I.

Old Town/
Chinatown

     

JULY 2014 

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 ·.
Private Properties

SUMMARY OF
ACTION PLAN
OBJECTIVES
AND ACTIONS

... .. ·
······...

Facilitate rehabilitation and development
of privately-owned properties

PDC Properties

Promote development and/or occupancy
of PDC-controlled properties

.·

Connedivity and Parking

Invest in strategic infrastructure and connectivity
improvements, including structured parking to
serve the district

PHB Investment

Strategically invest affordable housing resources
in Portland Housing Bureau portfolio

Neighborhood Businesses It Retall
Expand and enhance street-level
uses within the district through
partnerships and investment

BEST PRACTICES

Sponsor a •best practices· tour with key property
owners and firms to highlight exemplary
development models and tenant spaces

Entrepreneurship

Safety

Foster a supportive environment
for startup businesses

Institutions

Engage educational
institutions in
opportunities for
partnership, program
support and expansion

Identify strategic safety initiatives
and/or improvements

Cluster Industry

Invest in Cluster Industry
supportive initiatives

Promotion It Programming

Establish District Manager position
to support district management and
public space programming efforts

Vision

Establish district collateral for use
by PDC and community partners

Cultural Preservation

Honor and enhance the district's
multiethnic history
1 1Old Town/Chinatown Five-Year Action Plan DRAFT - July 2014

 Map courtesy of Portland Bureau of Planning and Sustainability
4 I Old Town/Chinatown Five-Year Action Plan DRAFT - July 2014

 11. lntrodudion to Old Town/Chinatown
A completed SWOT analysis asked four key questions, which are intended to provide a high-level orientation of the current conditions of Old Town I Chinatown (OT/CT):
1. What does OT/CT do well?
2. What could OT/CT improve?
3. What trends and opportunities could OT/CT take advantage of?
4. What could harm OT/CT?

STRENGTHS: What does OT/CT do well?
•
•
•
•
•
•
•

Community capacity and engagement
Higher education and other institutional anchors
Portland Saturday Market
Oregon Nikkei Legacy Center
Quality & management of low-income housing and social service operators
Historic buildings/ diverse building stock
Light rail and transit access
Signature open spaces: North Park Blocks, Lan Su Chinese Garden, Waterfront
Park. Japanese American Historical Plaza
• Attractive to creative companies (affordable rents & unique spaces)
• Flexible zoning - Central Commercial (CX)
• Proximity to Pearl District CBD/Retail Core, river, Rose Quarter

OPPORTUNITIES: What trends & opportunities could OT/CT take ad
vantage of?

WEAKNESSES: What could OT/CT improve?
•
•
•
•
•
•
•
•
•
•

Density (perception/reality) of social services & homeless
Safety, mental health, drug use concerns
Street presence around Greyhound/Union Station
Outdoor queuing & loitering at some social services
Juxtaposition/proximity of entertainment uses, retail, housing, employment, social
service uses - not the right balance and critical mass for success
Residential socio-economic diversity
Barriers I hard boundaries to district - USPS, Burnside, Broadway, North Park Blocks,
river, railroad tracks
Condition of existing building stock/ unreinforced masonry buildings I small
footprints
Surface parking lots
Toolkit to address financial impediments for property owner & businesses

THREATS: What could harm OT/CT?

• Lower cost opportunity for office & retail in Central City

• Unrealistic expectations of some property owners

• Variety of office space sizes/opportunities (new & rehab) and interest in creative
spaces
• Property owners with multiple buildings -·portfolio leasing"for growth tenants
• Emerging retail emphasizing design industry
• Leverage open space as an amenity

• Closing of restaurants and retail
• Increase in social services
Increase in homeless and/or mental health-related activity
• Increase in drug-related activity
Unmanaged and/or increase of certain entertainment-related activities
• Limited and decreasing historic preservation incentives

•
•
•
•

Portland Development Commission (PDQ-owned properties
Union Station: commercial space & multi-modal hub
CC2035 initiative - including focus on OT/CT policy issues
Redevelopment of surface parking lots and development of structured parking

• Interest in district management
• International interest in District, including EB-5 &foreign investment

5 I Old Town/Chinatown Five-Year Action Plan DRAFT - July 2014

 Ill. Challenges
Building upon the SWOT analysis and previous plans developed by the neighborhood,
four key areas of needed improvement were identified for the district:
a. Imbalance of Uses and Identity: In order to create a thriving neighborhood, a
balance of multiple (and traditionally conflicting) uses must be achieved. If done
well, this rich integration of cultural and historic landmarks; entertainment uses;
affordable, student, and middle-income housing; educational and institutional
anchors; social service providers; retailers and restaurants; creative office spaces;
open space; and other activating uses such as the Saturday Market and cultural
attractions is what will make this district so desirable. Currently, the imbalance
between these uses - and the lack of a critical mass of certain uses such as retail,
housing and employment - prevents the district from reaching a true tipping
point. In addition to today's uses and activities, the area's identity is also rooted
in its complex multiethnic history, which is reflected in the neighborhood's two
national historic districts. An article in Portland Monthly magazine ("Portland's
Hottest Microhoods;' March 22, 2013) articulates what many know intuitively:
Portland is a city of mini-neighborhoods which each have their own identity,
appeal to a particular demographic, and status symbol. Old Town I Chinatown is
wrestling to establish its microhood identity.
b. Crime and Perception of Safety: The most recent annual data shows there
are a higher number of crimes reported in Old Town I Chinatown than in other
areas of the Central City. Drug law offenses represent a high percentage of
these crimes, and are particularly concentrated in the neighborhood. Assault
crimes are also more highly concentrated in Old Town I Chinatown compared
to elsewhere within the Central City. This level of criminal activity has had an
impact on the market's perception of the neighborhood and deters business
growth, neighborhood investment, and tourist activity.
c. Cost of Building Rehabilitation & New Construction: Since seismic
requirements were incorporated into building codes, significant investment
has been required to improve unreinforced masonry buildings - often making
redevelopment infeasible. Smaller buildings in particular have largely remained
vacant or underutilized, and in poor condition. New construction is similarly
only viable where greater development entitlements and/or rents can be
achieved, namely west of the historic districts. The prevalence of quarter and
half block parcel ownership - or smaller - further challenges development
feasibility. Larger development opportunities, for either historic rehabilitations
or new construction, are truly rare in the district. Multiple predevelopment
analyses, completed and underway, continue to supply financial feasibility data
to determine the optimal capital stack, including the applicability of the PDC's
financial programs and other available tools.
6 1Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

 Also of interest is the ability to identify appropriate financing to provide the
type of office space and lease terms desired by entrepreneurial high growth
businesses. These firms typically have a desire for shorter and more flexible
lease terms than traditionally offered - and are seeking spaces often ranging
between 1,000 - 10,000 sf, which can be well suited for the neighborhood's
historic building stock. As Portland's employment base shifts, and these
tenants desire spaces in areas such as Old Town I Chinatown, landlords and
other partners will need to identify how to accommodate the needs of this
high growth model.
d. Lack of District Connectivity: Old Town I Chinatown suffers from challenging
barriers on all sides of the district (Burnside, North Park Blocks/Broadway,
USPS/Union Station/railroad tracks, Naito). Improving physical connectivity
between Old Town I Chinatown and adjacent areas including Downtown, the
Pearl District and Waterfront Park can strengthen the vitality and economic
health of the area. The lack of turns off Burnside and an absence of significant
positive street activity exacerbate crossing perceptions along West Burnside.
Similar perceptions occur along NW Broadway where high traffic volumes
and an inconsistent street-level environment deter pedestrians from walking
between the Pearl and Old Town I Chinatown. Conversely, strategically
embracing these boundaries and enhancing the gateways to the district can
help promote and protect the unique character of the neighborhood.
Internal to the district, a lack of linkages between development nodes also
poses challenges. Activity can be found around the Waterfront Park and
Ankeny/Burnside area with the redevelopments completed by the University
of Oregon, Oregon College of Oriental Medicine, and Mercy Corps. The area
along NW 5th Avenue including the Goldsmith Block, Technology & Arts
Building, and PDC's office is also well populated. And the Lan Su Garden is a
well-known draw for tourists visiting Portland. However, these areas serve as
independent islands of activity, with little vibrancy and connectivity between
them. Walking from one point to the other feels unwelcoming.
The completion of the NW 3rd and 4th Avenue Streetscape project improved
the character of the area and added Festival Street amenities on NW Davis
and NW Flanders. Nevertheless, a lack of consistent management of
the streetscapes has been a problem and the project has not stimulated
economic development to the degree desired. This speaks to the importance
of coupling appropriate design, maintenance, and district management when
considering future infrastructure improvements.

7 I Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

 IV. Adlon Pl1n
The following Action Plan outlines how PDC, bureaus of the City of Portland
(City) and community partners can leverage the strengths and opportunities of
Old Town I Chinatown. To overcome the challenges described above, the Action
Plan priorit izes the following objectives:
1. Attract new l\eighborhoDd Investment to activate key properties and
Improve district connectivity;
2. Promote business vitality by increasing employment and retail activity;
and
3. Align resources and build local capacity for Improving district llvabtllty.
The Action Plan focuses the efforts and resources PDC and the City can bring to
bear to achieve these objectives and to leverage the private Investment needed
to achieve long-term stability for the neighborhood.
The recommendations in this Action Plan are strongly supported by the Old
Town/Chinatown Community Association. The Action Plan Incorporates
insights gained from years of partnering with community groups including
the former Visions Committee, Neighborhood Association, and Land Use
Subcommittee and more recent feedback from Portland Business Alliance
and many other neighborhood stakeholders. The recommendations are also
generally consistent with the findings to-date of the Bureau of Planning and
Sustainability's focus on Old Town I Chinatown as part of its work on the West
Quadrant Plan of the Central City 2035 Plan.
Additionally, the Action Plan incorporates input from conducted interviews with
12 entrepreneurial organizations and 15 software firms, and a survey of 170
entrepreneurs in the Portland metro area. This information helped inform the
Action Plan regarding the needs and interests of potential business tenants.

I IOldlown/ChlnitDwn Aw-Yeir Action Plan DRAFT· July 2014

Photo: Wiii Clouser

 OBJECTIVE 1: Attract new neighborhood Investment to activate key properties and Improve district connectivity.

Responsible Partners: Portland Development Commission, Portland Housing Bureau, Portland Bureau ofTransportation,
Regional Arts & Culture Council (RACC)

Action •

Action •

Facilitate rehabilitation and development of privately-owned properties.

A number of property owners in the district have expressed interest in investing in their properties ranging from storefront improvements to full building rehabilitations or new construction on surface
parking lots. A limited number of properties in the neighborhood are also for sale. A recommended
package of financial resources and technical assistance, further described in Appendix A: District
Toolkit, partnered with private sector interest, can help move efforts forward. Priorities for property
redevelopment include the addition of market rate housing to create a balanced mix of residential
income; economic vitality through business retention and recruitment; preservation ofthe unique historic
properties in the two historic districts; and the maintenance of the cultural integrity of the district.

Promote development and/or occupancy of PDC-controlled properties.

The following chart outlines the PDC owned or controlled properties in the district and proposed
objectives and status or next steps for each project.

Project
Old Town Lofts
Commercial Space
NW 4th & NW Flanders

9 I Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

URA

Objective

DTWF

PDC Owned. Build out vacant 4,000 SF ground floor commercial condo
space as Accelerator Annex to support entrepreneurial firms (see also:
Action 2.2)

Union Station
Commercial Space

RD

PDC Owned. Market vacant office spaces currently available; explore
minor interim improvements to improve tenancy.

Grove Hotel
NW 5th & Burnside

RD

PDC Owned. Vacant building strategically located at district gateway.
Negotiations for redevelopment of property as hotel/hostel underway.

Block SL
NW Naito & NW Davis

DTWF

PDC Owned. Vacant 3A block parcel. Negotiations for redevelopment of
property as office & residential uses underway.

PDC Office Vacancy
222 NW 5th

DTWF

PDC Leased. Software cluster co-location opportunity. Market lease
opportunities as available.

510 NW 3rd
(BlockA&N)

RD

PDC Owned. Site of Fire Station #2; historic building located at district
gateway. Issue Request for Interest to seek development partner.

BlockR
NW Glisan & Broadway

RD

PDC Owned. Vacant parcel with significant development entitlements.
Disposition currently on hold.

Former Blanchet House
NW 4th & NW Glisan

RD

PDC Controlled. PDC has option to acquire and is evaluating
acquisition and redevelopment feasibility.

 Action •

Invest in strategic infrastructure and connectivity improvements, including structured
parking to serve the district.

The following investments are intended to address connectivity challenges into and within the district,
and long-term parking management considerations:

Projed
Infrastructure
Improvements; District
Traffic & Circulation
Analysis

Objedive
PBOT will pursue the following as funding is available:
• West Burnside/River District Infrastructure Improvements include: left
turn lane at 4th Avenue off eastbound Burnside & new traffic signal at
NW Couch & Broadway. Project is funded and construction is to begin
Summer 2014.
• Prepare a local circulation study for the area north of Burnside. Consider
street configurations including travel directions, travel lanes, traffic control,
bicycle access and parking. Address barriers created by NW Broadway, W
Burnside, NW Naito Parkway, the Steel Bridge ramps, Waterfront Park and
the railroad tracks.
• Study possible reconfiguration ofthe Steel Bridge ramps and the rail line
to improve pedestrian and bike access to/along the greenway trail, NW
Flanders and McCormick Pier and create new development opportunities.
• Improve bicycle and pedestrian connectivity and safety throughout the
district, including Davis and Flanders as primary east-west bicycle routes.

10 I Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

District Parking

PDC will coordinate with PBOT to evaluate opportunities for a district parking
solution, including an evaluation of existing parking supply, demand and feasibility of strategic opportunity sites; identification of necessary or recommended policy changes to further parking solutions; and pursuing opportunities for
implementation as appropriate.

RACC Public Art Fund

RACC and PDC currently have $280,000 accrued in a fund for public art within
the DTWF URA. Public art can be used to strategically improve perceptions of
connectivity to and within the district.

 Action •

Invest affordable housing resources to rehabilitate and/or preserve PHB portfolio properties.

The Portland Housing Bureau has prioritized the following investments within the timeframe of the Action Plan to
further the no net loss goal within the district while also supporting the community's priority for increased diversity
of residential incomes in the neighborhood.

Objedive

Projed
Medford Hotel
NW 5th & NW Glisan

RD

Central City Concern-owned facility with first floor commercial potential. PHB is
working with CCC to renovate structure including seismic improvements. PHB
reserved $1.476M in River DistrictTIF in Notice of Funding Available (NOFA) 2011;
however, the amount is not sufficient to address seismic needs, much less needed
renovation. Substantial additional funds needed in order to fully renovate.

Royal Palm
NW 3rd & NW Flanders

RD

Cascadia Behavioral Health-owned facility. PHB is working with owner to identify
resources to renovate building or to build on another site. Request for PHB assistance pending.

Erickson-Fritz
NW 2nd /NW 3rd

RD

Innovative Housing-owned site. Pursuant to NOFA 2012, PHB will reserve River
DistrictTIF to renovate and seismically improve structures for occupancy by
households with a range of incomes including market rate units.

Block"U2"
NW 6th & NW Hoyt

RD

PHB-owned site. PHB has agreement with Multnomah County to transfer site
to County for construction of commercial facility for County Health Department
administrative offices and a health clinic. Construction start anticipated in 2015.

The following are currently in PH B's portfolio of regulated affordable housing properties in
Old Town I Chinatown:
• Biltmore, 310 NW 6th

• MacDonald Residence, 615 NW Couch

• Blanchet House, 310 NW Glisan

• MacDonald West, 121NW6th

Bud Clark Commons, 655 NW Hoyt

Medford Hotel, 506 NW 5th

• Butte Hotel, 610 NW Davis

• Musolf Manor, 216 NW 3rd

• Empire Place Apartments, 314 NW 5th

• Pacific Tower, 323 NW 4th

• Estate Hotel, 225 NW Couch

• Royal Palm, 310 NW Flanders

• Everett Station Lofts, 625 NW Everett

• Sally McCracken, 532 NW Everett

• Fifth Avenue Court, 221 NW 5th

• Shoreline, 123 West Burnside

• Helen Swindells, 10 NW Broadway

Action •

Sponsor a "best practices" tour with key property owners and firms to highlight exemplary
development models and tenant spaces.

This forum will provide district property owners and other key development partners an opportunity to see new
innovative spaces that are successfully attracting the types of tenants that are also seeking space in Old Town I
Chinatown. The Ford Building, Olympic Mills, New Relic's office in the US Bank tower, and the Leftbank Building are
often mentioned as models. However, access to these tenant spaces is limited. A curated tour and discussion forum
provides district property owners a unique opportunity to see these spaces and discuss why they work.
11 I Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

 OBJECTIVE 2: Promote business vitality by increasing employment and retail activity.

Responsible Partners: Portland Development Commission, Portland Business Alliance

Action .

Action .

Expand and enhance street-level uses within the district through partnerships and investment.

Borrowing from the success and lessons learned from the retail core and West End, PDC will partner with the
Portland Business Alliance (PBA) to leverage PDC's financial programs, PBA's expertise, community relationships,
and best practices to help neighborhood businesses and landlords improve, tenant and promote the district. In
addition to PDC's Storefront grant and commercial loan programs, example initiatives include: pop-up shops; the
use of art to activate vacant storefronts; the creation of real estate recruitment materials such as market research,
retail relocation guides, and vacancy inventories; and targeted outreach to key businesses for retention and
recruitment activities.

Foster Entrepreneurship.

Old Town/Chinatown has long been attractive to small, creative firms. Entrepreneurship, and sustained growth
of these firms, is essential to the continued success and growth of the Portland economy. Initiatives such as the
following are intended to grow this important ecosystem:

Project

Objective

Accelerator Annex at The Portland entrepreneurial ecosystem is well supported through various incubators
Old Town Lofts (PDC- and accelerators located around town. However, graduates of these programs need a
owned)
second-stage location. For these firms, it does not yet make sense to commit to traditional lease terms. Firms that would benefit from this second-stage space likely:
• have between 3 - 10 employees;
have high-growth aspirations and potential;
• desire a flexible relatively short-term lease; and
seek space offering value-added services so they can continue to be "heads down"
on product development.
Research conducted by the Small Business Administration supports the notion that
firms at this growth point become overwhelmed with management issues. A co-space
location can provide resources to simplify the business process and allow management
to navigate this challenging period. Models around the country have demonstrated
that co-space locations can potentially generate high demand by providing significant
value. PDC will seek partners for operations of the Accelerator Annex in the PDC-owned
commercial condo at the Old Town Lofts building.
Startup PDX
Challenge

12 I Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

The Startup PDX Challenge is an initiative designed to connect startups to Portland's
growing entrepreneurial community. Selected startup businesses are provided rentfree office space for one year, a working capital grant, and free professional services
designed to aid them in growing their business. PDC will sponsor the annual Startup
PDX Challenge in Old Town I Chinatown in FY2014/15.

 Action •

Action •

Invest in Cluster Industry supportive initiatives.

PDC will identify opportunities to support cluster industry initiatives and businesses
throughout the life of this Action Plan. Immediate opportunities may include tenant
improvement investments to support a materials lab opportunity, pop-up retail for local
Athletic and Outdoor industry companies and small manufacturers, and partnerships with
property owners to accommodate growing traded sector firms in the Central City.

Engage educational institutions in opportunities for partnership, program
support and expansion.

The district benefits from a unique concentration of educational anchors. The University of
Oregon, Oregon College of Oriental Medicine, Pensole, the Art lnstitute's Culinary School
and Industrial Design programs, and the new home of the Pacific Northwest College of Art
are all in immediate proximity. The presence of these educational institutions provides long
term stability, credibility, and activation of the district. PDC will engage these organizations
to explore the creation of partnerships to better leverage resources, shared goals of
building capacity in entrepreneurship and applied creative arts, and a desire to invest in the
neighborhood. Examples include:
• Explore opportunities for program expansion and collaboration
• Monitor and inform campus master planning and expansion plans
• Discuss interim and ancillary space needs
• Explore collaboration opportunities for improving district connectivity and vacant
storefront activation
• Monitor student housing feasibility and partnership opportunities

13 I Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

 OBJECTIVE 3: Align resources and build local capacity for improving district livability
Responsible Partners: Mayor's Office, Portland Development Commission, Portland Police, Office of Neighborhood Involvement,
Portland Business Alliance, Old Town/Chinatown Community Association

Action

fl

Identify strategic safety and livability initiatives and/or improvements.

City, PDC and community partners will engage to identify opportunities to coordinate resources and
make strategic investments that will improve area safety and livability. Examples of efforts already
underway and/or identified as priorities for future funding advocacy include:

Project
Public I Private
Partnership

Objedive
• Establish a patrol schedule and set of protocols to address
undesirable activity. Coordination areas include:

Status
Underway

• Union Station/Greyhound: coordination between Bud Clark
Commons, Greyhound, Union Station security, Pacific Patrol,
Portland Patrol Inc., Clean & Safe, Securitas, and Portland
Police
• Burnside Bridge Area: coordination between Mercy Corps,
University of Oregon, Oregon College of Oriental Medicine,
Pacific Patrol, Portland Patrol Inc., Clean & Safe, Securitas,
and Portland Police
• Evaluate alternatives to the current Street Closure Pilot Program
Identify strategy for implementation and maintenance of public
restrooms
City Services

County Services

Pending

• Increase funding for enforcement ofthe Noise Ordinance

Underway

• Reinstate regular Police walking beats in the neighborhood

Underway

Increase County funding for drug and alcohol rehabilitation
services including recovery beds
• Provide Multnomah County District Attorney dedicated to
enforcing the OTCT Drug Impact Area

14 I Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

Underway

Future County
funding
requests

 Action .

Establish District Manager position to support district management and
public space programming efforts.
Old Town I Chinatown has a long history of dedicated community volunteers, some of

whom have been serving on various committees for more than a decade. However,
efforts at true district management and public space programming have been spotty,
as evidenced by the use and management of the Festival Streets. The newly formed
Community Association has renewed focus on the use of this amenity. To ensure this
motivation continues, and is met with success, a formalized District Manager position is
recommended. This position will also coordinate closely with the PBA's Retail Advocate
for the district to facilitate retention and recruitment activities. PDC/City grant funds will
match community fundraising to hire a District Manager responsible for management,
programming and fundraising efforts. In return, a clear work plan, status reports, and
other deliverables will be required.

Action •

Action

15 I Old Town/Chinatown Five-Year Action Plan DRAFT - July 2014

Establish district collateral for use by PDC and community partners.

A cohesive story or brand is critical to an effective pitch, and once prepared can be used for
multiple purposes - property dispositions, business recruitment, tenant leasing, tourism,
retail advertising, etc. As discussed in the Challenges section, a neighborhood vision or
identity is a draw for the demographic with which it resonates. However, this must be
carefully crafted with authenticity and participation of community stakeholders. PDC
will work with the Community Association, Portland Business Alliance, and a professional
consultant team to develop a district marketing plan and appropriate materials.

~ Honor and enhance the district's multiethnic history.

PDC will introduce the Community Livability Grant Program in the Old Town/Chinatown
neighborhood. The program awards grants through a competitive process and PDC will be
seeking proposals that foster a vibrant and healthy community. Grants are available for real
property improvements to public facilities and neighborhood and cultural amenities that
meet the needs and honor the diversity and history of the area and its residents. Additional
PDC programs may be applicable to community-sponsored projects that also embrace and
enhance the district's unique history and character.

 v. Measures of Success
Successful implementation of the Action Plan will be demonstrated
through the following key measures of success:

• •

Neighborhood Investment

Key Measure:

• 500 new middle-income housing units
constructed or under construction
• 5 buildings rehabilitated or underway
• District Parking strategy identified

Business Vitality

Key Measure:

• Net gain of 5 new retail stores open
• 500 new living wage jobs in district

District Livability

Key Measure:

• Four annual neighborhood events held,
including use of public space
• Marketing collateral developed and used by
community partners to promote district
• Community Livability Grant projects
implemented

18 I Old Town/Chinatown Five-Year Action Plan DRAFT - July 2014

 APPENDIX A: DISTRICT TOOLKIT

Representatives of 17 City and private-sector agencies were convened
to brainstorm tools that could be effective in changing the status quo
in Old Town I Chinatown. The participants focused on four priority
themes: seismic improvements, code enforcement (hazardous and
derelict buildings), public safety and the street environment, and City
development/permitting costs and processes. Additionally, feedback
was provided through a variety of stakeholder forums and site-specific
due diligence as predevelopment analyses were completed.
The following summarizes the recommended resources for
implementation of the Old Town I Chinatown Action Plan. It should be

noted these recommendations reflect resources over which the City and/
or the Portland Development Commission have influence, rather than an
exhaustive list of all public and private tools that may be brought to bear
in the district. The resources are described in greater detail following the
summary table.
Broader-reaching tools, such as modifications to the Central City
Transportation Management Plan, Zoning Code or Building Code, which
may be addressed through the Central City 2035 process and other forums
were identified as "out of scope" for the District Toolkit recommendations.
Several relevant policies are noted in the following section.

I. Tools & Resources
I

I

Key Issue
MiddleIncome
Housing
Built
Environment
&Job
Creation

Tool
SDC Exemptions: As a pilot, amend current city program to

fill financial feasibility gap for housing targeting 60-100% MFI

Recommended Budget

FY1"'15

5YurTotal

500 units (est $7M)

Source
Fee Exemption

a

PDC Business Development Incentives: Commercial
Property Redevelopment Loans, Business Finance Loans,
Storefront Grants, Predevelopment (DOS) Grants
Seismic Program: Provide $5.5 million for seismic

assessments, implementation of seismic improvements, and
evaluation of programmatic or regulatory changes.

District
Culture,
Livability &
Activation

Community Llvabillty Grant: Support to communitybased groups for projects promoting livable and healthy
neighborhoods. $200,000 funded in FY 14/15.

$19,371,842

$57M

$30,000

$90,000

PDCTIF

Retall Program: Partner with Portland Business Alliance to
recruit and retain district retailers, initiate OTCT Pop-up Shop
Program, and activate vacant storefronts
District Marketing: Provide $20,000 matching grant for
preparation of marketing collateral.
District Manager: Provide matching grant for professional
district management, programming and promotion

17 1Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

General Fund

 a. Middle-Income Housing Incentives: A key strategy, strongly supported by the community, is to bring more
moderate-income residents (60- 100% Medium Family Income) to the neighborhood while also maintaining
the existing affordable housing. Today, 72% of rental housing units are restricted to households earning less
than 60% MFI ($33,360 for a 2-person household). This means a couple working fulltime at minimum wage
would earn too much to live in almost 3 out of 4 units available in the neighborhood. Citywide, 6% of housing
stock is restricted to households earning 0-60% MFI, indicating Old Town/Chinatown has a disproportionately
high concentration of low-income housing. The introduction of housing units serving households earning 60100% MFI will make significant strides toward balancing the income mix of residents in the district. Technical
analysis shows new construction of housing units of a standard size and at targeted price points is not viable
without gap assistance, as the rent levels do not support the construction costs. A limited modification to the
existing SDC Exemption Program could help bridge that financial gap and encourage greater income diversity
inOTCT.

Mulmum Household
Income (2014)

1 Penon

Maximum Net
Rent1 (2014)

2 Penons Studio One-bed

30%MFI

$ 14,600

$ 16,650

$262

$246

50%MFI

$24,300

$27,800

$504

$507

60%MFI

$29,160

$33,360

$626

$637

80%MFI

$38,850

$44A60

$868

$896

100%MFI

$48,580

$55,520 $1, 111

$1,157

i. SOC Exemption Program: Currently residential rental developments serving households earning at or

below 60% MFI are eligible for the System Development Charge (SOC) Exemption Program administered
by the Portland Housing Bureau. It is recommended that new construction of residential rental projects
in Old Town/Chinatown serving households from 60% to 100% MFI also be made eligible for this
program, with the following additional criteria:
1. Eligibility limited to five years beginning July 1, 2014
2. Total waived SDCs capped at 500 units
3. Financial need demonstrated through project proforma underwriting

b. Built Environment &Job Creation Incentives: The following tools are dedicated to growing jobs and
leveraging private investment in the built environment of Old Town/Chinatown. Rehabilitation of historic
buildings and new construction on vacant parcels is hindered by financial challenges and technical
complexities. The following programs offered by PDC and partner bureaus are intended to help lower these
barriers to investment.
i. Portland Development Commission (PDC) Business & Development Incentives: PDC will earmark
significant resources to offer the following existing programs in the district, which are available to assist
with a wide range of improvements in the neighborhood. PDC's potential involvement, and terms for
investment, in projects will be opportunity driven based on the proposed project benefit, need, and
timing. Parties interested in pursuing PDC resources for residential redevelopment projects should
contact PDC to discuss how these programs align with specific opportunities.
1. Commercial Property Redevelopment Loans (CPRL): The CPRL Program can assist property
owners with predevelopment, new construction or redevelopment, and tenant improvements. The
program is intended to supplement equity contributions and traditional bank financing, and make
a project feasible by filling gaps between available financing and project costs. PDC loan terms are
flexible and loans can be subordinate to primary financing. Most costs related to the development
are eligible for PDC's assistance, including: hard and soft project costs, property acquisition
associated with a redevelopment project (no more than 49% of PDC funds can be used for
acquisition}, environmental analysis and remediation, seismic upgrades and tenant improvements,
and public infrastructure improvements related to a development project. Loan types available
include predevelopment, construction, and permanent financing.
1 BI Old Town/Chinatown Ave-Year Action Plan DRAFT - July 2014

Based on the HUD Portland Maximum Allowable Rents
net of utility alowances published by Home Forward

1

 2. Business Finance Loans: For business owners that occupy more than 50% of the project space, PDC
Business Finance programs may be appropriate. In general, these programs can address the need for:
• Tenant improvements
• Equipment purchase
• Property development & rehabilitation (same as CPRL above)
• Real estate acquisition (same as CPRL above)
• Credit enhancement
• Working capital
3. Storefront Improvement Program: The Storefront Improvement Program originated in the Old
Town/Chinatown neighborhood. For the past twenty years, it has re-established pride in some of
Portland's oldest and best-loved neighborhoods by helping new and established businesses attract
customers; leveraging private investment from current owners and inspiring improvements to
neighboring buildings; and enhancing the appearance and charm of commercial areas while building
a safer street environment.
The Storefront program provides a matching grant of up to 50% for eligible costs, along with technical
assistance, to assist property owners and lessees in rehabilitating their storefronts. Recipients can use
the support for a variety of improvements, from repainting and signage to purchase of new windows
and awnings, up to the following limits:
• Exterior Fac;ade Improvements: maximum $20,000 grant per building.
• Signage, Lighting and Awning Incentive: up to an additional $12,000
• Business Tenant Signage Incentive: In the event where the property has exhausted all storefront
funds, ground floor business tenants may be eligible for up to $2,000 per tenants who occupied
the space within the year.
4. Development Opportunity Services (DOS) Program: The DOS Program can share the cost of
exploring the feasibility of expanding a business or redeveloping an under-utilized site or building.
The program can reimburse 80% of approved pre-development costs, up to a maximum of $12,000.
For business owners the DOS program can help evaluate opportunities for business growth
through expansion, better space utilization, relocation, or purchasing a building;
• For long-time property owners, DOS can help explore development options and provide
technical assistance;
• For developers, DOS can assist when the site is more complex and/or the economics are
challenging.
ii. Seismic Program: PDC will invest $5.SM in the development and implementation of a Seismic Program
for near term implementation in Old Town/Chinatown and applicable citywide. A coordinated effort will
be undertaken between PDC and related City Bureaus (Bureau of Planning and Sustainability, Bureau of
Development Services, Bureau of Emergency Management, etc.) in the joint development of a Seismic
Program to be piloted in Old Town/Chinatown and introduced city-wide.

19 I Old Town/Chinatown Five-Year Action Plan DRAFT -July 2014

 c. District Culture, Livability &Activation: The following tools and resources are focused on creating and
promoting positive energy and momentum throughout the district by activating the street-level environment,
embracing the area's unique culture and history, and leveraging its range of assets to help the neighborhood
reach its highest potential.

i. Community Livability Grants: This program, administered by PDC, provides competitive grants for real
property improvements to public facilities and neighborhood and cultural amenities that meet the needs
and honor the diversity and history of the area and its residents.
ii. Retail Program: PDC will partner with the Portland Business Alliance to facilitate retention and recruitment
of retail tenants and improve the vitality of the street-level environment.
iii. District Marketing Grant: PDC will provide up to $20,000 in grant funds, requiring a 50% match, for
the development of a district marketing strategy to be jointly utilized by PDC and community partners.
Vibrant and successful neighborhoods have a brand identity key to attracting developers and businesses,
enhancing present businesses, and helping citizens and visitors know both the "place" and its position in
Portland's history and development. A professionally facilitated and managed branding process will result
in the creation of the following:
1. Neighborhood identity

2. Logo, letterhead and other branding treatments
3. Style guide
4. Brand statements to be used regarding history, culture, business, entertainment, neighborhood
vitality, reasons to invest, etc.
5. Lay-out of electronic and hard copy communication pieces useful for marketing the neighborhood to
developers, new businesses, and for general use. (Deliverable specifics TBD)
6. Video or other visual communications promoting district amenities to businesses, developers, visitors
iv. District Management Grant: PDC/City will provide $30,000 in grant funds, requiring a 50% match, for
the creation of a District Manager position. It is recommended public funding be provided for three years
to help establish the position while other sustainable funding sources are identified. An objective of the
Action Plan is "building local capacity for improving district livability:' This objective focuses, in part, on the
neighborhood identity, promotional efforts, utilization of the public realm, and creation of a sense of place
in the neighborhood. Positive programming and promotion of the neighborhood is critical to transitioning
the perception and utilization of the area. To be effective, this must occur in a focused, consistent and
professional manner. The District Manager position would report to the Community Association and be
accountable for the following:
1. Neighborhood Communications:

• Develop and implement communication strategies to reach residents and people who work in
the neighborhood
• Facilitate coordination between the various Community Association sub-committees at an
advisory level (administrative duties are not within the scope of work).

20 I Old Town/Chinatown Five-Year Action Plan DRAFT - July 2014

 2. Media Strategy: Create and send media releases promoting positive neighborhood events and
activities; work with media to place stories about local happenings, cultural events, interesting
individuals, new development, history, etc.
3. District Programming: Develop and coordinate a district events calendar including but not limited
to the following opportunities:
• Public Spaces including the Festival Streets
• Educational Institutions
• Cultural Institutions
• Dining
• Arts
• Retail and Pop-Up Shops
• Key Holidays
4. Retention & Recruitment: Work with the Portland Business Alliance Retail Advocate to facilitate
targeted retention and recruitment activities.
5. Financial Sustainability: Identify and pursue opportunities for donated resources, grant funding, and
other partnership opportunities.

II. Policy Considerations
Concurrent to implementation of the Action Plan, there are a number of policy considerations influencing Old Town

I Chinatown being considered in other venues and publidcommunity discussions. The Bureau of Planning and
Sustainability's (BPS) focus on Old Town I Chinatown as part of the Central City 2035 West Quadrant Plan provides a
unique forum for discussions regarding several of these important topics, including:
• Regulatory framework for the two historic districts

• District parking management strategy and potential modification to the Central City Transportation Management
Plan (CCTMP), particularly impacting district parking management strategies
• Evaluation of existing development entitlements and bonuses
• Urban design themes and district uses
Modifications to any of the above will further inform opportunities, constraints, and project feasibility as
implementation of the Action Plan proceeds.

21 I Old Town/Chinatown Five-Year Action Plan DRAFT - July 2014