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Milwaukie hasn’t gained a mixed-use development since 2006, when Tom Kemper built the four-story North Main Village. But city officials, anticipating increased pedestrian traffic when TriMet opens its orange light rail line late next summer, are working to make the town more inviting for entrepreneurs.

鈥淲e’ve been working for about the last two or three years, at least, to take advantage of opportunities related to the new light rail station,鈥� Milwaukie Community Development Director Steve Butler said. 鈥淚n the last three or four months it’s like someone really flipped a switch. We’ve seen a lot of interest from businesses looking to set up locations.鈥�

The orange line’s 7.3-mile corridor runs southeast through Portland, ending in Oak Grove after passing through downtown Milwaukie with a station between Main Street and Southeast 21st Avenue.

Butler mentioned four businesses 鈥� Molly Muriel Apothecary, Painted Lady Coffee House, textile store Roger & Ives and wine bar Wine:30 鈥� that opened within the past year in the downtown area with sights set on the light rail line’s arrival.

鈥淲e have been working over the last year to update policy and zoning standards because the old zoning map and its standards didn’t reflect what we wanted to see,鈥� Butler said. 鈥淒owntown Milwaukie is even more business-friendly than in the past since we’ve worked to streamline the development process.鈥�

Kemper said he hopes the city modifies zoning standards to allow a greater range of businesses on Main Street. Since North Main Village opened, he said, 2,300 square feet of ground-floor space has sat vacant because city code restricts the uses allowed. North Main Village has five retail spaces below three floors of one- and two-bedroom units.

鈥淭he residential part of the property has been very successful,鈥� Kemper said. 鈥淏ut what’s been tough, and I hope they (address), is allowing some flexibility. They wouldn’t allow any sort of office activity on the ground floor facing Main (Street).鈥�

Butler said the city contacted Kemper to gauge his interest on developing another mixed-use project in Milwaukie. Kemper said that for now he’s not interested, but the option isn’t off the table. He currently is the executive director of Housing Works, the Central Oregon housing authority serving Crook, Jefferson and Deschutes counties.

Meanwhile, Milwaukie Mayor Jeremy Ferguson said city officials are working to develop for downtown a new zoning plan that they’d like to have in place by the end of the first quarter of 2015.

鈥淲e have a lot of developers looking at Milwaukie right now,鈥� he said. 鈥淚 think some are waiting on the orange line and others are waiting to see what comes of our 鈥楳oving Forward Milwaukie’ project.鈥�

City planners have been working on 鈥�,鈥� since 2009 with the goal of assessing different city parts 鈥� residential, commercial and industrial 鈥� to develop and refine the vision for area character and function as well as encourage development.

鈥淲e’ve had two developer roundtable meetings; both were well-attended, but one had 23 developers,鈥� Ferguson said. 鈥淲e heard from multiple developers that they’d like the zoning changed, and I’m sure that would be something that would come before the planning 肠辞尘尘颈蝉蝉颈辞苍.鈥�

Ferguson said the downtown area currently has seven different sub-zones, making development confusing and difficult.
鈥淲e want to broaden the uses allowed downtown,鈥� he said. 鈥淲e’re also addressing issues of building heights and taking a look at different urban renewal ideas, like granting tax exemptions or credits for certain types of developments in the hopes that we increase foot traffic.鈥�

Kemper agreed that the lack of foot traffic downtown has stanched development in Milwaukie.

鈥淭he only two employers they’ve really got is Moda (Health) and (Dark Horse Comics),鈥� he said. 鈥淭he rest are real small businesses, and there’s not a lot of housing. To kick-start the area what they really need is the housing.鈥�

Branda Tiffany, owner of Molly Muriel Apothecary, moved her wholesale business into a space on 21st Avenue in October 2013 and opened the storefront in February. She said she hardly gets any foot traffic.

鈥淭his little downtown area isn’t ready to rely on foot traffic yet, but there’s just a buzz in the air and I feel like the (orange) line is going to bring people,鈥� she said. 鈥淭hose people will bring more people and they’re going to stop and explore.鈥�

Tiffany has lived in the Sellwood area for about 10 years and said she’s had her eye on Milwaukie as the right location for her business.

鈥淚t’s becoming a younger crowd down here, which is good for my type of business,鈥� she said. 鈥淚t’s just going to take a few more businesses opening 鈥� maybe a few restaurants.鈥�

Kemper said he thinks the addition of the orange line will spur the type of growth Tiffany is hoping for.

鈥淚t’s an up-and-coming area that’s close to downtown (Portland),鈥� he said. 鈥淚t’s got an incredibly beautiful waterfront and now the light rail is coming; it’s going to change that town.鈥�

The city in 2012 began work on the $3 million enhancement project at Riverfront Park. Butler said construction is nearly complete 鈥� ahead of the Christmas Ships Parade on Dec. 20.

鈥淲e’re finishing up on the major renovations,鈥� Butler said. 鈥淲e’ve added a boat ramp, expanded the park and enhanced the trails.鈥�

The changes to Milwaukie’s downtown are drawing a younger crowd to the area, Butler said.

鈥淧eople are realizing we have a small-town character and feel. We’re seeing people in their 20s and 30s moving here who maybe want to buy a house, settle down and have a family,鈥� he said. 鈥淲e’re small enough that it’s still possible to get involved in the community. That’s also true on the development side.鈥�

The city is trying to find developers interested in three parcels it owns 鈥� two 40,000-square-foot tracts and one 8,000-square-foot piece 鈥� near downtown.