A topping out celebration was held last week for Miracles Central, a mixed-use development in the Lloyd District that will cater to those in recovery for alcohol and drug addiction. The project is being developed by Multi-Cultural Development Group LLC, of which Guardian Real Estate Services is the managing member, and is a collaboration between Miracles Club, Central City Concern, and the Portland Housing Bureau. LMC Construction is the general contractor on the project, which was designed by Carleton Hart Architecture.

The 48,351-square-foot building features five stories of wood-framed apartment units over a concrete ground floor that will house community and resident services space. It will contain 47 apartment units, including 21 studios, 21 one-bedrooms, and four two-bedrooms. The project is slated for completion by the end of July.

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The Portland City Council, as expected, last week voted to dedicate $7.1 million toward development of Miracles Central, a six-story mixed-use building with apartments for low-income residents.

Miracles Central, planned for a site at Northeast Second Avenue and Wasco Street, will “provide affordable housing combined with services for adults who wish to live in an alcohol- and drug-free building,” the Portland Housing Bureau said in a statement.

The project will follow the programming model of the Miracles Club Apartments, a similar building on Northeast Martin Luther King Jr. Boulevard “specializing in culturally competent recovery support for the African-American community,” according to the housing bureau.

In addition to funding, the housing bureau will also donate land for the project that will provide 47 units of affordable housing. The project is a collaboration of the Portland Housing Bureau, Central City Concern, and the Miracles Club, which will provide peer counseling on the ground floor.

Kathy Pape, spokeswoman for Central City Concern, said ground is expected to be broken in late July or early August. Construction will require about 15 months.

“We have a few closings, with the PHB and also with the state (to finalize),” she said. “We’ve worked pretty hard on this for years and are thrilled it is finally happening.”

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The Portland City Council is expected to next week approve an ordinance to open the way for development of the Miracles Central project at 1306 N.E. Second Ave., according to Portland Housing Bureau spokeswoman Martha Calhoon.

The ordinance will allow the housing bureau to transfer title of the property to Miracles Central Apartments Limited Partnership, an arm of nonprofit Central City Concern. The City Council will consider the ordinance at 10 a.m. during its June 10 meeting.

The $13 million project is being developed by Guardian Real Estate Services as a six-story building with 47 units of low-income housing on the upper five floors. The ground floor will accommodate services for people in recovery from alcohol and drug addiction sponsored by Central City Concern.

The building’s housing mix is expected to be approximately 21 studios, 22 one-bedroom units and four two-bedroom units. Plans call for 18 of the units to be suitable for incomes up to 60 percent of the median family income, 28 units for incomes up to 50 percent of MFI and one unit for incomes up to 30 percent of MFI.

Recovery from an addiction will not be a prerequisite for living in the new building, said Ed Blackburn, executive director of Central City Concern. Low-income housing is simply a tremendous need in the city, he said.

“There is just not enough affordable housing in this low-income level in the region,” he said. “There has been a lot of gentrification in the inner city; people with low incomes moved out and it affected people of color and African-Americans at higher proportions.”

Efforts to develop the property began about a year and a half ago, Blackburn said. Ground is expected to be broken in late July or early August, with completion to follow in about 15 months. LMC Construction will be the general contractor.

About halfway through construction, Central City Concern will start a waiting list for the apartments, he said.

“This is much-needed housing for low-income people but it’s also for people who would like to live in a supportive community with major lifestyle changes, including employment (counseling) and long-term living stability.”

The Portland Housing Bureau in 2010 acquired the 10,000-square-foot vacant lot from the Portland Development Commission. The PHB will make a $7.1 million loan in tax increment financing from the Oregon Convention Center Urban Renewal Area to develop the property. The draft ordinance states that the PHB loan is necessary to leverage nearly $6 million of other public and private financing. Other lenders and investors include JPMorgan Chase & Co., National Equity Fund, Oregon Housing and Community Services, Central City Concern, Banner Bank and Federal Home Loan Bank of Seattle.

The ordinance will go into effect immediately upon passage, according to the draft ordinance, because a delay would hinder other deadlines. That includes final approval of low-income housing tax credits by the Oregon State Housing Council, which first requires City Council approval. Delays could increase the project cost, the draft ordinance states.

According to plans submitted previously to the PDC by Carleton Hart Architecture, the L-shaped building will have a ground-level lobby, 75 long-term bicycle parking spaces and six short-term spaces, and a common courtyard on the northeast corner of the property. The project’s design was approved by the Portland Design Commission in November 2014.

Jennifer Hoffman, project manager for Carleton Hart, said the project is a collaboration between Central City Concern and the Miracles Club, which focuses on serving adults recovering from drug or alcohol abuse. This will be a second location for the Miracles Club, which also offers its services to the public.

“Both Central City Concern and the Miracles Club will provide resident services, which includes peer mentoring, life skills, employment services, health care connections and financial literacy,” Hoffman said.

The building is designed by Carleton Hart with residents’ comfort in mind, to provide personal space as well as promote a sense of community, Hoffman said.

“Gathering and meeting spaces are available in both an interior common room and an outdoor garden courtyard,” she said. “Units are provided with ample daylight, fresh air and outdoor balconies.”

City Commissioner Dan Saltzman, who will introduce the ordinance, said he is very excited about the project.

“It’s in a nice part of town, in an urban renewal area and very close to the Convention Center,” he said. “It’s a really good opportunity for moderate to low-income housing that will serve many residents and also residents who access the Miracles Club now with another service location.”

Even more so, it will open the door for former residents of the neighborhood to return to the area, Blackburn said.

“This was the site of the first African-American community in the city, lost through urban renewal many years ago for (Veterans) Memorial Coliseum,” he said. “It’s an opportunity for them to come back to a community where they once lived and be able to enjoy the amenities of a city with a vibrant downtown.”

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Developers of a Northeast Portland mixed-use building that will provide permanent housing to people recovering from drug addiction have applied to the city for a commercial building permit.

Miracles Central – a planned six-story, 47-unit apartment building – will provide community and peer mentoring services on the ground floor and housing for low-income individuals on the second through sixth floors.

The $11 million project will be located at 1306 N.E. Second Ave. Currently, the 10,000-square-foot lot is vacant.

Plans submitted by Ben White of Carleton Hart Architecture to the Portland Bureau of Development Services show an L-shaped building with a ground-level lobby, 75 long-term bicycle parking spaces and six short-term spaces, and a common courtyard in the northeast corner of the property. Also, the ground floor will feature mentoring offices and a community meeting room.

Miracles Central will be a mix of approximately 21 studio units, 22 one-bedroom units and four two-bedroom units.

The project developer – Miracles Central Apartments Limited Partnership, a nonprofit – received $7 million in tax increment financing from the Portland Housing Bureau. That will allow all 47 residential units to be rented to people earning between 50 and 60 percent of the area’s median family income.

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The Portland Design Commission on Thursday reviewed three mixed-use projects, approving two and offering design advice for the other.

Commissioners unanimously approved both Carleton Hart Architecture‘s design for Miracles Central, a six-story, mixed-use building at 1306 N.E. Second Ave., and SERA Architects‘ design for the Goose Hollow Apartments, a six-story, mixed-use building at 1501 S.W. Taylor St. They also advised the YBA Architects design team working on Front 17, a two-building development at 2030 N.W. 17th Ave.

Thursday’s meeting was the second design review hearing for the Miracles Central affordable housing development. Crews with general contractor LMC Construction are scheduled to break ground in May 2015 on the $7.8 million project led by the Miracles Club, a nonprofit that supports individuals recovering from addiction, said Ben White, design director at Carleton Hart Architecture.

The Miracles Club is partnering with Central City Concern and Guardian Real Estate Services to build the new permanent housing complex that will cater to individuals recovering from alcohol and drug dependency. Plans call for 47 residential units over a community room and peer mentoring services on the ground floor. The units will be available to people earning 50 to 60 percent of the area’s median family income via $7 million in tax increment financing from the Portland Housing Bureau.

The L-shaped building will have a courtyard on the northeast corner, loading space on Northeast Second Avenue and bike parking spaces on all floors.

Design commissioners were pleased with minor design revisions made since they previously reviewed the project in October, White said.

“We really simplified the forms and materials (and) really simplified the massing,” he said. “We were looking at some of the details more so than the composition. They all complimented the changes we’d made.”

Meanwhile, the SERA Architects design team returned for a second design review hearing for the Goose Hollow Apartments after seeking approval in October for a new mixed-use building between 1501 and 1517 S.W. Taylor St.

Langley Investment Properties earlier this year purchased a 15,262-square-foot office building at 1501 S.W. Taylor St. for $2.6 million and announced plans to demolish it and develop multifamily housing.

Plans submitted to the city call for 121 apartments, approximately 900 square feet of commercial space, a roof deck and 65 below-grade parking spaces. Exterior materials will include concrete, stucco, fiber cement panel, black vinyl windows, a black aluminum storefront and steel garage doors.

As for Front 17, commissioners in a three-hour discussion issued overwhelmingly positive comments on YBA Architects’ design, city planner Mark Walwood said.

The project involves redevelopment of an industrial site at 2030 N.W. 17th Ave. into a mixed-use complex with two six-story buildings – one with residential units and the other with offices. The residential building will have 220 apartments and 14,714 square feet of ground-floor retail space. The second building will hold 53,039 square feet of office space and 3,506 square feet of ground-floor retail space.

The design team is planning to next seek design review approval, but hasn’t scheduled a hearing yet, Walwood said.

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Bill Hart and Maria Rojo de Steffey own stakes in state-certified Minority Business Enterprises involved in the building industry, but are short on development experience because of lack of opportunities and know-how.

However, that is changing for Hart, African-American principal of Portland-based Carleton Hart Architecture, and Steffey, Hispanic president of Portland-based ALMAR Contracting. As partners in Multi-Cultural Development Group LLC, they are learning how to develop projects and mentor others. They’re also contributing to the effort to secure extraordinary MWESB participation on an $8 million affordable housing project in Northeast Portland.

The Miracles Central development will have 47 units of affordable housing for low-income individuals recovering from drug and alcohol addiction. Hart and Steffey are part of the development team that includes Portland-based Guardian Real Estate Services and Tualatin-based LMC Construction.

“I consider this experience as a way to untap the knowledge that comes in these larger projects,” Hart said. “If you’re doing something with a public project and it’s affordable, there are a lot more regulations and ways to control costs that are new and different to me.”

One of the challenges for an MBE developer, Hart said, is to secure financial backing, particularly for affordable housing projects where government reimbursements are made after goals are met. While money was not an issue for Hart or Steffey, other minority business enterprises can struggle to fund their investments, Hart said.

A bigger challenge for him was understanding regulations for income requirements, utilities and how much can be charged for rent.

“You’re doing something different with a public project, and there are a lot more regulations on how to control costs,” he said. “That’s new and different to me.”

Steffey, meanwhile, is hoping to pass on what she learns – first to her younger partner, Alfonso Elias, who will be able to take over the business at some point, she said.

“We’re hoping to build a minority-owned company that can do more of this development,” she said. “We are thrilled to be a part of it.”

Steffey also will share her knowledge from gaining state MWESB certification with firms that could potentially earn project contracts, she said. The process requires detailed accounts of financial records and verification of investment of time and money by qualifying parties. Steffey needed seven months to navigate the process, she said.

“There are other minority vendors who would love to get certified, but it’s a tough process,” she said. “I know how to get through it.”

The development team’s diversity will help it pursue a goal for 50 percent minority participation, said Dan Steffey, Guardian’s senior vice president of development and Maria Rojo de Steffey’s husband.

Miracles Central, chosen by the Portland Housing Bureau over two other proposals, will be owned and operated by the Miracles Club and Central City Concern, Dan Steffey said.

“I think what you’ll hear when you talk to city folks is getting beyond 20 percent minority contracting is tough,” he said. “It’s always been a concern of mine that we’ve always had policies for minority participation, but we’ve never moved the needle.”

LMC Construction has worked with Guardian for 10 years, and achieved minority participation rates upwards of 35 to 40 percent, LMC President Chris Duffin said. This project is different, he said.

“We are taking it one step further,” he said. “Not only are we focusing on high turnout participation, but we’re also putting together a team that is as diverse as our subcontractor pool.”

The project, now in the design phase, will go out to bid in November. The partners are identifying potential minority-owned and women-owned firms to be placed on the preferential bidders list, Duffin said. Those firms will receive direct invitations to bid, he added.

“We’ll spend time with them before the project goes out,” he said. “We make sure their bids are complete. If they need help estimating or understanding prevailing wage, we will offer up our help and expertise.”

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It’s a vicious circle.

Alcohol and drug addiction can cause social wreckage, including eviction and crime. Addicts who manage to get clean often can’t secure housing because of their pasts, and can end up on the streets and in abusive behaviors that cost communities millions of dollars a year.

Housing is a key ingredient in the breakup of that cycle, according to Herman Bryant, executive director of the Miracles Club – a nonprofit that supports individuals recovering from addiction.

“A lot of times what happens is that some individual relapses because they don’t have a place to go,” he said. “Not everyone is totally ready to continue to be homeless and stay clean. What we’re trying to do is (help) individuals so they can reach the full potential of becoming a productive member of society.”

To that end, the Miracles Club – together with Central City Concern and Guardian Real Estate Services – is working to build in Northeast Portland a new permanent housing facility that will cater to individuals recovering from alcohol and drug dependency. The project team believes Miracles Central will expand the city’s deficient stock of affordable, drug-free living options, and also set the stage for more.

The $11 million project calls for construction of a six-story building at 1306 N.E. Second Ave. The 47 housing units will be available to people earning 50 to 60 percent of the area’s median family income, thanks to $7 million in tax increment financing from the Portland Housing Bureau.

Guardian learned of the available funding in 2012, and immediately began compiling a development team it believed could raise the bar on social equity. The firm’s proposal was chosen instead of two others submitted to the PHB.

Dan Steffey, senior vice president of development for Guardian, pointed out that Miracles Central won’t be a treatment center or transitional housing, but rather stabilized housing for people already in recovery.

“It’s not transitional housing, but it’s a step along that spectrum toward gaining independence and moving on,” he said. “The demand is huge. It’s a question of affordability, and it’s a question of: How do you meet the needs for those residents? If you’ve been involved in alcohol and drugs to the point that you’ve destroyed your life, you’ve probably got some history to the point that most landlords won’t be interested in renting to you.”

For that reason, Bryant said the Miracles Club’s program is founded on forgetfulness. The nonprofit will work with CCC to provide counseling and peer-mentoring services on the ground floor.

Currently, 882 people are on CCC’s waiting list for alcohol- and drug-free housing – 118 of them signed up after Jan. 1. When the organization opened its alcohol- and drug-free family housing waiting list this month, it received 50 applications on the first day and had to close enrollment just as quickly; it had only 88 units available.

Transitional alcohol- and drug-free units that do open up are filled again within two to three days, and have an average occupancy rate of approximately 97 percent.

“Because addiction is a lifelong illness, (most people in recovery) feel they will be best served to live in a community where there are peers, and people who will assist in recovery efforts,” said Sean Hubert, senior director of housing and employment for CCC. “We’ve studied the reasons why people relapse, and we’ve found it very important to offer recovery housing options.”

Miracles Central will add approximately 21 studios, 22 one-bedroom units, and four two-bedroom units to the mix. It will be the second facility for the Miracles Club, which already operates a 40-unit apartment building on Northeast Martin Luther King Jr. Boulevard.

Bryant said residents in the King neighborhood initially held reservations about the recovery-oriented affordable housing facility there, but added that the Miracles Club showed that it was a good neighbor. Alan Silver, chairman of the King Neighborhood Association, said that comments from residents reflect that assessment.

Partnering with a 35-year-old organization like CCC (which has numerous assets in its portfolio) comes with other added benefits for the Miracles Club – namely, through property management.

“This is another instance of Miracles being able to lean on others, as well as work with others, so we can continue to pursue the experience of becoming asset managers ourselves,” Bryant said.

Guardian, meanwhile, has brought Carleton Hart Architecture, LMC Construction and ALMAR Contracting to the project. The official team is Multi-Cultural Development Group LLC, which is a partnership featuring Guardian Real Estate Services, CJD Holdings LLC, ALMAR Contracting and Carleton Hart Architecture executive Bill Hart. Steffey said he’s hoping to push minority participation to 50 percent; the city’s minimum requirement is closer to 20 percent.

Guardian and its partners will purchase the land for the project from the PHB, and expects to close on the deal by the end of the year. The company hopes to begin construction around the same time.

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Editor’s note: This story has been changed to clarify the social services that will be included in the building.

Guardian Real Estate Services is working with Central City Concern and the Miracles Club to develop a mixed-use building with 47 apartments and a facility providing services for people recovering from substance dependency, on Portland Housing Bureau-owned property at 1306 N.E. Second Ave.

The bureau made available the 10,000-square-foot lot, along with approximately $7 million in tax increment financing dollars from the Oregon Convention Center Urban Renewal Area, through a Notice of Funding Availability in 2012.

Jaymee Cuti, spokeswoman for the Portland Housing Bureau, said it selected the Guardian team after receiving three proposals for the site. The approximately $11 million Miracles Central project will include a mix of one-bedroom, two-bedroom and studio apartments, and serve mostly individuals earning 50 to 60 percent of the area’s median family income.

Additionally, the Miracles Club together with Central City Concern will provide on-site services for people in recovery from alcohol and drug dependency. Ground-floor space will be devoted to peer mentoring activities.

Carleton Hart Architecture is the project’s lead architect; LMC Construction is the general contractor. Carleton Hart recently applied for early assistance from the Bureau of Development Services.

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