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The developer of a proposed multifamily building in Portland’s Goose Hollow neighborhood earlier this month withdrew its request for a zoning change that would have allowed the project to include two levels of underground parking.

Mill Creek Residential Trust LLC wants to develop an eight-story building with between 260 and 280 residential units on a now-vacant lot bordered by Southwest Main and Madison streets and 19th and 20th avenues 鈥� also known as Block 7.

Steve Janik, a partner at Portland-based Ball Janik LLP, the law firm representing Mill Creek Residential Trust, said plans for the building call for approximately 225 parking spaces reserved for Multnomah Athletic Club members using the facility, and 191 for apartment tenants.

鈥淭he City Council is asking to have more information before they make a decision, including a (Central City Parking Review), and we want to make sure they have everything they need,鈥� said Sam Rodriguez, managing director of Mill Creek Residential Trust’s Pacific Northwest office. 鈥淲e were originally told not to do the review and that it wasn’t required until a zoning change had been acquired.鈥�

In order to excavate and construct the underground parking, the developers needed the city to change the zoning from residential to commercial. The zoning change would apply only to the parking structure; the rest of the building would comply with existing residential zoning. Additionally, if future developers wanted to raze the apartment building and redevelop the land, the zoning on the parcel would revert to residential.

The building would also contain approximately 16 studios to be used by the Multnomah Athletic Club as short-term stay (hotel) rooms for use by MAC guests and members.

Mill Creek Residential Trust partnered with MAC owners 鈥� who also own the block proposed for development 鈥� on the project, entering into an agreement to take on part ownership of the land in exchange for the new parking spaces.

Rodriguez in November 2013 met with members of the Goose Hollow Foothills League to discuss plans to construct an underground tunnel beneath Main Street to connect the 225 MAC parking spaces to the existing MAC parking garage in an effort to lessen traffic congestion in the area. The tunnel would enable drivers parking in the Block 7 underground lot access to the garage via the existing entrance to the MAC garage.

In order to dig down two stories, the developers applied to the Bureau of Development Services to change the lot zoning from residential to commercial 鈥� a change that would have applied only to this particular project.

On July 10, 2014, a hearings officer with the Bureau of Development Services issued a recommendation of conditional approval for the proposed zoning changes. In December, Portland City Council considered the zoning change and requested that the developer conduct a more comprehensive traffic study to justify the increased number of parking spaces. Alternately, the council suggested that the developer withdraw its request for a zoning change and reapply after revamping the plans, said Jerry Powell, co-chairman of the Goose Hollow Foothills League’s planning committee.

鈥淚 can only speculate why they elected to start from scratch, but they had done just a very, very cursory traffic study,鈥� Powell said. 鈥淲hat the council wanted was the kind of traffic study required by a Central City Parking Review to justify the site’s need for additional parking.鈥�

On Jan. 8, Rodriguez withdrew the application for a zoning change and on Jan. 14 the city issued a notice of final decision for the zoning change, stating that because the applicant terminated the application process, zoning for the site remains residential.

鈥淭he plan is to update the traffic studies, do a CCPR (and) then integrate the new information into the application,鈥� Rodriguez said. 鈥淲e basically pulled our application, and we’ll reapply with the information the city wants.鈥�

Rodriguez expects the process 鈥� conducting the traffic study and reapplying 鈥� to take between six and eight months. He said plans for the site haven’t changed, and he’s confident that the new parking spaces will not affect traffic around the MAC negatively.

鈥淥ur traffic study shows that it would work fine without the tunnel, but that it works much better with the tunnel,鈥� he said. 鈥淎t the end of the day it’s the same amount of traffic volume, and having the additional spaces will keep people from being turned away from the existing garage when it’s full, or nearly full, and driving around the neighborhood to find a place to park.鈥�