RESOLUTION NO. 36279

Support a City application to the U.S. Department of Housing and Urban Development for a Section 108 loan guarantee in the amount of $6,125,000 for the rehabilitation of the Meier and Frank Building at SW 5^th and Morrison (Resolution)

WHEREAS, A primary goal of the City of Portland is to facilitate the rehabilitation of historically significant buildings to keep them vital; and

WHEREAS, Sage Hospitality Resources has proposed acquiring and rehabilitating the upper floors of the Meier and Frank Building at 621 SW 5^th to operate a new four star hotel that creates 175 new employment positions, with the goal that a majority will benefit low and moderate income residents; and

WHEREAS, The May Department Stores Company is proposing in this project to consolidate and remodel the Meier & Frank store to the lower floors of the building, thereby retaining the anchor department store and existing jobs; and

WHEREAS, The construction project will generate 200 construction jobs over the three year design and construction period, with a total payroll of approximately $30 million; and

WHEREAS, The adaptive reuse will enhance the life-safety of the building including a full seismic structural upgrade of the building and restoration of the building’s terra cotta façade; and

WHEREAS. The project will bolster downtown Portland’s retail mix and add new vitality to the retail core by adding an around-the-clock presence to the Pioneer Courthouse Square area by the coming and going of hotel guests; and

WHEREAS, The remodel will further the goals of the City’s Green Building policy with design standards to meet LEED certification; and

WHEREAS, The Portland Development Commission and the Portland Family of Funds have been working with the developer to facilitate the building’s redevelopment, including New Market Tax Credits and a PDC seismic structural upgrade loan, and yet a funding gap still remains; and

WHEREAS, The Department of Housing and Urban Development’s Section 108 Loan Program authorizes a program of loan guarantee assistance for community development activities with funds secured by a pledge of repayment from future Community Development Block Grant funds

NOW, THEREFORE BE IT RESOLVED: The Bureau of Housing and Community Development is instructed to initiate the Section 108 Loan Guarantee application process to support the life-safety improvements and adaptive reuse of the Meier & Frank building with the expectation that an employment plan meeting city goals for recruiting, training, and employing low and moderate income residents be developed.

 Adopted by the Council, December 22, 2004

               GARY BLACKMER

Comm. Erik Sten          Auditor of the City of Portland

Howard Cutler              By /S/ Susan Parsons

December 15, 2004                Deputy

BACKING SHEET INFORMATION

AGENDA NO. 1499-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36279