CENTRAL ALBANY REVITALIZATION AREA (CARA) ADVISORY BOARD

AGENDA

cityofalbany.net

Wednesday, April 17, 2019 5:15 p.m.

Council Chambers, Albany City Hall 333 Broadalbin Street SW

5:15 p.m. CALL TO ORDER 5:15 p.m. ROLL CALL 5:15 p.m. APPROVAL OF MINUTES

a. February 20, 2019. [Pages 2-4]

5:25 p.m. BUSINESS FROM THE PUBLIC

5:30 p.m. SMALL GRANT REQUEST ($15,000) FROM HOMEGROWN OREGON FOODS, 212 First Avenue SE. [Pages 5-18] (Dykast)

6:00 p.m. EDGEWATER VILLAGE UPDATES. [Verbal] (Sherry)

6:10 p.m. STAFF UPDATES AND ISSUES. [Verbal] (Sherry)

6:15 p.m. BUSINESS FROM THE BOARD

6:20 p.m. RECESS TO EXECUTIVE SESSION TO DISCUSS REAL PROPERTY TRANSACTIONS IN ACCORDANCE WITH ORS 192.660(2)(e)

6:50 p.m. RECONVENE

NEXT MEETING DATE: Wednesday, May 15, 2019

6:55 p.m. ADJOURNMENT

The location of this meeting is accessible to the disabled. If you have a disability that requires accommodation, please notify the City Manager’s Office in advance of the meeting: cmadmin@cityofalbany.net | 541-791-0206 or 541-917-7519.

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CENTRAL ALBANY REVITALIZATION AREA ADVISORY BOARD

MINUTES Wednesday, February 20, 2019

Council Chambers, Albany City Hall Approved: DRAFT

CALL TO ORDER

Chair Rich Catlin called the meeting to order at 5:16 p.m.

ROLL CALL

Advisory Board Members Present: Rich Catlin, David Abarr, Bill Coburn, James Dufour, Sam Flande, Alex Johnson, Bessie Johnson, Rich Kellum, Dick Olsen, Mark Spence, Mike Sykes, and Sharon Konopa (joined by telephone at 5:18 p.m.)

Advisory Board Members Absent: Russ Allen, Maura Wilson

ELECTION OF CHAIR

Member Dick Olsen nominated Rich Catlin for Chair, and Member Mark Spence seconded the nomination. There being no other nominations, Rich Catlin was unanimously elected Chair.

ELECTION OF VICE CHAIR

Olsen nominated Spence for Vice Chair, and Member Bessie Johnson seconded the nomination. There being no other nominations, Mark Spence was unanimously elected Vice Chair.

APPROVAL OF MINUTES

November 28, 2018

MOTION: Member Bill Coburn moved to approve the minutes as presented. B. Johnson seconded the motion, and it passed 12-0.

SCHEDULED BUSINESS

Business from the Public 5:19 p.m.

Lise Grato, Executive Director of the Albany Downtown Association, expressed appreciation to the Board for purchasing the Wells Fargo property. The ADA considers the property to be a key location in the downtown and appreciates this step to ensure the future of the space is in keeping with goals for the downtown area.

Electric vehicle charging stations 5:21 p.m.

Economic Development Coordinator Sophie Dykast gave a presentation on a potential opportunity for the Board to participate in developing Electric Vehicle (EV) charging stations within the CARA district. The presentation included information about the steadily rising and rapidly evolving EV industry, limitations posed by the absence of a reliable network of charging facilities in Oregon, opportunities for charging locations in Albany, potential startup costs, cost

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CENTRAL ALBANY REVITALIZATION AREA ADVISORY BOARD MINUTES Page 2 of 3 February 20, 2019

sharing strategies, and a grant opportunity through Pacific Power for capital expenses. Staff suggested that the opportunity to facilitate EV charging stations in the downtown area would fit within the goals and objectives of CARA and other downtown planning efforts, support market rate housing, encourage local commerce, and provide an amenity that promotes downtown Albany. Charging station users would have time to eat, shop, and play while they wait for a charge, and there are opportunities for corporate branding. A successful grant application would cover up to 100 percent of purchase and installation costs. Operations and maintenance costs, electricity costs, and network fees could potentially be passed on to the user or mitigated through partnerships. If the Board wishes to proceed, next steps would include working with an expert to assist in site selection, equipment procurement, installation, and network negotiations.

Member Rich Kellum noted that other charging stations in town were paid for by local businesses, that there are no gas stations downtown, and that the Code discourages automotive businesses downtown. He does not believe that it is the responsibility of CARA or the City to provide this attraction for businesses downtown when it is not provided for the rest of Albany.

Spence noted that a charging station would direct and attract I-5 travelers to the downtown area where they would likely shop or eat while charging; he believes that consideration should be given to this return on investment.

Discussion followed regarding existing charging stations in Albany, the types of charging stations available, and the potential of using a charging network which would provide usage data, reporting, tech support and monitoring. Staff noted that networks work with owners to determine a plan for how much to charge users, and that charging stations can be self-sustaining. In response to questions from the Board, staff provided additional information about the grant opportunity and explained that they would rely on an expert consultant to help prepare the application.

Coburn said that this it may be worthwhile to pursue this because of the grant opportunity and the ability to charge users for the service. Several members expressed agreement.

MOTION: Coburn moved to direct staff to continue looking into the project and bring back more information. B. Johnson seconded the motion, and it passed 8-4 with Flande, A. Johnson, Kellum, and Sykes voting no.

Wells Fargo updates 6:04 p.m.

Economic Development Manager Seth Sherry requested feedback from the Board regarding potential next steps for development of the Wells Fargo building and adjacent lot. Options include putting the building on the open market or placing more specific boundaries on new uses for the building which could be considered on a competitive basis. Staff suggested that the property be parceled with the parking area to remain in public ownership in order to preserve flexibility. In discussion, staff provided information about the building and site, and the Board discussed potential future uses and benefits to the downtown area.

Kellum suggested that proposals should be entertained for both the building and the parking area, and that no specific boundaries should be placed at this time. Member Sharon Konopa said this is a rare opportunity to keep that parking area in City ownership, and she would like to entertain proposals for the building only. Sherry noted that both options could be explored to see what proposals come in. Discussion followed.

MOTION: A. Johnson moved to have staff engage with a commercial relator to explore opportunities for the building and/or the parking lot. Flande seconded the motion.

Member Dick Olsen wanted to delay this action until the parking study results were received.

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The motion passed 8-4, with Abarr, Konopa, Olsen, and Spence voting no.

Staff updates and issues 6:34 p.m.

There were no further staff updates or issues.

BUSINESS FROM THE BOARD 6:34 p.m.

None.

RECESS TO EXECUTIVE SESSION TO DISCUSS REAL PROPERTY TRANSACTIONS IN ACCORDANCE WITH ORS 192.660(2)(e)

The Board recessed to Executive Session at 6:34 p.m.

RECONVENE

The Board reconvened at 7:12 p.m.

NEXT MEETING DATE

Wednesday, March 20, 2019

ADJOURNMENT

Hearing no further business, Catlin adjourned the meeting at 7:12 p.m.

Submitted by, Reviewed by,

Teresa Nix Seth Sherry Recorder Economic Development Manager

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MEMO

cityofalbany.net

TO: Central Albany Revitalization Area (CARA) Advisory Board

FROM: Seth Sherry, Economic Development Manager

DATE: April 10, 2019, for the April 17, 2019, CARA Advisory Board Meeting

SUBJECT: Homegrown Oregon Foods Renovation Partnership Grant Request

Background: In 2016, Shawna Turkins opened Homegrown Oregon Foods, a gluten-free commercial kitchen in Albany. The business is rooted in Albany and ready to expand. Their current location at 229 Fourth Avenue SE (inside Marrakesh Salon) does not have room for guests to eat within the establishment, nor is it able to accommodate the growing business. Shawna plans to move to the currently vacant ground floor of the historic Schultz building at 212 First Avenue SE and expand into a full sit-down restaurant with a dedicated storefront and small event venue. Homegrown Oregon Foods has a five-year lease agreement for the ground floor. It is their intent to purchase the property before the five-year lease expires. The building will need extensive renovations to accommodate a restaurant on the first floor. Total renovation costs are estimated at about $180,000 and will be phased. The first phase discussed in this application totals $100,000. Shawna has leveraged personal funds, a loan from Umpqua Bank, and contributions from the current building owners to finance this project. She is seeking $15,000 from CARA to fill the remaining gap and complete the project on time.

Action Requested: Homegrown Oregon Foods requests a grant of $15,000; (15 percent of the total project cost) to renovate and convert the first floor of 212 First Avenue SE into a new restaurant.

Budget Impact: This grant request would come from ARA reserve funds and not directly affect other existing programmatic budgets. This fund has a current balance of $1,490,000.

Recommendation: Staff has reviewed CARA partnership criteria and has determined that it meets many of the CARA goals including: providing an enriching environment and livable neighborhood, preserving historic resources, enhancing private investment, promoting mixed-use and higher density development, and utilizing a vacant space. The public to private dollar leverage ratio for this project is consistent with CARA’s average of 6:1. This project will revive an underutilized property, creating a highly visible anchor on the east end of downtown Albany, as outlined in the Retail Refinement Plan. SD:ss Attachments

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Attachment 1

Project Evaluation Grid: Homegrown Oregon Foods

Request: $15,000 Grant

Item Descr iption Staff Analysis/Comments Overall Goals A) CARA Goal & Does the project further the Town Center

Objectives: Plan?The purpose of thisCARA Plan is to Which of CARA’s objectives does the project eliminate blighting meet? influences found in CARA Key Objectives: the CARA, to Attract new private investment to the implement goals and area. objectives of the City Retain and enhance the value of existingof Albany private investment and publicComprehensive Plan, investment in the area.and to implementdevelopment CARA Additional Objectives: strategies and Provide a safe and convenient objectives for the transportation network that CARA. The goal and encourages pedestrian & bicycle access objectives for the to and within the town center. CARA have been Preserve the Historic Districts, historic defined as follows: resources and existing housing in the

area. CARA Goal: Create a readily identifiable core that is To revitalize the unique and vibrant with a mixture of Central Albany entertainment, housing, specialty Revitalization Area shops, offices, and other commercial by implementing the uses. Town Center Plan Increase residential density in the area. developed through Encourage the development of new the Central Albany forms of housing and home ownership. Land Use & Enhance and protect the community Transportation Study and environmental values of waterway (CALUTS) using a corridors in the area. citizen-driven Provide an enriching environment and process. livable neighborhoods.

B) CARA Planned Which project category and activity in the Projects UR Plan does this project fulfill? (See CARA

Project Activities document, or Table 2 of the UR Plan and Report.)

C) Development Pattern Does it achieve desired land use (e.g.,(Highest and Best mixed-use, higher density) and/or Use) transportation objectives (e.g., Esplanade,

pedestrian-friendly areas)? Is the proposed project desired in this location and the highest and best use of the property?

D) Bl ight Would it remedy a severely blighted building? How? Does the project utilize a vacant space?

The project proposed by Homegrown Oregon Foods fits well within the goals and objectives of CARA.

The project includes large private investments into the downtown area.

In this proposal, the 1910 Schultz Building is renovated to support not only the current upper floor residence, but a first-floor restaurant and retail space.

This project contributes to the overall goals of the district, including fostering a diverse and livable downtown area.

3, 4, 26 (phase 2), 50 Storefront revitalization, property redevelopment, downtown parking, and business retention and recruitment.

Yes; this project promotes mixed-use residential and retail/restaurant.

Yes, it would renovate and fill a vacant space on First Avenue.

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Attachment 1

E) Preservation Would it rehabilitate or sensitively redevelop a historic property?

Yes, this is a historic building.

F) Vitality/People Attractor

Does the general public benefit (i.e. restaurant, carousel, something they can go to; does the project enhance the public’s experience of the space; is it a business we are seeking)?

Yes, this would allow a unique food service provider to expand into a full restaurant to better serve the public.

G) Retail Hotspot (FirstAvenue betweenLyon and Calapooia)

Is the project located in the Retail Hotspot? If so, will the first floor use be active retail, as recommended in the Retail Refinement Plan?

No, this project is located one block out of the Retail Hotspot. However, the first floor will be active as restaurant and retail space.

H) Sustainable Building Will the building be built using sustainablepractices including LEED or others?

Not discussed

I) Residential Is there a residential component? How many units?

No new units will be added, the existing single-family dwelling on the second floor will remain.

Economic Development J) Bring new business

to AlbanyWill a new business open or come to Albany as a part of this project?

Homegrown Oregon Foods is an existing business, but this project will allow them to expand into new offerings in Albany.

K) Job Creation Will the project create additional jobs? How many, what types and what salary level?

Yes, approximately 5 full-time jobs at living wage with health and retirement benefits, as well as additional part-time jobs.

L) Local Labor andMaterials

Has applicant specifically called out a commitment to use a certain percent or amount of local labor and/or materials?

Yes, estimates have been generated by all local contractors.

Financial M) Ratio Proposed public funds

Private funds

% of CARA Investment

$15,000 $85,000 (multiple sources)

15% of total project costs

N) Financial Impacts What are the financial risks and/or financial benefits to CARA?

Little financial risk since this is a $15,000 grant towards at least a $100,000 project and CARA has adequate funds available.

O) Gap What is the “Gap” or need of the developer? $15,000

P) Private Risk What is the risk for the developer? What is their skin in the game?

85% of the project cost is borne by the applicant through personal contributions and partnerships with the bank and building owner.

Q) CARA/City funds Has the project received other CARA/City funding in the past?

In 2009, the current building owners received $45,000 for upstairs renovation and fire suppression system.

R) Tax Increment ROI Is the ROI on this project less than 5 years, less than 7 years?

6-7 year ROI

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Attachment 2

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