DATE: May 25, 2011 TO: Board of Commissioners FROM: Patrick Quinton, Executive Director SUBJECT: Report Number 11-42 Intergovernmental Agreement with Portland Parks & Recreation for Construction of The Fields Neighborhood Park (NW Overton Street between NW 10th and NW 11th Avenues) in the River District Urban Renewal Area; providing funding in an amount not to exceed $5,140,000. EXECUTIVE SUMMARY BOARD ACTION REQUESTED Adopt Resolution No. 6880 ACTION SUMMARY This action will authorize the Executive Director to execute an Intergovernmental Agreement (IGA) between the Portland Development Commission (PDC) and Portland Parks & Recreation (PP&R) for the construction of The Fields Neighborhood Park (the Park). The planned 3.3 acre park is located in the Pearl District, north of NW Overton Street between NW 10th and NW 11th Avenues. This IGA will provide up to $5,140,000 to PP&R to construct the Park. The IGA budget for fiscal years 2011-12 and 2012-13 is as follows: FY 11-12 FY 12-13 Total Park Improvements - Base $1,300,000 $2,035,000 $3,335,000 Park Improvements – Package 1 $0 $1,000,000 $1,000,000 Environmental Remediation $99,000 $231,000 $330,000 Right of Way Improvements $0 $504,000 $504,000 Park Construction Subtotal $1,399,000 $3,770,000 $5,169,000 Construction Management $83,000 $288,000 $371,000 Total $1,482,000 $4,058,000 $5,540,000 This action will bring the total expected PDC investment in the Park to $14.2 million, and the total cost of the Park to $19.5 million including the value of the 1.2 acres donated by Hoyt Street Properties (HSP) and $400,000 in PP&R funding towards the total $5.54 million construction cost. Construction of the Park fulfills a City of Portland (City) commitment dating to 1997 to construct three parks as part of the successful public/private partnership between the City and Hoyt Street Properties (HSP) to convert a warehousing district and railyard into a high- density, transit-oriented neighborhood. The Park has been designed by a team led by the Office of Cheryl Barton (OCB) to meet the needs of the neighborhood, including a large, unprogrammed grassy area, a children’s play area, and an off-leash dog area. Construction of the Park is anticipated to begin in early 2012 and conclude by the fall of 2012. Board Report No. 11-42 ─ The Fields Intergovernmental Agreement May 25, 2011 Page 2 of 10 PUBLIC BENEFIT Development of the property as a three-acre public park will provide much needed active recreational space in the high-density, transit-oriented Pearl District neighborhood. The Park is designed to be a relatively large neighborhood park with a flat, unprogrammed grassy area that will serve to complement the two other nearby parks, the small and active Jamison Square and the small, passive Tanner Springs Park. The large, flexible open space of the Park is intended to contrast with the surrounding urban development and provide a variety of recreational opportunities throughout the year. Together, these three parks will provide a full range of recreational opportunities and enhance the livability of the neighborhood for residents, employees, and visitors. In addition, the Park will further implement the planned desire to extend the North Park Blocks into the Pearl District and connect the neighborhood to the Willamette River. Key features of the base Park include: Large, unprogrammed lawn; 5,000 square foot fenced off-leash dog area; Walking paths; Environmental remediation; and Right-of-way improvements to NW 11th Street and NW Overton Avenue. Key features of the of the Park enhancement package included in the Proposed Action include: Children’s play area; 8,000 square foot fenced off-leash dog area; Restroom (Portland Loo); Enhanced materials – to alleviate heavy use and foot traffic; and Boardwalk. Key features to be included as “add alternates” pending favorable contractor bids include: Urbanology Trail – a walkway along the northeast edge of the park where visitors will encounter public art or interpretive elements that celebrate dramatic views and contextual urban elements such as trains, the Willamette River, and Centennial Mills; will also increase safety and security by providing more activity in this area of the park and allow police and maintenance staff vehicular access; Dry Fountain – can be retrofitted to recirculating water feature in the future; Second restroom (Portland Loo); Enhanced materials – to alleviate anticipated heavy use and foot traffic; Additional furnishings (increased number of benches and tables); and Rain/Shade Shelter in off-leash dog area. A restroom building was included in the Park design through design development. This building has been excluded from the final Park design in favor of one Portland Loo in the base Park and a second Portland Loo as an add alternate for cost reasons. This change saves approximately $80,000 - $160,000 in project costs. PP&R may pursue separately funding and constructing the restroom building in the future. Although a water feature was originally identified as a desirable feature by the Citizen Advisory Committee (CAC) in accordance with the Peter Walker Framework Plan, a water feature has not been included in the final design. PP&R has found recirculating fountains to Board Report No. 11-42 ─ The Fields Intergovernmental Agreement May 25, 2011 Page 3 of 10 be high in ongoing maintenance and operational costs, and a fountain that does not recirculate water was determined by PP&R and PDC staff to be wasteful of scarce potable water supplies. The design will accommodate a recirculating water feature if funds become available in the future. The River Overlook, a ramp and Willamette River overlook leading to the future bridge connecting the Park to Centennial Mills has been excluded from the Park for cost reasons. In January 2009, the Park was identified as one of three PP&R capital projects in the “Portland Job Creation and Business Stimulus Package” and is anticipated to directly create 72 jobs based on an economic multiplier on the $5.2 million estimated construction budget. PDC’s $14.2 million total contribution towards the Park will leverage the $400,000 funding contribution by PP&R and the donation of Blocks 22 and 25 by Hoyt Street Properties (HSP) to PP&R that will increase the size of the Park from 2.1 to 3.3 acres. This was agreed to by the City and HSP in principle at the time the Hoyt Street Properties Master Plan was prepared in 2006. HSP entered into an agreement in 2010 with PDC and PP&R to donate the parcels to the City. The parcels were appraised at $5.25 million. According to the agreement, in exchange for the property donation, HSP is potentially eligible to receive up to $650,000 in Systems Development Charge (SDC) credits against SDC charges assessed at the time HSP seeks to develop properties in the future. The SDC credit reduce the net value of the donation to approximately $4.6 million. This represents approximately 24 percent of the total $19.5 million total cost of the Park: Sources Uses PDC PP&R HSP Total Property Acquisition $7,667,000 $0 $0 $7,667,000 Property Donation (1) $400,000 $250,000 $4,600,000 $5,250,000 Design/Environmental Assessment $941,000 $0 $0 $941,000 Construction IGA $5,140,000 $400,000 $0 $5,540,000 Regional Arts and Culture Council $93,000 $0 $0 $93,000 Total $14,241,000 $650,000 $4,600,000 $19,491,000 Percentages 73% 3% 24% 100% (1) Per the terms of the Donation Agreement, in return for the donation of Blocks 22 and 25 by HSP, PP&R and PDC agreed that HSP may be eligible for System Development Charge (SDC) credits not to exceed $650,000, and that PDC would reimburse the SDC fund for any credits granted in excess of $250,000 but not exceeding $650,000 (for a maximum PDC reimbursement of $400,000) subject to a future HSP application and PP&R approval. This action will support the following PDC goals: Sustainability and Social Equity Healthy Neighborhoods A Vibrant Central City Strong Economic Growth and Competitive Region Effective Stewardship over our Resources and Operations, and Employee Investment Board Report No. 11-42 ─ The Fields Intergovernmental Agreement May 25, 2011 Page 4 of 10 PUBLIC PARTICIPATION AND FEEDBACK Planning for the design and construction of the Park has involved a Citizen Advisory Committee (CAC) and numerous public involvement opportunities, including presentations, open houses, workshops, and questionnaires. This process has been managed by PP&R in coordination with PDC. Feedback from this committee has helped shape the Park design and programming especially for priority elements including the off-leash dog area and children’s play area. The CAC is supportive of the current design and approach, including increasing the Park Construction budget by $1 million to include the Park enhancements. The CAC has expressed concern with the project schedule and has asked PP&R to closely evaluate the project schedule and expedite the permitting process to begin construction in 2011. In addition, the CAC indicated a preference for PP&R to stop further work on the design and permitting of the restroom building in favor of allocating funds to achieve the Urbanology Trail. The CAC has also expressed concern that the final Park design does not include a water feature, as water features symbolizing Tanner Creek was a unifying theme of the sequence of three parks as envisioned in the Peter Walker Framework Study. (See Attachment “C”). A vocal minority of dog advocates believe the off-leash dog area in the final design is not large enough.