Agenda Item - 2011-06-27 PM of LAKE
Os\vEGo Foothills District Framework Plan
BACKGROUND and FAQ's
O R E O N
Project Background
The Foothills District is envisioned as Lake Oswego's next great neighborhood.The 107 acre district sits
between downtown Lake Oswego and the Willamette River, and provides a unique opportunity to
connect downtown with its public waterfront—Foothills Park, Roehr Park, and Tryon Cove. Over time,
the district can be redeveloped in a manner that retains Lake Oswego's unique character and is
complementary to its emerging Downtown.
In order to establish a viable vision for the Foothills District and move redevelopment efforts in the area
from dream to reality, the City began working with a group of industrial property owners beginning in
2003 to identify the planning issues present in the District and to explore potential approaches to
District redevelopment. In late 2008,the owners hired a Development Manager—Williams, Dame &
White ("WDW")to assist them in their efforts, and together the Owners and WDW worked with the City
to establish a Predevelopment Agreement to kick start planning efforts in the District. An initial Vision
Booklet was prepared to provide a broad vision for the direction of Foothills and to generate discussion
about redevelopment opportunities.
On June 15, 2010,the Lake Oswego City Council approved a Predevelopment Agreement with Foothills
Road Redevelopment LLC and Williams, Dame &White—Lake Oswego LLC.The Predevelopment
Agreement calls for the creation of a Framework Plan for the 107 acre Foothills District, consistent with
the Planning Principles adopted by City Council. At the end of this process,the correct regulatory tools
will be in place to allow for redevelopment in the district to proceed, consistent with the vision
approved by the City Council.
The Predevelopment Agreement includes a detailed Work Plan, Schedule and Budget that will guide the
work of the project team, and work products are clearly identified. As part of the overall work,the
project team, led by WDW, will pursue a meaningful public involvement strategy that will incorporate or
address community ideas, issues, and concerns related to the project.
Frequently Asked Questions
What is the goal of the project? Why do the plan now?
The primary goal of the Foothills District Framework Plan is to establish a broadly supported vision for
redevelopment of the District and to put in place the regulatory elements that are necessary in order to
implement that vision. At the end of this process,the City envisions that the District will be "shovel-
ready"for development—in other words,there should be no regulatory impediment to development
and, economic conditions allowing, a property owner or developer should be able to immediately begin
the development process.
The importance of doing this work now cannot be understated. Until and unless some of the significant
development barriers are removed—such as industrial zoning, floodplain designations, or lack of
adequate infrastructure—the District will fail to attract investment due to the lack of certainty about its
For more information, visit: www.lakeoswegobusiness.com and click on "Foothills"
future.This situation is reinforced by the lack of activity in the area over the last ten years, when real
estate investment avoided the area despite a booming real estate economy elsewhere in the City and
region. By planning now, and removing the current barriers to development, the District will be poised
to attract investment at the earliest possible date.
I have some ideas or concerns about the project-how do I get involved?
Send an email to info@wdwlo.com with your name and address and we will add you to the mailing list
for future newsletters, event notifications, meeting notices, and other project communication. In
addition, the Foothills District Citizens Advisory Committee (CAC) meets monthly to help guide the
project. CAC meetings are generally on the third Thursday of every month, 5:00—7:00 p.m., in the City
Hall Council Chambers, 380 A Avenue. (Note:The April and May 2011 CAC meetings will be on the fourth
Thursday of the month.)
Will new development in Foothills compete with Downtown businesses?
The aim of redevelopment efforts in Foothills is to create the City's next great neighborhood that is
complementary to and supportive of downtown Lake Oswego. By increasing the number of Foothills
District residents and ensuring that new retail development in Foothills is neighborhood supportive and
complementary to Downtown, new development in Foothills will help improve the viability of
downtown Lake Oswego and strengthen the downtown area over time.
Why are we talking about developing in a floodplain?Isn't that risky?
Of the 107 acre Foothills District, 41.5 acres are in what is considered to be the 100 year floodplain. Of
the 41.5 acres, 23 are already developed for industrial or commercial uses, and the remainder of the
floodplain is in natural areas or parks that are not proposed to be redeveloped.The focus of the
floodplain planning efforts will be on these 23 acres of already developed area, with an eye to removing
the flood hazard from these areas. Future redevelopment of the industrial area will require intensive
analysis of the floodplain related issues, including balanced cut and fill to ensure that flood impacts are
not increased through redevelopment and potential impacts on wildlife, habitat, and endangered
species are addressed.These types of issues are not unique to Foothills, and there are clearly identified
regulatory pathways through which these issues will be pursued.
Is the City going to condemn private property and hand it over to developers?
The City is not interested in taking property from one owner and selling it to another in order to
encourage redevelopment activity. For example,the City and the project team consider the Oswego
Pointe Condos as "off-limits"to redevelopment efforts, primarily because it is assumed that the condo
owners are content in their current situation and that redevelopment of the property is not possible
unless all of the owners wanted to sell their property—a highly unlikely scenario.
Doesn't the current economy make it impossible to think about real estate development in Foothills?
The Foothills District Framework Plan is a long term (twenty year+)vision for district redevelopment.
The current economic climate makes it difficult to think about starting a development project this year,
or maybe even next. However, it is important to "set the table"for redevelopment when the economy
recovers to the point where new development efforts are financially viable. Removing regulatory
barriers (e.g., improper zoning,floodplain regulations, etc.) will establish a shovel-ready environment in
Foothills and advance the time frame for development to the earliest date possible.
For more information, visit: www.lakeoswegobusiness.com and click on "Foothills"
How much does the current planning process cost, and how is it being funded?
The total budget associated with the Foothills District Predevelopment Agreement is $1,300,000. Project
funding is being provided through the following sources:
• $800,000—City of Lake Oswego
• $130,000—Foothills Industrial Property Owners
• $295,000—Metro (Construction Excise Tax Grant Program)
• $75,000—TriMet
The $130,000 property owner contribution is being paid by six industrial property owners in the
northern portion of the District who control approximately 10%of the District area (hence, they are
contributing 10%of the overall budget). This contribution is being structured as a loan by the City,
secured against the subject properties, and the loan will be repaid with interest within five years of
completion of the Framework Plan.
In addition to the $1,300,000 budget, the City has also set aside $200,000 to retain a financial consultant
to provide a third-party analysis of the economic impact of the Foothills District plan, including overall
development value, public revenue generation, return on public investment, and overall financial
viability.
How does the proposed Streetcar option affect the development of Foothills?Are the two projects
dependent on one another?
The current Lake Oswego to Portland Transit Study is contemplating, among other options, a Streetcar
connection along the Willamette Shoreline rail alignment, linking the Foothills District with Johns
Landing and South Waterfront in Portland.The Streetcar option provides an opportunity to explore
development scenarios for Foothills that incorporate transit as a central element of the District,
potentially reducing parking and traffic impacts and increasing residential density.
How will future costs in Foothills be paid for?
It is too early to determine what the future costs for Foothills redevelopment will be, or how those costs
will be paid for.As the plan progresses, the financial viability of the District will be continuously analyzed
to determine the proper course of action and provide realistic projections of development costs and
potential funding sources. It is anticipated that a combination of public and private investment will be
required in order to catalyze development activity in Foothills.The level of public investment must
ultimately be measured against the public benefit delivered and the return on investment that the
public can expect.
Are Foothills District Property Owners supportive of the project?
In addition to the six industrial property owners that are helping to fund the planning effort, there are a
number of other significant property owners in the District.Three of these ownership groups—Terramar
Retail Centers, owner of Oswego Village Shopping Center; Prime Group, owner of Oswego Pointe
Apartments; and the Oswego Pointe Condominium Association—represent the bulk of the District's
developable acreage, and are active participants on the CAC. Each has expressed a positive interest in
moving the planning process forward and exploring the possibilities of Foothills District redevelopment.
The project team will continue to work with all property owners in the District to ensure that their issues
and concerns are addressed.
For more information, visit: www.lakeoswegobusiness.com and click on "Foothills"
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City LAKE
Amik, oOSWEGO Foothills District Framework Plan
O R E O N Planning Principles
These Planning Principles were adopted by City Council at the outset of the Framework Plan process.
Based on a review of the Planning Principles by the Foothills District CAC meetings, the CAC has
recommended that the following changes (shown in red) be made to the Planning Principles for the
Foothills planning process. These proposed revisions were shared with the Lake Oswego City Council on
February 22, 2011 and will be presented for their approval later in the planning process.
Planning Principles
The success of the Foothills District will be felt and experienced on the sidewalks and pedestrian
pathways that wind through the District - community happens on the street. The planning principles
described below are derived from this central tenet. The principles focus on how to create a successful
pedestrian environment, how to energize that environment, and how to connect the District to key
areas and activities adjacent to and beyond the District.
Along with a strong emphasis on creating successful pedestrian environments, two other values are
integrated throughout. First, each principle is considered with an eye towards maintaining, reinforcing,
and/or establishing a sense of place that is unique to Lake Oswego. Second, each principle provides a
basic building block that ensures the viability of the final vision for the District, leading to on-the-ground
redevelopment activity and the delivery of tangible benefits to the Lake Oswego community.
A. Connections — Develop strong connections between among the District and surrounding
neighborhoods, destinations, and places, including Downtown Lake Oswego. The success of this
district will hinge in large part on the strength of its connections, especially at the transit, regional,
and pedestrian levels. Visual connections will also be important including those from downtown
through Foothills to the Willamette River.
B. Sustainable Development— Implement sustainability planning and design principles for the District,
and strive to establish Foothills as an exemplary Eco-district model in the Portland region. The
District should be planned in a manner that would allow it to receive a "LEED ND (Neighborhood
Design)" designation.
C. Incorporation of Residential Diversity and Innovative Design — Ensure that District redevelopment
provides for a diversity of residential types across multiple demographic and socio-economic groups;
and that building design within the District reflects this diversity.
D. Design Quality—Establish a standard of quality for the District that ensures long-term value, lasting
quality, and the reinforcement of Lake Oswego's unique sense of place.
E. Public Open Space — Develop a plan for open space and parks in the district, building upon the
success and character of open space resources like Foothills Park and Tryon Creek State Park and
providing Lake Oswego residents with "great good places" to gather, to meet and to commune with
each other. The plan should strive to incorporate a broad variety of spaces, ranging from smaller,
more intimate courtyards and plazas to larger community-oriented spaces, and open space should
be integrated vertically in development to provide light, air, and visual relief.
F. Economically Viable Development — Ensure that planning recommendations for the District are
economically sound, leading to redevelopment activity that is consistent with the City's and
community's vision for the riverfront neighborhood. Achieving the vision for the District will may
require increased densities and heights, with base Floor Ar a Ratios between 4:1 and 6:1 and base
building heights between 75 and 125 feet.
G. Appropriate Scale and Design — Create design standards that encourage responsive design and a
high level of quality and authenticity, ensuring that new development is responsive to its context
and minimizes negative impacts on adjacent neighborhoods.
H. Good Partnerships — Establish mutually beneficial partnerships that will initiate District
redevelopment, define the public benefits of the project and provide clear expectations for project
delivery on all sides.
I. Strong and Diverse Ground Floor Retail— Establish a strong, locally-oriented retail presence in the
District to provide unique business opportunities for local entrepreneurs and to generate the street
life that will be essential to the District's sense of identity while maintaining a proper balance with
the Downtown and main retail core.
J. Balance — Create a thoughtful and responsible balance between man-made and natural
environments, providing for the physical needs of shelter, home and sustenance while honoring the
natural beauty of the District and incorporating environmentally appropriate design features.
K. Focus on the "First Thirty Feet"— Establish an overall set of design standards that create a unique
sense of place at the street level throughout the district and that integrate the design of the public
right-of-way with the critical "first thirty feet" of development adjacent to the sidewalk.
K L.Transportation Access and Linkages — Ensure that strong transportation linkages to and from the
District are provided for all modes of travel, including new roadway connections to State
Street/Highway 43 and the potential establishment of a Streetcar connection or enhanced transit
service.