ORDINANCE No. 176737 AS AMENDED

Adopt the 8^th Amendment to the Central Eastside Urban Renewal Plan to establish authority to acquire property at 424-436 East Burnside Street (Ordinance)

The City of Portland ordains:

Section 1.  The Council finds:

1.  The City Council of the City of Portland (the “Council”) adopted the Oregon Convention Center Urban Renewal Plan (the “Plan”) by Ordinance No. 158940 dated August 27,1986. The Plan has been subsequently amended through the Seventh Amendment.

2.  The Council wishes to further amend the Plan to establish authority to purchase property located at 424 – 436 East Burnside Street in the Central Eastside Urban Renewal District.

3.  The Portland Development Commission, the duly organized and acting urban renewal agency of the City of Portland (the ”Commission”) has prepared a 8th Amendment to the Plan (the “8th Amendment”), which is attached to this Ordinance as Exhibit A, and incorporated herein by this reference.

4.  The Commission has caused the preparation of a report accompanying the Amendment (the ”Report”), dated March 14, 2001, which is attached to this Ordinance as Exhibit B, and incorporated herein by this reference.

5.  The Commission has forwarded the 8th Amendment and the Report to the City of Portland Planning Commission for its recommendations, and on May 24, 2001, the Planning Commission did not recommended adoption of the 8th Amendment based on the Findings of Fact in its Report to the City Council (“Planning Commission Report”), which is attached to this ordinance as Exhibit C, and incorporated herein by this reference.

6.  The Commission has forwarded a copy of the 8th Amendment and the Report to the governing bodies of the taxing districts that levy taxes within the area of the Plan, consulted and conferred with them, and no written communications have been received from such governing bodies.

7.  The Commission has complied with the public involvement requirements by notifying interested citizens, neighborhood associations and business associations of the 8th^h Amendment. Public response received is attached as Exhibit D.

8.  On July 3, 2002, the Council held a public hearing regarding the adoption of the 8th Amendment.

9.  The Council has considered the materials presented by the Portland Development Commission, all information presented and all matters discussed at the meetings described above, and the recommendations of the Planning Commission and finds that the 8th Amendment is necessary to fulfill the goals of the Plan.

Section 2:  The Council further finds and determines, based upon the information contained in the Report accompanying the Plan (Exhibit B), the Planning Commission Report to the City Council (Exhibit C), and public response (Exhibit D) that:

1.  A finding of blight was made in the original ordinance adopting the Plan, Ordinance No. 158940, dated August 27, 1986. The 8th Amendment does not affect any change in the boundaries of the original Plan area, and Council finds that, since the original Plan has not been completed, the findings of the existence of blight continues to be accurate. Therefore, Council finds that the Central Eastside Urban Renewal Plan area is blighted.

2.  The original Plan and its subsequent substantial amendments were adopted based upon findings of the existence of blight in the Plan area; that accomplishing the goals of the Plan was necessary to eliminate such blight; and that by eliminating blight, the public health, safety or welfare is protected. Council finds that since the Plan has not been completed and the public health, safety of welfare are still threatened by the existence of blight, the Plan continues to be necessary to protect such public health, safety or welfare.

3.  The original Plan and its subsequent substantial amendments were adopted after review and recommendation by the Planning Commission and upon a finding by the Council that the Plan conformed to the City of Portland Comprehensive Plan and economic development plan, and that it provided an outline for accomplishing the urban renewal projects proposed by the Plan. The 8th Amendment adds a new parcel of land that may be acquired under the Plan, but does not alter any of the other activities contemplated under the original Plan or the other amendments. The 8th Amendment has been reviewed by the Planning Commission, which did not, recommended approval of the 8^th Amendment. Notwithstanding the Planning Commission recommendation, the Council finds that the amendment does conform to the City’s applicable goals and policies of continuing to enhance Portland’s economic environment by ensuring that sufficient land and infrastructure exists and promoting private development activity. The amendment meets the goals and objectives of the Central Eastside Urban Renewal Plan by stimulating private investment and economic growth in the Lower Burnside area of the city. Accordingly, the Council finds that the Plan continues to conform to the City of Portland Comprehensive Plan and economic development plan, and provides an outline for accomplishing the projects proposed in the Plan.

4.  The 8th Amendment will allow the Commission to acquire the property located at 424-434 East Burnside Street located in the Central Eastside Urban Renewal District.

Adoption of the original plan and its subsequent amendments was based on a finding that the acquisition of real property as provided for in the Plan was necessary to achieve the goals of the Plan.

The property that may be acquired under the 8^th Amendment is a 3,150 square foot building that has two tenant storefronts containing a restaurant on one side and vacant office space on the other. The Commission desires to acquire the property to facilitate redevelopment of the block as outlined in the Lower Burnside Redevelopment Plan adopted by Commission Resolution 5228, February 17, 1999 and Council Resolution 35784, April 8, 1999.

The 8^th Amendment conforms to Section 400 of the Plan, which is to “improve the condition and appearance of the Area, eliminate blight and blighting influences, to expand and improve public facilities and to stimulate private investment and economic growth in the Central Eastside Urban Renewal District”. Accordingly, the Council finds that the acquisition of property authorized by the original Plan, subsequent amendments and the 8^th Amendment is necessary to achieve the goals redevelopment and revitalization activities with the urban renewal area and the city, thus promoting the Plan’s goals.

5.  Adoption of the original Plan and its subsequent and its subsequent substantial amendments was based upon findings that the adoption and carrying out the Plan are economically sound and feasible. There are sufficient tax increment proceeds to finance the purchase of this property, as specifically shown in Section 700 of the Report. Council finds that with the approval of the 8^th Amendment, the completion of the Plan continues to be economically sound and feasible.

6.  The City shall assume and complete any activities prescribed to it by the Plan.

7.  Section 605 of the original Plan provides for Commission assistance in finding replacement facilities for those persons or businesses displaced by acquisition under the Plan. Section 605 has not been amended by subsequent amendments or by the 8^th Amendment. Adoption of the original Plan was based on a finding that provision

was made to house displaced persons and relocate displaced businesses in accordance with ORS 281.045 to 281.105. Accordingly, Council finds that with approval of the 8^th Amendment the Plan continues to so provide.

NOW THEREFORE, the Council directs:

a.  The 8th Amendment to the Central Eastside Urban Renewal Plan, attached hereto as Exhibit A, and incorporated herein by this reference, having been duly reviewed and considered by Council, is hereby adopted.

b.  The authority to acquire the property located at 424-436 East Burnside Street granted by this Ordinance shall be automatically rescinded and become null and void on December 31, 2002, unless either the Commission and the property owners have reached an agreement for the sale of the property or the Commission has filed a condemnation proceeding to acquire the property.

c.  The City Auditor shall forward to the Portland Development Commission and to the City of Portland Planning Commission certified copies of this Ordinance upon adoption by Council.

d.  The Portland Development Commission shall file in the Deed Records of Multnomah County, Oregon, a copy of this Ordinance and the 8th Amendment upon adoption by Council.

e.  The City Auditor, in accordance with ORS 457.115, shall publish notice of the adoption of this Ordinance approving the 8th Amendment, including the provisions of ORS 457.135, in the newspaper having the greatest circulation in the City of Portland within four days following the adoption of this Ordinance.

Passed by the Council: JUL 10 2002    GARY BLACKMER

Auditor of the City of Portland

By /S/ Susan Parsons

Deputy

Mayor Katz

PDC: D. Mazziotti/A. Farkas/

D. McGriff

July 3, 2002

BACKING SHEET INFORMATION

AGENDA NO. 740, 877-2002

ACTION TAKEN:

JUL 03 2002 PASSED TO SECOND READING AS AMENDED JUL 10 2002 9:30 A.M.

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 176737 AS AMENDED