HomeMy WebLinkAboutApproved Minutes - 2021-09-08 PMCity of Lake Oswego Development Review
Commission Minutes of September 8, 2021
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CITY OF LAKE OSWEGO
Development Review Commission Minutes
September 8, 2021
The Commissioners convened at 7:05 PM at City Hall, in the Council Chamber, 380 A Avenue,
Lake Oswego, OR 97034.
Members present: Chair Jeff Shearer, Vice Chair Randy Arthur, Kirk Smith, Mark
Silen, and Bruce Poinsette
Members absent: Jason Frankel and Craig Berardi
Staff present: Jessica Numanoglu, Planning Manager; Erik Olson, Planner; Todd
Knepper, Engineering Supervisor; Evan Boone, Deputy City
Attorney; and Kat Kluge, Administrative Support
FINDINGS
AP 21-03 [499-21-000910-TREE], a request for approval of a Type II permit to remove 23 Type
II trees to construct a new single-family dwelling and driveway.
This site is located at 17930 Kelok Road (Tax ID: 21E17CA00200). The Staff Coordinator is
Jessica Morey-Collins, Associate Planner.
Vice Chair Arthur moved to approve the Draft Findings, Conclusion, and Order for AP 21-03, as
submitted. Seconded by Commissioner Smith and passed 5:0.
PUBLIC HEARING
LU 21-0036, a request for a Development Review Permit and Design Variances for a new
mixed-use residential, commercial, and hotel development on the North Anchor site.
This site is located at 500 1st St., 525 1st St., 33-41 B Ave., 504 N. State St. (Tax IDs:
21E03DD00500, 21E03DD00400, 21E03DD00300, and 21E03DD01200). The Staff
Coordinator is Erik Olson, Senior Planner.
Evan Boone, Deputy City Attorney, gave an overview of the public hearing process and
instructions for any additional verbal testimony given.
Mr. Boone asked DRC members to declare any ex parte contacts (including site visits), biases,
or financial conflicts of interest and their business/employment. All DRC members declared they
have no ex parte contacts, conflicts of interests, and no biases, except as follows: Vice Chair
Arthur stated that he almost daily drove by the site but had not made a formal site visit. He also
noted that, over the years, he had followed the news reports about this site from time-to-time.
He disclosed that Urban Development Partners Northwest was listed as an entity with interest
adverse to a client of the Seattle branch of the firm he worked for; stating, however, that he was
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not involved in those matters. Next, he stated that Kittleson & Associates was listed as a client
of their Portland office on three matters, of which he was not involved. He informed the hearing
participants that as an of-counsel attorney, he derived no direct or indirect financial benefit from
his firm's work on those matters. Vice Chair Arthur also noted that one of the attorneys in his
firm has a relative that works for R&H Construction. Chair Shearer declared that, prior to his
retirement, he worked with both R&H Construction and with Hacker Architecture, but that would
not have any impact on this case. Commissioner Smith stated that Urban Development Partners
was a distant client of the law firm he worked for (the lawyer who handled that matter was no
longer with his firm) and he was not involved with Urban Development Partners. There were no
challenges to the Commissioners’ rights to hear the application.
Staff Report
Prior to presenting the staff report, Erik Olson, Senior Planner, informed members that there
were additional exhibits submitted after the initial staff report was issued. He stated that he
summarized the content of the Exhibits in a supplemental staff report that was delivered to the
DRC earlier that day. Exhibits added to the record include: E-040 to E-046; F-015; and G-100.
The site is located along B Avenue between State Street and the alley that divides 1st Street
and 2nd Street. This project was broken down into three separate parcels (A, B, and C -
western, middle, and eastern, respectively). The site is zoned EC and is located within the
Downtown Redevelopment Design District (DRD), and within the First Addition-Forest Hills
Neighborhood Association (FAN-FHNA). It is primarily surrounded by other EC-zoned uses.
The Lake Oswego Urban Design Plan (LOUDP) and the East End Redevelopment Plan
(EERP) called for a Convenience/Commercial District along the B Avenue corridor. Several
conceptual projects would be addressed with this proposal. Project H is known as the First
Street/North Anchor Redevelopment Project. Others in this area include the State Street Mixed
Use Development and a hotel development.
The project includes the following components: a Development Review Permit for an
approximately 130,000 square foot mixed-use development across three buildings on three
separate parcels (consisting of hotel, retail, restaurant, and residential uses); several DRD
Design Variances (intended to produce a more well-designed active streetscape); and the
removal of 12 trees. There will be a total of 154 parking spaces, both on-site and on-street
(several of which would be provided through a mechanized parking matrix, of which a variance
is requested).
EC Zone Dimensional Standards: There is no setback or lot coverage requirements. This
application proposes approximately 82% to 95% lot coverage, with a floor area ratio of
approximately 2.81:1 (which is below the maximum of 3.2:1). The proposed building heights
range from approximately 57 feet to the maximum allowed 60 feet.
Development Standards: Driveways meet slope/cross slope/landing requirements (accessed
through the alleys and allows for emergency vehicles); Pedestrian Circulation has a expanded
sidewalk width along B Avenue; Stormwater will be managed onsite; and Utilities will have new
crosswalks and curb extensions, and sidewalk upgrades.
Parking: Exhibits E-046 and F-015 address the parking space variances sought; Parcel A
would have 47 of the 64 provided parking spaces in a matrix system; Parcels B and C would
have 23 of the 90 provided parking spaces in a matrix system.
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Paving and Street Improvements: the Applicant has provided voluntary dedications of two
additional feet of sidewalk width for Parcel A and four additional feet for Parcels B and C; and
the area will include pedestrian courtyards, benches, bollards, plantings, and trash
receptacles.
Downtown Redevelopment Design Standards: Building Siting and Massing - complex massing,
asymmetrical composition, pedestrian-oriented siting, strong corner, 5-stories on Parcels A
and B (variance requested), and 60-foot roof height; Building Design - Arts and Crafts style
(Parcel A) and Oregon Rustic style (Parcels B and C), partial storefront appearance, stucco on
upper stories of hotel building (variance requested), complementary windows, mechanical
equipment screening, and installed awnings and canopies; and Landscape and Site Design
will include: 8.7% landscaping on Parcel C (requires a variance as it is below the 15%
minimum requirement), retail courtyards and street furniture, new street trees and public art,
brick paving, hanging flower baskets, and slate stone veneer planters and retaining walls.
Variances subject to General Design Variance Criteria: Reduction in landscaping on Parcel C;
and use of a mechanized parking matrix system for required parking. Staff found that both met
Sub-criterion a.ii and b.ii to meet the objectives of the EERP by prioritizing the density needed
to fulfill the vision of that plan (vibrant streetscape to hide the parking area behind trellised
landscaping).
Variances Subject to DRD Criteria: 5-story buildings (Parcels A and B); Reduction in storefront
appearance-related glazing requirements (all parcels); and Use of stucco on upper stories
(Parcel A). The variances were requested to accommodate the desired mix of uses envisioned
for the site, and to attempt to make the use as active as possible while maintaining the rhythm
of the streetscape. There is a significant topographical grade change along B Avenue for
Parcel A, which creates a challenge for some of these issues. The stucco on the upper stories
for the hotel on Parcel A is proposed to highlight a unique expression of Arts and Crafts style
and to provide an iconic or distinguishing feature to the hotel itself. Staff found that compliance
with Sub-criterion a.ii would not be practicable due to the physical characteristics of the site, as
it contains an approximate 12-foot grade-change along First Street. To address Sub-criterion
a.v, staff concurred with the applicant that the proposed development better accomplishes the
objectives of the EERP and/or the objectives and principles of the UDP. When considering
Sub-criteria b.i and b.ii, staff found that the design creates a positive, unique relationship to
other nearby structures, views or open space (Mt. Hood would be visible from some of the fifth
story units), and streetscapes (similar to what is seen on State Street), and that they are
exceptional in the quality of detailing, appearance, and materials (stucco is allowed to be used
on the ground floor and the stucco to be used is true cement plaster stucco on metal lave). The
pedestrian environment is enhanced by the proposed prominent building frontage.
Tree Removal: Staff found that the removal of the 12 trees was necessary for the on-site
construction and sidewalk improvements, further finding that there were no reasonable
alternatives.
Staff recommends approval of this application, as conditioned in the staff report.
Questions of Staff
Commissioner Silen asked for details regarding the peak heights of each building and the
acceptable limits. Mr. Olson replied that the heights vary, but at least one was at the maximum
allowed height of 60 feet.
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Commissioner Smith requested further explanation for the argument to allow the reduction in
landscaping from 15% to 8.7% for Parcel C. Mr. Olson explained that providing more
landscaped area on another portion of the site that was not a prominent frontage would
produce a less active streetscape on the B Avenue portion of the site. He opined that the
concept was to focus the landscaping on the frontages to comply with the UDP or EERP,
adding that the Applicant was proposing more vertical plantings to better activate the
streetscape. Jessica Numanoglu, Planning Manager, added that the code required the
minimum percent landscaping to be provided on each individual lot, even though the site was
being developed as a unified development, and the lot in question was the smallest of the
three making it challenging to comply and maintain the desired streetscape and functions of
the building. She noted that landscaping was evaluated using the plan view, which did not
account for vertical planting. To include all of the elements of the proposed site (underground
parking and first level retail space) and the required landscaping, the vibrancy and pedestrian-
friendly streetscape would be diminished. Commissioner Smith then asked about the use of
the stucco (citing the analysis on page 54 of the staff report, and his own experience of
growing up around stucco buildings in Southern California) and how it fit with the more rustic
styles of the northwest. Mr. Olson replied that the Applicant could address that question in
more detail, but he would say that the arched openings were a prominent feature of the Arts
and Crafts style, adding that the color for the proposed building on Parcel A was lighter
compared to nearby buildings.
Vice Chair Arthur stated that he appreciated the thorough summary of the application given by
Mr. Olson. He pointed to prior public-forum discussions regarding the North Anchor Site and,
specifically, A Street being considered as a "festival street" (where it could be shut off
occasionally for pedestrian-only events). He asked whether the City had given any thought to
accommodating this idea (in conjunction with the developer). Mr. Olson responded that he did
not believe it had been discussed in this proposal, but the design enhancements may lend
itself to that type of use. Ms. Numanoglu stated that she believed that the corner of 1st Street
and B Street would be the terminus of that "festival street" and would not carry further down
1st Street, and that the Applicant was not required to do that. Mr. Boone indicated that staff did
not find the criteria for that, nor was there a treatment in the variances to that. Vice Chair
Arthur agreed that the City would need to initiate that and work in accommodation with the
development.
Applicant Testimony
Sarah Zahn, Director of Development at Urban Development Partners and representing the
property owner, thanked members for hearing their application and staff for the work done with
them on this project. She noted that they were awarded this project through a competitive RFP
in February 2020, right at the beginning of COVID-19. She mentioned how excited they were
for what they thought this project would produce for the City of Lake Oswego and for the
downtown area (a new boutique hotel, new housing, a ground-floor restaurant, vitality of
pedestrian experience, and economic benefit to the City). She indicated that they were in the
middle of negotiating the purchase of these properties. Ms. Zahn introduced her team.
Chris Hodney, Principal and Multi-family Director with Hacker Architects, shared that they
researched the history, culture, people, and the community of the place to start every project,
looking for the character that would lead to the design. He noted that they found that lumber,
water, and ironworks played an important part in developing Lake Oswego. He shared several
photos depicting different architectural styles found downtown. He stated that their proposed
design was three mixed-use modern buildings with right-of-way (ROW) improvements, which
would create a pedestrian anchor on 1st Street, and would revitalize the commercial core on B
Avenue and on State Street. The hotel design was intentionally differentiated in style and
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material in order to maintain a contextually appropriate scale of the overall development, to
highlight the differences in use, and to give more prominence to the more public building. The
ROW improvements were being made to bring the level of pedestrian safety and activity to the
same level seen in more developed areas of downtown. He noted that the upper levels pull
back from the front property line, and structured parking will have access off of the alleys.
Mr. Hodney noted that they chose a modern interpretation of the Oregon Rustic style
(particularly known for lodges and recreational facilities in the National parks and being
asymmetrical) for the multi-family buildings. This architecture was designed to harmonize with
and fade into those surroundings. He stated that they felt the upper residential floors should be
allowed to fade into the skyline. The residential buildings will be four stories on the frontage
roads. The overall material palette of the building was directly inspired by the Oregon Rustic
style (warm, neutral colors for the upper floors in natural tone). Similar covered courtyards are
provided at all of the primary intersections. The courtyards are connected by a rhythm of stone
frames, storefront windows, and secondary retail entries. He noted that the requested variance
for a 5-story building on Parcel B would allow them to maintain a 14-foot to 21-foot ground floor
height, which was consistent with patterns within the district. An enhanced layer of landscaping
and steel screening was proposed to screen the parking along State Street.
Scott Barton-Smith, Hotel Architect with Hacker Architects, noted that hotels were meant to
cater to visitors, and would need to be readily identifiable and locatable to visitors (hotels want
to be extroverted and stand in contrast to other buildings). He stated that they noticed that the
Arts and Crafts style found in Lake Oswego utilized white stucco to both stand in contrast to
the landscape surroundings, while still being nestled into the landscape. The white façade
brought a blank slate that allowed a playful organization of the windows and a concentration of
detail at the windows and entry arches. He explained their thoughts regarding the building
design and materials used. The windows are staggered to point to the "mountain" corner peak.
The partial 5th floor would only be in the northwest corner where the grade is the highest (20
feet in elevation gained). The frontages will only show four floors at the pedestrian view. Mr.
Barton-Smith closed by saying that all of the massing, articulation, materials, and variance
decisions made were in support of the vitality of the neighborhood and of the pedestrian
experience.
Questions of Applicant
Chair Arthur voiced his initial concern over the use of the concrete stucco, pointing to the
information provided that stated it would be installed as a rain screen with a cavity between the
cement board and the wall sheathing. He asked the Applicant to comment on this and how it
would make it more appropriate for the Pacific Northwest weather. Mr. Barton Smith replied
that with the moist weather found here, they found that the rain screen approach was more
appropriate for most cladding, in fact (so incidental moisture could drain from between the
wall).
Chair Shearer noted that, as a former stucco contractor, it appeared that the elevations left out
many of the needed control joints, adding that would change the look. He informed the
Applicant that his company did a lot of the work on the buildings in the example photos shown.
He indicated that he was very cautious about this design. Mr. Barton-Smith responded that the
corner joints depicted were appropriate for that particular system, with that particular wooden
frame, as confirmed by the installer. Chair Shearer asked for confirmation that the joints at the
floor would be more prominent. Mr. Barton-Smith acknowledged that the floor joints would be
more prominent because of the flashing used to accommodate the drift, adding that there
would be more minor joints to the corner of the windows. He stated that they were designing
more prominent reveals around the windows and at the top edge of the roof to achieve a
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molding appearance. Chair Shearer asked if there was a current parking stacking system in
use in the area because if that didn't work, the parking impact goes into the neighborhood
(e.g., if something happens where valets can't be used, if they lose power, if they have flooding
in the basement parking areas). Mr. Barton-Smith acknowledged Chair Shearer's concerns,
answering that they were also trying to balance the parking requirements with a vital
streetscape and an excellent pedestrian experience. He noted that they had to find a way to
compress the parking footprint in such a way that would make a great experience for the City
and for guests at the hotel, adding that he thought the technology of the parking systems had
come a long way in the last decade (multiple manufactures use the matrix system). Ms. Zahn
listed some of the locations in Portland that had the parking matrix system in place, further
explaining that their hotel would only use professional valets to use the system and that the
hotel guests would have no interaction with it. Mr. Hodney described how the matrix stacker
system worked. Mr. Barton-Smith informed members that there would be an on-site generator
that would power the matrix to retrieve cars for hotel guests.
Chair Shearer asked the City Engineer if the stormwater removal system was adequate (piping
it under the alley to the other side). Todd Knepper, Engineering Supervisor for Lake Oswego,
stated that they were fine with the plan, as long as there was an encroachment permit issued
(one of the conditions of approval (COA), given that it was a unified site. He confirmed that the
storage holding tank would be large enough per the consultant's review, adding that there was
a sub-floor drainage system in place to prevent backing up into the garage.
Public Testimony
In Favor
Carole Ockert, 910 Cumberland Road, Lake Oswego, OR 97034, speaking as the Land Use
Liaison of the First Addition-Forest Hills Neighborhood Association (FAN-FHNA), stated that
the North Anchor project was one that the community began planning over 20 years ago. She
cited Bob Galante's original vision for that area of downtown. The first project started in 2004
and grew over the years to the full proposal seen that night. Ms. Ockert noted that the
variances requested were designed to fit the development into a constrained site on a sloped
lot, all the while, respecting and meeting the needs of the neighborhood and of the City. She
pointed to the project staying within the height restriction of 60 feet. She relayed that the FAN-
FHNA Board approved of the partial 5th-floor allowance sought, and that they approved of the
parking matrix use, as it allowed the Applicant to meet the code parking requirements. Her
Board requested that the DRC direct the City to incorporate signage that directed people to the
public parking available at Lakeview Village, the Windward, State Street (between A Avenue
and B Avenue) and the site across from the hotel (on B Avenue and 1st Street). She noted that
the Planning Commission (PC) still had not acted on the request posed to them by the DRC to
address some of these parking issues. She indicated that her Board concurred with the staff
report, requesting that members find in favor of this North Anchor Project application, granting
each of the variances listed in the staff report and applying the conditions that staff noted. Ms.
Ockert informed members that her Board understood and acknowledged the need for the tree
removals and supported the approval of the tree removal request, pursuant to the replacement
as noted in the staff report. She thanked members for participating.
Miles Haladay, 1074 Northshore, Lake Oswego, OR 97034, informed members that he was
the developer of the nearby Beacon building. He stated that his family was 100% behind this
project and praised the job that the developers did in the design and the incorporated
landscaping. He opined that the uniqueness of the hotel was just what the City needed. He
requested that parking be better managed rather than making it difficult on the developers, as
he saw many of the public lots near-empty during the peak hours.
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Deliberation
Mr. Boone asked if anyone wished to submit additional evidence, which would result in a
continuance, if requested, or if the Applicant wished to submit a final written argument. There
were no such requests made. Mr. Boone then indicated that Chair Shearer may move to
deliberations.
Commissioner Silen thanked everyone for their very well-prepared presentations. He shared
his personal experience dealing with parking systems when living in Manhattan 10 years ago,
assuring Chair Shearer and members that many advancements had been made.
Commissioner Smith noted that his questions to staff were an indication of his concerns. He
opined that they should follow the code requirements written by the PC or the PC and the City
Council should change their code. He stated that it bothered him to allow variances for
economic perspectives, adding that the same rules should apply to everyone. He
acknowledged that he was more comfortable with the stucco use explanation given by the
Applicant; however, the building did not look like Arts and Crafts style, rather, it looked like
something that could be found in Laguna Hills.
Vice Chair Arthur stated that he shared Commissioner Smith's concerns over the stark white
appearance of the hotel, and its compatibility with other structures in the area, and its
compliance with Lake Oswego architectural design standards. He noted that he appreciated
the Applicant's explanation, as it addressed some of his concerns. Regarding his concern over
the limited 5th floor of the hotel, he shared his appreciation for the representative of the FAN-
FHNA's discussion of and agreement with the Applicant's interpretation over the views and
streetscapes. He thanked the citizens for their enthusiastic testimony in support of the
application.
Commissioner Poinsette noted that he shared in Chair Shearer's comments regarding the
stucco siding, as he has seen both failures and successes when the product was applied
incorrectly or correctly.
Chair Shearer shared that he thought the job of the DRC was to see if staff did a good job
following the code provisions. He noted that he saw nothing presented that night that would
change his mind about siding with staff in supporting this proposition. He appreciated that the
NA was behind this project, opining that whether he or anyone liked how the building looked,
architecturally, it really did not matter.
Commissioner Silen moved to approve LU 21-0036, as presented in the staff report.
Seconded by Commissioner Poinsette and passed 4:1. Mr. Boone instructed staff to return
the Written Findings, Conclusion and Order on Monday, September 20, 2021, at 7:00pm.
OTHER BUSINESS
Schedule Review and Management Update
Ms. Numanoglu updated DRC members on upcoming meetings:
September 20, 2021 will have the Findings from this meeting and a major variance application.
She noted that the City Council has decided to allow both in-person public testimony and via
Zoom and staff will work to implement this change for the DRC. She requested that all
members continue to meet in-person due to the possibility that the hearing would need to be
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delayed or redone if members fall off, resulting in the lack of quorum. Members discussed
citizens appearing via Zoom.
ADJOURNMENT
Chair Shearer adjourned the meeting at 9:19 PM.
Respectfully submitted,
/s/
Kat Kluge, Administrative Support