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Agenda Item - 2019-05-21 (04)503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Subject: Approval of Lake Oswego Redevelopment Agency Board Meeting Minutes Meeting Date: May 7, 2019 Staff Member: Anne-Marie Simpson, Recording Secretary Department: City Manager’s Office Action Required Advisory Board/Commission Recommendation ☒ Motion ☐ Approval ☐ Public Hearing ☐ Denial ☐ Ordinance ☐ None Forwarded ☐ Resolution ☒ Not Applicable ☐ Information Only Comments: ☐ Council Direction ☒ 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) ☒Not Applicable ATTACHMENTS 1.March 5, 2019, Draft Special Meeting Minutes 2.March 19, 2019, Draft Special Meeting Minutes 13.3 Lake Oswego Redevelopment Agency Meeting Minutes Page 1 of 3 March 19, 2019 LAKE OSWEGO REDEVELOPMENT AGENCY MEETING MINUTES March 19, 2019 1. CALL TO ORDER, REDEVELOPMENT AGENCY Chair Studebaker called the meeting to order at 3:02 p.m. 2. ROLL CALL Present: Chair Kent Studebaker and Board Members Skip O'Neill, John LaMotte, John Wendland, Theresa Kohlhoff, Jackie Manz Excused: Daniel Nguyen Staff Present: Scott Lazenby, Executive Director; David Powell, LORA Counsel; Anne-Marie Simpson, Recording Secretary; Sid Sin, Redevelopment Manager. Others Present: Bob Thompson, TVA Architects Inc.; Vanessa Sturgeon, Sturgeon Development Partners. ______________________________________________________________________ 3. PLEDGE OF ALLEGIANCE Chair Studebaker led the Board in the Pledge of Allegiance. 4. BOARD BUSINESS 4.1 North Anchor Concept Plan Report and Drawings Mr. Lazenby provided updated information to the Board for approval of the North Anchor Conceptual Plan, noting the Council Report detailed differences between the previously approved Plan and the one currently being reviewed. The primary difference was eliminating the combination of a smaller hotel and age-restricted apartments in favor of a larger hotel dominating the block to the east of First Street, and above-ground parking with retail on the ground floor on the west side of First Street. Planning Staff met with the development team to make changes to the Plan so as to be consistent with City Code. He displayed a series of slides detailing the elevations, programmatic elements of the development, and building materials. The ATTACHMENT 1 Lake Oswego Redevelopment Agency Meeting Minutes Page 2 of 3 March 19, 2019 development still included a four-story boutique hotel at the main entrance on B Avenue, a restaurant, parking, and ground floor retail. Mr. Thompson described the proposed concepts and the material palette related to the hotel and restaurant which reflected the character of Lake Oswego in terms of the village look and feel. Mr. Lazenby described the locations of the alley, street, plaza locations, retail and courtyards, noting those elements would make the development the downtown's northern counterpart to Lake View Village. Mr. Thompson distributed a picture that depicted the timber color more accurately. Mr. Lazenby noted the Code required the architecture for the parking façade to be similar to surrounding buildings. The current plan included more retail than the prior plan. In the Urban Renewal Plan, the North Anchor Plan was intended to have a north- south access for a retail core. Parallel parking would be available on both sides of First Street, although vacating of some right-of-way on First Street would be required. Adjustments might be made as the project goes through the design review process and would then be presented to the Board for final approval. Additional design changes might also be made during final arrangements with the hotel's investor and operator. The Board would have the chance to see and approve the project before it went into formal design review. Approval of the conceptual design, which included programmatic features of the building, was a key feature of the development agreement the Board would consider soon. Member Kohlhoff asked about the status of the Agency's contractual agreement with the developer. Mr. Powell replied the development agreement for the previous design was still in effect, though its timelines had passed. An amendment or new agreement would incorporate the new concept and adjust for the various differences and then would be presented to the Board for authorization. Mr. Powell clarified the first agreement did not incorporate this concept plan; therefore, no agreement would be breached. If the Board decided not to go forward, he understood both parties would agree to termination as all the timelines had passed. Mr. Lazenby noted Staff strongly recommended the project’s approval, seeing it as a stimulation to the City's downtown by bringing in lodging tax revenue and attracting customers to the area. Member LaMotte noted the Board’s original concerns about the materials on the side and across the roof as being too monochromatic, particularly in the northeast corner. Mr. Thompson indicated the same materials would be used on the side and roof for the purpose of simplicity and elegance, balanced with more detail around the windows and articulating the openings to avoid busyness in the design. Member LaMotte suggested considering a color or material change to better define the roofline. Member LaMotte noted the proposed parking structure had 162 spaces, with 47 for the public and 115 to be provided by the developer. He did not believe that number of spaces would ultimately be needed. Mr. Lazenby clarified the amount of public parking ultimately depended upon how many rooms the hotel would have. Member LaMotte asked if it was possible to have flat floors in the parking deck, noting that would allow the space to be converted for other uses such as offices. Flat floors were also easier to maneuver and provide visibility for security. Mr. Thompson agreed, adding the development team would explore options. Member Manz appreciated the refinements to the design and what the project would bring to Lake Oswego. In response to her questions about final programming of the development, Ms. Sturgeon said efforts to date have focused on bringing the concept plan for the envelope of the building to the Board; virtually no work had been done for the inside. Lake Oswego Redevelopment Agency Meeting Minutes Page 3 of 3 March 19, 2019 Chair Kent Studebaker moved to approve the North Anchor Concept Plan. Jackie Manz seconded the motion. Mr. Powell suggested Chair Studebaker consider a revised motion to move to approve the Concept Plan as the basis for negotiating a new development agreement. Chair Studebaker and Councilor Manz agreed to the revision. Member Wendland asked for details about next steps for moving forward. Mr. Powell replied that negotiating terms would occur next as either an amendment to the current agreement, or would provide the basis of a new agreement. Not many changes were required to the text, but the details regarding the changes to the concept plan and to the public parking, as well as other issues needed to be discussed. He was certain the agreement would not be available in time for the Council's April 4 meeting, but should be available not long afterward. The agreement would be subject to the Board's approval. Member LaMotte favored a detailed, accelerated, consolidated timeline with milestones described and the financial considerations proposed at the last Board meeting. Mr. Powell said the performance schedule in the current agreement would be revised and would be a major part of the discussions with the Applicant. Member Kohlhoff expressed her disappointment at not having affordable housing at the site, as she believed it was needed more than a high-end hotel. She had additional concerns with the above-ground parking, and stated she would not vote in favor of the project. Chair Kent Studebaker moved to approve the North Anchor Concept Plan as the basis for negotiating a new development agreement. Jackie Manz seconded the motion. A voice vote was held, and the motion passed with Chair Kent Studebaker, Skip O'Neill, John LaMotte, John Wendland, and Jackie Manz voting ‘aye.’ Theresa Kohlhoff voted ‘no.’ (5-1) 5. ADJOURNMENT Chair Studebaker adjourned the meeting at 3:31 p.m. Anne-Marie Simpson, City Recorder APPROVED BY THE CITY COUNCIL: ON __________________ Kent Studebaker, Mayor Lake Oswego Redevelopment Agency Meeting Minutes Page 1 of 4 March 5, 2019 LAKE OSWEGO REDEVELOPMENT AGENCY MEETING MINUTES March 5, 2019 10. CALL TO ORDER Chair Studebaker called the Lake Oswego Redevelopment Agency (LORA) Board meeting to order at 7:36 p.m., following the regular City Council meeting on March 5, 2019, in the City Council Chambers, 380 A Avenue. Present: Chair Studebaker and Board Members Manz, O'Neill, LaMotte, Nguyen, Wendland, and Kohlhoff Staff Present: Scott Lazenby, Executive Director; David Powell, LORA Counsel; Anne- Marie Simpson, Recording Secretary; Sid Sin, Redevelopment Manager; Shawn Cross, Treasurer Others Present: Thomas Peck, Mackenzie ______________________________________________________________________ 11. BOARD BUSINESS 11.1 City Hall Project Update Report and Attachment Mr. Lazenby noted that the project was moving forward as directed by the Board, and there were no substantive changes to report. He called on Mr. Sin, who provided an overview of the project since November 2018. With the design development phase now completed, the Board would be asked to approve the development phase drawings and authorize the team to move forward into the construction document phase. Mr. Peck provided a general overview of the proposed new City Hall, illustrated with a slide presentation of drawings (Attachment to Redevelopment Agency Report). By locating the new building as shown in the site plan, i.e., on the adjacent property to the east at 3rd Street and A Avenue, two key objectives were met: Publicly-accessible parking was provided at the location of the current City Hall building, and Police and other City functions could continue in the current City Hall facility until the new building was ready for occupancy. With completion of the second phase of the project, the site would be unified by a linear circulation plaza; he described this and other key elements of the site organization. He emphasized the strong outward-facing presence of publicly-oriented aspects of the project, including retail, public lobbies, and Council Chambers; ATTACHMENT 2 Lake Oswego Redevelopment Agency Meeting Minutes Page 2 of 4 March 5, 2019 this would offer improved visual access and many other benefits to the downtown in comparison to the current City Hall. Highlighting the effective community-engagement process, he described how citizens’ feedback had led to identifying the Northwest Regional Style as the guiding architectural “language” for the design. It would also serve to address constraints of the site, e.g., the significant grade change across it, and programmatic requirements, including Police security issues. Additionally, it would allow the project to meet sustainability goals: The current projection is above LEED Gold and structural requirements for an essential facility would be met. He displayed additional exhibits that highlighted images viewed favorably by the community, discussing their connection to the Northwest Regional Style and how they had been integrated into the building design. In addition to ongoing refinements, the team had made one key change to the design, necessitated by discovery of water-table issues on the site. He noted a related cost impact (Report, p 3). In ensuing discussion, Mr. Peck responded to Board members’ questions. At Board Member Wendland’s request, he clarified the representation of colors in the renderings. He described the predominant cladding as off-white, with accent material a dark gray, and a range of tones in glazing, wood, and other components. Member LaMotte complimented the team for working to refine the Booktique and Arts Council spaces, for buffering of the parking, and for design of the community space to the west of the building; the latter offered opportunities for a sculpture garden, and he asked that Mackenzie coordinate with the Arts Council to advance those. Member Manz affirmed the benefits of the retail spaces in the building. Regarding the exterior material, she asked about its properties and ease of replacement in event of a failure. Mr. Peck described it as a cementitious composite product. It was a rainscreen, and therefore would support a high- performing envelope design. Among numerous benefits, this exterior piece would provide for proper ventilation; the color would be durable as it was integral to the material itself. Notably, in the event of a failure, an individual module could be removed and replaced. With regard to the interior, Mr. Lazenby indicated that the basic floor plans remained as shown in the report materials. These would provide greatly-improved functionality for the public and staff, with excellent use of space, he opined. Reminding the Board that most of the space increase was for Police functions, he described additional advantages for their operations and those of other departments, as well. Member LaMotte asked about analysis of the energy use and potential savings opportunities presented by electric rather than natural gas systems. Mr. Lazenby noted that the team had considered many options to improve efficiency, but that the building design itself was so efficient that further improvements were not being identified as cost-effective. Mr. Sin agreed; he indicated that the HVAC system under consideration had a cost of $2.4 million, but that an advanced system costing $4.75 million had been analyzed. Mindful of the funding available and the very high efficiency of the lower-cost option, the team had weighed the cost difference and determined it to be a good choice; this option combined electric and natural gas systems. Member Kohlhoff drew the Board’s attention to the table showing a proposed funding package for the project (Report, p 4), noting that she observed an increase in the total amount from $40 million to $43.3 million. She questioned the $1.4 million associated with sale of North Anchor property and how it could be relied upon as a source of funds, both in terms of amount and timing. Mr. Lazenby discussed his expectation that the $1.4 million amount would be conservative and Lake Oswego Redevelopment Agency Meeting Minutes Page 3 of 4 March 5, 2019 that receipt of sale proceeds within the desired timeframe was reasonable. Mr. Sin emphasized that the table represented a potential funding strategy. Costs would continue to be reviewed and, as discussed in the report, there was also a substantial contingency of $5.7 million for the project. In the event that either the $1.4 million for the North Anchor sale or some other funding source did not materialize, there would be the opportunity to release some amount of contingency. As the project moved forward, there would be higher levels of confidence to support this and potential cost-reduction opportunities. Addressing concerns heard in the past, Member O'Neill asked if the HVAC system would bring fresh air into the building from outside; Mr. Sin confirmed this was planned. Member LaMotte discussed his perceptions that the $1.4 million sale amount for North Anchor could be conservative and that aspects of funding would likely be resolved over the next couple of years. In response to a question from Member Manz, Mr. Lazenby confirmed that the $43.1 million total project estimate included costs of underground water mitigation. Member Wendland posed questions about the $35 million urban renewal bond, wondering about funding benefits to the City Hall project from interest earned on the bond. Mr. Cross described limitations and other considerations pertaining to the urban renewal district. Member Wendland inquired about the dollar amount of City development fees that potentially could be waived for the project, as discussed in the report (p 4). Mr. Sin estimated that of a total $380,000 in planning, building, and engineering fees, a waiver of up to $150,000-200,000 might be considered by the Board. Member Wendland expressed concern that such a waiver was not available to another governmental entity, e.g., the School District. After additional discussion, Mr. Lazenby recommended that options and a decision on a waiver be considered after the Guaranteed Maximum Price of the project was available. Chair Studebaker moved to approve the design development phase drawings for the City Hall Project and direct the project team to proceed with the construction document phase. Board Member Manz seconded the motion. A voice vote was held, and the motion passed, with Chair Studebaker and Board Members Manz, O'Neill, LaMotte, Nguyen, Wendland, and Kohlhoff voting ‘aye’. (7-0) 11.2 LORA Resolution 19-01, A Resolution of the Lake Oswego Redevelopment Agency (LORA) Making Appointments to the LORA Budget Committee Report and Attachment Chair Studebaker moved to adopt Resolution 19-01. Board Member LaMotte seconded the motion. A roll call vote was held, and the motion passed, with Chair Studebaker and Board Members O'Neill, LaMotte, and Wendland voting ‘aye’. Board Members Manz, Nguyen, and Kohlhoff voted ‘no’. (4-3) 11.3 Approval of Meeting Minutes Report and Attachments Lake Oswego Redevelopment Agency Meeting Minutes Page 4 of 4 March 5, 2019 11.3.1 November 6, 2018, Special Meeting Minutes 11.3.2 December 4, 2018, Special Meeting Minutes 11.3.3 January 15, 2019, Special Meeting Minutes Chair Studebaker moved to approve the minutes as written for November 6, 2018, December 4, 2018, and January 15, 2019. Board Member Manz seconded the motion. A voice vote was held, and the motion passed, with Chair Studebaker and Board Members Manz, O'Neill, LaMotte, Nguyen, Wendland, and Kohlhoff voting ‘aye’. (7-0) 12. ADJOURNMENT Chair Studebaker adjourned the LORA Board meeting at 8:06 p.m. Respectfully submitted, Anne-Marie Simpson, Recording Secretary APPROVED BY THE LAKE OSWEGO REDEVELOPMENT AGENCY ON __________________ Kent Studebaker, Chair