Item B: West Broadway Project Update

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construction on the vacant site would equate to a footprint of approximately 33,000 square feet across both redevelopment sites. The forecasted mix of uses range from ground floor retail focusing on local and independent companies to commercial office users and work live residents. Beam’s experience in Portland has been that most tenants prefer space in the range of 500 to 2,500 square feet and tend to be in the early stages of business formation. As a property owner/developer, this type of user can require more management however, these tenants produce lower overall vacancy rates as the higher transition provides for a ready market of replacement tenants should space go dark. Parking on the three sites will be limited due to this project’s focus on historical adaptive reuse. The vacant site will allow for a small amount of short-term parking with the remaining parking demand being served by the nearby City-owned parking structure. Development Proposal The developer would prefer that the properties remain in current ownership or owned by the City until just prior to development however, we feel confident that we can negotiate a Development and Disposition Agreement with the City of Eugene which minimizes the direct costs to all parties concerned. Currently, Beam is negotiating the transfer of property from the Portland Public School District to Beam for redevelopment. Our goal with that transaction was to provide the School District with the highest possible purchase price for the property while minimizing the investment risk to the school district. What we proposed was a minimum guaranteed price with the school district sharing in the developer fee. This structure provided the school district with the opportunity to share in the redevelopment value of the property while still providing for a minimum purchase price. It is our goal to follow the same philosophy with the City of Eugene. Design and Sustainability Beam’s market focus is local and early stage companies who typically prefer lower cost space alternatives. We are able to provide this space at lower cost through value engineering of the redevelopment projects, menu driven space pricing and a commitment to long-term ownership and operation of the properties. Our emphasis on value engineering requires that all team members work on the project from the beginning focusing on target rental rate delivery when making decisions on everything from financial structure to selection of finish materials. What we have found is that our attention to this detail has had the added benefit of attracting many creative service firms who view our space as a blank canvas allowing them to finish to their own desires.