North Anchor Project

Project Update – December 23, 2021

In December 2021, the City Council acting in capacity as the Lake Oswego Redevelopment Agency (LORA) Board unanimously approved the Disposition and Development Agreement for the sale and redevelopment of the North Anchor properties with Urban Development + Partners (UDP). UDP is a real estate develop, investment, and property management firm based in Portland.

The approval of this public-private partnership is a major milestone towards redevelopment of the LORA-owned parcels at First Street and B Avenue. UDP is proposing to develop a 83-room boutique hotel and associated restaurant and 67 apartments with 6,000 square feet of ground floor retail.

The community as a whole will benefit from the redevelopment of the under-utilized properties in the downtown core by the addition of major streetscape improvements; additional housing options; direct and indirect jobs created; and the economic benefits related to the commercial development, new housing and boutique hotel. The development will enhance the pedestrian-friendly downtown and complement the “South Anchors” of Lake View Village, the Windward and Millennium Plaza Park.

The project is anticipated to break ground by early 2023 and be completed by late 2024.

Project Background / Summary:

Consistent with the 2004 East End Redevelopment Plan, the Lake Oswego Redevelopment Agency (LORA) is planning a mixed-use project on the north side of B Avenue at First Street.

The LORA Board was presented with initial studies analyzing the feasibility of a library-based mixed-use redevelopment in October 2010, and reviewed additional project concepts and updated analysis in March 2011. The Board then authorized staff to proceed with the next phase of planning, and in May 2011, approved an acquisition plan and authorized staff to initiate property acquisition and proceed with more detailed planning.

In November 2012, Lake Oswego voters rejected a $14 million library bond measure. In April 2013, the Board directed staff to pursue a mixed-use project without a library component.

In January 2015, the City Council, Chamber of Commerce, Evergreen Neighborhood Association and the First Addition/Forest Hills Neighborhood Association hosted a community forum to receive input on what the community would like to see and not like to see in the North Anchor project.

A Request for Proposals (RFP) was developed with consideration to the public input and released in August 2015. At the time, the RFP included three parcels comprising approximately 35,000 square feet. In 2016, the parcel at the corner of State Street and B Avenue, was added to the site bringing the total development area to approximately 46,800 square feet. One proposal was received for a mixed-use project that included a boutique hotel, above ground parking and ground floor retail, but was eventually withdrawn.

In Fall 2019, the LORA Board directed staff to prepare a new RFP for the North Anchor project that included a boutique hotel. On November 13, 2019, the RFP was released and included the following objectives:

Vibrancy - provide a mix of retail and commercial uses, including dining, drinking, shopping and personal services to strengthen the downtown shopping and dining experience, and to help create an active pedestrian zone from Millennium Plaza Park to the intersection of First Street and B Avenue.
Mix of Uses - a boutique hotel is a key and required element for the project, and additional uses such as housing and commercial office would also be considered.
Design Excellence - provide a development that includes environmental sustainability, high quality materials and an “anchor” presence at the north end of the First Street retail corridor.
Community Support - provide a project that would have broad support by the community and key stakeholder groups.
Return on Investment - provide transaction terms that would provide a reasonable return on the Agency’s investment.

In March 2020, LORA received four proposals and assembled a five-person evaluation committee, which included two members of the Lake Oswego community. The committee unanimously determined that the proposal from UDP was the most responsive to LORA’s goals and objectives for the property. UDP also brought extensive experience developing mixed-use projects and hotels, working with government and community members, and had the financial capability to execute the project. The committee recommended to the Board that UDP be selected as the developer for the project and subsequently entered into a Memorandum of Understandings with UDP that would outline project responsibilities and timing, and to negotiate terms of a DDA.

Applicable projects as described in the East End Redevelopment Plan.

Project H - First Street North Anchor

The block comprising the northeast and northwest corner of 1st Street and B Avenue, should be considered a key site for redevelopment as an anchor for the 1st Street compact retail core. A mixed-use project could include a public library and public parking. A library-based project with public parking would serve as both a civic anchor and economic catalyst for downtown retail and contribute to foot traffic and vitality. A new public library and public parking would be an amenity, adding to the attractiveness of the Redevelopment Area as a residential or business location and stimulating redevelopment of underdeveloped properties. Redevelopment could also include the 1st Street right-of-way. Potential acquisition of tax lots 400, 500, 600, 1100 and 1200 of Tax Map T2S R1E 03DD and possible resale to a developer.

Project T - Hotel

The project will encourage development of a new, high quality boutique style hotel within the District. The hotel is expected to be within a range of 30 to 70-units. Properties which provide lake, river, or mountain views and which are located within 400' of restaurants, transit, and retail shopping or other significant amenities will have substantial preference for siting. The project may include land assembly, relocation and infrastructure improvements.