HomeMy WebLinkAboutAgenda Item - 2020-05-19 - Number 14.2 - LORA Minutes 14.2
E REDEVELOPMENT AGENCY REPORT
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Subject: Approval of Lake Oswego Redevelopment Agency Board Meeting Minutes
Meeting Date: May 19, 2020 Staff Member: Anne-Marie Simpson, Recording
Secretary
Department: City Manager's Office
Action Required Advisory Board/Commission Recommendation
❑X Motion ❑ Approval
❑ Public Hearing ❑ Denial
❑ Ordinance ❑ None Forwarded
❑ Resolution ❑X Not Applicable
❑ Information Only Comments:
❑ Council Direction
❑X Consent Agenda
Staff Recommendation: Approve minutes as written.
Recommended Language for Motion: Move to approve minutes as written.
Project/ Issue Relates To:
❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable
ATTACHMENTS
1. March 3, 2020, Draft Special Meeting Minutes
2. March 17, 2020, Draft Special Meeting Minutes
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.ci.oswego.or.us
ATTACHMENT 1
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LAKE OSWEGO REDEVELOPMENT AGENCY MEETING
MINUTES
V 0 March 3, 2020
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13. CALL TO ORDER
Chair Studebaker called the Lake Oswego Redevelopment Agency (LORA) meeting to
order at 9:41 p.m., following the regular City Council meeting on March 3, 2020, in the City
Council Chambers, 380 A Avenue.
Present: Chair Studebaker and Board Members LaMotte, Wendland, Manz, Kohlhoff,
O'Neill, and Nguyen
Staff Present: Martha Bennett, Executive Director; David Powell, LORA Counsel; and
Anne-Marie Simpson, Recording Secretary
14. BOARD BUSINESS
14.1 LORA Resolution 20-01, A Resolution of the Lake Oswego Redevelopment Agency
Approving Indebtedness of the Agency in the Form of an Intergovernmental
Agreement with the City of Lake Oswego Relating to Projects within the Lake
Grove District
And
LORA Resolution 20-02, A Resolution of the Lake Oswego Redevelopment Agency
(Urban Renewal Agency) for Adjusting the Budget for Biennium Commencing July
1, 2019, Approving Resources/Requirements, and Making Appropriations.
Member Wendland moved to approve LORA Resolutions 20-01 and 20-02. Member Manz
seconded the motion.
A voice vote was held and the motion passed with Chair Studebaker and Members
LaMotte, Wendland, Manz, Kohlhoff, O'Neill, and Nguyen voting `aye.' (7-0)
14.2 Approval of Meeting Minutes
January 7, 2020
Member Manz moved to approve the Minutes. Member LaMotte seconded the motion.
Lake Oswego Redevelopment Agency Meeting Minutes Page 1 of 2
March 3, 2020
A voice vote was held and the motion passed with Chair Studebaker and Members
LaMotte, Wendland, Manz, Kohlhoff, O'Neill, and Nguyen voting `aye.' (7-0)
15. ADJOURNEMNT, LORA
Chair Studebaker adjourned the meeting at 9:43 p.m.
Respectfully submitted,
Anne-Marie Simpson, Recording Secretary
Approved by the Lake Oswego
Redevelopment Agency on
Kent Studebaker, Chair
Lake Oswego Redevelopment Agency Meeting Minutes Page 2 of 2
March 3, 2020
ATTACHMENT 2
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LAKE OSWEGO REDEVELOPMENT AGENCY MEETING
• MINUTES
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March 17, 2020
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9. CALL TO ORDER, REDEVELOPMENT AGENCY (LORA)
Chair Studebaker called the Lake Oswego Redevelopment Agency (LORA) meeting to
order at 4:27 p.m., following the regular City Council meeting on March 17, 2020, in the
City Council Chambers, 380 A Avenue.
Present: Chair Studebaker and Members Manz (by phone), Kohlhoff (by phone),
O'Neill, Nguyen, LaMotte, Wendland
Staff Present: Martha Bennett, City Manager; David Powell, City Attorney; Anne-Marie
Simpson, City Recorder; Scot Siegel, Planning and Building Services
Director; Sidaro Sin; Redevelopment Manager
Others Present: Sarah Zahn, Urban Development + Partners (by phone)
10. BOARD BUSINESS
10.1 North Anchor Project Developer Recommendation
Mr. Sin stated a review panel consisting of representatives from the City's Finance and
Planning departments, LORA Staff, the Lake Oswego Chamber of Commerce, and the Tourism
Advisory Committee reviewed and interviewed developers from the four proposals received.
The City was engaging the services of Mick O'Connell from MJOC, LLC, who would assist with
a Memorandum of Understanding (MOU) and Development and Disposition Agreement (DDA).
The Review Committee recommended Urban Development + Partners (UDP) due to their
compelling proposal and their depth and breadth of experience with financial backing, Mr. Sin
announced. He reviewed the three proposals that were submitted but not selected, highlighting
their unique elements. The project team was comprised of UDP, The Atticus Hotel, Hacker
Architecture, and Nathan Cooprider, the hotel's architect. UDP was a real estate development
investment and property management group which invested in its properties, as well as the
community. They would build the project and keep it as part of their portfolio. UDP's funding
approach included $26 million of a UDP-managed equity fund with debt financing through First
Republic Bank. Atticus Group in McMinnville brought a high-standard boutique hotel brand that
would be customized to Lake Oswego. UDP's mixed-use proposal for the North Anchor site
included a 51-room boutique hotel with outdoor dining space, lounge space, and rooftop access,
45 multi-family residential apartment units, 30,000 square feet of office space, and almost 8,000
square feet of ground floor retail. The next steps of the project included the negotiation and
Lake Oswego Redevelopment Agency Meeting Minutes Page 1 of 4
March 17, 2020
execution of a MOU and DDA by August 2020, design review from September 2020 through
April 2021, and breaking ground in the fall of 2021. Project completion was expected to be in
January 2023.
Ms. Zahn expressed her team's excitement for the project.
In response to Chair Studebaker's questions about parking, Mr. Sin said the proposal included
about 83 surface-grade parking spaces between the three properties. Strategies could be
applied and there might be opportunities to contribute to obtain some public parking as well. An
analysis would be done to yield a refined number for the appropriate amount of parking spaces.
He confirmed the office structure would have three stories and the other buildings would have
four stories.
Member LaMotte inquired if the Planning Commission was or would be revisiting the downtown
parking ratios. Mr. Siegel replied that Council had approved changes that allowed for tandem
parking, which would be beneficial for this development. The modifiers already reduced the
parking requirement in the downtown, and the standard for hotel rooms was .75. Additionally,
the overall parking load was adjusted downward by almost a factor of one-third for the area. The
City's hotel parking ratios were competitive with other jurisdictions. He confirmed the proposal
was 100 parking spaces short of the Code requirement with modifiers; however UDP provided
an alternative showing an additional parking level. Mr. Sin clarified that per UDP's calculation,
their requirement would be 162 parking spaces and they were proposing 83 to 89 spaces.
UDP's proposed alternative included an additional 72 parking spaces. Mr. Siegel added the
parking study option allowed UDP to consider rideshare or more efficient parking lot layout
alternatives; or to propose alternative standards or ratios for each use.
Member Wendland inquired if all of the projects had been evaluated for parking issues. Mr. Sin
replied three of the four projects had some parking challenges, but parking needed to be
considered comprehensively. Member Wendland understood that by selecting UDP, the City
would not have to come up with a lot of money to solve the parking issue. He asked for an
explanation of UDP's rationale for choosing apartments versus condos. Ms. Zahn replied that
condos did not fit well with investor priorities. Condos required seeking separate funds which
would involve some risk. Also, apartments were considered to be in demand in Lake Oswego.
Member Manz asked whether the rooftop restaurant would add to the building height. Ms. Zahn
replied that because the space would not be enclosed it would not add to the building height.
Mr. Sin clarified the rooftop plan showed lounge access for the rooftop behind the mansard roof
on the fourth floor. The office development had a terrace.
Member O'Neill asked if the proposer could deliver six months earlier if the timelines were
accelerated. Ms. Zahn believed design, review, etc. might require nine to twelve months. Mr.
Sin noted the current schedule was similar to a previous proposal. When the Board met to
discuss the MOU, compression of the timeline could be considered.
Member Nguyen appreciated the design, but expressed concerns about the financing given
recent issues with the economy. He asked if those funding the project would now require more
scrutiny. Ms. Zahn believed the impact of the economy on the lending and capital markets
would become clearer as the project moved forward. UDP would have a while before it sought
debt on the subject property, and because the equity came from a fund UDP raised and
Lake Oswego Redevelopment Agency Meeting Minutes Page 2 of 4
March 17, 2020
controlled, the firm had discretion over those investments and the ability to adjust how to
leverage its debt ratio for the hotel according to market fluctuations. Member Nguyen asked if it
would be helpful if the Board allowed for an additional due diligence period to give UDP time for
discussion with its financial partners.
Member LaMotte agreed the Board was anxious to get the beautiful project started and he was
interested in making up time where possible. He also understood the need to be realistic about
the economy. The partners would have to keep working on the details and trust each other.
Member Kohlhoff stated that she supported anything that could be done to make sure the
financing was secure. She noted affordable housing was not included in any of the proposals.
Ms. Zahn replied that Hacker had worked on the Lents project and that she had worked in
affordable housing financing in the past. She stated that affordable housing was possible,
depending on how it could be worked out financially. In regard to the proposal alluding to
possible environmental problems, she explained prior concerns were expressed about the auto
body shop on the corner. If remediation were required, UDP would have discussions with the
City about who would pay for it.
In response to Member Nguyen's inquiry about how to build in due diligence to review the
financing early on, Mr. Sin suggested it could be included in an MOU.
Member O'Neill noted the type of funds planned for the project were in demand among
investors, and the paradigm was more reliable than what the City had seen in the past. Member
LaMotte stated appreciation for the multiple decision points built into the project's timeline.
Member Wendland moved to select Urban Development + Partners as the North Anchor
Project developer and authorize the LORA Executive Director to negotiate and present
for LORA Board approval a Memorandum of Understanding and Disposition and
Development Agreement with UDP for the 1.07 acre North Anchor site. Member LaMotte
seconded the motion.
Ms. Bennett clarified that executive sessions could be called as needed to receive additional
Council input on the MOU.
A voice vote was held and the motion passed, with Chair Studebaker and Members Manz,
Kohlhoff, O'Neill, Nguyen, LaMotte, and Wendland voting `aye.' (7-0)
11. ADJOURNMENT, LORA
Chair Studebaker adjourned the meeting at 5:11 p.m.
Respectfully submitted,
Anne-Marie Simpson, City Recorder
Lake Oswego Redevelopment Agency Meeting Minutes Page 3 of 4
March 17, 2020
Approved by the Lake Oswego
Redevelopment Agency on
Kent Studebaker, Chair
Lake Oswego Redevelopment Agency Meeting Minutes Page 4 of 4
March 17, 2020