Item B: East Broadway Development Update

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Shedd property. After the Shedd property is under City ownership, it will become the general location for a publicly financed public garage and associated commercial space. In anticipation of this land transaction, City staff contracted for two separate appraisals of the City-owned property and the Shedd property, both of which are 25,600 square feet. The first appraisal determined a value of $38/square foot for the Shedd property and $39/square foot for the City property. The second appraisal determined a value of $33.50/square foot for both the Shedd property and the City property. Development Plan The G Group is proposing to build a grocery store structure for Whole Foods, a multi-level parking garage for the City, and ground floor commercial space for Oregon Central Credit Union (see Attachment B: Conceptual Development Site Plan). Including the land, the value of the proposed development is approximately $28,000,000. The major components of the project are described below. A. Whole Foods Grocery Store Whole Foods Grocery Store, a natural and organic foods supermarket, will be the major anchor tenant of this development. The grocery store has been designed to provide a pedestrian-friendly, inviting streetscape along Broadway, High and Mill Streets. The design will contribute to the desired high quality urban environment, with a tall first floor, minimum setbacks, significant proportion of display windows and major entrances at Broadway and Mill and Broadway and High (see Attachment C: Conceptual Elevation of Whole Foods). The store will occupy 52,000 square feet, and employ approximately 250 employees. Two levels of parking will be constructed above the store, providing an estimated 240 spaces for Whole Foods customers. The G Group has secured a lease with Whole Foods, which is dependent on the City’s participation in the development project. Whole Foods is known for its high quality products as well as its commitment to sustainability and environmental stewardship. It is the largest corporate user of renewable energy in the United States, specifically through the purchase of wind energy credits. Whole Foods is listed as #15 on Fortune Magazine’s list of the 100 best companies to work for. As a downtown and regional destination, Whole Foods has been credited with providing the catalyst for revitalization of urban areas, including the Pearl District in Portland. B. Public Parking Garage and Optional Commercial Space The public parking garage will provide spaces to support the Federal Courthouse and adjacent uses, including any future City Hall renovation or replacement. The public parking garage is also intended to encourage further redevelopment of nearby properties in the east end of downtown. The need for parking in this area is discussed in Attachment D: Parking Study Summary. Based on the parking study, there is projected to be a deficit of 500 spaces, after redevelopment of the Whole Foods site and nearby surface lots. The Whole Foods Development Project would contribute more than 400 spaces. L:\CMO\2006 Council Agendas\M060213\S060213B.doc