Chuck Slothower//December 7, 2018//

The long-awaited redevelopment of Northeast Sandy Boulevard took a major step forward on Thursday.
The Portland Design Commission voted 5-0 to approve Security Properties‘ plans to transform a former PepsiCo bottling plant off of Sandy Boulevard. Those plans call for turning the 4.7-acre superblock into a dense collection of mixed-use space that leans heavily residential.
The developer is considering building anywhere from 485 to 1,297 housing units, said Dorothy Faris, a principal with Seattle design firm Mithun. That would include 39 to 195 affordable units, depending on affordability level and how many units are built overall.
“It’s a dense project; let’s not kid ourselves,” Commissioner Sam Rodriguez said. “I think that’s what we’re looking for as a city.”
Projects such as The Zipper from Guerrilla Development now appear to have presaged the gentrification of the Northeast Portland corridor, which formerly was lined with auto repair shops and dealerships.
The planned development is the first to receive approval under the city’s 2035 Comprehensive Plan rules for major sites. In exchange for bonus heights of up to 120 feet, the developer agreed to provide affordable housing and set aside major portions of the superblock for open space.
Security Properties executives said they plan to preserve the existing Pepsi Pavilion, which was built in 1962. A group of architects had lobbied for its preservation.

The pavilion will likely have a retail tenant, said John Marasco, Security Properties’ chief development officer. One possibility being discussed is the proposed James Beard Public Market, which has been searching for a home in Portland for a few years.
“We would love to resurrect those conversations,” Marasco said.
James Beard Public Market Executive Director Fred Granum, in an interview with the 91Ƶ, said he has had no discussions to date regarding the Pepsi Blocks site.
The Pepsi Blocks encompasses five buildable parcels and the existing pavilion building. The tallest buildings are planned alongside Interstate 84, with heights stepping down to Sandy Boulevard.
Open space will weave throughout the development. Security Properties won permission to devote only 12.13 percent of the development to publicly accessible open space; the city’s standard is 15 percent. Open space will be provided by an 8,648-square-foot plaza, a 13,673-square-foot park, a 2,135-square-foot park, a pedestrian path and a woonerf-style street that will extend Pacific Street through the development.
Commissioner Zari Santner praised the project team’s “very thoughtful organization of public spaces.”
“They work well and really will contribute to the vibrancy of this development,” she said.
Santner expressed some concern that the building architecture could be too uniformly boxy.
“The massing is perfect; it’s fine,” she said. “But variety is lacking.”
Many of the buildings will have ground-floor retail space, particularly facing the woonerf. Parking will be provided in underground garages; no surface parking is proposed.
Commissioners attached conditions of approval relating to phasing. Certain building permits will be tied to simultaneous construction of the public spaces. Any change in the project’s phasing would require review by Bureau of Development Services staff.
Development will begin along Sandy Boulevard in the property’s southeast corner and move in a counterclockwise direction. The tallest residential buildings may have to wait for market conditions to improve, the developers said.
Thursday’s approval did not cover individual building designs; they will undergo separate review hearings. The project team will move forward with further design work immediately, Marasco said.
The Pepsi Blocks should serve as a model for future planned development sites, design commissioners said.
“This proposal establishes a really high bar for the master plan areas identified by the 2035 plan,” Chairwoman Julie Livingston said. “It goes further than that – it establishes a new high bar for superblock development. It’s really well done.”