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HomeMy WebLinkAboutItem C: West Broadway Project Update EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Work Session: West Broadway Project Update Meeting Date: May 14, 2007 Agenda Item Number: C Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT At this work session, theUrban Renewal Agency (URA) will consider responses to the Request for Qualifications (RFQ) for the redevelopment of the West Broadway Redevelopment Area (Redevelopment Area) and consider selection of a development team. BACKGROUND On November 27, 2006, the URA provided direction to issue an RFQ for the redevelopment of West Broadway with approved criteria. The action taken by the URA at the March 12, 2007, work session directed staff to work with Beam and KWG to explore project concepts in more detail. On April 16, 2007, the council held a workshop on downtown development issues with an invited panel of development professionals. On April 19, 2007, the Eugene Redevelopment Advisory Committee (ERAC) reviewed the supplemental information submitted by Beam and KWG. ERAC unanimously voted in favor of moving forward in a positive manner with downtown development and concluded that the qualifications of both Beam and KWG were acceptable, with a primary preference for awarding the project to KWG and a secondary preference for awarding the project to Beam. On April 25, 2007, the council held a work session on the financial tools that are available to support downtown redevelopment. At the same work session, the URA also reviewed supplemental information submitted by Beam and KWG. A public input workshop was held on April 30, 2007. On May 5, 2007, the Mayor and Councilor Zelenka, along with City staff and representatives from Citizens for Public Accountability and the Eugene Area Chamber of Commerce, toured projects completed by Beam and KWG. On May 9, 2007, the URA held a work session to consider the RFQ responses from Beam and KWG. The following motion was on the floor for consideration when a decision was postponed until the May 14, 2007, work session: I move to select Beam and KWG as the developers for the West Broadway project, and to direct the Agency Director to initiate actions related to agreements with the developers; public process that includes a citizen advisory committee with an independent urban planner/facilitator whose work shall be completed by the end of August and presented to the Agency in September; option agreements; financial tools; and a relocation/transition plan, all consistent with the Agency’s May th 9 discussion, with all proposed actions, other than option agreement renewals and extensions, brought back to the Agency for final authorization. This motion further directs the Agency Director to secure the services of a qualified urban planner/facilitator to oversee the public process for the L:\CMO\2007 Council Agendas\M070514\S070514C.doc West Broadway development site footprint, and to establish a West Broadway Development Advisory Committee to work with a qualified urban planner/facilitator, and the developers, to identify preferred design elements, mix of uses, public open spaces, options for parking, as well as a transition plan for existing businesses. The Agency and the Advisory Committee would also seek additional public input. The Advisory Committee shall be composed of 11 members, with each councilor selecting one member and the Mayor selecting three members. In addition, the Agency Director shall secure the services of a qualified consultant to perform market analysis and economic feasibility studies. This research and analysis will inform the Agency and the Advisory Committee’s deliberations. RELATED CITY POLICIES Future redevelopment of the West Broadway Redevelopment Area is consistent with the policies and implementation strategies included in the Downtown Plan, including: Downtown development shall support the urban qualities of density, vitality, livability and ? diversity to create a downtown, urban environment. Actively pursue public/private development opportunities to achieve the vision for an active, ? vital, growing downtown. Use downtown development tools and incentives to encourage development that provides ? character and density downtown. Promote multi-story, mixed-use structures downtown through financial incentives or code ? amendments. Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety ? of income levels and ownership opportunities. Provide and promote development and community events that reinforce downtown’s role as the ? cultural center for the city and region. Reinforce the creative, distinctive culture of downtown as the arts and entertainment center of ? the city. In addition, the future development of the West Broadway Redevelopment Area is responsive to the following Growth Management policies: Policy 1: Support the existing Eugene Urban Growth Boundary by taking actions to increase density and use existing vacant and under-used land within the boundary more efficiently. Policy 2: Encourage in-fill, mixed-use, redevelopment, and higher density development. Policy 3: Encourage a mix of business and residential uses downtown using incentives and zoning. Policy 10: Encourage the creation of transportation-efficient land use patterns and implementation of nodal development concepts. Policy 14: Development shall be required to pay the full cost of extending infrastructure and services, except that the City will examine ways to subsidize the costs of providing infrastructure or offer other incentives that support higher-density infill, mixed use, and redevelopment. L:\CMO\2007 Council Agendas\M070514\S070514C.doc – This item is also related to one of the new 2007-2008 City Council Goals: Downtown Initiative Facilitate significant revitalization of downtown core. COUNCIL OPTIONS The following four options have been identified. Please note that the postponed motion from the May 9 work session has been added and is now Option 1. Option 1: Select Beam Development & KWG Development Partners Select Beam and KWG as the developers for the West Broadway project, and direct the Agency Director to initiate actions related to agreements with the developers; public process that includes a citizen advisory committee with an independent urban planner/facilitator whose work shall be completed by the end of August and presented to the Agency in September; option agreements; financial tools (including an Urban Renewal Plan amendment and HUD Section 108); and a relocation/transition plan, all th consistent with the Agency’s May 9 discussion, with all proposed actions, other than option agreement renewals and extensions, brought back to the Agency for final authorization. This motion further directs the Agency Director to secure the services of a qualified urban planner/facilitator to oversee the public process for the West Broadway development site footprint, and to establish a West Broadway Development Advisory Committee to work with a qualified urban planner/facilitator, and the developers, to identify preferred design elements, mix of uses, public open spaces, options for parking, as well as a transition plan for existing businesses. The Agency and the Advisory Committee would also seek additional public input. The Advisory Committee shall be composed of 11 members, with each councilor selecting one member and the Mayor selecting three members. In addition, the Agency Director shall secure the services of a qualified consultant to perform market analysis and economic feasibility studies. This research and analysis will inform the Agency and the Advisory Committee’s deliberations. Option 2: Select KWG Development Partners Option 2 is a comprehensive approach to the redevelopment of West Broadway and assumes a significant commitment of financial resources. Upon selection, staff would begin working with KWG to develop more concrete project details, particularly related to the level of financial participation from the URA. Staff would also work with the URA, the community, and KWG to develop and initiate a public involvement plan for the project. Option 2 would require the URA to maintain the existing purchase option agreements on the West Broadway properties and to continue negotiations on key properties that are not currently under option. In May, detailed financial strategies related to the KWG proposal would be brought to the URA for consideration. Option 3:Select Beam Development Option 3 would lead to the renovation of the Centre Court building and the Washburne building, and a yet-to-be-defined level of new construction in the adjacent vacant land. This option assumes a more modest commitment of financial resources. Upon selection, staff would begin working with Beam to develop more concrete project details, particularly related to the level of financial participation from the URA. Staff would also work with the URA, the community, and Beam to develop and initiate a public involvement plan for the project. Option 3 would require the URA to maintain the existing purchase option agreements on the Centre Court and Washburne properties. The URA would let the options on the remaining properties expire. In May, detailed financial strategies related to the Beam proposal L:\CMO\2007 Council Agendas\M070514\S070514C.doc would be brought to the URA for consideration. Option 3 assumes that the URA would move forward th with the TK Partners’ project, as previously selected in the 10 and Charnelton Request for Proposals process. Option 4: Take no action on the RFQ responses Under Option 4, the URA would let the options on the remaining properties expire. Option 4 assumes th that the URA would continue with the TK Partners project, as previously selected in the 10 and Charnelton Request for Proposals process. This option could be expanded to include a planning process focused on the future redevelopment of West Broadway. CITY MANAGER’S RECOMMENDATION The Agency Director concurs with the URA’s conclusion that Beam and KWG submitted qualified responses to the RFQ. The Agency Director has considered the information provided by Beam and KWG, the ERAC recommendation, and the input received from the public. Based on KWG’s demonstrated qualifications and their overall responsiveness to the approved RFQ objectives and criteria, the Agency Director recommends the selection of KWG Development Partners (Option 2, as stated above). Upon selection, the next steps would be to: 1) begin the process for a Downtown Urban Renewal Plan amendment, 2) begin the application process for HUD Section 108/BEDI funds, 3) take a specific public involvement plan to the Planning Commission/Citizen Involvement Committee for approval, 4) bring back specific project financing strategies for City Council and URA approval, 5) negotiate project design and details with KWG over the next four months, and 6) return to City Council and the URA for approval of the project and financing details (estimated for September 2007). SUGGESTED MOTION Move to select KWG Development Partners and direct the Agency Director to: 1) begin the process for a Downtown Urban Renewal Plan amendment, 2) begin the application process for HUD Section 108/BEDI funds, 3) take a specific public involvement plan to the Planning Commission/Citizen Involvement Committee for approval, 4) bring back specific project financing strategies for City Council and URA approval, 5) negotiate project details with KWG over the next four months, and 6) bring back the final project and financing details for City Council and URA approval in September 2007. ATTACHMENTS None. FOR MORE INFORMATION Staff Contact: Denny Braud Telephone: 682-5536 Staff E-Mail: denny.braud@ci.eugene.or.us L:\CMO\2007 Council Agendas\M070514\S070514C.doc