191389

The City of Portland ordains: 

Section 1.  The Council finds: 

1. The acquisition and redevelopment of the former United States Postal Service property (the “Property”) at 715 NW Hoyt Street in the River District Urban Renewal Area (“River District”) has long been envisioned by the general public, elected officials, and adopted land use and development plans as one of the most significant redevelopment sites in Portland’s central city. 

2. The Property is within the Broadway Corridor Study Area, an approximately 32-acre area within the River District that is generally bounded by NW Glisan Street, NW Lovejoy Street, NW 9th Avenue, and NW 5th Avenue (the “Broadway Corridor”). 

3. The Broadway Corridor Framework Plan (the “Framework Plan”) was adopted by City Council through Resolution No. 37165 on November 5, 2015 and established the City’s objectives for redevelopment of the Property including key infrastructure and open space requirements, affordable housing requirements, and modifications to zoning to accommodate the envisioned high-density mixed-use and mixed-income development. 

4. Prosper Portland is the City of Portland’s duly authorized economic development and urban redevelopment and renewal agency. Accordingly, Prosper Portland has authority to acquire and dispose of real property for redevelopment in accordance with ORS 457 and the Charter, including entering into disposition and development agreements. 

5. PHB is charged with developing housing policy for the City of Portland (the “City”) and delivering programs that increase the City’s supply of affordable housing. 

6. The City of Portland incurred indebtedness to facilitate the acquisition of the Property and certain other activities in the River District, the proceeds of which were made available to Prosper Portland pursuant to that certain Intergovernmental Agreement between the Office of Management and Finance (“OMF”), Bureau of Revenue and Financial Services and Prosper Portland dated December 21, 2015 (the “River District Funding IGA”). The River District Funding IGA was originally authorized by City Council Ordinance No. 187434, enacted November 5, 2015. The Portland Housing Bureau (“PHB”) also contributed sixteen percent of the funding for the acquisition of the Property and in exchange, Prosper Portland has agreed to convey a portion of the Property to PHB for affordable housing.   

7. Extensive engagement of diverse stakeholders, including guidance from the Broadway Corridor Steering Committee, Public Partners Technical Team and broader community through a combination of open houses, pop-up events, online forums, and focus groups has informed all aspects of the development of Broadway Corridor, including its vision and guiding principles; the preferred development concept and code-required Master Plan; and priorities for community benefits.      

8. Preliminary concepts for the development of the Property were prepared by the consultant team, tested with stakeholders, and refined based on input received, resulting in a preferred concept that serves as the foundation for the required Central City Master Plan for the Property (the “Master Plan”).  The Master Plan sets forth certain public infrastructure and open space requirements and is subject to a Type III Land Use Review approval by the Portland Design Commission. Hearings before the Portland Design Commission were held on February 13, 2020, August 13, 2020 and August 20, 2020.  The Master Plan was approved by the Portland Design Commission on August 20, 2020. 

9. In 2017, the Healthy Communities Coalition, a consortium of environmental, labor, and racial justice-focused community organizations (“HCC”), informed Prosper Portland of its request to engage in community benefits negotiations to ensure future development delivers equitable benefits and to establish accountability mechanisms to historically impacted communities. The negotiations began in August 2019 and included HCC, Prosper Portland, PHB, and various City bureau representatives, among others.  Prosper Portland, PHB, and HCC reached agreement in principle on terms and condition for a Community Benefits Agreement (“CBA Term Sheet”), however due to the departure of the development partner, the CBA Term Sheet has not been executed, and the parties intend to revisit negotiations once a new developer partner has been secured. 

10. On September 23, 2020 City Council approved Ordinance No. 190146 authorizing and directing various actions related to redevelopment of the Property, including approval of a funding and finance plan that calls for City and Prosper Portland funding and financing of infrastructure and other site preparation needs associated with the successful development of the Broadway Corridor (“Funding and Finance Plan”); the finalization of various Intergovernmental Agreements (IGAs) necessary for the development of the Property in accordance with the Master Plan and the Funding and Finance Plan; and the voluntary application of the City’s Community Benefits Agreement (CBA) Policy to the publicly procured and led projects to be contemplated within the IGAs and in accordance with the CBA Term Sheet.   

11. On October 28, 2020 City Council approved Ordinance No. 190180 creating a local improvement district (LID) to construct the NW Johnson Street, NW Kearney Street, and NW Park Avenue street, sidewalk, stormwater, sanitary sewer and water main improvements, and necessary off-site traffic mitigation improvements, as called for the in Funding and Finance Plan. 

12. PHB and Prosper Portland have participated in the negotiation and drafting of an intergovernmental agreement ("IGA”) for the delivery of affordable housing units, substantially consistent with the directives in Ordinance 190146, the Master Plan, and the Funding and Finance Plan and are returning to City Council to seek authorization of the intergovernmental agreement. 

13. The IGA defines the terms of ownership and utilization of development rights within the Property, as well as the potential utilization of certain other property owned by Prosper Portland within the Broadway Corridor, for the purpose of delivering affordable housing units. 

14. The cooperation and participation of PHB and Prosper Portland is vital to the successful development of the Broadway Corridor in a manner consistent with the Master Plan and the Funding and Finance Plan, and represents a historic opportunity to add jobs, affordable housing, multi-modal transportation infrastructure, and parks to Portland’s central city in an equitable and sustainable manner.  

15. City Council continues to support the development of the Broadway Corridor including but not limited to carrying out the actions directed in Ordinance 190146. By this Ordinance, City Council intends to further direct and facilitate the cooperation and participation of PHB to implement the matters described herein.  

NOW, THEREFORE, the Council directs:  

1. The Director of PHB is authorized to execute an intergovernmental agreement with Prosper Portland substantially as attached hereto as Exhibit A. 
2. All the documentation described in Directive A. above shall be in a form approved by City legal counsel to the extent a document is to be signed by one or more City bureaus.