RESOLUTION No. 36163 SUBSTITUTE

Accept South Waterfront Central District Project Development Agreement and direct implementation (Resolution)

The City of Portland resolves:

WHEREAS, pursuant to the Charter of the City of Portland and ORS Chapter 457, the City adopted the North Macadam Urban Renewal Plan on August 11, 1999 by Ordinance No. 173651, (the “UR Plan”), establishing an urban renewal area (“UR Area”) within which PDC will focus efforts to encourage private development to cure blight and enhance economic development opportunities: and

WHEREAS, on November 13, 2002, by Ordinance No. 177082 and Resolution 36111, the City Council adopted the South Waterfront Plan as a subdistrict plan in the Central City (“South Waterfront Plan”) superceding the North Macadam District Framework Plan which the Council had adopted by Resolution 35815 in August 1999; and

WHEREAS, PDC is responsible for coordinating and guiding development of the South Waterfront Plan Area on behalf of the City in accordance with the vision and goals of the South Waterfront Plan; and

WHEREAS, North Macadam Investors, LLC (“NMI”), River Campus Investors, LLC (“RCI”), Oregon Health & Science University (“OHSU”), and Block 39, LLC (collectively the “Developer Parties”) desire to develop a 31-acre area within the South Waterfront Plan area ( “Project Area”) in accordance with the vision and goals of the South Waterfront Plan; and

WHEREAS, PDC and the Developer Parties intend that the proposed development will transform the Project Area and the South Waterfront Plan Area into a vibrant mixed-use neighborhood that will include commercial, retail and institutional facilities as well as a range of housing options at various levels of affordability; that excellent transit will connect the Project Area with the Marquam Hill area and the Central City; and that the South Waterfront Area will also have an exemplary Greenway and open space system that will embrace the presence of the Willamette River; and

WHEREAS, the City and OHSU desire that development of medical education and research facilities in the Project Area will transform the South Waterfront Area into a center for bioscience and technology that will serve as a catalyst for such endeavors city-wide; and

WHEREAS, public infrastructure, including streets, utilities, and transit improvements, is needed to catalyze private investment in the Project Area; and

WHEREAS, PDC or the City will commit public resources for infrastructure to support the Project Area with a concomitant commitment by the Developer Parties that each will meet certain obligations, and the Developer Parties will satisfy their respective development obligations provided PDC or the City meets certain public obligations; and

WHEREAS, Council has determined that Section 9.17.3 (Additional Housing Units) and any other sections of the development agreement required to conform to this amendment, will be amended to include: If NMI, LLC develops more residential units in the Project Area, or on newly acquired land, than set forth in Sections 2.2, 2.3 and 2.4, then 36% of the Additional Residential Units shall be Affordable Apartments and at least 20% of these additional Affordable Apartments shall be affordable to households with incomes below 30% MFI; and

WHEREAS, Council has also determined that if more than 3,000 total housing units are developed in the Urban Renewal District, then the North Macadam Urban Renewal Area Housing Development Strategy shall apply, calling for production goals to match the city income profile; and

WHEREAS, Council has determined that Section 9.11.4 (Other Regulations) will be amended to include: NMI, will make a good faith effort to select contractors who pay the Bureau of Labor and Industries published Prevailing Wage rates unless paying a prevailing wage puts NMI at a competitive disadvantage as reasonably determined by NMI; Upon request, NMI shall furnish PDC with reports summarizing its good faith efforts under this section. NMI agrees that it will make available to PDC NMI’s relevant records in the event PDC alleges a breach of, or makes an inquire under, this section; and

WHEREAS, the Developer Parties and PDC (the Parties) have agreed to the terms of the South Waterfront Central District Development Agreement outlining the terms and conditions of public and private obligations for development of the Project Area (“Agreement”), including a strategy for funding the construction of certain infrastructure agreements; and

WHEREAS, PDC is acting as the coordinator of public obligations that are required under the Agreement and will develop Intergovernmental Agreements with City Bureaus and Departments to implement the public obligations contemplated in the Agreement.

NOW, THEREFORE, BE IT RESOLVED, that the City accepts the South Waterfront Central District Project Development Agreement, and

BE IT FURTHER RESOLVED, that the City directs the Office of Management and Finance, Bureau of Environmental Services, Portland Office of Transportation, and Portland Parks & Recreation to work with PDC to develop Intergovernmental Agreements to implement public obligations as specified in the South Waterfront Central District Project Development Agreement.

Adopted by the Council: August 14, 2003    GARY BLACKMER

Auditor of the City of Portland

             By: /S/ Susan Parsons

Deputy

Mayor Vera Katz

Prepared by:

Donald F. Mazziotti/CT

Portland Development Commission

July 31, 2003

BACKING SHEET INFORMATION

AGENDA NO. S-886 S-957-2003

ACTION TAKEN: SUBSTITUTE JULY 31 2003 CONTINUED TO AUGUST 14, 2003 3:00 PM TIME CERTAIN AS AMENDED

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36163