DATE: 
   
  
June 
  17, 
  2016 
  
 
  
TO: 
    
  
Mayor 
  Hales 
  
 
  
 
  
Commissioner 
  Fritz 
  
 
  
 
  
Commissioner 
  Novick 
  
 
  
 
  
Commissioner 
  Saltzman 
  
 
  
 
  
FROM: 
   
  
Commissioner 
  Fish 
  
 
  
SUBJECT: 
  
Terminal 
  One 
  North 
  
 
  
 
  
You 
  are 
  likely 
  aware 
  of 
  recent 
  discussions 
  concerning 
  the 
  use 
  of 
  Bureau 
  of 
  
Environmental 
  Services 
  (BES) 
  property 
  known 
  as 
  Terminal 
  One 
  North 
  (T1) 
  as 
  a 
  site 
  for 
  a 
  
homeless 
  shelter/services 
  facility. 
  I 
  applaud 
  the 
  private 
  sector 
  leadership 
  driving 
  this 
  
innovative, 
  creative 
  proposal, 
  and 
  support 
  the 
  concept 
  of 
  the 
  “Oregon 
  Trail 
  of 
  Hope.” 
  
 
  
However, 
  there 
  are 
  a 
  number 
  of 
  practical 
  considerations 
  and 
  challenges 
  with 
  the 
  T1 
  site. 
  
A 
  brief 
  history 
  of 
  this 
  site, 
  an 
  update 
  on 
  the 
  surplus 
  property 
  disposition 
  process, 
  and 
  a 
  
summary 
  of 
  the 
  technical, 
  timing, 
  and 
  financial 
  challenges 
  associated 
  with 
  the 
  proposed 
  
use 
  are 
  outlined 
  below. 
  
 
  
• T1, 
  formerly 
  Port 
  of 
  Portland 
  property, 
  was 
  purchased 
  by 
  BES 
  in 
  2004 
  as 
  part 
  of 
  
the 
  Big 
  Pipe 
  project. 
  It 
  provided 
  a 
  staging 
  area 
  for 
  the 
  massive 
  components 
  of 
  the 
  
Big 
  Pipe. 
  With 
  the 
  completion 
  of 
  the 
  Big 
  Pipe, 
  BES 
  no 
  longer 
  needs 
  the 
  property. 
  
 
  
• On 
  August 
  27, 
  2014, 
  the 
  Council 
  authorized 
  taking 
  T1 
  though 
  the 
  Surplus 
  
Property 
  disposition 
  process. 
  The 
  internal 
  and 
  external 
  notification 
  process 
  
resulted 
  in 
  no 
  interest 
  from 
  City 
  bureaus 
  or 
  other 
  agencies 
  and 
  no 
  concerns 
  
about 
  its 
  sale. 
  
 
  
• There 
  has 
  been 
  some 
  delay 
  in 
  bringing 
  the 
  property 
  to 
  market 
  because 
  of 
  the 
  
need 
  for 
  lot 
  consolidation, 
  lot 
  line 
  adjustments, 
  and 
  finalization 
  of 
  BES 
  easements 
  
(the 
  property 
  has 
  an 
  access 
  point 
  to 
  the 
  west-­‐side 
  Big 
  Pipe 
  that 
  must 
  be 
  
maintained). 
  
 
  
1221 SW Fourth Avenue, Room 240 ♦ Portland, Oregon 97204-1998
(503) 823-3589 ♦ FAX (503) 823-3596 ♦ TDD (503) 823-6868 ♦ nick@portlandoregon.gov

 • BES 
  contracted 
  with 
  a 
  commercial 
  broker 
  and 
  the 
  property 
  will 
  be 
  offered 
  for 
  
sale 
  mid-­‐July. 
  According 
  to 
  our 
  broker, 
  due 
  the 
  shortage 
  of 
  industrial 
  land 
  
citywide, 
  we 
  will 
  receive 
  offers 
  at 
  a 
  premium 
  above 
  the 
  assessed 
  value 
  of 
  $8.6M. 
  
We 
  already 
  have 
  significant 
  interest 
  in 
  the 
  property 
  and 
  have 
  made 
  it 
  clear 
  that 
  
we 
  will 
  favor 
  offers 
  that 
  meet 
  zoning 
  requirements 
  and 
  can 
  quickly 
  result 
  in 
  
family-­‐wage 
  jobs. 
  
 
  
• All 
  revenue 
  from 
  the 
  sale 
  will 
  be 
  placed 
  in 
  the 
  BES 
  Construction 
  Fund. 
  With 
  a 
  sale 
  
expected 
  to 
  bring 
  more 
  than 
  $10M, 
  this 
  will 
  allow 
  BES 
  to 
  delay 
  future 
  bond 
  sales 
  
and 
  may 
  result 
  in 
  lower 
  rate 
  increases. 
  
 
  
The 
  Bureau 
  of 
  Planning 
  and 
  Sustainability 
  has 
  provided 
  us 
  with 
  additional 
  information 
  
about 
  the 
  site’s 
  Comprehensive 
  Plan 
  map 
  designation 
  and 
  zoning. 
  Below 
  is 
  a 
  snapshot 
  
of 
  the 
  facts 
  and 
  initial 
  staff 
  analysis 
  of 
  the 
  challenges 
  of 
  approving 
  the 
  proposed 
  use 
  on 
  
this 
  site. 
  
 
  
• Site 
  size: 
  14 
  acres 
  
• Comprehensive 
  Plan 
  – 
  Industrial 
  Sanctuary 
  
• Zoned 
  IH 
  – 
  Heavy 
  Industrial 
  
• Willamette 
  Greenway 
  River 
  Industrial 
  Overlay 
  Zone 
  
• Metro 
  Title 
  4 
  Regionally 
  Significant 
  Industrial 
  Area 
  (RSIA) 
  
• Comprehensive 
  Plan 
  – 
  Prime 
  Industrial 
  Area 
  
 
  
Summary 
  
The 
  current 
  IH 
  zoning 
  does 
  not 
  allow 
  for 
  shelters 
  or 
  schools, 
  and 
  the 
  Greenway 
  River 
  
Overlay 
  Zone 
  requires 
  river-­‐dependent 
  uses. 
  Therefore, 
  a 
  Comprehensive 
  Plan 
  
amendment/zone 
  change 
  would 
  be 
  needed. 
  A 
  Comprehensive 
  Plan 
  amendment 
  would 
  
be 
  difficult 
  due 
  the 
  shortfall 
  of 
  Harbor 
  Access 
  Lands 
  and 
  the 
  City’s 
  compliance 
  with 
  Goal 
  
9. 
  Additionally, 
  the 
  site 
  is 
  designated 
  by 
  Metro 
  as 
  RSIA, 
  which 
  limits 
  conversions. 
  
 
  
Finally, 
  and 
  importantly, 
  the 
  City 
  would 
  need 
  to 
  wait 
  until 
  2018 
  for 
  LCDC 
  (Land 
  
Conservation 
  and 
  Development 
  Commission) 
  to 
  acknowledge 
  the 
  Comprehensive 
  Plan 
  
before 
  proceeding 
  with 
  map 
  amendment. 
  
 
  
Zoned 
  IH 
  – 
  Heavy 
  Industrial 
  
Schools 
  are 
  not 
  allowed. 
  Community 
  Service 
  uses 
  larger 
  than 
  3,000 
  square 
  feet 
  of 
  net 
  
building 
  area 
  are 
  a 
  Conditional 
  Use. 
  Short-­‐term 
  housing 
  and 
  mass 
  shelters 
  of 
  any 
  size 
  
are 
  prohibited. 
  
 
  
Willamette 
  Greenway 
  River 
  Industrial 
  Overlay 
  
The 
  Overlay 
  Zone 
  encourages 
  and 
  promotes 
  the 
  development 
  of 
  river-­‐dependent 
  and 
  
river-­‐related 
  industries 
  which 
  strengthen 
  the 
  economic 
  viability 
  of 
  Portland 
  as 
  a 
  marine 
  

 shipping 
  and 
  industrial 
  harbor, 
  while 
  preserving 
  and 
  enhancing 
  the 
  riparian 
  habitat 
  and 
  
providing 
  public 
  access 
  where 
  practical. 
  
 
  
In 
  the 
  River 
  Industrial 
  zone, 
  uses 
  that 
  are 
  not 
  river-­‐dependent 
  or 
  river-­‐related 
  may 
  
locate 
  on 
  river 
  frontage 
  lots 
  when 
  the 
  site 
  is 
  found 
  to 
  be 
  unsuitable 
  for 
  river-­‐dependent 
  
or 
  river-­‐related 
  uses. 
  Considerations 
  include 
  such 
  constraints 
  as 
  the 
  size 
  or 
  dimensions 
  
of 
  the 
  site, 
  distance 
  or 
  isolation 
  from 
  other 
  river-­‐dependent 
  or 
  river-­‐related 
  uses, 
  and 
  
inadequate 
  river 
  access 
  for 
  river-­‐dependent 
  uses. 
  
 
  
Economic 
  Opportunities 
  Analysis 
  (EOA) 
  
T1 
  is 
  located 
  in 
  the 
  Harbor 
  Access 
  Lands 
  geography 
  of 
  the 
  EOA, 
  which 
  currently 
  has 
  a 
  
25-­‐acre 
  shortfall. 
  Converting 
  this 
  site 
  to 
  a 
  non-­‐industrial 
  use 
  would 
  increase 
  that 
  
shortfall 
  to 
  39 
  acres, 
  and 
  it 
  is 
  not 
  likely 
  that 
  the 
  increased 
  shortfall 
  could 
  be 
  covered 
  by 
  
adjacent 
  industrial 
  geographies. 
   
  
 
  
Additionally, 
  while 
  City 
  Council 
  has 
  adopted 
  the 
  EOA, 
  it 
  still 
  must 
  be 
  acknowledged 
  by 
  
LCDC 
  before 
  it 
  is 
  effective. 
  That 
  process 
  is 
  expected 
  to 
  take 
  until 
  early 
  2018. 
  
 
  
Comprehensive 
  Plan 
  – 
  Prime 
  Industrial 
  Area 
  
Comprehensive 
  Plan 
  Policy 
  6.38.b 
  requires 
  that 
  we 
  “Limit 
  conversion 
  of 
  prime 
  industrial 
  
land 
  through 
  land 
  use 
  plans, 
  regulations, 
  or 
  public 
  land 
  acquisition 
  for 
  non-­‐industrial 
  
uses, 
  especially 
  land 
  that 
  can 
  be 
  used 
  by 
  river-­‐dependent 
  and 
  river-­‐related 
  industrial 
  
uses.” 
  
 
  
Metro 
  Title 
  4 
  Regionally 
  Significant 
  Industrial 
  Area 
  (RSIA) 
   
  
Metro 
  requires 
  RSIA 
  map 
  changes 
  to 
  demonstrate 
  that 
  if 
  the 
  map 
  designates 
  the 
  
property 
  as 
  Regionally 
  Significant 
  Industrial 
  Area, 
  the 
  subject 
  property 
  does 
  not 
  have 
  
access 
  to 
  specialized 
  services, 
  such 
  as 
  redundant 
  electrical 
  power 
  or 
  industrial 
  gases, 
  
and 
  is 
  not 
  proximate 
  to 
  freight 
  loading 
  and 
  unloading 
  facilities, 
  such 
  as 
  trans-­‐shipment 
  
facilities. 
  
 
  
LCDC 
  Periodic 
  Review 
  
There 
  are 
  issues 
  with 
  the 
  timing 
  of 
  any 
  map 
  changes 
  that 
  limit 
  our 
  ability 
  to 
  make 
  
Comprehensive 
  Plan 
  map 
  amendments 
  until 
  the 
  new 
  Comprehensive 
  Plan 
  is 
  effective. 
  
That 
  is 
  expected 
  to 
  happen 
  in 
  early 
  2018. 
  
 
  
Conclusion 
  
In 
  light 
  of 
  the 
  technical, 
  legal, 
  and 
  practical 
  challenges 
  outlined 
  above, 
  I 
  do 
  not 
  believe 
  
that 
  “Oregon 
  Trail 
  of 
  Hope” 
  is 
  an 
  appropriate 
  use 
  for 
  T1. 
  However, 
  this 
  is 
  an 
  exciting 
  
idea 
  and 
  I 
  encourage 
  Council 
  to 
  undertake 
  a 
  broad 
  survey 
  of 
  all 
  available 
  land 
  (public 
  
and 
  private) 
  to 
  identify 
  a 
  more 
  suitable 
  site.