The Portland Historic Landmarks Commission on Monday got its first look at the proposal for a seven-to-eight-story affordable housing development. Flatworks, at 240 S.E. Grand Ave., would have approximately 143 rent-restricted units. The site is in the East Portland/Grand Avenue Historic District.

The project is valued at $25 million, according to Portland Permitting & Development.

TVA Architects‘ design calls for eight-story dark massing clad in masonry on the north third of the block and seven-story light massing clad in high-quality fiber-cement panels on the remaining two-thirds of the block, according to the project’s narrative.

Sturgeon Development Partners is developing the project. The team also includes civil engineer Langan of Clackamas, structural engineer KPFF, landscape architect Shapiro Didway, MEP engineer Interface Engineering, and general contractor LMC Construction.

During a type III historic resource review hearing in 2020, the Historic Landmarks Commission had approved for the site a similar proposal with office space. But that proposal did not advance, and the developer shifted to affordable housing. The plug was pulled because of a lack of demand for office space, said John Jamiel, a TVA Architects senior associate.

The project team expects to seek a permit for the new proposal by April 2026.

At the ground level facing Southeast Grand Avenue, programming would include a lobby, offices, community rooms, a gym and bike parking. Eight parking stalls would be provided inside a ground-level garage with access at mid-block on Pine Street. Ground-floor glazing and active programming would generally be oriented toward Grand Avenue and on the corners, with building services at mid-block facing Ash and Pine streets.

The design team wants to offer some kind of roof deck for residents – on level 8 – and is looking into the cost of such an amenity.

Exterior cladding materials would include brick, composite metal panels, fiber-cement paneling and ribbed metal paneling. There would be five levels of wood framing over three levels of concrete.

The proposed fiber-cement material appeared to be of decent quality, commission Chair Andrew Smith said. Previously, for the office building proposal, only a couple of materials would’ve been used, he added.

“I would encourage the design team, as you move this forward, to take a hard look at that and try to simplify (the material palette),” Smith said.

Commissioner Hugo Hamblin-Agosto suggested the design team look for softer colors for the exterior instead of the dark brick so the building would blend more with the district. Pam Saftler, a TVA Architects principal, said alternatives would be a red or brown brick.

“I don’t find the dark nature of the material that has been chosen to be objectionable at all,” Smith said. “I’ve seen a couple of other buildings of this scale using that type and tone of brick and I’ve seen them be very successful.”

One of the potential modifications is related to required building lines. The space between the building and the street lot line must be designed as an extension of the sidewalks and committed to active uses such as sidewalk cafes, vendor’s stands or developed as “stopping places,” the city’s staff report states. The proposal includes raised planter beds along most of the street frontages between the building setback and the lot lines instead of treating this area as an active space. The commissioners suggested removing the planters to allow for a communal space for residents.

Another potential modification is to the requirement of an eco-roof. Currently, one is planned on level 2.

“We’re looking at providing solar panels in lieu of providing an eco-roof,” Jamiel said, adding that stormwater would have to be managed in a different way.

Commissioners expressed support for eliminating the eco-roof as long as there would be stormwater mitigation. Smith suggested the team seek an equivalent that would provide benefits like those of an eco-roof.

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