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The Portland Design Commission on Thursday declined to hold a vote on a land-use permit for the Pepsi Blocks development’s first phase because of unresolved issues with the Portland Bureau of Transportation. From a design perspective, commissioners favored plans; however, staff advised them to push back a vote until PBOT approves a loading zone and woonerf 鈥� a shared street designed primarily for pedestrians.

Located at 2505 N.E. Pacific St., near the Sandy Boulevard corridor, the development would arise on land that previously was long occupied by a Pepsi bottling plant. While most of the existing facilities will be destroyed, an iconic bow-truss structure at the entrance will be preserved; it is to become one or two restaurants.

A Seattle-based team has been working on the Pepsi Blocks for some time now, with owner Security Properties bringing in Mithun to design the 230,000-square-foot expanse of mixed-use buildings and KPFF Consulting Engineers handling the civil engineering duties. The project received its first design advice hearing in May, when it was met with mostly positive reception from the commission.

The first phase of the project involves construction of an eight-story, 87-foot-tall building with 219 residential units and 15,000 square feet of retail space. The first phase also includes two levels of below-grade parking, a landscaped public plaza with art and the woonerf.

Two problems are primarily keeping the project from moving forward. First, the applicants requested an adjustment to loading zone requirements. A main loading zone is required on-site, but the owners requested to place it off-site on an adjacent right-of-way.

Another issue is the woonerf. The city of Portland has only a few examples of precedent for the feature, which is a somewhat new trend adopted from Europe. Since many of the city’s codes predate the woonerf’s use in Portland, the designation is currently for a public street, which makes it liable for several other strict codes.

The applicants are trying to change its designation to an 鈥渙n-site vehicle area.鈥� That more accurately represents the woonerf’s purpose because it is designed primarily for pedestrians, but there must be vehicle access in case of an emergency.

PBOT has not yet approved these adjustments, and because of that, the Design Commission cannot vote unless it issues a denial, which would greatly delay construction. For this reason, commissioners opted not to vote, and instead rescheduled a future land use review. Then they used the time allotted to talk more about the actual design guidelines.

The Pepsi Blocks’ design was universally lauded. Special praise was given to the project’s integration within the neighborhood, as commissioners said it would create a lively and pedestrian-friendly environment that Sandy Boulevard hasn’t seen in a long time 鈥� perhaps ever.

鈥淧ublic realm is where this thing is quite exceptional,鈥� Commissioner Don Vallaster said. 鈥淚t gives more back to the city than any project we’ve seen in a really long time.鈥�

Commissioner Brian McCarter said the project sets a very high bar for the potential future of Sandy Boulevard, and Commissioner Jessica Molinar said she wished the project was built already. A few minor criticisms were directed at project aspects such as window tint and certain colors, but commissioners said they would not hesitate to approve the project following resolution of its more pressing issues.

鈥淭his is a great thing for the city of Portland,鈥� Design Commission Chairwoman Julie Livingston said. 鈥淭his is going to be a really great addition to the neighborhood.鈥�

Pepsi Blocks plans will return before the Portland Design Commission for a land-use review on Sept. 19.