190744

Emergency Ordinance

*Authorize grant application in the amount of $15 million from the United States Department of Transportation to fund local streets at Broadway Corridor

Passed

The City of Portland ordains:

Section 1. The Council finds:

The U.S. Department of Transportation has published a Notice of Funding Opportunity (NOFO, Exhibit A) for $1.5 billion in grant funding through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grant program. The popular program helps communities around the country carry out projects with significant local or regional impact.
Portland Bureau of Transportation (PBOT) is designing new urban streets and a new traffic signal critical to unlock four million square feet of mixed-use, mixed-income, urban development at the former USPS site in Portland’s Central City (Exhibit B).
Redevelopment of the 14-acre former USPS property at the heart of the Broadway Corridor district represents one of Portland’s most significant prospects to further an equitable economy by advancing wealth creation opportunities through construction, development, and tenanting; creating a vibrant and welcoming neighborhood; and supporting living wage jobs.
The RAISE grant program requires a 20% cost share for any awarded grant.
Local match in the amount of $6M in Local Improvement District (LID) revenue and $2M in Systems Development Charges (SDC) will be used in the project.

NOW, THEREFORE, the Council directs:

The Mayor is hereby authorized to make application to the United States Department of Transportation for a grant in the amount of $15 million.
The Mayor is authorized to accept on behalf of the City a grant when awarded and to execute a grant agreement. The Mayor is authorized to provide such information and assurances as required for the grant period.
The Office of Management & Finance Grants Management Division is authorized to perform all administrative matters in relation to the grant application, grant agreement or amendments, requests reimbursement from the grantor, and to submit required online grant documents on the Mayor’s behalf.

Section 2. The Council declares that an emergency exists because a delay would unnecessarily hinder the City’s ability to apply for the grant funds; therefore, this ordinance shall be in full force and effect from and after its passage by the Council.

Official Record (Efiles)

Ordinance and supplemental documents

An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)

Passed by Council
March 16, 2022

Auditor of the City of Portland
Mary Hull Caballero

Impact Statement

Budget Office Financial Impact Analysis

PBOT is designing several new urban streets and a new traffic signal critical to unlock four million square feet of mixed-use, mixed-income, urban development at the former USPS site in Portland’s Central City. While the City of Portland has a funding and finance plan for these and other Broadway Corridor improvements, staff have identified a federal funding opportunity through the U.S Department of Transportation’s Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant to significantly offset local financial commitments. Quantifiable financial benefits to the community of the redevelopment of the 14-acre former USPS property include:

Directly creates at least $16 million in construction contracting opportunities for minority and other disadvantaged business enterprises, including application of the City Community Benefits Agreement (CBA) policy which supports Black, Indigenous, and people of color, as well as women in the construction trades.

Leverages $1 billion in multi-phase public and private investment with delivery of equitable community benefits through a precedent-setting Community Benefits Agreement, including quality jobs and wealth creation during construction through ongoing operations.

The total project budget is $22 million; staff intend to submit a RAISE grant request for $15 million, which would be matched by $6 million in Local Improvement District (LID) revenue and $1 million in Systems Development Charges (SDC). If awarded, the financial impacts include:

Reducing PBOT’s SDC contribution by about $2.5 million

Reducing LID payments attributable to Portland Housing Bureau’s development of affordable housing by about $1.5 million

Reducing the cost and risk of LID payments attributable to any parcels remaining in public ownership when LID payments come due around 2032 by $2.5 million

Any grant award would be executed through an upcoming agreement between the U.S. Department of Transportation, Federal Highways Administration, and the City of Portland. If the City does not receive the grant funds, it would revert to the Council approved funding and finance plan, which includes funding from PBOT SDCs, Prosper land sales, and LIDs.