantly reduce the district s overall energy use. Specifically, the proposed district is supportive of the following policies: Policy 7.4 Energy Efficiency through Land Use Regulations, promotes residential, commercial, industrial, and transportation energy efficiency and the use of renewable resources. 56. The EDURA is consistent with this policy because it will enable new development in a section of Portland s Central City that is served by MAX light rail, bus lines and the Portland Streetcar, which is a resource-efficient pattern of growth. This pattern will support transit ridership and reduce reliance on the automobile and reduce energy demand related to transportation. Policy 7.5 Energy Efficiency in Commercial and Industrial Facilities, encourages energy efficiency in existing commercial buildings and institutions by facilitating utility, local, state, and federal financial and technical assistance. 57. The EDURA is consistent with this policy because it will support significant renovation projects to existing academic facilities on the Portland State University Campus. These renovations will include major improvements in energy efficiency. Goal 8, Environment, calls for maintenance and improvement of the quality of Portland's air, water, and land resources, as well as protection of neighborhoods and business centers from noise pollution. The EDURA is supportive of this goal because: 58. The proposed EDURA will facilitate new, denser development within areas served by MAX Light Rail, many bus lines and the Portland Streetcar, which is a resourceefficient pattern of growth. This pattern preserves natural resources (i.e., mitigates flood damage, promotes wildlife conservation) and reduces negative environmental impacts (i.e., air and water pollution) by encouraging urban development in existing urban areas adjacent to high capacity transit service, rather than on the region s fringes. Specifically, the proposed district is supportive of the following policy: Policy 8.14 Natural Resources: Conserve significant natural and scenic resource sites and values through a combination of programs which involve zoning and other Page 12 of 21

85 April 12 th, 2012 Exhibit E land use controls, purchase, preservation, intergovernmental coordination, conservation, and mitigation. Balance the conservation of significant natural resources with the need for other urban uses and activities through evaluation of economic, social, environmental, and energy consequences of such actions. 59. The EDURA is consistent with this policy because it will not change existing zoning and other policies designed to protect natural resources and views in the Central City. District funds may be used to support public and private improvements designed to support the success of these policies including, but not limited to, acquisition of open space, stormwater management projects, tree planting programs and other green infrastructure projects. Goal 9, Citizen Involvement, calls for improved methods and ongoing opportunities for citizen involvement in the land use decision-making process. The EDURA is supportive of this goal because: 60. Residents, business owners, property owners and other stakeholders of EDURA and surrounding areas were extensively involved in the process leading up to the proposal for this district. Specifically, the proposed district is supportive of the following policy: Policy 9.1 Citizen Involvement Coordination, calls for encouraging citizen involvement in land use planning projects by actively coordinating the planning process with relevant community organizations, through the reasonable availability of planning reports to city residents and businesses, and notice of official public hearings to neighborhood associations, business groups, affected individuals and the general public. 61. The EDURA is consistent with this policy because the EDURA is result of a process led initially by an evaluation committee including representatives of both neighborhood residential and business representatives. Input from neighborhood interests from across the district were obtained through a series of public input sessions and through electronic outreach efforts. 62. The EDURA is consistent with this policy because after an extensive public process to consider the future of urban renewal areas in the Central City in , the Westside Study Urban Renewal Advisory Group (URAG) recommended a series of actions including that the City identify potential new urban renewal areas in downtown area. The URAG report was adopted by City Council on June 25, The EDURA is consistent with this policy because the Evaluation Committee was formed in May 2009 to provide recommendations on the creation of a potential new downtown urban renewal area. The committee was led by Portland Mayor Sam Adams and was comprised of 24 members including representatives from: Page 13 of 21

86 April 12 th, 2012 Exhibit E Northwest District Association Goose Hollow Foothills League Portland Downtown Neighborhood Association Nob Hill Business Association Multnomah County, Portland Public Schools, Portland State University Portland Business Alliance/ Downtown Retail Council PGE Park Multnomah Athletic Club Con-way 64. The EDURA is consistent with this policy because the Evaluation Committee met 14 times between May 2009 and August During this time information and testimony were reviewed concerning creating a new central city urban renewal area. In addition to participation as a committee member, as an invited presenter, or as a panelist, Evaluation Committee meetings were open to the public and community members who were invited to address the committee or submit comments. 65. The EDURA is consistent with this policy because seven public outreach events were held between October 2009 and September 2010 throughout the proposed urban renewal area for the purpose of informing the public regarding the proposed urban renewal district and obtaining public input regarding the general concept and details of any proposed district. 66. The EDURA is consistent with this policy because during the course of deliberation updates regarding committee agendas and summaries were ed to a list of over 200 individuals and organizations including the leadership of the following neighborhood associations: Northwest District Association Goose Hollow Foothills League Old Town/China Town Portland Downtown Neighborhood Association Hillside Northwest Industrial Pearl District South Portland Southwest Hills Residential League Nob Hill Business Association Goose Hollow Business Association Portland Business Alliance/Downtown Retail Information was also sent using the City of Portland s Office of Neighborhood Involvement Notification. Additionally, all materials were available online at Page 14 of 21

87 April 12 th, 2012 Exhibit E 67. The EDURA is consistent with this policy because briefings on a future urban renewal district were presented at public meetings before the Portland Landmarks Commission on August 9, 2010 and before the Portland Design Commission on September 2, The EDURA is consistent with this policy because although the Evaluation Committee did not produce a formal recommendation or final report, the feedback and guidance from the committee was taken into consideration in the formation of the EDURA plan and boundary. 69. The EDURA is consistent with this policy because PDC Staff has given seven briefings on the proposal with a variety of neighborhood and business groups between November 2011 and April The EDURA is consistent with this policy because the Portland Development Commission is committed to continuing a forum for involvement throughout the duration of the Plan. Goal 11A, Public Facilities, calls for provision of a timely, orderly and efficient arrangement of public facilities and services that support existing and planned land use patterns and densities. The EDURA is consistent with this goal because: 71. The EDURA supports the efficient arrangement of public infrastructure and services by facilitating redevelopment of sites for more intense academic, commercial, office, and residential uses in the urban core of Portland which contains MAX light rail, Portland Streetcar and bus service as well as all other urban services necessary to support new development. These trends are consistent with the intensification of development in the urban core that is called for under the Comprehensive Plan and the Regional 2040 Growth Concept. Goal 11 F, Parks and Recreation, calls for maximizing the quality, safety and usability of parklands and facilities through the efficient maintenance and operation of park improvements, preservation of parks and open space, and equitable allocation of active and passive recreation opportunities for the citizens of Portland. The EDURA is consistent with this goal because: 72. Public recreation improvement projects that may be eligible for EDURA funding include rehabilitation of existing parks, tree planting and other streetscape improvement programs, construction of active recreation facilities and performance venues. These actions will improve the quality of recreation opportunities available to Portlanders. Potentially eligible parks within the EDURA boundary include the South Park Blocks, and the parks and public spaces within the South Auditorium district including the Ira Keller Fountain, Pettygrove Park, and Lovejoy Fountain. Goal 11 I, Schools, calls for enhancing the educational opportunities of Portland s citizens by supporting the objectives of Portland School District #1 and adjacent districts through assistance in planning educational facilities. The EDURA is consistent with this goal because: Page 15 of 21

88 April 12 th, 2012 Exhibit E 73. The proposed EDURA boundary includes Portland Public Schools (PPS) property at the Lincoln High School campus. EDURA funding may be used to facilitate joint redevelopment at Lincoln including improved school facilities. Specifically, the proposed district is supportive of the following policy: Policy 11.56, Maximize Investments calls for supporting school district facility and program investments in redeveloping neighborhoods through the City s allocation of housing assistance and park improvement investments. 74. Establishment of the EDURA will allow the City to continue to work with PPS on a variety of fronts that are supportive of increasing the attractiveness of the Central City for families with school aged children and with assisting PPS in planning for responding to those needs and demands. This includes but is not limited to the potential joint redevelopment of the Lincoln High School property in the Goose Hollow neighborhood. Goal 12, Urban Design, calls for the enhancement of Portland as a livable city, attractive in its setting and dynamic in its urban character by preserving its history and building a substantial legacy of quality private developments and public improvements for future generations. The EDURA is consistent with this goal because: 75. Creation of the EDURA will provide funding resources to support new public and private development in the district with more intense academic, commercial, office, and residential uses that will create more diverse employment and affordable housing opportunities than currently exist. This new development will contribute to the University District s emerging specific character and identity. Specifically, the proposed district is supportive of the following policies: Policy 12.2 Enhancing Variety, calls for promoting the development of areas of special identity and urban character with the City s residential, commercial and industrial areas having attractive identities that enhance the urbanity of the City. 76. The EDURA is consistent with this policy because it focuses on increasing development activity in and around the University District. Home to Portland State University with over 29,000 enrolled students, this district has an emerging special urban identity unique to the Portland region. Urban renewal resources will help develop and strengthen this character. Policy 12.3 Historic Preservation, enhance the City s identity by protecting its significant historic resources. Preserve and reuse historic artifacts as part of Portland s fabric. Encourage development to sensitively incorporate preservation of historic structures and artifacts. Page 16 of 21

89 April 12 th, 2012 Exhibit E 77. The EDURA is consistent with this policy because it contains several historic buildings; these properties may have greater access to funding resources which will help improve the condition of the URA s physical structures. Potential preservation activities include seismic upgrades, adaptive re-use and storefront renovations. Policy 12.4 Provide for Pedestrians, Portland is experienced most intimately by pedestrians. Recognize that auto, transit and bicycle users are pedestrians at either end of every trip and that Portland s citizens and visitors experience the City as pedestrians. Provide for a pleasant, rich and diverse experience for pedestrians. Ensure that those traveling on foot have comfortable, safe and attractive pathways that connect Portland s neighborhoods, parks, water features, transit facilities, commercial districts, employment centers and attractions. 78. The EDURA is consistent with this policy because it will encourage development that will improve the pedestrian experience including improving on-street character and safety and amenities, planting street trees, installing street lighting, and improving pedestrian/bicycle connections throughout the district. 2. Central City Transportation Management Plan (CCTMP) The CCTMP was adopted by City Council in 1995 and is the principal planning document guiding transportation policies in the Central City. It was based on the framework to focus growth in the Central City, develop transportation and parking management strategies for each district of the Central City, support transit and other alternative travel modes, promote housing as a transportation strategy, and support regional air quality policies. The proposed district supports the following CCTMP policies: Policy 1, Growth and Livability, amended the Central City Plan to adopt 75,000 jobs and 15,000 housing units as the economic and housing goals for the year The EDURA is consistent with this policy because redevelopment projects assisted by the activities of the EDURA will help create increased employment and housing units within the Central City and therefore supports this policy. 80. The EDURA is consistent with this policy because catalytic, multi-block developments, assisted by the EDURA have the potential of improving street and pedestrian connectivity within the district. Downtown District Strategies: Strategy 1: Transit 1.1 Improve intra-downtown mobility by increasing transit circulation. Objective: Provide for convenient circulation to travel in north/south and east/west directions within Downtown. Page 17 of 21

90 April 12 th, 2012 Exhibit E Strategy 2: Bicycles 2.1 Recognize the bicycle as an important mode of transportation within the Downtown. Objective: Promote the use of bicycles for all types of trip purposes within the Downtown. Strategy 3: Pedestrians 3.1 Recognize walking as an important mode of transportation. Objective: Promote walking for all types of trip purposes within the Downtown. 81. The EDURA is consistent with these strategies because it will facilitate mixed-use development that will provide a range of new academic, commercial, employment and housing opportunities in the District along the MAX light rail lines and the Portland Streetcar. Such development profiles allow for increases in residential populations and commercial activity while minimizing the increase in auto traffic. 3. The Central City Plan Adopted by the City Council in 1988, the Central City Plan calls for encouraging continued investment within Portland s Central City while enhancing its attractiveness for work, recreation and living. The EDURA is supportive of the following policies of the plan: Policy 1, Economic Development, calls for the City to build upon the Central City as the Economic Heart of the Columbia Basin, and guide its growth to further the City s prosperity and livability. 82. The EDURA is consistent with this policy because job growth is a significant goal of the district. Funding available through the EDURA will be primarily used to support the further growth and development of Portland State University a major economic engine and key player in educating the region s future workforce. 83. The EDURA is consistent with this policy because it may fund business loans and storefront renovations as well as larger development projects on underutilized commercial and institutional sites in the district. Policy 3, Housing, calls for maintaining the Central City s status as the state s principal high density housing area by keeping housing production on pace with new job creation. 84. The EDURA is consistent with this policy because the City Council has established an overall goal of spending 30 percent of urban renewal funding on affordable housing projects and programs. Creation of the EDURA will consequently make more funding available for housing programs and projects in the district. Such projects and programs will be determined by the Portland Housing Bureau. 85. The EDURA is consistent with this policy because it will provide significant funding to the Portland Housing Bureau for housing development and preservation projects that may create a range of housing opportunities in the Page 18 of 21

91 April 12 th, 2012 Exhibit E area from emergency shelters to creation of very low, low, moderate, and middle-income households, including affordable housing and homeownership programs. Policy 4, Transportation, seeks to improve the Central City s accessibility to the rest of the region and its ability to accommodate growth, by extending the light rail system and by maintaining and improving other forms of transit and the street and highway system, while preserving and enhancing the City s livability. 86. The EDURA is consistent with this policy because most of the necessary transportation infrastructure needed to support additional growth in the EDURA is in already in place. Funding available through the EDURA may be used to construct new connections in conjunction with catalytic projects where connectivity standards are not being met. Localized improvements such as improved pedestrian connections and street trees are likely through redevelopment projects enabled by the EDURA. Policy 5, Human Services, seeks to provide social and health services for special needs populations, and assist dependent individuals to become more independent. 87. The EDURA is consistent with this policy because it will provide resources to Multnomah County to help support and relocate the County s Department of Human Services to new facilities within the district. 88. The EDURA is consistent with this policy because the 30% set-aside of urban renewal funding for affordable housing may also be used to support social services within the District. 89. The EDURA is consistent with this policy because additional EDURA funds may be used to help support the growth and development of Portland State University s School of Social Work. Policy 8, Parks and Open Space, recommends a park and open space system of linked facilities be built to tie the Central City districts together with the surrounding community. 90. The EDURA is consistent with this policy because improvement projects that may be eligible for EDURA funding include rehabilitation of existing parks, tree planting and other streetscape improvement programs, construction of active recreation facilities and performance venues. These actions will improve the quality of recreation opportunities available to Portlanders. 91. The EDURA is consistent with this policy because funding may be used to improve on the existing system of green streets in the district by undertaking the improvement of stormwater facilities, sidewalks and amenities, planting street trees, installing street lighting, and installing pedestrian/bicycle connections throughout the EDURA. Page 19 of 21

92 April 12 th, 2012 Exhibit E Policy 9, Culture and Entertainment, calls for the City to provide and promote facilities, programs and public events and festivals that reinforce the Central City s role as a cultural and entertainment center for the metropolitan and northwest region. 92. The EDURA is consistent with this policy because funding available through the EDURA can support further growth of cultural and entertainment activity and facilities at Portland State University as well as elsewhere in the district. Policy 10, Education, seeks to expand educational opportunities to meet the needs of Portland s growing population and businesses, and establish the Central City as a center of academic and cultural learning. 93. The EDURA is consistent with this policy because its primary focus is to support the further growth and development of Portland State University. Portland State University is at the center of academic and cultural learning in the City. Policy 11, Historic Preservation, seeks to preserve and enhance the historically and architecturally important buildings and places and promote the creation of our own legacy for the future. 94. The EDURA is consistent with this policy because it contains several historic buildings; these properties may have greater access to funding resources which will help improve the condition of the URA s physical structures. Potential preservation activities include seismic upgrades, adaptive re-use and storefront improvements. Policy 12, Urban Design, calls for enhancing the Central City as a livable, walkable area that focuses on the river and captures the glitter and excitement of urban living. 95. The EDURA is consistent with this policy because it will invest in university and business growth and housing development. This increase in activity will increase the urban vitality of the area within the EDURA and may improve pedestrian connections between the district and the river through additional improvements to pedestrian projects such as the Montgomery Green Street. 96. The EDURA is consistent with this policy because it PDC or the Portland Housing Bureau will have design input to help promote design excellence in all projects receiving URA funding within the district boundaries. Policy 14, Downtown District, Calls for strengthening the Downtown as the heart of the region, maintaining its role as the preeminent business location in the region, expanding its role in retailing, housing and tourism, and reinforcing its cultural, educational, entertainment governmental and ceremonial activities. 97. The EDURA is consistent with this policy because it will make urban renewal funds available to portions of the Downtown District for academic, commercial and housing development projects and storefront and historic building upgrades. Page 20 of 21

93 April 12 th, 2012 Exhibit E All of these activities are consistent with the policy of promoting the Downtown as the heart of the region. Policy 15, Goose Hollow, calls for the protection and enhancement of the character of Goose Hollow by encouraging new housing, commercial and mixed-use development which retains or enhances a sense of community while improving the urban infrastructure to support a more pleasant and liveable community. 98. The EDURA is consistent with this policy because it may provide funding for private development desired at the Lincoln High School property to help meet Goose Hollow s objectives. 99. The EDURA is consistent with this policy because it may provide funding for the pedestrian connections and other improvements at the Lincoln High School property to help meet Goose Hollow s objectives. Policy 16, University District: calls for the development of a distinct sub-district which has its character defined by its focus on Portland State University. That shapes the University District into a vital multi-cultural and international crossroads with an environment which stimulates lifelong learning collaboration between business and government and a rich cultural experience The EDURA is consistent with this policy because its primary focus is furthering the growth and development of Portland State University. It may provide funding for additional academic, research, commercial and residential development in support of the University, and infrastructure improvements to encourage the development of additional commercial projects and infrastructure improvements to better link the University area to the transit mall. Policy 22, West End District, calls on the city to build on the West End's exceptional cultural and institutional assets, and its proximity to Portland State University, the Park Blocks, public transit, Goose Hollow and the Stadium area, and the Downtown retail core to foster its development as a vibrant Downtown neighborhood The EDURA is consistent with this policy because it may provide funding for new university and business development as well as new affordable housing and preservation of existing affordable housing in parts of the West End. A rich mix of housing, academic and business activities in the West end will help increase the vibrancy of the neighborhood. Page 21 of 21

94

95 DATE: May 3, 2012 FOR MAYOR S OFFICE USE ONLY TO: Mayor Sam Adams Reviewed by Bureau Liaison FROM: Keith Witcosky, Deputy Director RE: Approve the Education Urban Renewal Plan (Ordinance) 1. INTENDED THURSDAY FILING DATE: May 3, REQUESTED COUNCIL AGENDA DATE: May 9, PRIMARY CONTACT NAME & NUMBER: Keith Witcosky, SECONDARY CONTACT & PREPARED BY: Morgan Masterman, PLACE ON: CONSENT X REGULAR 6. FINANCIAL IMPACT & PUBLIC INVOLVEMENT STATEMENT ATTACHED: _X Yes No N/A 7. (THREE) ORIGINAL COPIES OF CONTRACTS APPROVED AS TO FORM BY CITY ATTORNEY ATTACHED: Yes No X N/A 8. BACKGROUND/ANALYSIS Introduction and History Attached is an ordinance for Council consideration on May 9, The ordinance creates the Education Urban Renewal Area (the EDURA ). As proposed, the EDURA Plan (the Plan ) will provide tax increment resources to the 144-acre EDURA and will set forth a long-term partnership with Portland State University ( PSU ), Portland Public Schools ( PPS ), Multnomah County (the County ), and the City of Portland (the City ) intended to accelerate the region s growth and excellence, attract private investment, enhance blighted properties and educate the region s workforce. The Plan is projected to provide up to $169 million for investment in research facilities, business accelerators, affordable housing, and private development. Concurrently, the Council will consider an ordinance authorizing the City to enter into an intergovernmental agreement ( IGA ) with the Portland Development Commission ( PDC ), PSU and the County to provide tax increment revenues to support and enable the development of a County project, as described in the IGA. Legal Issues None Link to Current City Policies The creation of this Plan furthers Goals 1 and 2 of the Economic Development Strategy, is supportive of the integrated strategies of the Portland Plan, complies with the City of Portland s Comprehensive Plan, and provides funding as required by the Tax Increment Financing Set Aside Policy for Affordable Housing. 1

96 Controversial Issues While this URA has received widespread support, during the public outreach the following general concerns were raised: The impact to other taxing jurisdictions by forming an urban renewal area; How Portland Public Schools will invest resources for the property they own in Goose Hollow; The focus for the resources that will be managed by the Portland Housing Bureau; The oversight process that will be used over the lifespan of the URA; The level of project detail incorporated in the Plan; and The nexus between the geographic area in the Plan and blight. Staff responded to each of these issues at public meetings and will be prepared to respond at the City Council hearing. Citizen Participation In 2009, Mayor Adams formed the Central City URA Evaluation Committee to provide recommendations on the creation of a new west side central city urban renewal area. This Committee held 14 meetings between May 2009 and August 2010 and provided feedback on the initial framework used in the creation of this proposed EDURA Plan. In 2011 and 2012 the framework for the URA was created through discussions and agreement to proceed with major partners including PSU, Portland Public Schools and Multnomah County. On April 26, 2012 the original Evaluation Committee received a presentation on the EDURA from Mayor Adams and PSU President Wiewel and voted to support the proposal 14-0 with one abstention. Additionally, from November 2011 through April 2012, PDC and PSU staff sought feedback from several community groups on this Plan including: Portland Business Alliance URA Task Force South of Market EcoDistrict Steering Committee Portland Business Alliance Central City Committee Portland Downtown Neighborhood Association Goose Hollow Foothills League leadership Residents of the Eliot Tower Mayor s Economic Development Cabinet Greater Portland, Inc Open House for the Public-at-Large Planning and Sustainability Commission (formal review as part of approval process) Multnomah County Commission (presentation and action on related IGA) In accordance with ORS 457, copies of the draft Plan and Report were sent to overlapping taxing jurisdictions, and notice of the City Council hearing was sent to all property owners within the City limits. Similar to other URAs, PDC shall form a committee to advise the Board on the investments in the EDURA. PDC staff will likely solicit applications from the public from those who have an interest in the specific economic development nature of this URA. Other Government Participation The Planning and Sustainability Commission reviewed the Plan on April 24, 2102, found it in compliance with the City s Comprehensive Plan and Draft Portland Plan, and unanimously voted to recommend approval to City Council. The Multnomah County Commission was provided with a presentation of the Plan on April 26, 2012 and voted 3-2

97 2 to approve the related IGA. The Portland Development Commission Board accepted the Plan on April 30, 2012 and recommended adoption by City Council. All overlapping taxing jurisdictions have been provided the opportunity to consult and confer on the creation of the EDURA. 9. FINANCIAL IMPACT It is estimated that taxing jurisdictions overlapping the EDURA will forego approximately $229 million in property taxes during the life of the district, estimated to be FY 2013/ /44. The City s estimated foregone revenue is $71,437,853. Additionally, through revenue sharing which is forecast to begin in FY 2024/25, when tax increment revenues equal three percent of maximum indebtedness ($169 million), overlapping taxing jurisdictions will receive revenues totaling approximately $80 million. The City is estimated to receive $11,419,855 in shared tax increment revenues. 10. RECOMMENDATION/ACTION REQUESTED It is recommended that the City Council approve the ordinance in order to create the Education Urban Renewal Area. Keith Witcosky, Deputy Director 3