AGENDA ITEM TYPE: DECISION Gresham Redevelopment Commission Meeting Minutes Meeting Date: November 17, 2015 Agenda Item Number: C-1 REQUESTED COMMISSION ACTION Move to approve minutes from the Gresham Redevelopment Commission meeting of September 15, 2015. ATTACHMENTS A. Meeting Minutes: September 15, 2015 FROM Cecille Turley, Program Technician FOR MORE INFORMATION Staff Contact: Cecille Turley, Program Technician Telephone: (503) 618-2545 Staff E-Mail: Cecille.Turley@GreshamOregon.gov Website: www.greshamoregon.gov/urbanrenewal Y:\Urban Renewal\GRDC\Agendas\2015 GRDC Agendas\GRDC 11-17-15 Agenda Docs\GRDC Agenda Item C-1 - Meeting Minutes.doc 1 1/116
SEPTEMBER 15, 2015 PAGE 1 OF 6 A. CALL TO ORDER BY PRESIDING OFFICER Chair Shane T. Bemis called the Gresham Redevelopment Commission (GRDC) meeting to order at 4:07 p.m. on the 15 th day of September 2015 in the Council Chambers, Public Safety & Schools Bldg., 1331 NW Eastman Parkway, Gresham, Oregon. COMMISSION PRESENT: COMMISSION ABSENT: STAFF PRESENT: Commission Chair Shane T. Bemis Commission Vice Chair Kirk French Commissioner Karylinn Echols Commissioner Jerry Hinton Commissioner Mario Palmero Commissioner Lori Stegmann Commissioner David Widmark Josh Fuhrer, GRDC Executive Director Rachael Fuller, Assistant City Manager Dave Ris, City Attorney Sharron Monohon, Budget and Financial Planning Director Bernard Seeger, Finance and Management Services Director Robin Franzen-Parker, Public Affairs Director Brian Monberg, Senior Urban Renewal Project Coordinator Cecille Turley, Urban Renewal Program Technician Ashley Graff, Economic Development Specialist Eric Chambers, Senior Manager Jessica Harper, Assistant to the Mayor Craig Junginger, Police Chief Robin Sells, Deputy Police Chief Susanjoy Baskoro, City Recorder 1. INSTRUCTIONS TO CITIZENS ON SIGNING UP FOR PUBLIC TESTIMONY REGARDING AGENDA AND NON-AGENDA ITEMS Chair Bemis read the instructions. B. CITIZEN AND COMMUNITY GROUP COMMENTS FOR AGENDA (EXCEPT PUBLIC HEARING) AND NON-AGENDA ITEMS No one wished to address the Commission. C. CONSENT AGENDA Chair Bemis read the Consent Agenda. 1. GRESHAM REDEVELOPMENT COMMISSION MEETING MINUTES: APRIL 14, MAY 19, AND JUNE 16, 2015 2/116
SEPTEMBER 15, 2015 PAGE 2 OF 6 Motion was made by Commissioner Jerry Hinton and seconded by Commissioner Lori Stegmann TO APPROVE CONSENT AGENDA ITEM C-1. The motion passed as follows: YES: NO: ABSENT: RECUSE: ABSTAIN: Commission Chair Shane T. Bemis Commission Vice Chair Kirk French Commissioner Karylinn Echols Commissioner Jerry Hinton Commissioner Mario Palmero Commissioner Lori Stegmann Commissioner David Widmark D. PUBLIC HEARING. E. COMMISSION BUSINESS 1. UPDATE ON THE CATALYST SITE REDEVELOPMENT PROJECT AND REQUEST FOR EXPRESSIONS OF INTEREST (RFEI) FOR DEVELOPER SELECTION Josh Fuhrer, GRDC Executive Director introduced Brian Monberg, Senior Urban Renewal Project Coordinator. He said that Mr. Monberg is the newest member of the Urban Renewal staff and we are excited to have him on our team. He previously worked for Metro, where he worked on some Gresham transportation projects so some of you may be familiar with him. Mr. Fuhrer presented the staff report. He explained that the purpose of the report is to get direction on next steps, the program plan, and the development plan for redevelopment of the site. There are three specific questions for the GRDC. The first is does the GRDC agree with the proposed developer selection criteria? The second is does the GRDC agree with the proposed developer selection process? The third is should staff release the RFEI and begin the developer selection process? (PowerPoint presentation attached as Exhibit A.) Vice Chair Kirk French said that if people knew the vision for the Catalyst Site, they would be as thrilled as he. The GRDC Advisory Committee (GRDAC) raised a lot of good questions at their September 9 meeting and Mr. Fuhrer was able to answer those questions right off the top of his head without looking at paper, which tells him the dedication Mr. Fuhrer has for this project. He is very supportive of what Mr. Fuhrer is trying to do and he will do whatever he can to assist so let s move forward. 3/116
SEPTEMBER 15, 2015 PAGE 3 OF 6 Commissioner David Widmark said it is exciting to see this moving forward. He likes the concept and supports the approach related to the three questions that have been brought forward. It makes the process transparent and brings some excitement to the community. Commissioner Lori Stegmann welcome Mr. Monberg and said she is really excited to have him on our team. She had the opportunity to work with him on the Powell/Division Steering Committee. She has to brag. The International Association for Public Participation awarded the Powell/Division project their "Project of the Year" award, which is exciting, and because this project was selected, it will go on to the federal level where it will compete with entries from around the world. Mr. Monberg and Metro did a phenomenal job in the public participation process by engaging everyone at the table. She is really excited to see a bank in the project. That is huge. She deals with people in her per personal business and sees the issues, like bank charges, how to open a bank account, etc. People can save money by having things automatically drafted from their accounts, but if they do not have a bank account, it is really tough. Regarding the RFEI, explain what the developers will come back with exactly, and explain the developer selection process. Mr. Fuhrer said there are typically three ways to do it. The most common is a Request for Proposals (RFP), which asks developers what we should do with our site and the proposers share their ideas and how to finance, design, and build it. All of the proposed concepts are then weighed and a proposed program is selected and the developer moves forward. The second way is a Request for Qualifications (RFQ), which really just asks for a resume and bank account information. The third way, and the way we are choosing to go, is a Request for Expressions of Interest (RFEI), which is sort of a hybrid between the two. We know the program for the site, we know the community's needs, and we have tenants committed to the project, but we do not have all the answers. We are looking for fresh eyes and additional creativity to be brought into the project, and will look at the developer's qualifications. The selection criteria will be based on three primary areas. The first is understanding of the project, including the goals of the project as they relate to the broader community and the GRDC s goals, and the importance of community benefits. We want to know whether they have done other public/private partnership projects that had similar types of economic development priorities, and what creativity they brought to those projects and how they helped to move those goals forward. The second piece is development experience. We want to make sure this project is not their first rodeo and that they have experience and demonstrated success in building projects. This is a complex project. This is not just building an apartment or retail building. It has a lot of moving parts, not only in terms of the tenants and the programming, but in terms of the financial structure so the third piece relates to finding a developer who has the financial heft to carry out their piece of the project, and who has navigated New Market Tax Credit allocations and public and private funds and understands how those pieces fit together, which is really important. Commissioner Stegmann said excellent. She thinks that is a great approach. Regarding the developer recruiting tenants, would that include the Rockwood Exchange building or just the vacant portion of the Catalyst Site? Mr. Fuhrer said it is really both. We are actively recruiting tenants for both the Rockwood Exchange and the vacant portion of the site, with the goal that the GRDC would not enter into any tenant leases and that those would be with the developer. In those situations, developers usually hire a real estate broker to find the tenants. That will not work for this project. If it would, we would have a lot more development in Rockwood than we have today. We are rolling up our sleeves and taking a more hands-on approach to build relationships with prospective tenants and bring them along. Some are ready, but some are not and they need some help and support, which is why it is important to have programming like the Small Business Development Center in the project. We are recruiting tenants, which helps a developer say yes to this project because we are reducing the two biggest barriers to 4/116
SEPTEMBER 15, 2015 PAGE 4 OF 6 entry leasing risk and financial risk. We can reduce the developer's leasing risk by pre-leasing much of the project, which makes it much easier for them, and reduce their financial risk by having additional forms of capital in the project that they do not have to bring. Commissioner Stegmann replied excellent and thanked Mr. Fuhrer for his commitment to this project. She said his development experience is so critical and so important. She knows he has put his heart and soul into this project and she appreciates it and it will pay huge dividends. She is super excited to see this process move forward. She thinks he is asking all the right questions and she is very supportive. Thank you. Mr. Fuhrer said it is absolutely a team effort and he really appreciates Commissioner Stegmann's and the GRDC's leadership to help us to have gotten this far. Commissioner Jerry Hinton said thank you. He thinks this is something the GRDC absolutely all agree upon and we do appreciate all that Mr. Fuhrer has done. Are there developers who specifically specialize in cube or canister development? Mr. Fuhrer said not in the Portland area because there are none of those projects in the Portland area. We have been working with two architects who have done those types of projects around the world - one based in Portland and one based in Seattle, to flesh out this concept and help us identify the risks related to using cargo architecture, and ways to overcome those risks. This is really just modular construction using pre-fabricated modules and arranging and connecting them in a way that makes sense. We have done a pre-flight with the Urban Design and Planning Department on the entire project, including the cargo architecture piece. There are no zoning impediments to overcome to make this possible so no zoning changes needed. Any challenges that might come up that we have identified at this point have to do with the structural integrity of the box when you start cutting holes in it to put in doors and windows, and that is just a function of creating frames and other supports within the structure to make it stand up. Other than that, we have gotten some really good guidance from the two architects. He has visited container projects in other cities. There s one in London, Amsterdam, New Zealand, San Francisco, Las Vegas, and Brooklyn so it has been done before, but not here. Commissioner Hinton said great. Does there seem to be a buzz in the development community regarding the Catalyst Site project? Mr. Fuhrer replied absolutely. We have had one-on-one meetings with about 8-10 developers and have had a tremendously positive response. He thinks that is because we have pre-leased most of the project, reduced the financial exposure, and have strong community support and political leadership on this project. The things that would be red flags for a developer on a project like this have largely been eliminated and he thinks we are going to get a good response. Commissioner Hinton said we will all be excited for that first shovel-full of dirt. Thank you. Commissioner Mario Palmero welcomed Mr. Monberg to the team and said that this project has many moving parts and pieces and Mr. Fuhrer is the right person for this job and is doing a great job of putting all of the pieces together. He agrees with the process. Mr. Fuhrer has done tremendous public outreach and everyone is waiting to see what is going to happen. Once we start development, he thinks we will attract those supermarkets back into Rockwood so if we build this, they will come. He is very excited about this project. Many of his neighbors are excited about it, too, and want to see it happen tomorrow. We only have one shot and time is running out. Thank you. 5/116
SEPTEMBER 15, 2015 PAGE 5 OF 6 Chair Bemis said he would echo what has already been said. Great work. The only thing he has any bit of pause about is the shipping containers. He is not sure that installing 15-20 shipping containers converted to retail and restaurant spaces, etc. is where he is at and he is okay if everybody else is, but he does not feel strong enough to prescribe to a developer that they do 15-20 shipping containers. If they want to do something else to get to that same number and that same mix, or whatever, he is cool with that, but he is not that passionate about it and wants to be on the record that he does not know how they will look in 20 years. Mr. Fuhrer replied that he agrees 100 percent. The goal with the shipping containers is not to do a shipping container project. The goal is to try to create opportunities for entrepreneurs in the community to start businesses in smaller spaces that do not require the financial overhead of a brick and mortar storefront, and to try to grow a business and economy there that will allow folks to start a business on a small budget, grow into a brick and mortar storefront over time, and continue that cycle. Whether we use shipping containers to get there or create small retail spaces of some kind to get there, we are open to ideas. That is part of the reason we want to have a developer on board to bring more ideas. We had a developer tell us they loved the shipping containers and have always wanted to do a project like that, but another developer told us they were not so sure about that type of project. He thinks that is because there has not been a project of this type done locally and we are all sort of guessing at the feasibility. These containers would be brand new powder-coated units built to our specifications to withstand weather, etc. so they are going to be built like tanks. They should perform better over time than even a wood-framed structure. We would not do something there that we thought would fall apart in a few years. That being said, we are absolutely open to ideas and will not be married to really anything in the project plan until we get a little further along. Chair Bemis asked what the GRDCAC had to say. Mr. Fuhrer said their response was overwhelmingly positive. They had some of the same questions about the shipping containers as the GRDC today. He thinks they are really eager to see something positive happen there and understand that the container concept is a means to an end to get to a programming and economic development goal. The majority of the GRDCAC were very much in favor of trying something new and being innovative by using cargo containers. Commissioner Palmero said he agrees with Chair Bemis on the shipping containers. He does not get that warm and fuzzy feeling when he looks at containers. He is concerned about how they will look in 20 years, but he is glad that staff is being flexible and keeping that open. Mr. Fuhrer said he would add that because this is a City project, we are bringing on a developer to partner with us to do our project, not the other way around so we are going to have a say in every major project decision. He can bring the GRDC drawings and designs, and the GRDC will have final approval of all major decisions in the project so if the decision of the GRDC is that they do not like the containers, we do not have to do them. Containers present an opportunity to be innovative so we should at least explore the idea. We have a process to go through to determine whether or not they are something we want to do, or not. Commissioner Karylinn Echols said she loves the shipping containers. They would create such a new, different, and distinct feeling and that would bring people in so in terms of going forward on the RFEI, she thinks it looks great. It is ambitious, but not in the context of all the ground work that has been done so she is really excited about it and looks forward to things happening on the site. Thank you to all of the team for their work on this project. 6/116
SEPTEMBER 15, 2015 PAGE 6 OF 6 Commissioner Hinton said he would like to make a one point of clarification regarding the shipping containers. They can be re-purposed later on and certainly can be detached and something more permanent built there if we want so he thinks what they do is leave us some options. They are a cheap way to go and provide options in the future that allow us to move the needle without incurring huge costs. 2. COMMUNITY ENGAGEMENT APPROACH TO ROCKWOOD RISING REDEVELOPMENT PROJECT Brian Monberg, Senior Urban Renewal Project Coordinator presented the staff report. He explained that the purpose of the report is to solicit GRDC feedback on whether staff should proceed with the proposed community engagement approach, and whether the approach adequately reflects GRDC expectations for engaging the community. (PowerPoint presentation attached as Exhibit B.) Commissioner Stegmann commented that this is great and Mr. Monberg is the right man for this job because she has seen him in action. She really loves the outreach to the students. That is awesome and absolutely critical because we know that the student demographic is huge in Rockwood. Staff has done a great job of addressing the different languages spoken so yes and go because this is fantastic. Thank you. 3. GOOD OF THE ORDER. F. COMMISSION MEASURES AND PROPOSALS. G. ADJOURNMENT OF MEETING Hearing no further business, Chair Bemis adjourned the meeting at 4:49 p.m. SHANE T. BEMIS CHAIR Respectfully submitted, Cecille Turley Recording Secretary 7/116
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