Good news on the park and Centennial Mills!
Fields park advances; land owner bites bullet
POSTED: Wednesday, August 18, 2010 at 05:35 PM PT
BY: Nick Bjork
Daily Journal of Commerce
Portland City Council on Wednesday accepted Hoyt Street Properties’ donation of a 3.2-acre property that will be used for proposed Fields Neighborhood Park, ending a nearly two-year negotiation between the parties.
Hoyt previously donated two other properties to the city, and in exchange, received considerable breaks in city fees on other properties the firm owns. However, a city code adopted in 2009, after Hoyt promised to donate the 3.2-acre property, prevents the city from guaranteeing fee waivers for the present deal.
The Fields Neighborhood Park property is the third, and final, Pearl District property that Hoyt donated to the city. But the three properties are yielding different returns for Hoyt.
When Hoyt donated the Jamison Square property, slightly less than an acre, to the city in 2000, the company received a break on all future system development charges worth up to the value of the property. A typical Pearl District SDC costs more than $2,000 per unit in a multiuse building.
A few years later, when Hoyt donated 0.9 of an acre for Tanner Springs Park, it received fee breaks worth up to 25 percent of the value of the property, due to a cap the city had put on SDC waivers.
Hoyt accepted both offers and applied the waivers to projects the company was working on when the donations were accepted.
But a city code adopted last year no longer allows SDC waivers to be granted before a project is planned. The waiver can’t be approved unless the recipient has a building permit for the project where it will be applied and the waiver is approved by an SDC credit review committee.
“Both parties have been supportive of getting the park done, but the process has been caught up until now because the city can’t truthfully guarantee that Hoyt Street Properties will get any SDC breaks,” said Jim Blackwood Jr., policy director and parks liaison for Commissioner Nick Fish, who oversees Portland Parks and Recreation. “We are supportive of the company getting them, and we will be supportive of it, but we can’t make decisions ahead of the process.”
Hoyt and the city recently agreed to terms of the donation, following a long process. Hoyt will be allowed to apply for up to $650,000 in future SDC credits in exchange for the donation. The Portland Development Commission will reimburse the Portland Parks and Recreation for any SDC credits granted beyond $250,000.
However, according to the ordinance signed by the council to approve the donation, “the city cannot guarantee the outcome of the SDC application procedure and review process … nothing in this agreement constitutes any promise, representation or guarantee by the city that any credit or any particular amount of credit will be approved.”
Portland Parks and Recreation will take a financial hit if the SDC credit is granted, said Riley Whitcomb, manager of SDCs for the parks department. But as the terms are set now, the department and the city feel very comfortable, he said.
“I think we’re all singing the same tune now,” he said.
The city has little doubt that Hoyt will get SDC credits in the future, but Blackwood noted that the company will benefit from the park financially regardless. The Encore, a family-designed apartment complex owned by Hoyt, overlooks the planned park and will make the apartments much more attractive, he said.
“I’m thoroughly happy because this (donation agreement) was the last impediment standing in the way of this project,” said Patty Gardner, Pearl Neighborhood Association member and a member of the citizens’ advisory committee steering the Fields Neighborhood Park project. “I’ve kept my stance throughout this entire process that I’m on the side of whoever can move the park forward.”
Gardner pointed out that the delays could actually be positive because the project is now synced with the neighboring Centennial Mills redevelopment project. The PDC plans to connect the two with a pedestrian bridge over Naito Parkway.
The developers of Centennial Mills, Lab Holdings of Costa Mesa, Calif., is in the process of putting together a development disposition agreement that will transfer ownership of Centennial Mills from the PDC to the company. Lab hopes to have the agreement done by the end of the month, said Shaheen Sadeghi, president of Lab Holdings.
Tiffany Sweitzer, president of Hoyt Street Properties, failed to return numerous phone calls by press time.
http://djcoregon.com/news/2010/08/18...-bites-bullet/