Reed Jackson//September 10, 2012//
The city of Portland wants to put its money where its mouth is for development in the Gateway area, said Justin Douglas, senior project programs coordinator for the Portland Development Commission.
That’s why city officials are sending out a message to developers and business owners: If you build in Gateway, we will come.
This week, the city will issue a request for proposals to develop three properties in Gateway: two at the intersection of Northeast 99th Avenue and Pacific Street and one at the intersection of Northeast 102nd Avenue and Pacific Street.
As an incentive, the city is promising to move approximately 100 city employees and become a tenant for the “right” proposal.
“With an opportunity like this, it helps signal that this is not your run-of-the-mill come-one-come-all land sale,” Douglas said. “The overall goal is to expose the broader development and business community to a pretty unique opportunity in Gateway.”
The city has previously moved its employees to single-handedly spur development. In 2004, for example, the PDC moved its offices to the Mason-Ehrman Building in Old Town. However, Douglas couldn’t remember if and when the city used the strategy as an incentive for private developers.
The city’s RFP is tied to the lack of development in Gateway, according to Peter Parisot, economic development director for the Office of Mayor Sam Adams.
“What we’re trying to achieve in large part is just equity,” he said. “Gateway is an important priority for (Mayor Adams), and he wants to make sure the city is doing as much for East Portland as it is for the central core. Obviously, it’s a different landscape out there economically.”
Combined, the three properties total approximately 10 acres. Two of them, at the intersection of Northeast 99th Avenue and Pacific Street, are privately owned and have small structures on them. The other, owned by the PDC, is vacant.
The city placed no limitations or restrictions on development proposals – not even whether the structures on two of the properties should be demolished. At this point, city officials are open to a number of ideas, Parisot said.
“We’re going to market and saying, ‘Come back to us with your best idea,’ ” he said. “We haven’t put any sort of parameters on it. We’re just trying to get jobs out there.”
However, because city employees would be moved there, residential developments would probably be ruled out, Parisot said. Additionally, if a developer were to propose one large development for all three properties, another major tenant – in addition to the city – would need to be found, he added.
And, of course, a feasible proposal would need to make financial sense for the city. The leases of multiple city bureaus and offices downtown are up soon, and moves to Gateway present an opportunity for the city to pay less rent.
Developers also could receive urban renewal incentives, like project financing through various PDC programs.
The city’s hope is that incentives will demonstrate the value of developing in Gateway, one of the most transportation-friendly parts of the city, according to Douglas. It’s next to interstates 84 and 205 and offers access to MAX travel in four directions.
The area also has a large number of vacant lots. Despite its benefits and location in a URA, Gateway has suffered from a lack of development because of mishandled projects and misconceptions, according to area residents.
“People talk about there being not that many large developable sites left,” Douglas said. “A (request for proposals) like this is really intended to cast a broad net and reach out to folks that might not ordinarily think of opportunities in Gateway.”
RFP responses are required to include detailed proposal descriptions, identification of the developers, tenants and financial sources involved, and how development and operations might be paid for. Interested parties have until Oct. 2 to submit proposals, which do not need formal site development plans, such as drawings.