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Agenda Item - 2021-04-20 - Number 13.2 - Approval of LORA Meeting Minutes 13.2 Dj'p` REDEVELOPMENT AGENCY REPORT rro rowAI dR�dd� Subject: Approval of Lake Oswego Redevelopment Agency Board Meeting Minutes Meeting Date: April 20, 2021 Staff Member: Kari Linder, 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 EAdopted Master Plan(s) ❑S Not Applicable ATTACHMENTS 1. February 18, 2021 Draft Special Meeting Minutes 2. March 2, 2021 Draft Special Meeting Minutes 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.ci.oswego.or.us ATTACHMENT 1 LAKE OSWEGO REDEVELOPMENT AGENCY MEETING MINUTES L FEBRUARY 18, 2021 aREGO� 11. CALL TO ORDER Chair Buck called the Lake Oswego Redevelopment Agency (LORA) meeting to order at 8:00 p.m., following the regular City Council meeting on February 18, 2020. The meeting, rescheduled from February 16, was held virtually. Present: Chair Buck and Board Members Nguyen, Wendland, Verdick, Rapf, Mboup, and Manz Staff Present: Martha Bennett, Executive Director; Evan Boone, LORA Counsel Pro Tem; Sidaro Sin, Redevelopment Manager; Kari Linder, Recording Secretary Others Present: Sarah Zahn, Urban Development + Partners (UDP); Mick O'Connell, MJOC, LLC 12. BOARD BUSINESS 12.1 North Anchor Update Mr. Sin advised that Ms. Zahn, director of development with UDP, would be updating the Board, and that Mr. O'Connell was present as real estate advisor for the North Anchor Project. In an introductory overview, Mr. Sin addressed two primary points: Goal for the North Anchor Proiect. Drawing the Board's attention to the 10-year history of the project, discussed in the Redevelopment Agency Report (North Anchor Update), he emphasized its ultimate goal of achieving a high-quality mixed-use project anchored by a boutique hotel. A key point was that it was a project intended to be integrated into the culture of the community's downtown, rather than simply a standalone development. Importantly, it would serve as a complement to the south anchor area that included Lake View Village, The Windward, and Millennium Plaza Park. Also important for the Board to keep in mind was that the project's goal was grounded in the overall vision for the downtown, i.e., the urban renewal plan, as discussed in the Report. Important Dates in Next Five Months. He highlighted the extensive work of UDP and Ms. Zahn over the preceding 14 months, including challenges faced during the pandemic and securing of a new hotel operator for the project. During this period, he had become convinced of UDP's commitment to providing the high-quality project desired for the community. In response to Board members' recent requests about how they might help expedite the project, he emphasized the importance of support to UDP in the process over the next five months. This would also advance the Board's Redevelopment Agency Meeting Minutes Page 1 of 4 February 18, 2021 goal of approving a disposition and development agreement (DDA) for the project in 2021. The team's proposed schedule (Report, p 5-6) was an achievable means of doing so. He highlighted key dates: This February 18 meeting would provide background and set the stage for the Board's decision-making in the coming months. On March 2 the team would present a draft term sheet, essentially a blueprint for the DDA that would discuss the sale of the land, requirements for closing, and LORA's financial participation, if any. On March 16 UDP would present a more detailed design for both the hotel and mixed-use components, asking for Board feedback. This would be critical to preparation for the April 16 meeting, where the team would seek the Board's endorsement of the conceptual design. Not only was that conceptual design required as an exhibit to the DDA, it was important in enabling UDP to submit their land-use application in April or May and subsequently to break ground in the first quarter of 2022. The final critical piece in the coming five months would be for the team to return to the Board in June for approval of a DDA. Thanking both staff and the Board for their support over the past months, Ms. Zahn presented slides that included images reflecting the latest design updates. These were intended to show the Board more recent design changes incorporated by the architect; at a later date, architects themselves would be present to articulate refinements more fully for the Board. In an update on the development team, she noted Hacker Architects' role had been expanded to encompass both the multifamily and hotel components, and the development team now included a new hotel operator, Mosaic Hotel Group, and R&H Construction as general contractor. A summary and aerial view of the three parcels comprising the project included locations and other details: Parcel A was the hotel site, planned for 60-65 rooms, about 2,400 square feet of ground-floor restaurant/lobby/lounge space, and 60 onsite parking spaces; Parcels B and C were for the multifamily project, which consisted of two separate buildings providing about 75 apartment units and 75 onsite parking spaces, plus about 6,600 square feet of ground-floor retail. All three buildings were planned as four-story structures. After touching briefly on the pertinent zoning in the Downtown Redevelopment Design District, she discussed the team's focus on extending the character of the downtown through this project. Key design principles to be incorporated by the architect would include many elements to reinforce the village character, e.g., bringing buildings up to the street edge and public spaces, creating inviting retail, and orienting building entries to the pedestrian. The City's design guidelines were being perused closely in façade development. The Hacker architects were expected to talk with the Board about how they are interpreting those guidelines that are unique to Lake Oswego. The entire circulation framework would take into account pedestrians, cars, and bicycles. Displaying a series of renderings for the multifamily portion, she stressed that they reflected quite an early stage in the design process; much remained to be determined as the work moved into levels of detail. Hacker's strong focus has been on the "feel" of buildings in the landscape and on referencing Lake Oswego's history. Particular attention has been given to ground floors, corners, and pedestrian-related features of the buildings and adjacent sidewalk areas. A necessary consideration of the design process is dealing with a rather significant site slope. In displaying subsequent slides, she discussed this challenge, along with several changes made to earlier plans. These and other ideas continued to be explored, including ways of activating State Street and improving the pedestrian experience overall. The corner of State Street and B Avenue was recognized as very important. The team was giving intensive thought to considerations of the pedestrian experience there. In addition to aesthetic aspects of the ground-floor retail, safety was a factor because of the vehicular traffic, including public transit. On March 2, Ms. Zahn indicated, the team would return with additional detail on the hotel design. At this point, she updated the Board on the new hotel partner, Mosaic Hotel Group of San Rafael, California. With their expertise in operating small independent hotels, mostly under 60 rooms, and Redevelopment Agency Meeting Minutes Page 2 of 4 February 18, 2021 also some 20 restaurants, Mosaic had stood out from other operators. Their concept was that the restaurant was much more than simply a restaurant for hotel guests; UDP believed this meshed well with the City's goal of making it a community gathering place. Finally, she displayed a bar chart illustrating the proposed project schedule. Currently, both project components were in the schematic design phase, at about the midpoint for the multifamily and at the beginning for the hotel; the two were expected to converge at the completion of schematic design. With UDP preparing to make the land-use submittal at the end of April, the schedule should align well with the Board's opportunities to review and work with the team on design, and as the process moved forward. Submission of a building permit was scheduled toward the end of 2021, with early spring of 2022 desired for the start of construction. Board Member Mboup inquired about the number of apartment units that would be realistically affordable for regular people, e.g., young adults hoping to settle in Lake Oswego after college. He emphasized the City's commitment to inclusion and diversity, a reason that he and other Board members regard affordable housing as an important component of this project. Mr. Sin explained that the possibility of affordable housing units was among those included in the memorandum of understanding developed in 2020. Ms. Zahn was expected to be bringing back related information for the Board's consideration on March 2. This would be part of the conversation on the term sheet outline on that date, he indicated. Board Member Nguyen, while recognizing the need for the project pro forma to "pencil out", asked how the Board could work with the team to ensure that some affordable housing was included. He differentiated this reference to affordable housing from the affordable housing discussed in the earlier City Council meeting; however, his concern was that more direction might be needed from the Board. In brief related discussion, Ms. Bennett advised that the Board had been clear from the outset in requesting that an affordable-housing component be a formal part of the discussion about the terms. This would be discussed at the next meeting. There was no ambiguity about the Board's need to contemplate the topic, she reiterated; however, staff wanted to have the March 2 discussion with the Board about what it would mean for the terms. Chair Buck acknowledged the clarification, expressing his interest in discussing the housing component, as well. Board Member Verdick conveyed appreciation for the direction of the hotel design at this early stage; it seemed to fit very well in the city. In addition, she had several concerns about the renderings for other portions of the project: (1) Corners appeared to be somewhat harsh and not welcoming as they had been brought out at a 90-degree angle. Examples of a "softer" and more approachable treatment were cited elsewhere in the downtown area, including one on the southwest corner at the A Avenue-4th Street intersection. Similarly, the series of gables, as presented, had a more intrusive effect than examples elsewhere with gables set apart, more as special aspects, perhaps with a hipped roof. Both of these suggested approaches would better support the goal of a positive pedestrian experience. (2) If feasible, all of the buildings seemed to offer the prospect of desirable mountain or other views. An opportunity for public access, such as a rooftop restaurant in the hotel building, could be uniquely effective in drawing people from both within and outside the community. (3) While the landmark buildings on the west side of State Street between A and B avenues were likely to remain for the long term, the design team was reminded that the new buildings needed to complement, rather than match them in any sense. The pedestrian-friendly experience was key, so avoiding any towering effect of the fourth story on the new buildings was important. She appreciated the challenges involved, but asked that these concerns be taken into consideration. Redevelopment Agency Meeting Minutes Page 3 of 4 February 18, 2021 Board Member Wendland asked if the team believed the schedule as proposed was achievable, though it appeared fairly aggressive. Although she considered it achievable, Ms. Zahn acknowledged that the length of the design-review process was the greatest variable. The team was focusing much effort on preparing a high-quality submission that would have the support of the Board, as well as the neighborhoods, and also was working proactively with the Building Department. Together, these measures would help to ensure a smooth process that would meet the schedule. The design team believed they could meet the timeline, as well. Mr. Sin expressed his confidence that certain items were within the Board's control, e.g., endorsement of the design components as scheduled, thereby allowing UPD to submit a timely land-use application. The other critical element was meeting the schedule for the DDA, and he believed he and Ms. Zahn were committed to working through the term sheet to achieve that. The schedule was aggressive but achievable, he indicated. Member Wendland inquired about the adequacy of funding expected with the new hotel operator. Ms. Zahn explained that under the new arrangement, the Mosaic group was acting as operator but not bringing any capital to the project. All capital would be brought together by UDP. She noted that, in contrast to the challenges observed several months earlier with capital for hospitality, the outlook now looked somewhat more favorable: A hotel scheduled to deliver in 2023 no longer appeared as risky, she indicated, and there were signs of momentum and interest in hotel projects. UDP expressed confidence in their ability to raise the necessary capital. 12.2 Approval of Meeting Minutes November 17, 2020, Special Meeting Minutes December 15, 2020, Special Meeting Minutes Board Member Wendland moved to approve the minutes as written. Board Member Mboup seconded the motion. A roll call vote was held, and the motion passed, with Chair Buck and Board Members Nguyen, Wendland, Verdick, Rapf, Mboup, and Manz voting `aye'. (7-0) 13. ADJOURNMENT Chair Buck adjourned the meeting at 8:45 p.m. Respectfully submitted, Kari Linder, Recording Secretary Approved by the LORA Board on Joseph M. Buck, Chair Redevelopment Agency Meeting Minutes Page 4 of 4 February 18, 2021 ATTACHMENT 2 LAKE OSWEGO REDEVELOPMENT AGENCY MEETING MINUTES MARCH 2, 2021 OREGO'r\ 13. CALL TO ORDER Chair Buck called the regular Redevelopment Agency meeting to order at 7:00 p.m. on March 2, 2021. The meeting took place virtually. Present: Chair Buck and Members Wendland, Verdick, Rapf, Mboup, Manz, and Nguyen Staff Present: Martha Bennett, Executive Director; Evan Boone, LORA Counsel; Sidaro Sin, Redevelopment Manager; Megan Phelan, Assistant City Manager; Kari Linder, Recording Secretary; Others Present: Mick O'Connell, MJOC, LLC 14. EXECUTIVE SESSION Under authority of ORS 192.660 (2)(e) to conduct deliberations with persons designated to negotiate real property transactions and (f) consider records that are exempt by law from public inspection. Mr. Boone reviewed the statutory basis for entering executive session and outlined the parameters. The Board met in Executive Session from 7:13 —8:24 p.m. 15. ADJOURNMENT, LORA Chair Buck adjourned the meeting at 8:24 p.m. Respectfully submitted, Kari Linder, Recording Secretary Approved by the LORA Board on Joseph M. Buck, Chair Redevelopment Agency Meeting Minutes Page 1 of 1 March 2, 2021