Madras Redevelopment Commission€¦ · Madras Redevelopment Commission Meeting An Equal...

February 7, 2018 Madras Redevelopment Commission Meeting

An Equal Opportunity Provider of 2

Madras Redevelopment Commission

125 SW “E” Street Madras, OR 97741 Phone: 541-475-2344 Fax: 541-475-7061

City Hall Council Chambers February 7, 2018 Regular Meeting 5:30 PM

Agenda

1. Call Meeting to Order 2. Consent Agenda

A. Adoption of Agenda B. Approval of January 3, 2017 MRC Meeting Minutes C. Approval of Amendments to September 6, 2017 MRC Meeting Minutes D. Approval of Amendments to Resolutions No. MRC 2017-07. E. February 2018 Vouchers

3. Visitors Comments 4. Approval of Letter of Support for Madras Spray Park

Nicholas Snead, Community Development Director 5. Madras Urban Renewal District Annual Report Presentation

Nicholas Snead, Community Development Director Kristal Hughes, Finance Director

6. Discussion of FY 2018-19 MRC Budget Objectives

Nicholas Snead, Community Development Director Kristal Hughes, Finance Director Gus Burril, City Administrator

7. Additional Discussion 8. Adjourn

February 7, 2018 Madras Redevelopment Commission Meeting

An Equal Opportunity Provider of 2

Pursuant to ORS 192.640, this agenda includes a list of the principal subjects anticipated to be considered at the above referenced meeting; however, the agenda does not limit the ability of the Madras Redevelopment Commission to consider additional subjects. Meetings are subject to cancellation without notice. This meeting is open to the public and interested citizens are invited to attend. This is an open meeting under Oregon Revised Statutes, not a community forum; audience participation is at the discretion of the Madras Redevelopment Commission. Anyone wishing to address the Commission will need to register prior to the meeting. The meeting will be audio taped; minutes of this and all public meetings are available for review at the Madras City Hall. The meeting place is handicapped accessible; those needing assistance please contact the City of Madras Community Development two (2) days in advance of the meeting.

January 3, 2018 Madras Redevelopment Commission Meeting

An Equal Opportunity Provider Page 1 of 4



City Hall Council Chambers January 3, 2018 Executive Session 5:30 to 6:00 PM Regular Meeting 6:00 PM

Official Meeting Minutes

1. Call Regular Meeting to Order Chair Brown Called Regular Meeting to order at 5:35 p.m.

Members in Attendance Tom Brown, Chuck Schmidt, Bartt Brick, Royce Embanks, Don Reeder Members Absent Blanca Reynoso, Denise Piza, Doug Lofting Staff In Attendance City Administrator Gus Burril, Community Development Director Nick Snead, City Attorney Jeremy Green, Assistant Planner Morgan Greenwood

Chair Brown Called Executive Session to order at 5:36 p.m. 2. Executive Session per ORS 192.660(2)(e)

To conduct deliberations with persons designated by the governing body to negotiate real property transactions.

Nicholas Snead, Community Development Director Jeremy Green, City Attorney

The Executive Session was held in accordance with ORS 192.660(2)(e). 3. Adjourn Chair Brown Adjourned Executive Session at 6:03 p.m.



Regular Meeting 6:00 PM Council Chambers Chair Brown Resumed Regular Meeting at 6:04 p.m. 1. Consent Agenda

A. Adoption of Agenda B. Approval of November 1, 2017 Meeting Minutes C. Approval of December 6, 2017 Meeting Minutes D. January Vouchers

Commissioner Brick Moved to accept agenda. Commissioner Embanks Seconded; the motion carried unanimously

2. Visitors Comments

None 3. Brewery/BrewPub Request for Proposals Update

Nicholas Snead, Community Development Director Director Snead Reported that staff has spoken with approximately twenty-five parties who are interested in submitting an RFP. Stated that upon selection of a proposal, the applicant and the MRC would complete a Memorandum of Understanding, followed by a formal development agreement; should the applicant be interested in developing a property owned by the MRC, they would enter into a disposition and development agreement. Estimated that it may be six months to a year before agreements would be executed, because the RFP does not require the applicant to have control of the property. Confirmed that proposals are due March 2nd, and that staff is currently assisting interested parties to develop their proposal. Reviewed timelines. Commissioner Schmidt Asked how many inquiries staff has received to date. Director Snead Replied that the Community Development Department has received approximately twenty-five inquiries. Reported that the inquiries have represented a range of both business experience and geographic region. Chair Brown Acknowledged a visitor in the audience. Christopher Johnson Stated that he is an apprentice brewer from Portland area, and that he is interested in the RFP process. Asked what the City expects in terms of production, and the amount of initial investment required.



Chair Brown Replied that Mr. Johnson may be best served by meeting with Director Snead to discuss finer details. Mr. Johnson Asked if the MRC would prefer that an existing building be renovated, or that a new building be developed. Asked if the controlling party needs to live locally, and if the MRC expected the brewpub to primarily serve the local community or out-of-town guests. Chair Brown Responded that the Madras community is looking for a true brewery and a destination dining option. Stated that the MRC is able to give financial assistance, depending upon the content of the proposal, and whether the applicant intends to renovate an existing building or develop a vacant parcel. Mr. Johnson Noted that there is a contrast between what a brewpub was, and what a brewpub is currently. Stated the brewpubs were originally community gathering spaces, and have evolved to be large-scale tourist attractions. Director Snead Stated that he has some limitations in understanding the brewing industry, but confirmed that the Madras community wants a brewery and a pub. Reported that the MRC has engaged a consultant, who has suggested that this brewery is likely to require a $1 million investment, and that the MRC is looking for an attractive business to enliven the Madras downtown. Stated that the RFP provides the latitude to respond to many different types of proposals, but that significant community involvement will be a requirement of the applicant. Commissioner Brick Stated that he thinks about potential brewery clientele, he imagines two very different types of people: one being pass-through traffic en route to and from Portland, and the other being local community members. 4. Commission Discussion and Action Related to Executive Session (ORS 192.660(2)(e), If

Necessary

Nicholas Snead, Community Development Director Director Snead Stated that no formal action related to the Executive Session was necessary.

5. Additional Discussion Director Snead Reported that a February 7th meeting will be scheduled, and its agenda may include a Work Session on a potential façade improvement project may be proposed, and a discussion of Fiscal Year 2018-2019’s budget. Stated that there will also be discussion of a revised retail coach strategy, particularly regarding the property at 14 SW 5th St, and its associated deed restriction. 6. Adjourn Chair Brown



Adjourned the Regular Meeting at 6:30 p.m.

September 6, 2017 Madras Redevelopment Commission Meeting




Official Meeting Minutes

City Hall September 6, 2017 Council Chambers 5:30 P.M. WORK SESSION (5:30 PM) 1. Call to Work Session Order

Chair Tom Brown called the meeting to order at 5:31. Members in Attendance Chuck Schmidt, Tom Brown, Denise Piza, Don Reeder, Bartt Brick Members Absent Doug Lofting

2. Solar Eclipse Report & Discussion

Note: Materials to be provide at meeting.

The commissioners, City Administrator Burril, and Community Development Director Snead discussed the outcome of the recent solar eclipse events. Subjects discussed included the successful removal of a derelict structure, first responder feedback, and the downtown flower pots and baskets. City Administrator Burril showed an aerial video taken during the weekend of the eclipse via drone by Michael Leslie. The video captured several projects that the MRC has been involved with in recent years. 3. Adjourn

Commissioner Brown adjourns the work session at 6:18.

REGULAR MEETING (Immediately Proceeding Work Session) 1. Call Regular Meeting to Order

Commissioner Brown, Called meeting to order at 6:20 and asked Director Snead for additions to consent agenda. Director Snead, Replied that staff sent out revised vouchers, including costs paid to Lee Baggett for abatement of the O’Meara property, and to Ryan Simmons Construction for the Wild Bleu remodel. Suggested



that the commission speak with Matt Donahue, the city’s bond counsel, before discussing additional agenda items.

2. Consent Agenda Commissioner Piza, MOVED TO ACCEPT THE CONSENT AGENDA. Commissioner Brick Seconded; the motion carries unanimously.

2. Visitors Comments

None 3. D.A. Davidson (Bond Counsel) Presentation – 2012B Bond Refunding Proposal

Note: Bond Counsel will Participate by Phone (i.e. Teleconference).

Kristal Hughes, Finance Director Matt Donahue, Underwriter

Director Hughes, Reported that the city has begun the process of review the two bonds for refinancing. The Madras City Council has approved refinancing.Requesting authorization for the resolution to refinance portions of two series of outstanding bonds that were issued by the city. Kevin Donahue, Reports that both bonds are related to the MRC. One was directly for MRC projects and has an intergovernmental agreement between the city and the MRC and the other one was for construction of the new city hall, for which there is an agreement with the MRC to help with the debt service. Stated that the previous resolution that was passed by the city authorizes refinancing and delegates the responsibility to staff. However, the resolution does not require staff to take action, and the refinancing will take place if market conditions continue to be favorable. Currently, there are significant savings associated with executing the transaction. The resolution brought before the MRC at this time is to amend certain intergovernmental agreements that the MRC has with the city, in order to make the MRC the obligor for the debt service in a new intergovernmental agreement for the 2017 bonds (the MRC is currently the obligor for the bonds issued in 2012). Said that the total amount to be refinanced is estimated to be around $2 million, approximately $1.4million of which comes from the bond issued for construction of the new City Hall, and between $500,000 and $600,000 coming from the bond issued in 2012. Estimated the city would save approximately $165,000 by refinancing, based upon net present value. Commissioner Brick,



Asked Donahue to describe any financial risks associated with this resolution. Kevin Donahue, Replied that he does not see any risks from the perspective of the MRC. The MRC would only amend intergovernmental agreements if a refinancing results in lower debt service, and therefore lower payments from the MRC. The city may end up paying approximately $12,000 in non-refundable fees. Additionally, the MRC could postpone refinancing and lose potential savings if market conditions change. Councilor Brick, Noted that was an opportunity cost risk, rather than a hard risk. Kevin Donahue, Concurred. Chair Brown, Asked for an estimate for the refinancing to begin. Kevin Donahue, Replied that the bond sale is scheduled for September 28th.

4. Resolution No. MRC 2017-05

Kristal Hughes, Finance Director Nicholas Snead, Community Development Director

Commissioner Brick, MOVED TO APPROVE RESOLUTION NO. MRC 2017-05, A RESOLUTION OF THE MADRAS REDEVELOPMENT COMMISSION AUTHORIZING AMENDMENTS TO CERTAIN INTERGOVERNMENTAL AGREEMENTS WITH THE CITY OF MADRAS, OREGON AND SUCH OTHER AGREEMENTS, CERTIFICATES AND DOCUMENTS AS MAY BE NECESSARY AND APPROPRIATE TO FACILITATE THE REFUNDING BY THE CITY OF CERTAIN OUTSTANDING OBLIGATIONS OF THE CITY, WHICH OBLIGATIONS ARE PAYABLE IN WHOLE OR IN PART FROM TAX INCREMENT REVENUES PAID BY THE COMMISSION TO THE CITY; DESIGNATING AUTHORIZED REPRESENTATIVES AND DELEGATING AUTHORITY; AND RELATED MATTERS. Mayor Embanks, Seconded the motion. The motion carried unanimously.

5. Approval of Specific Urban Renewal Recruitment Services:

A. Retail Recruitment Strategy Proposal, Retail Coach



Director Snead, Stated that the MRC entered into a one-year, $12,000 contract with retail coach Aaron Farmer during fiscal year 2016-2017, and the MRC discussed renewing the contract during the March 2017 MRC meeting. At that time, the commission decided not to take formal action on contract renewal. The commission expressed a need to establish an advisory committee that would meet quarterly with Mr. Farmer. Reported that staff recommended that the commission approve the proposal as presented. The proposal does identify the requirement to have quarterly meetings between the advisory committee and the retail coach. Mayor Embanks, Noted that in light of the solar eclipse activity, the city of Madras is equipped to deal with large events, and should capitalize on the city’s ability to accommodate and serve 100,000 people and large events. Commissioner Piza, Asked if the advisory committee has been established. Requested that the commission identify who would serve on the committee. Commissioner Brick, Noted that the contract is based on work done by the retail coach, rather than the success of that work. Wondered whether incentives could be structured into the contract to encourage results. Director Snead, Replied that the contract would be paying the retail coach to conduct the research that may yield results. The contract before the MRC is the smallest that the retail coach offers; their average contract is for $80,000. Commissioner Brick, Agreed that the city has an opportunity to leverage its success with eclipse events, and should take the opportunity to capitalize Madras’ increased name-recognition with national retail chains. Director Snead, Notes that the contract is not paying for marketing; rather, it is paying for the city to have access to representatives from every national chain. Commissioner Brick, MOVED TO ACCEPT THE MOTION TO RENEW THE CONTRACT FOR A RETAIL RECRUITMENT STRATEGY FOR FISCAL YEAR 2017-2018 IN THE AMOUNT OF $12,000.



Commissioner Schmidt, Seconded; the motion carries unanimously.

B. Brewery Recruitment Marketing Proposal, Every Idea Marketing

Nicholas Snead, Community Development Director Director Snead, Reported that since April, a work group has been working with two industry specialists, Pratt Rather and Doug Ellenberger, to develop a marketing package to bring to the MRC for use in recruiting a brewery to downtown Madras. Rick Allen identified Every Idea Marketing as a potential partner to use in developing marketing materials. Every Idea Marketing has developed a proposal, including a social media outreach strategy. Acknowledged that there are several questions and concerns regarding retaining Every Idea Marketing, but given the success of solar eclipse events and the connections and resources that were developed as a result, the timing is right to actively pursue a marketing strategy for a brewery. Suggested convening an advisory committee before the October MRC meeting. After staff has opportunity to meet with Every Idea Marketing, Rick Allen, Pratt Rather and Doug Ellenberger, Every Idea Marketing could revise their proposal and bring it to the October MRC meeting. The MRC could potentially fund up to $10,000 for a marketing contract and still meeting all budget requirements for programmatic objectives for the 2017-2018 fiscal year. Commissioner Piza, Said that it would make sense for the MRC to hear a presentation and to have the opportunity to ask questions of Every Idea Marketing. Commissioner Brick, Wondered whether Every Idea Marketing would interface with the retail coach. Rick Allen, Said that because the retail coach works with national recruiters and Every Idea Marketing’s work is specific to a local brewery, not a lot of collaboration between the two would necessary.

Chair Brown, Said that he would like to meet with Every Idea Marketing, and ensure that they understand the Madras community, as distinct from other central Oregon communities. Commissioner Brick,



Requested that Every Idea Marketing come to both the advisory committee meeting and to the October MRC meeting, where a decision regarding their contract may be made. The commissioners identified committee members are Tom Brown, Bartt Brick, Denise Piza and Chuck Schmidt as the four members of the brewery recruitment advisory committee.

7. Downtown Flower Basket Contract

Commissioner Reeder, MOVED TO GIVE NOTICE TO MADRAS GARDEN DEPOT AS SOON AS POSSIBLE TO TERMINATE THE EXISITING CONTRACT, AND THEN TO FINALIZE THE DECISION REGARDING A NEW NURSERY CONTRACT AFTER RECEIVING PRICING INFORMATION FROM RICK ROHACH AT THE MARC MEETING IN OCTOBER.

Commissioner Brick, Seconds the motion; the motion carries unanimously.

6. Approval of Wild Bleu Mercantile Façade Improvement Loan Project Deadline Extension

Nicholas Snead, Community Development Director Director Snead, Reported that when the loan was initially granted in May 2017, the applicant’s project was supposed to be completed by August 31st. However, the applicants still have funding that they have not used, and request more time to complete their project. The proposal before the MRC is to allow staff to execute the master amendment that allows the project deadline to be extended to October 31st, 2017. Commissioner Reeder, Declared a conflict a conflict of interest because he has represented Wild Bleu. Commissioner Piza, Moved to accept the proposal. Mayor Embanks seconded the motion. Commissioner Reeder abstained; the motion carried.

7. Signet Realty/Ali Alire Façade Improvement Project Update

Nicholas Snead, Community Development Director Director Snead,



Reported that the city is waiting for the city attorney, Ali Alire’s attorney, and Bosch Properties’ attorney to sign the loan documents. The intention is that the project be completed on a reasonable, but unspecified, timeline.

8. O’Meara Derelict Building Removal Project Update

Nicholas Snead, Community Development Director

Director Snead, Reported that the O’Meara building had been removed, and that Police Chief Stanfill extended his gratitude for removing a safety hazard and public nuisance. The city is currently waiting for an additional invoice for asbestos abatement to arrive. Noted that though the O’Meara property was outside of the urban renewal district, it was important that the MRC funded the project because it facilitated goodwill between the city and property owners and will make future abatement projects easier. Rick Allen, Expressed concern at setting the precedent that taxpayers effectively bail out property owners for not maintaining their building. Stated that the property owner took a financial risk when they purchased the property, and they assume the liability and cost of property and building maintenance. However, the cost and risk of a derelict building to the community may be greater than the cost the city takes on to abate it. Suggested implementing an incentive-based abatement program in the future, one wherein the city may be able to recapture some of the costs spent on abatement.

9. Additional Discussion

None 10. Adjourn

Chair Brown adjourned the meeting at 7:18 p.m. _________________________________ ________________________________

Tom Brown Nicholas S. Snead Chair Community Development Director

MADRAS REDEVELOPMENT COMMISSION Request for Commission Action

Date Submitted: November 21, 2017 Agenda Date Requested: December 6, 2017 To: Madras Redevelopment Commission Through: Nicholas Snead, Community Development Director Gus Burril, City Administrator From: Kristal Hughes, Finance Director

Subject: Budget Resolution 2017 - 07: A Resolution Authorizing a

transfer of appropriations within a fund for FY 2017-2018.

TYPE OF ACTION REQUESTED:

[ X ] Resolution [ ] Ordinance [ ] Report/No Action DESCRIPTION: This supplemental budget resolution modifies the fiscal year 2017-2018 budget, and makes appropriations.

STAFF ANALYSIS:

One of the objectives for FY 2017-18 is to attract a Brew Pub for the Madras area. This budget resolution prioritizes resources towards Marketing Services for the Brew Pub recruitment.

SUMMARY: See attached budget resolution for full details and descriptions of the budget adjustment needed to be in compliance with Oregon Budget Law.

RECOMMENDATION: Staff recommends the Commission approve and adopt Resolution No. 2017-07, as proposed.

Page - 1 - Request for Action

of 2

RESOLUTION MRC NO. 2017-07

RESOLUTION NO. MRC 2017-07 A RESOLUTION AUTHORIZING AN INCREASE IN APPROPRIATION TO RECOGNIZE UNANTICIPATED REVENUES, AND EXPENSES, AND THE TRANSFER APPROPRIATIONS WITHIN FUNDS FOR FISCAL YEAR 2017-2018.

WHEREAS, in accordance with ORS 294.456 and 294.463, Madras Redevelopment Commission (MRC), the governing body of the Urban Renewal District of Madras, Oregon may transfer appropriations within funds for Fiscal Year 2017-2018 that were authorized by the MRC Board of Commissioners pursuant to Resolution No. 2017-04; and

WHEREAS, expenditures for the 2017-2018 Fiscal Year were not well known at the time of the budget; and WHEREAS, the MRC continues to prioritize resources for the revitalization of the downtown corridor; and WHEREAS, one adjustment includes a transfer of appropriation from contingency of greater than 15%; an increase of appropriation of greater than 10%; unanticipated revenues were received that were not anticipated during the initial budget process, a notice of a supplemental budget hearing was posted in the Madras Pioneer on November 29, 2017 to be in accordance with ORS 294.471 (3)(b);

NOW, THEREFORE, BE IT HEREBY RESOLVED by the Madras Redevelopment Commission of the City of Madras as follows:

SECTION 1: Because of the circumstances stated below by fund level, the MRC Board of Commissioners of the Urban Renewal District of Madras determines that it is necessary to recognize unanticipated revenues and transfer appropriations as follows for the 2017-2018 MRC Budget;

SECTION 2: The Finance Director is hereby authorized and directed to execute the following changes to appropriated budget amounts on behalf of the MRC:

701-701

Original Budget

Increase

Decrease

Revised Budget

MRC- General Fund

Contingency 12,500 - 7,500 5,000

Materials and Services 86,950

11,000 - 97,950

Beginning Working Capital

417,882 3,500 - 421,382

REASON: To cover marketing expenses for brew pub recruitment during the 2017-2018 Season.

SECTION 3: This resolution shall become effective on December 6, 2017

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RESOLUTION MRC NO. 2017-07

APPROVED by the Madras Redevelopment Commission of the City of Madras and signed by the Chair this 6th day of December, 2017.

Ayes: 6 Nays: 0 Abstentions: 0 Absent: 2 Vacancies: 1

Tom Brown, Board Chair

ATTEST:

Nicholas Snead, Community Development Director



125 SW “E” Street, Madras, Oregon, 97741

Phone: 541-475-2344 Fax: 541-475-7061

Land and Water Conservation Fund February 7, 2018 Dear Committee, The Madras Redevelopment Commission is writing this letter of support for the City of Madras’ application to construct a spray park located within the existing Sahalee Park. The Madras Redevelopment Commission has agreed to contribute $35,000.00 as matching funds to construct the Madras Spray Park. This is a vital project for the Madras community that will enhance recreational opportunities for our residents. We are excited to be able to collaborate with the City of Madras in their endeavor to improve recreation opportunities for our diverse community. The project is centrally located, and allows residents easy access whether they are walking or driving, and we understand the importance of access to green space and the lasting effect it can have on people’s health. We are proud of the work the City of Madras has done to provide walking paths and park access, and we are pleased to support this recreational opportunity for families to use as they spend time together. The Madras Redevelopment Commission supports efforts to improve recreation opportunities within our community. Thank you for your time considering the Madras Spray Park project. Sincerely, Tom Brown Chair Madras Redevelopment Commission

Page -1- Request for Madras Redevelopment Commission Action

CITY OF MADRAS Request for Madras Redevelopment Commission Action

Date Submitted: February 1, 2018 Agenda Date Requested: February 7, 2018 To: Madras Redevelopment Commission From: Nicholas Snead, Community Development Director Through: Gus Burril, City Administrator Kristal Hughes, Finance Director Subject: FY 2018-19 Madras Redevelopment Commission Budget Goals. TYPE OF ACTION REQUESTED: (Check One)

[ ] Resolution [ ] Ordinance

[ X ] Formal Action/Motion [ ] Other [ ] No Action - Report Only

OVERVIEW: At the beginning of each calendar year staff begins preparing the next fiscal year’s budget. It has become practice that at the January or February MRC meeting, staff presents several budget scenarios for the MRC to consider and provide guidance to staff. By doing so it affords mutual understanding between the MRC and staff as to what generally they would like to accomplish in the coming fiscal year and direct appropriate financial resources towards such efforts through the budgeting process. At the February 7, 2018 MRC meeting staff will present goals for the FY 2018-19 MRC budget, solicit comments and discussion on the goals, and request formal action from the MRC to approve the FY 2018-19 MRC budget goals.. DISCUSSION: The MRC Urban Renewal Action Plan (2016) and availability of financial resources are the two factors that affect the MRC’s budget each year. The 2016 Urban Renew Action Plan identifies an investment framework for careful and strategic investment of resources. This investment framework calls for investments in the short-term to be made based on the following criteria:

1. Generate Tax Increment (i.e. help fund development adding taxable value to the district) 2. Support development on underutilized or vacant sites 3. Catalyze additional redevelopment


Additionally, the Urban Renewal Action Plan contains specific projects for which the MRC is to accomplish. New projects were prioritized by the community and whether they were consistent with the criteria of the investment framework (above). The top three (3) projects in the Action Plan are:

1. Recruit general merchandise store 2. Recruit brewery and/or restaurants 3. Develop toolkit to enable the City to: 1) be receptive to development opportunities and 2)

create ongoing relationships with developers The second factor that affects how the MRC’s budget is prepared is the availability of financial resources to the MRC. The two financial resources available to the MRC are (1) property tax revenue collected annually and (2) draws for the MRC’s Line of Credit (LOC). While property tax revenues are increasing, they are not increasing at a substantial rate that will not allow the MRC to fund investments in the District solely with property tax revenues. Therefore it will require the MRC to fund investments with debt proceeds (i.e. LOC draws). This, however, is how Urban Renewal Districts are intended to financially operate. Therefore, significant investments by the MRC will be funded by draws from the Line of Credit. This is where the 2016 Urban Renewal Action Plan provides strategic investment guidance by strongly suggesting that MRC resources follow the Action Plan’s investment framework and in doing so, such investments should focus on high priority projects. With this understanding, staff seeks confirmation by the MRC on the following FY 2018-19 MRC budget goals:

1. Financially incent new development in the District to increase tax increment revenues by:

a. Develop a budget that is responsive to small and large investments by the MRC to incentivize new development.

b. Renew and expand the Line of Credit to provide grants, loans, or a combination thereof to incentivize new development within the District.

2. Continue to build the MRC’s General Fund ending fund balance to 20% of the expenditures

for the fund in preparation for a future bond issuance.

3. Fund services to assist recruiting new development to the District by funding services that will recruit national, regional, and local retailers and restaurants and to the District by:

a. Continuing to fund assistance from the Local Development Recruitment contractor and/or;

b. The Retail Coach (guidance from MRC needed)

4. Provide streetscape beautification by planting flowers in flower pots and on street lights.

5. Provide capacity to remove derelict properties and buildings (i.e. blight) in the District.

6. Support the District’s funding partner, the City of Madras, by continuing to participate in a portion of the costs for building the new Police Station/City Hall & Civic Plaza as described in the original minutes and motion of support by the MRC on October 18, 2011.


SUMMARY:

A. Fiscal Impact: Not applicable. B. Funding Source: Not applicable D. Supporting Documentation: Attachment A: 2016 Urban Renewal Action Plan

COMMISSION ACTION: The MRC may take action on of the following general actions regarding this matter by:

1. Approving the FY 2018-19 MRC budget goals as presented. 2. Approving the FY 2018-19 MRC budget goals with changes specified by the Commission. 3. Continuing the discussion on the FY 2017-18 MRC budget goals at a future MRC meeting. 4. Taking no formal action by the Commission.

STAFF RECOMMENDATION: That the MRC approve the FY 2018-19 MRC budget goals as presented and direct staff to prepare the FY 2018-19 MRC budget in a manner generally consistent with presented the goals.

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I . PL AN PURPO SE AN D B AC K G RO UN D

I I . T H E MAD RAS AD V AN T AG E

I I I . SI T UAT I O N ASSESSM EN T

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The Madras Urban Renewal Area comprises 268.7 acres, with the northern boundary at NW Lee Street and the southern boundary at SW Merritt Lane.

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O n th e h eels of th e G reat Recession and af ter ten y ears of activ e inv estme nt in its u rban renewal district, th e C ity of Madras is at a crossroads. Si g nifi cant p u blic inv estm ent h as su ccessf u lly im p rov ed p u blic op en sp ace, th e aesth etic ap p eal of th e entry to th e city , and transp ortation access into and th rou g h th e city at its north and sou th ends. At th e sam e tim e, Madras’ com m ercial core h as seen limi ted new dev elop m ent and is not f u nctioning as th e v ibrant h u b of com m ercial activ ity th at residents desire. Th is Action Plan rev isits com m u nity p riorities f rom p rev iou s p lanning ef f orts and p rov ides a roadm ap f or th e u rban renewal ag ency ’ s work with in th e D istrict in th e comi ng y ears.

Madras’ residents m ade th em selv es clear du ring th e ou treach p ortion of th is Plan: th ey want a better f u tu re f or th e com m u nity . Using statem ents m ade by Madras residents as th ey described th eir p ref erred f u tu re, th e team dev elop ed a v ision statem ent. I t is an asp irational, long -v iew descrip tion of Madras th at cou ld resu lt f rom th e su ccessf u l imp lem entation of th is Plan:

T h e Plan h as six ch ap ters:

1. Plan Purpose and Background. Th is ch ap ter p rov ides an ov erv iew of th e p rev iou s u rban renewal p lanning work and th is action p lanning p rocess, h ig h lig h ting th e ex tensiv e p u blic inv olv em ent th at inf orm ed all asp ects of th e Plan.

2. The Madras Advantage. T h is Plan seek s to create a com p etitiv e adv antag e f or Madras. T h is ch ap ter describes th e f ou ndation f or th at adv antag e, dev elop ed f rom th e p u blic inv olv em ent activ ities of th is p lanning ef f ort.

3. Situation Assessment. Th is Plan seek s to ov ercom e dev elop m ent barriers and targ et inv estm ents in a way th at cap tu res dem and f rom u ntap p ed m ark et seg m ents. Th is ch ap ter su m m ariz es th e ch alleng es th at were identifi ed du ring th e tech nical analy sis. I t also p rov ides inf orm ation on dev elop m ent conditions and retail op p ortu nities.

4. Investment Framework. Th is ch ap ter p rov ides an ov erv iew of h ow Plan p roj ects were p rioritiz ed, and h ow MRC can work with its p artners to inv est in im p rov em ents in th e city .

5. Action Plan Projects. D escribes a sp ecifi c set of 1 5 p roj ects identifi ed th rou g h th e Action Plan Process.

6. Implications

G rou nded in fi nancial and m ark et analy ses, and su p p orted by robu st p u blic inp u t, th is Plan details a set of actions f or th e Madras Redev elop m ent C om m ission ( MRC ) , th e C ity ’ s u rban renewal ag ency , to encou rag e p riv ate inv estm ent in th e D istrict in p artnersh ip with oth er entities.

Madras’ position as the hub of River Canyon Country attracts visitors and new residents who appreciate the community’s commitment to quality of life. The city’s core is a recognizable, vibrant destination with public and private investment in small-scale shops, a mix of restaurants, and cultural amenities that reflect the area’s diversity.

The MRC’s goal for the Action Plan update is to identify a targeted set of investments that will create a competitive advantage for Madras. The investments will:

� Generate tax increment � Support development on

underutilized and vacant sites � Catalyze additional development

throughout the District

Plan Pu rp ose & Ba ck g rou nd

2 Madras Urban Renewal Action Plan

BACKGROUND

Madras h as a rich h istory as an ag ricu ltu ral and comme rce h u b f or J ef f erson C ou nty . T h e C ity ’ s comme rcial core along H ig h way 9 7 / 2 6 ( sh own in Exhibit 1) h as a m ix of strip com m ercial u ses, sm all p ock ets of residential neig h borh oods, and sev eral reg ionally imp ortant g ov ernm ent and social serv ice institu tions. H owev er, th e area h as seen lim ited p riv ate- sector inv estme nt, desp ite su ccessf u l p lanning ef f orts ov er th e p ast two decades.

I n 2 0 0 2 , th e MRC adop ted th e Madras Urban Renewal Plan. Bro adly , th e p u rp ose of th e 2 0 0 2 p lan was to imp rov e th e env ironm ent f or dev elop m ent inside of th e D istrict bou ndary . F ollowing O reg on St ate St atu tes, it identifi ed “b lig h t” as conditions th at create barriers f or p riv ate inv estm ent and new dev elop m ent. Th e p lan also broadly ou tlined a set of actions necessary f or im p rov ing th e area.

I n 2 0 0 6 , th e MRC com m issioned its fi rst action p lan th at addressed issu es u nderly ing Madras’ stru g g ling core and retail corridor. Th e 2 0 0 6 p lan f ocu sed MRC ef f orts on a targ eted set of imp lem entation step s. Th ese ch alleng es inclu ded larg e swath s of u nderu tiliz ed land, ong oing retail fl ig h t f rom th e core ( th at started with th e constru ction of th e US 2 6 /9 7 cou p let) , and a fl oodway im p acting dev elop me nt op p ortu nities th rou g h ou t m u ch of th e core. Additionally , Madras su f f ered f rom a lack of m iddle-class h ou sing and th e p ercep tion th at local sch ools were su bstandard. Th e actions and u rban desig n f ram ework inclu ded in th e 2 0 0 6 p lan sou g h t to beg in ov ercom ing th ese ch alleng es.

T h is Action Plan u p dates th e 2 0 0 6 action p lan. I n th e decade since th e 2 0 0 6 Plan was adop ted, sig nifi cant p rog ress h as been m ade toward rev italiz ing th e D istrict. Residents and trav elers th rou g h th e city can see m any noticeable new inv estm ents in th e D istrict, inclu ding im p rov em ents to S ah alee Park , im p rov ed transp ortation connections, and m ore v isible sig nag e at entries to th e city .

H owev er, m u ch h as ch ang ed in th at decade. T h e reg ion and th e cou ntry su f f ered a m aj or recession th at af f ected bu sinesses and p rop erty owners in Madras. D ev elop m ent p atterns in nearby cities ch ang ed in way s th at af f ect h ow Madras com p etes f or new dev elop m ent. H owev er, residents in Madras continu e to desire a v ibrant and activ e retail center in th eir com m u nity .

T h e MRC , recog niz ing both p rog ress m ade and th e need f or ong oing im p rov em ents in th e URD , com m issioned th is Action Plan u p date f or a rev ised look at th e dev elop m ent m ark et and u rban renewal fi nances, a ref resh ed com m u nity conv ersation reg arding p riorities f or inv estm ent, and a rev ised list of p roj ects th at can f u rth er th e g oals of th e 2 0 0 2 Urban Renewal Plan.

T h e 2 0 0 2 Urban Renewal Plan h as th e f ollowing g oals ( su m m ariz ed) :

1 . Prom ote p riv ate dev elop m ent, redev elop m ent, and reh abilitation with in th e u rban renewal area.

2 . Up g rade th e stock of ex isting stru ctu res in th e renewal area wh ich contribu te to its sm all- town ch aracter.

3 . I m p rov e connectiv ity with in th e renewal area, enh ance op en sp aces, and enh ance liv ability .

4 . I m p rov e and rep air u tilities to su p p ort dev elop m ent.

5 . D ev elop conv enient, attractiv e p ark ing f acilities.

6 . Maintain, rem odel, and constru ct p u blic p ark s and op en sp aces, p u blic f acilities, and p u blic saf ety f acilities.

7 . Prov ide f or new, div erse h ou sing u nits in liv able m ix ed- incom e neig h borh oods th at su p p ort th e Area’ s em p loy m ent g eneration g oals.

8 . Assist in f u nding f or a p rog ram of art in p u blic sp aces with in th e renewal area.

2002

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Madras C inem a

3

Sahalee Park Expansion. Sa h alee Park is Madras’ oldest p ark . I t was establish ed in 1 9 2 0 and mo v ed to its cu rrent site soon af ter, wh en it was p lanted with 1 6 of its cu rrent larg e elm trees. By 2 0 0 6 , th e p ark , th ou g h p op u lar, h ad a rep u tation f or being u nsaf e and u nm aintained. Th e 2 0 0 6 Action Plan establish ed a strateg y f or rev italiz ing Sa h alee Park by ex p anding it onto an adj acent v acant lot owned by th e Be an F ou ndation. Th is ex p ansion wou ld be dev elop ed as a g reat lawn su itable f or h osting com m u nity ev ents su ch as th e F arm ers Mark et. Si nce 2 0 0 6 , th e ex p ansion h as been com p leted, and Sa h alee Park is a v ibrant node of activ ity . T h e city ’ s nex t g oal is to constru ct a sp lash p ad in th e p ark to encou rag e ev en m ore activ ity .

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IMPLEMENTATION PROGRESS, 2002-2016

As a f ou ndation f or th is Urban Renewal Action Plan, EC O N orth west assessed th e statu s of both sh ort- and long - term 2 0 0 6 Action Plan p roj ects, as well as oth er p roj ects com p leted since th e adop tion of th e 2 0 0 2 Urban Renewal Plan. ( T h e com p lete p rog ress rep ort can be f ou nd in Appendix B.) Exhibit 2 on th e nex t p ag e sh ows com p leted and p artially com p leted p roj ects in th e D istrict. K ey com p leted p roj ects inclu de:

� Placemaking improvements. Th e Sa h alee Park ex p ansion and N orth Y landscap ing p roj ects are com p lete, as is th e new Madras Aq u atic C enter.

� Regulatory Changes. Zo ning ch ang es h av e been m ade to inclu de desig n standards, and th e Si g n C ode h as been u p dated. Ef f orts to rez one or downz one com m ercial p rop erty are also p artially com p lete.

� Marketing. Su ccessf u l ef f orts to im p rov e m ark eting inclu de creating th e Sa tu rday Mark et, op ening th e Air Mu seu m , and increasing C h am ber of C om m erce f u nding . Se v eral p roj ects related to m ark eting Madras are also p artially com p lete, inclu ding im p lem enting way fi nding sig nag e, im p rov ing recreation sites, creating a com m u nity cleanu p , and p rom oting O p al S p ring s water.

� Business Support. Urban renewal h as su p p orted eig h t storef ront im p rov em ents.

� Redevelopment. Th e D istrict h as welcom ed sev eral new dev elop m ents inclu ding th e H arrim an Bu ilding , th e I nn at C rossk ey s, and Madras C inem a. T h e new C iv ic C enter ( inclu ding th e new Police St ation/ C ity H all dev elop m ent) is p artially com p lete.

� Promoting housing choice. Th ou g h larg ely u ndev elop ed, th e Y arrow m aster p lanned com m u nity addresses th e C ity ’ s long - term g oal to encou rag e h ou sing dev elop m ent.

� Streetscape improvements. Th ese inclu de storef ront and streetscap e im p rov em ents in th e downtown core on 6 th St reet and B St reet, as well as street im p rov em ents along US 2 6 /9 7 .

T h e C ity and MRC com p leted a nu m ber of p roj ects th at were not identifi ed ex p licitly in th e 2 0 0 6 p lan th at noneth eless ach iev e th e g oal of th e u rban renewal p lan to p rom ote p riv ate dev elop m ent. T h ese inclu de fi nancial su p p ort of th e I nn at C rossk ey s, a m ov ie th eater/p erf orm ing arts center, and th e H arrim an Bu ilding .

The Madras Brand. Th e term “ Riv er C any on C ou ntry ” stem s f rom reg ional tou rism branding ef f orts th rou g h T rav el O reg on’ s Ru ral T ou rism stu dio in 2 0 1 2 - 2 0 1 3 . Riv er C any on C ou ntry comp rises Prinev ille, Madras, W arm Sp ring s, and T errebonne. More inf orm ation on th ese ef f orts can be f ou nd at: h ttp : //w ww. trav eloreg on. com



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2006-2016 Progress

Th e ch aracter of Madras today refl ects both th e C ity ’ s accomp lish me nts since 2 0 0 6 and th e sig nifi cant work th at rema ins to be done. Exhibit 2 sh ows th e location of p roj ects comp leted to date. L andscap ing and storef ront imp rov em ents between th e N orth and So u th Y are f ostering a sense of p lace in th e city ’ s core. T h e ex p ansion of Sa h alee Park and constru ction of new recreational f acilities h av e resu lted in attractiv e com m u nity g ath ering sp aces. Th e H arrim an bu ilding anch ors an inv iting , attractiv e intersection at th e h eart of th e comme rcial core.

T h ou g h m easu rable p rog ress h as been m ade, som e p roj ects identifi ed in th e 2 0 0 6 Action Plan h av e not y et been com p leted. T h e concep t of a stop p ing p lace and tou rist inf orm ation center f or trav elers was not ex p lored, nor was th e p rog ram aim ed at installing tem p orary landscap es in v acant lots. O th er u nex p lored p roj ects inclu de ou tlining k ey com m ercial p rop erties f or acq u isition by th e C ity or O D O T , and creating a g reenway concep t f or th e W illow C reek F loodway .

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OverviewTh e C ity of Madras and th e MRC h av e m ade m any inv estm ents th at h av e im p rov ed th e env ironm ent f or dev elop m ent in th e C ity . Th e new C ity H all and p olice station p rov ide an ex cellent ex am p le. I n 2 0 1 3 , th e C ity of Madras relocated its ou tdated city h all and p olice station f rom th e W illow C reek fl oodp lain to its cu rrent, m ore v isible and accessible location. Urban renewal f u nding was p art of th e f u nding p lan f or th e f acility . Th e C ity ’ s inv estm ent in th e new f acility h as created social and econom ic benefi ts th at h av e rip p led th rou g h to th e C ity ’ s residents and its econom y . A rev iew of literatu re describes h ow sim ilar p u blic inv estm ents can boost local econom ic activ ity . Sp ecifi cally , well- p u rp osed p u blic inv estm ent sp ending can fi ll g ap s wh ere th e p riv ate sector wou ld be u nwilling or u nable to inv est, and create long - ru n g ains f or a com m u nity ’ s p rosp erity and resiliency , ev en wh en th ose inv estm ents are in p u blic f acilities. So f ar, th e MRC m ade an initial fi v e- y ear com m itm ent to f u nd th is f acility . Ba sed on th is research , inv estm ent in th is f acility h elp s to ach iev e th e g oals of th is p lan and th e MRC sh ou ld consider continu ing to f u nd th e Police St ation/C ity H all with u rban renewal dollars.

MEASURING THE ECONOMIC BENEFITS OF PUBLIC INVESTMENT.

� 1. Short-run benefits of public investment

» Public investment supports local jobs. C onstru ction j obs increase as a resu lt of inf rastru ctu re and p u blic f acility im p rov em ents.Th ese em p loy ees ma k e p u rch ases locally , creating a sh ort-t erm g rowth in local incom e.

» Infrastructure spending increases economic output. Pu blic inv estm ent increases econom ic ou tp u t, or th e v alu e of g oods and serv ices p rodu ced in th e econom y . A rep ort on th e

econom ic im p act of inf rastru ctu re fi nancing describes h ow in th e sh ort ru n, one dollar sp ent on inf rastru ctu re constru ction resu lts in dou ble th e initial sp ending in econom ic ou tp u t.

� 2. Long-run benefits of public investment

» Public investment increases long-term outputs in the private sector. I nf rastru ctu re inv estm ents are v ital inp u ts f or p riv ate- sector p rodu ction and boost econom y - wide p rodu ctiv ity g rowth . O v er twenty y ears, p u blic inv estm ent g enerates $ 3 . 2 1 of econom ic activ ity p er $ 1 . 0 0 sp ent.

» Public facilities like city halls attract people and business. N ew p u blic f acilities can draw in tou rists and create com m u nity coh esion. F or ex am p le, a stu dy in W isconsin f ou nd th at cou nty seats su ccessf u lly attracted m ore p riv ate sector bu siness activ ity th an towns with ou t v isible, central p u blic f acilities.

» Consolidating services (like city hall and police facilities) increases efficiency and reduces operation and maintenance costs. F or ex am p le, a com p reh ensiv e p lan f rom L y nch bu rg , V A f ou nd th at, “ co- locating new f acilities or p rov iding m u lti-u se f acilities ( … ) m ay resu lt in m ore ef fi cient serv ice deliv ery . ”

» Investment in resilient facilities can minimize fatalities and economic loss. I nv esting in em erg ency resp onse f acilities, inclu ding p u blic bu ilding s su ch as sch ools and city h alls, resu lts in f ewer redu ctions in lif eline serv ices and g reater com m u nity connectiv ity af ter natu ral disasters.Rem ov ing p u blic f acilities f rom fl ood- p rone areas is also im p ortant, as loss of p u blic f acility f u nction resu lts in tang ible econom ic losses f or a city .

As th e MRC continu es to im p lem ent th e com m u nity v ision f or Madras, it bu ild u p on p rev iou s inv estm ents in p u blic f acilities and inf rastru ctu re to encou rag e p riv ate inv estm ent op p ortu nities th at g enerate p ositiv e retu rn on inv estm ent f or Madras citiz ens.

So u rces:( 1 ) A. Plescia & C o. 2 0 1 4 . Ec onom ic and Fi scal Be nefi ts Analy sis: Prop osed N ew C ity H all and D ig nity H ealth Medical O f fi ce Bu ilding , C itru s H eig h ts, C alif ornia. ( 2 ) Bi v ens, J osh . 2 0 1 4 . Th e Sh ort- and L ong - term I m p act of I nf rastru ctu re I nv estm ents on Em p loy m ent and Ec onom ic Activ ity in th e U. S . Ec onom y . ( 3 ) C oh en, I sabelle, T . F reiling , and E. Robinson. Y ear u nk nown. Th e Ec onom ic I m p act of Fi nancing of I nf rastru ctu re Sp ending . ( 4 ) Br oadbent I nstitu te. 2 0 1 5 . Th e Ec onom ic Be nefi ts of Pu blic I nf rastru ctu re Sp ending in C anada. ( 5 ) T h e Ec onom ist ( 2 0 1 4 ) . C oncrete Be nefi ts: Pu blic inv estm ents in inf rastru ctu re do th e m ost g ood at tim es lik e th e p resent. ( 6 ) McI nroy , N eil, M. J ack son, and M. Br am ah . 2 0 0 8 . C reating Resilient L ocal Ec onom ies: ex p loring th e Ec onom ic F ootp rint of Pu blic Se rv ices. ( 7 ) C ity of T u scaloosa, Alabam a. Y ear u nk nown. Be nefi t- C ost Analy sis. ( 8 ) Zi g elbau er, Ry an, B . Ry an, and S . G rabow. 2 0 0 5 . T h e I m p ortance of G ov ernm ent F acilities in D owntowns: An Analy sis of Bu siness Es tablish m ents in W isconsin’ s C ou nty Se ats. ( 9 ) C ity of L y nch bu rg , V irg inia. 2 0 0 2 . C om p reh ensiv e Plan 2 0 0 2 - 2 0 2 0 C h ap ter 1 6 : Pu blic F acilities. ( 1 0 ) Y u , Q . S . , J . W ilson, and Y . W ang . 2 0 1 4 . O v erv iew of th e O reg on Resilience Plan f or nex t C ascadia Ea rth q u ak e and T su nam i. ( 1 1 ) G oettel, K enneth A. 2 0 0 4 . Be nefi t- C ost Analy sis: Eu g ene C ity H all St ru ctu ral and N on- St ru ctu ral Se ism ic Retrofi t. ( 1 2 )

7

2016 ACTION PLAN PROCESS

T h is Action Plan u p date draws f rom m any sou rces to identif y p riorities, drawing f rom tech nical analy sis on com m ercial and retail needs in th e com m u nity , th e f inancial cap acity of th e D istrict, and sig nif icant p u blic and stak eh older ou treach . Exhibit 3 sh ows th e p lanning p rocess.

Research and gather information. W ork p rodu ced in th is p h ase serv es as th e f ou ndation f or th e p roj ects p rioritiz ed in later task s. Th is task inv olv ed:

� Evaluation of market and financial factors influencing investment opportunities. Th e consu ltant team condu cted tech nical analy sis to ev alu ate th e ma rk et f actors th at infl u ence th e dema nd f or com m ercial dev elop me nt in Madras and to better u nderstand u nderu tiliz ed and v acant p rop erty in th e D istrict.

� Extensive public outreach. Th e team condu cted an ex tensiv e p u blic ou treach p rocess with :

» 4 2 p articip ants in one-o n-o ne interv iews with k ey stak eh olders, inclu ding p rop erty owners, bu siness owners, and economi c dev elop m ent org aniz ations

» 4 0 commu nity me mb ers p articip ated in an op en h ou se h osted at C ity H all on N ov emb er 2 , 2 0 1 5 .

» 1 5 commu nity me mb ers p articip ated in a m eeting with th e D iv ersity C oalition on D ecemb er 1 5 , 2 0 1 5 .

» 1 0 2 com m u nity m em bers resp onded to a com m u nity su r v ey

» 1 1 5 em p loy ees of sev eral of th e C ity ’ s m aj or em p loy ers resp onded to a su rv ey on com m u nity needs and h ow to attract new residents to Madras.

Develop investment framework and project list. T h e ou tcom e of th e tech nical analy sis and p u blic ou treach described abov e was a list of p ossible p roj ects f or im p lem entation. T h e team dev elop ed and v etted ( with th e MRC ) a f ram ework f or p rioritiz ing th ose p roj ects and m ov ing toward im p lem entation tog eth er with th e oth er p u blic and p riv ate p artners in th e com m u nity .

� Prioritize projects. D rawing f rom th e resu lts of th e su r v ey and u sing th e criteria identifi ed in th e inv estm ent f ram ework , th e p roj ect team p rioritiz ed th e p roj ects.

� Final action plan. T h is Action Plan docu m ents th e inv estm ent f ram ework and distills th e inf orm ation g ath ered into a set of clear fi nding s. I t also details th e p rioritiz ed list of sp ecifi c p roj ects f or D istrict inv estm ent, p rov iding inf orm ation abou t sp ecifi c nex t step s and near-term op p ortu nities.

SEPT

2006 Progress Report

Public and Stakeholder Outreach (interviews)

Retail Needs Analysis

OCT NOV DEC JAN

Prioritize Projects

Cost Analysis

Advisory Committee Input

Public Outreach (November2,2016OpenHouse)

TIF Generation Analysis

Final Action Plan Research and Gather Information

Develop Investment Framework and Project List

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Th is Plan seek s to create a com p etitiv e adv antag e f or Madras, and im p rov e its p osition to attract new dev elop me nt with in th e reg ion. Madras is a u niq u e commu nity with g eog rap h ic and cu ltu ral adv antag es th at g enerate op p ortu nities f or f u tu re g rowth . Recog niz ing and f ostering th is “ u niq u eness” will create an au th entic and dif f erentiated com p etitiv e p osition f or th e C ity with in th e reg ion. As su ch , it is th e k ey stone of th e Action Plan and, in p articu lar, of th e actions with in it. Actions seek to bu ild on and accentu ate th is adv antag e.

Madras’ proximity to outdoor amenities is a key advantage. Peop le wh o liv e in Madras enj oy an ex cellent location am ong th e am p le recreational op p ortu nities of C entral O reg on. W ith in town, th ere is easy access to op p ortu nities to g ath er and be activ e, inclu ding walk ing and bik ing trails, th e new Aq u atic C enter, and Sa h alee Park . I n a su r v ey of ov er 1 0 0 residents f or th e D owntown Action Plan, ma ny cited th e beau tif u l natu ral su rrou nding s as a k ey reason wh y Madras is a g reat p lace to liv e. W h ile th is is a g eneral adv antag e th at oth er C entral O reg on commu nities sh are, Madras’ p rox im ity to Sm ith Rock and C ov e Palisades St ate Park s, to riv er access, and to oth er ame nities dif f erentiates it. As th e v ision f or th is Plan states, Madras is th e h u b of Riv er C any on C ou ntry .

Madras’ location as a transportation hub provides benefits to residents and businesses. Madras is located at th e crossroads of two m aj or h ig h way s, between Be nd, Portland, and Th e D alles, and h as a bu stling airp ort and activ e railroad. L ocated j u st two h ou rs f rom Portland, it is closer to th e Portland reg ion th an any oth er C entral O reg on commu nity .

Mu ch of th e inf orm ation in th is ch ap ter draws f rom th e resu lts of doz ens of stak eh older interv iews and resp onses to th e D owntown Action Plan su rv ey s th at g ath ered 2 1 7 resp onses. C omp lete comm u nity su r v ey resu lts can be f ou nd in Appendix A: Outreach Summary.

9

Residents of Madras value living in a small, rural town. S ix ty - fi v e p ercent of su rv ey resp ondents identifi ed th e sm all- town f eel or th e welcom ing atm osp h ere as one of th eir f av orite p arts of liv ing in Madras. T h ey p raise Madras’ low- k ey , f am ily - f riendly atm osp h ere and its su p p ortiv e com m u nity . S ev eral resp ondents noted strong f am ily connections in Madras, as well as g ood relationsh ip s with neig h bors and cowork ers. Residents also enj oy th e relativ ely low cost of liv ing . W h ile Madras is sm all, it is not isolated. W ith Redm ond and B end less th an an h ou r away , Madras residents h av e access to th e am enities of f ered by larg er cities, and also enj oy th e ru ral lif esty le.

Madras is a uniquely diverse community. According to th e U. S . C ensu s 2 0 1 3 Am erican C om m u nity S u r v ey , ov er a th ird of Madras’ residents are L atino, and 1 0 % of residents are of N ativ e Am erican. S ev eral residents su rv ey ed p oint to th is div ersity as an attractiv e p art of th eir com m u nity . T h ey v alu e th at th eir ch ildren are ex p osed to dif f erent cu ltu res and th at p eop le f rom dif f erent walk s of lif e interact with one anoth er. Madras’ entrep reneu rial com m u nity refl ects th is div ersity , creating a m ix of bu sinesses in th e com m u nity th at is distinct f rom oth er areas.

“I love that [Madras] is a small town that is still trying to improve itself.” - survey respondent

Why do people like Madras?

I n th eir su r v ey resp onses, 1 9 4 com m u nity m em bers and em p loy ees identifi ed 3 9 6 p ositiv e attribu tes abou t Madras. W h ile answers v aried, p articip ants esp ecially ap p reciated Madras’ s siz e, p eop le, and location:

� Th e siz e: 8 1 p articip ants ( 4 1 % ) lik ed th at Madras was a sm all town.

� Th e p eop le: 6 0 ( 3 0 % ) wrote abou t th e com m u nity and f riendly atm osp h ere of Madras. Se v enteen ap p reciate Madras’ s div ersity .

� Th e location: Su r v ey p articip ants ap p reciate Madras’ location f or m any reasons, inclu ding th e clim ate, landscap e, ou tdoor recreation op p ortu nities, and its p rox im ity to larg er cities.

� Th ing s to do: Su r v ey p articip ants ap p reciate com m u nity ev ents in Madras, th e MAC , and th e Perf orm ing Arts C enter.

Th e Madras Adv antag e

1 0 Madras Urban Renewal Action Plan

The City has already invested in many community amenities, and has broad community support for the urban renewal projects that have been completed.Peop le wh o liv e and work in Madras ap p reciate new bu siness and storef ront im p rov em ents downtown. T h ey cite th e Aq u atic C enter, Madras C inem a 5 , and th e p erf orm ing arts center as ex citing new attractions. I n th e words of one su rv ey resp ondent, “ Redev elop m ent p roj ects h av e brou g h t new lif e to Madras. ”

Madras’ residents and em p loy ees h av e p ointed to op p ortu nities to imp rov e u p on th ose adv antag es. I n describing Madras today , residents f req u ently p ointed ou t th e city ’ s m any v acant lots and lack of street ap p eal, wh ich ov ersh adow su ccessf u l ex isting bu sinesses. T h e ef f ects of p ov erty are v isible in th e bu ilt env ironm ent. Th ere is a f eeling th at p otential v isitors and f u tu re residents are deterred f rom com ing to Madras by its u nclean ap p earance and u nsaf e rep u tation.

Th ere is a strong desire in th e com m u nity to see downtown Madras em body m ore of th e p ositiv e commu nity ch aracteristics th at residents celebrate. Th rou g h u rban renewal ef f orts, su r v ey resp ondents env ision Madras dev elop ing into a p lace th at is liv ely , attractiv e, and clean. T h e city sh ou ld ap p ear attractiv e to p assing mo torists, and of f er desired com m u nity resou rces to y ou ng p rof essionals. Madras residents are inv ested in th eir commu nity ’ s continu ed dev elop m ent. Th ey h av e p rodu ced a rang e of su g g estions f or th e u se of f u tu re inv estme nts in encou rag ing dev elop m ent and im p rov ing th e city ’ s p h y sical inf rastru ctu re; th ese are incorp orated into th e actions in th is Plan.

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Th e Madras Adv antag e

CITY MILES MINUTES

Redmo nd 2 6 3 2

Be nd 4 3 5 5

Th e C ov e Palisades St ate Park 1 0 1 7

Smi th Rock St ate Park 2 6 3 3


Th is Plan seek s to create com p etitiv e adv antag e by identif y ing and ov ercom ing dev elop m ent barriers, and strateg ically targ eting inv estm ents to attract new sh op p ers and bu sinesses. As a f ou ndation f or action, th is ch ap ter describes th e cu rrent dev elop m ent m ark et and retail op p ortu nities in th e D istrict, identifi es dem and seg m ents f or new dev elop me nt, and p rov ides inf orm ation abou t th e fi nancial cap acity of th e D istrict.

DEVELOPMENT CONDITIONS

Th is ch ap ter p rov ides an ov erv iew of real estate m ark et conditions in Madras, op p ortu nities f or downtown to attract k ey ma rk et seg me nts ( v isitors, work ers, and residents) , and a set of dev elop m ent op p ortu nity sites identifi ed th rou g h th is p rocess. More detail on th ese p oints can be f ou nd in Appendix C: Commercial Development Opportunities Report.

L ik e nearly ev ery oth er com m u nity in th e state, Madras su f f ered real estate v alu e declines with th e G reat Recession. As th e econom y h as recov ered, Madras h as seen little new dev elop m ent. Real estate v alu es, wh ile increasing some wh at, h av e not y et cau g h t u p with p re-recession lev els. Th is m ark et stag nation creates f easibility ch alleng es f or new, h ig h er- end dev elop m ent of all ty p es.

F or retail dev elop m ent, Madras’ sm all siz e and relativ ely low income s limi t bu y ing p ower, and create ch alleng es f or attracting new dev elop m ent. Real estate p rof essionals in th e area indicate th at if big - box retailers are look ing to locate in Madras, th ey wou ld be m ost lik ely to bu ild relativ ely sma ll stores to serv e th e com p arativ ely sm all p op u lation in and arou nd Madras.

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T h e C ity h as fi elded sev eral inq u iries f or national big box retailers wh o see u ntap p ed dem and f or th eir p rodu cts in Madras; h owev er, th ese dev elop m ents h av e y et to com e to f ru ition. A local realtor estim ated th at th e retail v acancy rate was, at m ost, 5 % as of D ecem ber 2 0 1 5 , bu t th at som e of th e p otential inv entory is of f th e m ark et as landowners are u nwilling to lease. Av erag e rent is arou nd $ 0 . 6 5 p er sq u are f oot, f u ll serv ice, with a f ew nicer sp aces th at are ov er a dollar p er sq u are f oot, f u ll serv ice. Unlik e sale p rices f or com m ercial land, lease rates f or retail were not sig nifi cantly h ig h er bef ore th e recession.

I ndu strial and of fi ce u sers will locate in Madras if th e C ity h as an adv antag e ov er oth er com m u nities in C entral O reg on. F or ex am p le, som e fi rm s m ay be attracted to Madras’ bu siness costs, clim ate adv antag es, closer p rox im ity to th e Portland m etro area, lower rents, or h ig h q u ality water. T h e C ity h as been su ccessf u l in attracting new em p loy ers wh o care abou t th ese adv antag es, inclu ding th e Er ick son Aircraf t C ollection, wh ich relocated at th e Madras Airp ort in 2 0 1 3 .

T h e recession h it th e Madras residential real estate m ark et h ard. At th e worst tim e, 6 6 % of h ou sing v alu e was lost. Av erag e sales p rices are still 2 0 % below p re-recession lev els. A local realtor indicated th at f rom D ecem ber 2 0 1 4 to D ecem ber 2 0 1 5 , 2 2 4 h om es were sold f or an av erag e p rice of $ 1 2 9 , 0 0 0 . I n 2 0 0 6 , 4 3 3 h om es were sold at an av erag e p rice of $ 1 6 2 , 0 0 0 . Madras rents and sales p rices are lower th an oth er areas of C entral O reg on. F rom D ecem ber 2 0 1 4 - D ecem ber 2 0 1 5 , th e av erag e sales p rice in Be nd and Redm ond was $ 3 9 4 , 0 4 9 and $ 2 6 0 , 5 3 8 resp ectiv ely . Pre- recession p rices were also h ig h er in Be nd and Redm ond, with av erag e 2 0 0 6 sales p rices of $ 4 3 0 , 7 8 4 and $ 3 3 4 , 1 2 0 , resp ectiv ely . 1

Madras’ lower p rices are a dou ble- edg ed sword. T h ey m ak e it dif fi cu lt to m ak e new dev elop m ent econom ically f easible, bu t also p osition Madras to attract new residents interested in lower- cost h ou sing in increasing ly ex p ensiv e m ark ets. Madras’ m ark et h as im p rov ed, with an av erag e inv entory of 9 0 day s. Attracting new residents will be critical to su p p orting a rev italiz ed core and h ig h way com m ercial areas as th ey p rov ide increased sp ending p ower to su p p ort downtown bu sinesses.

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KEY FINDINGS

� Th e city benefi ts f rom h av ing well- located, v acant, and redev elop able land in its core. Th e m ost f easible f u tu re dev elop m ents will fi ll a g ap in retail needs in th e area. Th ere is u ntap p ed dem and f or sev eral dev elop me nt ty p es in Madras, inclu ding g eneral me rch andise, restau rants, breweries, and oth er h ig h way -s cale com m ercial dev elop m ent ty p es.

� Th e lack of sp ending p ower am ong residents and p ercep tion am ong th e reg ion’ s dev elop ers h as led to limi ted new p riv ate inv estme nt in th e p ast 1 0 y ears. Rents in Madras are g enerally too low to su p p ort new sp ecu lativ e constru ction. Relativ ely h ig h constru ction labor costs in C entral O reg on h av e comp ou nded th is p roblem.

� Madras’ low h ou sing p rices are a dou ble- edg ed sword. Th ey m ak e new dev elop m ent ch alleng ing , bu t p osition Madras to attract new residents interested in lower- cost h ou sing . Th ose new residents will su p p ort new retail.

� D ev elop me nt u ncertainty in th e C ity ’ s core h inders f u tu re downtown- scale dev elop m ent. Th e p resence of th e fl oodway and fl oodp lain h as h indered dev elop me nt on ma ny h ig h ly v isible core area sites. Th e C ity is rem ap p ing its fl oodp lain, wh ich will increase dev elop me nt certainty .

� Madras h as a concentration of downtown- scale retail and restau rants between B and E St reet on H ig h way 9 7 , bu t th e p resence of u nderu tiliz ed storef ronts in th is area sends a sig nal th at th e area cannot su stain retail. A critical m ass of activ e retail is cru cial to retail su ccess, and f rag m entation of retail districts is p roblema tic. Until new dev elop me nt occu rs, th e MRC ’ s av ailable rev enu es limi t its ability to inv est in larg e- scale p roj ects.

Implication: Given the concentration of underdeveloped and vacant parcels in the District, untapped retail demand, and MRC’s financial position, the MRC should focus on: (1) near-term development opportunities and tenant attraction strategies throughout the District, and (2) support for downtown-scale retail and services in the core area.

Si tu ation Assessme nt


Development Barriers

T h e Action Plan f ocu ses on ov ercom ing any barriers to dev elop m ent and to attracting new inv estm ent to downtown Madras. S ev eral of th e dev elop m ent barriers identifi ed in Madras’ 2 0 0 6 Action Plan still rem ain. T h ese inclu de:

� Lack of a concentrated commercial core. Retail establish me nts are disp ersed along a two and a h alf mi le stretch of US 2 6 /9 7 , with ou t a concentrated comme rcial core.

� Traffic levels and speed on US 26/97 create both opportunities and barriers. Au to-o riented US 2 6 /9 7 corridor continu es to create saf ety concerns f or p edestrians and does not f oster a p edestrian-s cale env ironme nt f or local sh op s.

� Uncertainty related to the presence of a floodway through downtown. Many p arcels th at wou ld be k ey dev elop me nt p arcels with in downtown Madras are located with in th e fl oodway , wh ich p roh ibits dev elop me nt. Prop erty owners with in th e fl oodp lain f ace increased dev elop m ent costs. Th e C ity is work ing with th e Arm y C orp s of En g ineers to stu dy th e fl oodp lain and fl oodway . Se e inset f or mo re inf orma tion.

� Weak market. Th ere is still a low su p p ly of m iddle- class h ou sing in th e city , translating into a lack of ma rk et su p p ort f or downtown retail.

� FLOODPLAIN: A floodplain is the area adjacent to a water body that is subject to flooding. If left undisturbed, this area acts to store excess floodwater. The floodplain includes the floodway.

� FLOODWAY: The floodway carries the bulk of the floodwater downstream and is usually the area where water velocities and forces are the greatest. The National Flood Insurance Program regulations require that the floodway be kept open and free from development that would obstruct or divert flood flows onto other properties.

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FLOODING IN DOWNTOWN MADRAS

T h e W illow C reek fl oodp lain, sh own in Exhibit 5, is a p ersistent barrier to dev elop m ent f or downtown Madras. W illow C reek fl ows in a north west direction th rou g h W illow C reek C any on and into L ak e S im tu stu s. D u ring th e winter, th e W illow C reek watersh ed is su bj ect to fl ooding . Maj or fl ooding occu rred in Madras in 1 9 6 4 and 1 9 7 9 . T h e fl oodp lain itself denotes th e area th at wou ld be inu ndated in a 1 0 0 - y ear fl ood; stru ctu res located in th e fl oodp lain h av e a sig nifi cant ch ance ( 2 6 % ) of su f f ering fl ood dam ag e with in th e term of a 3 0 - y ear m ortg ag e.

D u e to th ese f actors, th e W illow C reek fl oodp lain is a rem aining ch alleng e to downtown econom ic dev elop m ent and u rban renewal. F looding also p oses a th reat to p u blic inf rastru ctu re lik e roads, water serv ice, and em erg ency resp onse. T h e C ity is work ing with th e Arm y C orp s of E ng ineers to rem ap th e fl oodp lain to p rov ide better certainty f or p rop erty owners and p otential inv estors. T h is is a resu lt of p ossible fl oodp lain ch ang es f rom th e u p siz ing of th e N inth and W I llow C reek C u lv ert and com m u nity concerns abou t fl oodp lain accu racy . T h is p roj ect sh ou ld be com p lete in 2 0 1 8 , and will p rov ide g reater certainty and op en u p dev elop m ent op p ortu nities in th e C ity ’ s core. T h is Plan inclu des actions th at p rep are th e C ity to tak e adv antag e of p otential op p ortu nities.

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CAPTURING DEMAND BY MARKET SEGMENT

Ultima tely , increased dem and f or com m ercial and retail sp ace will driv e new dev elop m ent— bu t h ow can Madras bring abou t increased dem and? Th e retail leak ag e analy sis in Appendix C f ou nd th at Madras cou ld do mo re to cap tu re sales f rom sev eral m ark et seg m ents: ( 1 ) emp loy ees wh o do not liv e in th e Madras; ( 2 ) residents of Madras or su rrou nding ru ral areas wh o ch oose to sh op ou tside of th e city ; and ( 3 ) driv e- th rou g h trav elers en rou te to Be nd, Portland, or oth er area destinations. Ea ch of th ese dema nd seg m ents h as u niq u e needs and desires, as ou tlined in Exhibit 6. Th is ch ap ter ou tlines resu lts f rom th e tech nical analy sis on th e needs f or each of th e m ark et seg me nts ou tlined below.

New and Existing Residents and Workers

Madras serv es as a reg ional retail h u b f or J ef f erson C ou nty , p rov iding m any serv ices at g reater lev els th an local residents dema nd. At th e sam e tim e, Madras residents sp end $ 3 1 m illion ou tside of th e C ity on retail and serv ice g oods. T h e C ity cou ld cap tu re m ore sp ending f rom sev eral retail ty p es, inclu ding :

� General merchandise. Th e retail g ap analy sis sh ows th at residents sp end abou t $ 6 . 4 mi llion ou tside of Madras to sh op f or m any of th e p rodu cts su p p lied by g eneral me rch andise stores, inclu ding dry g oods, ap p arel and accessories, f u rnitu re and h ome

MARKET SEGMENT

N ew and Ex isting Residents

Ev ery day serv icesF oodMerch andiseEn tertainm ent

Su p p ort ex isting bu sinessesI m p rov e L atino bu siness su p p ortG eneral m erch andise store to redu ce retail leak ag eF lex ible sp ace th at can su p p ort start- u p indu stry and retail

I m p rov ed m ix of m erch andise and serv ice of f ering sG eneral m erch andise store to redu ce retail leak ag e

D iv ersif y dining op tions ( brewery )Rental stores/ ou tfi ttersUniq u e p rodu ctsL ocal p oints of interest to k eep v isitors in Madras long er

Ev ery day serv icesF oodMerch andise

Se rv icesF oodSu ndriesG if tsEn tertainm ent

N ew andEx istingEmp loy ees

V isitors(v isiting nearby attractions and trav eling th rou g h )

WHAT THEY NEED OPPORTUNITIES/APPROACH TO ATTRACTING

f u rnish ing s, sm all wares, cloth ing stores, electronic sh op p ing , and h ealth and p ersonal care.

� Clothing. Residents sp end $ 1 . 9 m illion ou tside of Madras on cloth ing . I t is u nlik ely th at Madras cou ld cap tu re th e m aj ority of th is sh are with ou t a wide rang e of new cloth ing store of f ering s. H owev er, a g eneral m erch andiser th at sold cloth ing as p art of its of f ering s cou ld cap tu re at least a p ortion of th is retail leak ag e.

� Health and Personal Care. Madras residents sp end $ 1 . 3 m illion ou tside of Madras on h ealth g oods ( m edicine, m edical eq u ip m ent, etc. ) Th ese g oods cou ld also be sold at a g eneral m erch andiser or oth er store.

I n th e F all 2 0 1 5 com m u nity su r v ey and at th e N ov em ber 2 nd O p en H ou se, th e C ity ask ed residents abou t th e ty p es of bu sinesses th ey wou ld lik e to see m ore of in Madras. O p en h ou se p articip ants and su rv ey resp ondents confi rm ed th e fi nding s f rom th e tech nical analy sis: th at a g eneral m erch andiser is th e big g est need in Madras, and a k ey reason wh y residents leav e th e C ity to sh op in Be nd and Redm ond or online. O th er top needs th ese g rou p s cited inclu ded ap p arel, sp orting g oods, ou tdoor ap p arel, book s and g if ts, of fi ce su p p lies, and h om e and g arden su p p lies. T h ey wou ld lik e additional concerts, liv e m u sic, and ou tdoor entertainm ent op tions. O v erall, th e fi nding s in th is ch ap ter im p ly th at th ere is lim ited sp ending p ower f or new, h ig h er- end retail bu sinesses.

T h e ap p endix inclu des detailed resu lts of th e retail leak ag e analy sis in th e Commercial Development Opportunities Report (Appendix C) and th e resu lts of p u blic eng ag em ent ( Appendix A) .



Visitors

Understanding wh at bring s v isitors to Madras and C entral O reg on can h elp th e C ity of Madras boost tou rism in th e f u tu re and attract new dev elop m ent th at serv es tou rists. Many stu dies h av e attem p ted to describe th e C entral O reg on v isitor ma rk et and v isitor p rofi les, inclu ding T rav el O reg on and th e C entral O reg on V isitors Association. Madras is well p ositioned between m aj or v isitor attractions in C entral O reg on, som e of wh ich p rov ide annu al v isitor cou nts. C ov e Palisades St ate Park , a 2 5 - m inu te driv e f rom Madras, h ad 5 1 5 , 0 0 0 v isitors in 2 0 1 4 . Sm ith Rock St ate Park , a 3 0 - m inu te driv e f rom Madras, rep orted arou nd 6 5 0 , 0 0 0 v isitors in 2 0 1 4 . Ka h - N ee- T ah H ot Sp ring s and F ami ly Resort, a 3 5 - m inu te driv e f rom Madras, rep orted 6 9 , 0 0 0 v isitors.

Madras cou ld do m ore to cap italiz e on v isitor th rou g h traf fi c by p rov iding ex p eriences and serv ices th at su p p ort reg ional trav el destinations, and cap italiz ing on th e broader “R iv er C any on C ou ntry ” m ark eting ef f ort led by th e J ef f erson C ou nty C h am ber of C om m erce and th e C entral O reg on V isitors Association.

Travel Oregon differentiates two types of travelers and the different marketing strategies to draw more business from both.

� Mark etable trip s are tak en by trav elers th at can be infl u enced by m ark eting ef f orts ( e. g . , international/n ational v isitors, ou tdoor enth u siasts) .

� N on- m ark etable trip s are infl u enced by som eth ing oth er th an th e destination itself ( e. g . , v isiting f am ily / f riends or bu siness) . G enerally , non- m ark etable trav elers are considered lower-v alu e trav elers, as th ey will eat f ewer m eals in restau rants and m ay or m ay not stay in a h otel.

Exhibit 7 sh ows th e dif f erent ch aracteristics of m ark etable and non- m ark etable trav elers, as well as th e im p lications f or th e Action Plan.

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Sh are of T rav elers

4 9 % ( H alf are f rom O reg on)

5 1 %

� L ittle a destination can do to infl u ence besides of f ering additional activ ities

� V isiting f riends/ f am ily � Bu siness

� 7 % bu siness � 4 2 % f am ily /r elativ es � G enerally a lower v alu e trav eler. W ill eat two

m eals th ere a day at $ 1 4 - 1 8 , m ay or m ay not stay in a h otel

� Prov ide entertainm ent f or p eop le of all ag es � Prov ide q u ality restau rant op tions of m any

ty p es

T rav el infl u enced by m ark eting ef f orts: � I nternational/n ational tou rism � O u tdoor enth u siasts

� 2 9 % f or ou tdoor recreation � 2 3 % f or tou ring � 1 8 % f or sp ecial ev ent

� F oster an env ironme nt th at encou rag es v isitors to stop f or u niq u e ex p eriences

� Be tter way fi nding to ex isting attractions � Prov ide a v ariety of restau rant op tions,

esp ecially limi ted serv ice “ g rab and g o” establish me nts

� Su p p ort and ma rk et bu sinesses th at p rov ide ou tdoor ex p eriences

Wh at infl u ences th em?

Wh at th ey do

I mp lications f or Action Plan

MARKETABLE TRAVELERS

NON-MARKETABLETRAVELERS

1 7

MRC FINANCIAL ASSESSMENT


I m p lem enting th e sp ecifi c p roj ects identifi ed in th is Action Plan will req u ire p u blic inv estm ent. Urban renewal p rov ides a f u nding sou rce f or th ese p roj ects th rou g h th e u se of tax increm ent fi nancing ( T I F ) . T h is ch ap ter describes h ow u rban renewal work s to g enerate T I F , and p rov ides an ov erv iew of th e cu rrent fi nancial cap acity of th e D istrict.

How Urban Renewal Works

Urban renewal is a com m u nity rev italiz ation tool th at cities and cou nties are au th oriz ed to u se th rou g h O reg on state statu tes (O RS 4 5 7 ) . Br oadly , th e p u rp ose of u rban renewal is to elimi nate dev elop m ent barriers ( ref erred to as "b lig h t" in th e statu tes) and to im p rov e and rev italiz e th e u rban env ironm ent by inv esting th e g rowth in tax rev enu es in u rban renewal p roj ects ( su ch as storef ront imp rov em ents, new p u blic inf rastru ctu re and street f u rnitu re, or new dev elop m ent) .

T ax increm ent fi nancing is th e p rim ary m ech anism u sed to g enerate f u nding in u rban renewal areas. As sh own in Exhibit 8, TI F rev enu es are g enerated wh en a desig nated u rban renewal area is establish ed and th e assessed v alu e of all p rop erty in th e area is " f roz en" ( called th e frozen base). O v er time , th e total assessed v alu e in th e area increases abov e th e f roz en base, f rom ap p reciation of ex isting p rop erty and f rom new tax able inv estm ent. T h e assessed v alu e in th e area abov e th e f roz en base is called th e incremental assessed value.

Th e tax ing j u risdictions th at ov erlap th e u rban renewal area continu e to collect tax rev enu e f rom th e f roz en base, bu t tax rev enu e g enerated f rom th e increm ental assessed v alu e g oes to th e u rban renewal area. Th e u rban renewal area can th en incu r debt ( su ch as bonds or lines of credit) to p ay f or p roj ects identifi ed in th e u rban renewal p lan. Th e TI F rev enu es are u sed to rep ay th is indebtedness.

Financial Capacity of the Madras Urban Renewal District

T h e Madras Urban Renewal Plan was establish ed in 2 0 0 2 and h as been collecting T I F rev enu e and m ak ing p u blic inv estm ents in th e D istrict f or ov er a decade. C om p aring th e D istrict’ s cu rrent rev enu e stream to its ou tstanding fi nancial oblig ations rev eals th e D istrict’ s cu rrent fi nancial cap acity .

Urban renewal areas ty p ically incu r debt— or borrow ag ainst f u tu re T I F rev enu es— to p ay f or p roj ects. O f th e $ 3 5 5 , 0 0 0 in T I F rev enu e p roj ected to be receiv ed by th e D istrict in F YE 2 0 1 7 , $ 3 3 5 , 0 0 0 is com m itted to debt serv ice and oth er long - term fi nancial oblig ations. T h ese fi nancial oblig ations inclu de $ 7 5 , 0 0 0 p er y ear f or th e new Madras Police St ation/ C ity H all, $ 7 0 , 0 0 0 p er y ear f or Materials and Se rv ices related to m anag em ent and adm inistration of th e D istrict, and $ 1 8 0 , 0 0 0 p er y ear in loan p ay m ents f or p ast p roj ects, inclu ding bu t not lim ited to I nn at th e C ross K ey s, Madras C inem a 5 , F aç ade I m p rov em ent p roj ects, and rem ediation of p rop erties f or redev elop m ent. Appendix D: Financial Analysisinclu des inf orm ation on th e fi nancial cap acity f or th e D istrict.

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Tax

Rev

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Taxes on Growth: To Urban Renewal Area

Frozen Base: To Taxing Jurisdictions


I ncreased fi nancial cap acity is m ost lik ely to com e f rom g rowth in TI F rev enu e. Th u s, th e D istrict m u st increase its fi nancial cap acity in order to inv est in th e p roj ects ou tlined in th is Action Plan.

G rowth in TI F rev enu e is dep endent on an increase in assessed v alu e in th e D istrict, wh ich can com e f rom two sou rces: (1 ) ap p reciation in ex isting p rop erty v alu es, or (2 ) new dev elop me nt. O reg on law cap s ap p reciation on ex isting p rop erties at no m ore th an 3 % p er y ear in m ost situ ations, and th e assessed v alu e of th e D istrict h as h istorically ap p reciated at less th an 3 % p er y ear. T h at me ans th at sig nifi cant increases in assessed v alu e in th e D istrict will lik ely be dep endent u p on new dev elop m ent.

F or th is reason and oth ers, th is Action Plan p rioritiz ed p roj ects th at su p p ort and cataly z e new dev elop m ent in th e D istrict. I n C h ap ter I V of th is Action Plan, we describe th e p rop osed inv estme nt strateg y f or th e D istrict to p rioritiz e increasing th e D istrict’ s fi nancial cap acity in early y ears, to ensu re th e D istrict h as th e cap acity to ach iev e all of its g oals in th e long -t erm .

1 9I nv estme nt F rame work

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Th e situ ation assessm ent in C h ap ter I I I m ak es it clear th at caref u l and strateg ic inv estm ent is necessary . T h is ch ap ter establish es a f ram ework f or inv estm ents in p u blic imp rov eme nts th at can be coordinated with p riv ate inv estme nts to cataly z e dev elop m ent th at alig ns with th e commu nity ’ s v ision f or th e area.

Th is inv estm ent f ram ework tak es th e f orm of th e classic “5 W’ s” ( W h o, W h at, W h ere, W h en, and W h y ) u sed f or org aniz ing news stories. I t serv es as th e org aniz ing me ch anism f or th e p lan’ s actions.

Who: The Partners

Su ccessf u l im p lem entation of th e Action Plan will req u ire tim e and energ y f rom m any p artners with in th e C ity . So m e of th e p roj ects necessary to sp u r dev elop m ent and im p rov e conditions in th e URD will not be led by th e MRC , bu t by oth er p artners. Br ing ing new p riv ate inv estm ent into th e com m u nity is a k ey g oal of th is Action Plan, req u iring th e coordinated ef f orts of m any p artners. T h e C ity will work with th ese p artners and track p rog ress toward th e g oals identifi ed in th is p lan.

City MRC

Residents

DowntownBusinesses

Community Groups

Chamber

ODOTEc. Dev and

TourismOrgs

I MPL EM EN TER S

PART N ER S

T h e g rap h ic abov e sh ows th at th e C ity and MRC are th e lead im p lem enters f or th e dev elop m ent- related actions inclu ded in th e p lan, bu t th at m any p artner org aniz ations will h elp to bring m any of th e p roj ects to f ru ition th at do not directly alig n with MRC near- term inv estm ent g oals.

F rom a p riv ate real estate dev elop m ent p ersp ectiv e, p eop le inv est in real estate to realiz e fi nancial g ain f rom rents p aid by tenants. T enants’ willing ness to p ay h ig h er rents dep ends on th eir p ref erence f or a p articu lar location ov er oth ers. G enerally , th ree k ey elem ents infl u ence p riv ate real estate dev elop m ent decisions:

� Mark et conditions inclu ding rent lev els, land v alu es, v acancy rates, av ailability of fi nancing , comp eting su p p ly , etc.

� Th e reg u latory f ram ework and inf rastru ctu re th at sh ap e dev elop me nt p lans and serv e av ailable land.

� T h e av ailability / su itability of land, inclu ding p rop erty ownersh ip p atterns, soil conditions, etc.

Th e p u blic sector, cities in p articu lar, can infl u ence real estate m ark ets and redev elop m ent p otential u sing a v ariety of tools. Th ese inclu de u rban renewal f u nds, dev elop m ent reg u lations, oth er incentiv es, inf rastru ctu re inv estm ents, and, in some cases, p artnering with th e p riv ate sector to imp rov e dev elop m ent f easibility .


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What: Vision for Madras

I n th e ex tensiv e ou treach condu cted as p art of th is p lan, Madras’ residents are clear th at th ey want a better f u tu re f or th e com m u nity . Th e v ision statem ent is an asp irational, long -t erm descrip tion of Madras th at cou ld resu lt f rom th e su ccessf u l imp lem entation of th is Plan:

Madras’ position as the hub of River Canyon Country attracts visitors and new residents who appreciate the community’s commitment to quality of life. The City’s core is a recognizable, vibrant destination with public and private investment in small scale shops, a mix of restaurants, and cultural amenities that reflect the area’s diversity.

Th is v ision can be im p lem ented ov er tim e th rou g h sp ecifi c, concrete actions, described in Chapter V.

When: Phasing Over Time

Th e C ity ’ s p rev iou s inv estm ents h av e created th e f ou ndation f or p riv ate inv estm ent, rem ov ing inf rastru ctu re barriers and encou rag ing g reater dev elop m ent certainty . Th e MRC ’ s role is to cap italiz e on th ose p u blic inv estme nts by sp u rring a set of cataly tic p riv ate inv estme nt p roj ects. Th e C ity will not im p lem ent all of th e imp rov em ents in th e area at once; lim ited resou rces and p riv ate m ark et barriers req u ire p rioritiz ation and p h asing ov er time .

Th e p h asing sh ows th e g eneral seq u ence f or th e imp leme ntation of p roj ects in th ree categ ories. MRC -led p roj ects and p olicies are im p lem ented fi rst as op p ortu nities arise, in th e near- term . Placem ak ing and ame nity p roj ects occu r in th e m ediu m - to long - term as f u nding become s av ailable and p artners com e on board.


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Where: Investment Zones

D if f erent areas with in th e C ity of Madras req u ire dif f erent ty p es of actions. Exhibit 10 ( on th e f ollowing p ag e) sh ows th at dif f erent strateg ies are ap p rop riate in dif f erent g eog rap h ies of th e D istrict.

� North and South Corridors. I nv estm ents in th ese areas will g enerate th e m ost T I F in th e near term . I n th ese areas, URD p articip ation will h ing e on th e ability f or th e C ity to p artner with p rop erty owners or dev elop ers to g enerate T I F inv estm ent th rou g h p u blic su p p ort.

� Core Investment Area. Wi th in th e core, th e MRC ’ s f ocu s will be h elp ing to create a comp act, walk able downtown th at serv es residents and tou rists at th e sam e time . Th e C ity is cap italiz ing on th e traf fi c cou nts fl owing down th e h ig h way to g enerate m ore dev elop m ent th at m ig h t want to tak e adv antag e of h ig h way f rontag e. I n th is area, th ere are some inf rastru ctu re issu es th at h inder dev elop me nt on sm aller sites. G iv en th e com mu nity ’ s desire f or a tru e downtown in Madras, th e C ity will m ak e p roactiv e inv estm ents to h elp sp u r dev elop me nt ov er time , as URD dollars are av ailable.

Exhibit 9 sh ows th e URD inv estm ent core, and wh ere th e C ity will f ocu s m ore p roactiv e inv estm ents. T h e two g eog rap h ies dep icted in th is m ap h av e dif f erent MRC obj ectiv es:

� Urban Core. T h e u rban core is wh ere th e C ity sh ou ld f ocu s on inv estm ent in inf rastru ctu re th at will f oster downtown- scale retail, in coordination with bu siness owners and com m u nity g rou p s. G iv en th e constrained u rban renewal f u nds, inv estm ent in th ese ty p es of p roj ects is lik ely to h ap p en in f u tu re y ears and at lower am ou nts.

� Civic Core. Th is area is cu rrently h om e to m any k ey g ov ernm ent and retail serv ices. T h e g oal f or th is area will be to continu e to serv e th e com m u nity , bu t with a g reater div ersity of serv ices su ch as p rof essional serv ices, rep air sh op s, h ealth serv ices, ch ildcare, etc.

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Why/How: Near-Term Investment Criteria

A set of sp ecifi c criteria inf orm s th e Plan’ s p h asing and determ ines h ow resou rces will be ex p ended. MRC dev elop ed an initial set of criteria th at incorp orated th e situ ation assessm ent fi nding s, com m u nity inp u t, and p riorities. Th e criteria articu late a set of near- term ou tcom es th at are needed in th e URD . O v er tim e, as th e fi nancial situ ation stabiliz es and if th e f easibility f or new dev elop m ent ch ang es, dif f erent criteria can g u ide th e nex t set of inv estm ents f or Madras. Any p roj ect th at th e MRC inv ests in du ring th e near- term sh ou ld:

� Generate tax increment. Th e inv estme nt will g enerate mo re tax increme nt rev enu e th an th e p u blic inv estm ent req u ired.

� Support development on an underutilized or vacant site. Th e inv estme nt rep resents a time ly op p ortu nity f or inv estme nt on a p rev iou sly u nderu tiliz ed site.

� Catalyze additional redevelopment. Th e inv estm ent is lik ely to sp u r additional dev elop me nt on oth er sites th at will not req u ire p u blic inv estm ent.

Exhibits 11, 12, and 13 sh ow p otential op p ortu nity sites with in th e th ree inv estm ent z ones identifi ed in th is f rame work .

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POTENTIAL PROJECT: 4TH AND C STREET

Th e ex isting site of th e Madras H otel Motel is considered an op p ortu nity site f or f u tu re dev elop m ent g iv en its location in th e C ity ’ s u rban core and along th e cou p let and th e ag e of th e stru ctu res. T h is diag ram sh ows th e amo u nt of dev elop m ent th at cou ld occu r on th e site, g iv en ex isting dev elop m ent reg u lations. N ew dev elop m ent on th e site sh ou ld inclu de v isu ally p leasing bu ilding s th at are bu ilt directly adj acent to th e sidewalk , with p ark ing beh ind th ose bu ilding s, as sh own in th e ex am p le im ag es below.

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POTENTIAL PROJECT: CREDIT UNION SITE

Th e MRC - owned p rop erty bordering th e Mid O reg on C redit Union site at SE 5 th and SW F St reet was stu died f or redev elop m ent in 2 0 0 7 . T h e dem onstration p lan below sh ows th e p rop osed new bu ilding f ootp rints as an ex am p le of p otential dev elop m ent confi g u ration on th e site. N ew comme rcial dev elop m ent sh ou ld be bu f f ered f rom th e ex isting h ome s to th e east with trees or u sing th e ex isting g rade ch ang e between SE 5 th and 6 th streets.

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2 9Action Plan Proj ects

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Wi th targ eted inv estm ents and p artnersh ip s, Madras cou ld ach iev e its v ision f or a m ore activ e com m ercial core. T h e strateg ic u se of u rban renewal f u nds will clarif y th e C ity ’ s desires and v ision f or th e D istrict, and increase p riv ate-sector confi dence in inv esting in th e D istrict. I t will also p rov ide a bridg e f or p ioneering dev elop m ent p roj ects to ov ercom e th e sig nifi cant fi nancial g ap in th e D istrict. Ba sed on th e obj ectiv es and criteria ou tlined in C h ap ter I I I , th is ch ap ter ou tlines eig h t near- term op p ortu nities.Attracting new dev elop m ent to Madras will tak e a coordinated ef f ort on beh alf of th e C ity , bu sinesses, p riv ate inv estors. Be cau se lim ited p u blic f u nds are av ailable f or cap ital p roj ects and p rog ram s, it is necessary to p rioritiz e th ese inv estm ents. Th e Action Plan recomme nds two distinct categ ories of p roj ects as a way to org aniz e u se of p u blic m oney .

� MRC Priority Proj ects. Th ese p roj ects, sh own in Exhibit 14, h av e th e h ig h est com mu nity su p p ort and/o r m et all th e criteria described in C h ap ter I V . F or mo st of th ese p roj ects, th e MRC and C ity wil lead imp leme ntation. I n th e case of two p roj ects ( F and H ), th e MRC will p rov ide targ eted assistance to a p artner to imp leme nt th e action.

� Partnership Projects. Sh own in Exhibit 15, th ese p roj ects rank ed low or me diu m based on th e action p lan criteria, bu t nev erth eless h ad mo derate com m u nity su p p ort. Wh ile th e C ity and MRC can su p p ort th ese p roj ects wh en p ossible, su p p orting , f u nding , and commi tme nt f rom org aniz ations bey ond th e C ity will ensu re imp leme ntation.

The following tables show:

Community Support. T h ese scores are based on h ow p roj ects were rank ed in th e su r v ey s of area residents and em p loy ees.

Meets Criteria. T h ese scores are based on h ow th e p roj ect m eets th e MRC sh ort- term critieria.

� Generate tax increment. Th e inv estm ent will g enerate m ore tax increm ent rev enu e th an th e p u blic inv estm ent req u ired.

� Support development on an underutilized or vacant site. T h e inv estm ent rep resents a tim ely op p ortu nity f or inv estm ent on a p rev iou sly u nderu tiliz ed site.

� Catalyze additional redevelopment. Th e inv estm ent is lik ely to sp u r additional dev elop m ent on oth er sites th at will not req u ire p u blic inv estm ent.

Guide to Action Plan:

MRC-led Projects...................................30

Partnership Projects..............................31

Project Sheets........................................32


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PROJECT RATIONALE CITY/MRC ROLE AND PARTNERS COM SUPPORT

MEETS CRITERIA

A Recru it g eneral me rch andise store

T op commu nity need, wou ld h elp to cataly z e oth er dev elop m ent in downtown.

C reate recru itm ent p ack ag e and targ et ou treach to ap p rop riate retailers.

Partners: C h am ber, I nv estors

H ig h H ig h

B Recru it brewery and/o r restau rants

T op commu nity need, not cu rrently p rov ided by ex isting restau rants, wou ld h elp to cataly z e oth er dev elop m ent in downtown.

C reate recru itm ent p ack ag e and condu ct ou treach

Partners: C h am ber, bu sinesses, Ag C om m u nity , I nv estors

H ig h H ig h

C D ev elop a toolk it to enable th e C ity to 1 ) be recep tiv e to dev elop me nt op p ortu nities and 2 ) create ong oing relationsh ip s with dev elop ers.

En cou rag es C ity to nu rtu re relationsh ip s with dev elop ers and p osition p rop erties f or redev elop m ent th rou g h m ark eting and decreasing land costs.

D ev elop m ark eting ap p roach , create incentiv e p ack ag e, track op p ortu nities.

Partners: C h am ber, C om m ercial Realtors, Prop erty O wners, D ev elop ers

H ig h H ig h

D C larif y dev elop m ent p rocesses

Remo v es dev elop m ent barrier and imp rov es p ercep tion am ong dev elop m ent com m u nity .

D ev elop com m u nications m aterials and identif y any necessary p rocedu re ch ang es

Partners: C h am ber, L ocal D ev elop ers

L ow H ig h

E Ex p lore ch ang es to F aç ade I mp rov eme nt Prog ram

T op commu nity desire, su p p orts ex isting bu sinesses and creates a f eeling of “i nv estm ent” in th e area.

Ex p lore m eth ods to restru ctu re p rog ram to f ocu s sp ecifi cally on core area, identif y m easu rable inv estm ent p aram eters, work with com m u nity p artners.

Partners: Prop erty O wners, D owntown Bu sinesses, C h am ber

H ig h Med

F D owntown clean u p p rog ram

Promo tes commu nity ownersh ip of downtown m aintenance and allows f or creativ e solu tions toward addressing blig h t in downtown.

Prov ide targ eted f u nding or oth er su p p ort.

Partners: Prop erty O wners, D owntown Bu sinesses, C om m u nity G rou p s

H ig h H ig h

G C ore area sidewalk imp rov eme nts

Remo v es a dev elop m ent barrier and su p p orts connectiv ity .

Plan f or and f u nd sidewalk cap ital im p rov em ents.

Partners: D owntown Bu sinesses, C om m u nity g rou p s, O D O T

H ig h Med

H I mp rov eme nts to p edestrian saf ety on H ig h way 2 6 /9 7 .

I mp rov es p edestrian saf ety and mo bility . I mp rov em ents inclu de new crosswalk s, traf fi c calm ing imp rov em ents, and lower sp eed limi ts. Priority intersections inclu de 4 th and E St .

W ork with O D O T to identif y p rocesses to im p rov e p edestrian saf ety .

Partners: C ity , O D O T

H ig h Med

3 1

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Action Plan Proj ects

*Th e commu nity su r v ey did not inclu de a q u estion reg arding th is Proj ect 7 .

PROJECT RATIONALE CITY/MRC ROLE AND PARTNERS COM SUPPORT

MEETS CRITERIA

1 I nstall sig nag e to h elp p eop le fi nd ma j or attractions and p romo te bu sinesses.

Promo tes downtown Madras as a coh esiv e destination.

Chamber

Partners: C ity , bu sinesses, com m u nity g rou p s

Med Med

2 C ore area beau tifi cation: Ex p and downtown fl ower and street tree p rog ram , install street f u rnitu re, ex p lore op tions f or temp orary landscap ing .

Promo tes downtown Madras as a coh esiv e destination.

City/MRC

Partners: C om m u nity g rou p s, bu sinesses

Med Med

3 I ncrease conv enience f or v isitors by creating a “w elcome center” with clean restrooms , dog f acility , and inf orm ation on local attractions.

Promo tes Madras as a g ood stop p ing p lace f or trav elers with g ood am enities.

ODOT/ MRC

Partners: C ity , C h am ber, C entral O reg on

Med L ow

4 W ork with reg ional p artners to attract mo re residents to Madras to su p p ort th e URD ' s bu sinesses.

C reates op p ortu nities f or m ore cu stome rs of URD bu sinesses.

City

Partners: L ocal h ou sing nonp rofi ts, C h am ber, bu sinesses

L ow H ig h

5 C reate and or su p p ort new downtown ev ents in p artnersh ip with local commu nity g rou p s to attract residents and v isitors to downtown Madras.

Su p p orts local com m u nity and p romo tes celebration of local assets.

Chamber

Partners: C ity , O D O T , com m u nity g rou p s, C h am ber

Med Med

6 Su p p ort f orma tion of a downtown bu siness association th at can ma rk et downtown.

C reates a coh esiv e downtown bu siness com m u nity th at can su p p ort downtown bu sinesses in a way th at th e MRC , C h amb er, and C ity cannot.

Chamber

Partners: Bu sinesses, com m u nity g rou p s, MRC , C h am ber, RARE Prog ram

Med Med

7 I ncrease conv enience f or v isitors by creating a “w elcome center” with clean restrooms , dog f acility , and inf orm ation on local attractions.

F osters entrep reneu rsh ip and p rov ide p ath way s to access cap ital and oth er resou rces.

City

Partners: C om m u nity g rou p s, ED C O , C h am ber

N / A* Med


DETAILED PROJECT SHEETS

A Recruit General Merchandise Store

Why: Rationale Who: Lead

The need for better general merchandise retail opportunities was the most frequently retail cited need among residents and stakeholders. General merchandise includes any non-food or non-grocery products, such as clothing, outdoor gear, cosmetics, jewelry, and other sundries. In a survey of area employees, a third of employees living outside of the city cited the lack of as a reason why they did not choose to live in Madras. In addition, the commercial development opportunities analysis showed an untapped demand for a general merchandiser. Recruiting a general merchandiser to Madras could help to catalyze other development along the north and south corridors.

MRC

What: Project Description

The MRC will refine and implement a comprehensive strategy to attract a general merchandiser or a store (like Fred Meyer) that offers general merchandise goods in addition to grocery products. Beginning with the information in the Commercial Development Opportunities Analysis, the City will create a refined “recruitment package” that can serve as a starting point in marketing available sites to potential tenants and developers. The recruitment package will consolidate data regarding market demand, incentives, development processes and permitting information, and the benefits of Madras in one location. This analysis will help the MRC prepare for conversations with potential general merchandise partners on future deal structures and entitlement issues. The MRC will then target outreach to appropriate retailers.

How: Implementation Steps

Create Recruitment Package. The Commercial Development Opportunities Analysis provides much of the following information, but some additional research may be needed: § Market demand:

- Definition of trade area - Demographics (population, households, average HH income, median HH income, growth trends)

compared with the retailers’ site & demographic criteria § Competitive advantages:

- Retail leakage information on unmet retail demand within specific categories - Possible capture rate from tourists and employees - Competitor analysis

§ Retailer perspective: - How Madras meets the retailer’s business needs and wants - Data on specific consumer preferences

§ Incentives available: - The materials should describe the type of assistance that could be available, including low-interest

or forgivable loans, infrastructure assistance, or grants. This funding should be tied to the investment criteria in the plan to ensure that the proposed development meets community needs.

§ Development sites: Each retailer will have a specific set of site requirements, but the MRC can bring information from this action plan that helps to identify sites that would be suitable for new retail. A 20,000 square foot general merchandiser will be looking for a site that is two to three acres in size.

Target outreach to appropriate retailers. § Consider attendance at International Council of Shopping Centers events. The MRC can bring

summarized, refined findings of the information in a set of materials for prospective investors. More information on approaching these types of conventions can be found at icsc.org

§ Identify attraction/recruitment specialist. The MRC should consider working with a reputable retail recruiter to market the URD with potential retail brands and guide the MRC through this process.

Project Sheets 33

Examples of retail site analyst firms include Retail Research Group, the Retail Coach, and Buxton Co.

§ Support any existing retailers that are ready to expand their lines of business or size of their stores.

Identify opportunities for Public-Private Partnerships Using the development toolkit identified in Project C, identify possible sites, and work with property owners to make sites available when an interested retailer is ready to invest. Market these sites to brokers and others.

When: Phasing Short-term, high priority

Partners Chamber

Funding Considerations

Staff time for outreach Consulting contract with recruiter and to produce marketing materials (if done in house, then the cost is just staff time and printing costs) Incentives package for individual developments


B Recruit Brewery


The recruitment of a brewery to downtown Madras was a high priority among survey respondents and could help to spark other investments in downtown by capturing business from visitors. At the same time, a larger production brewery facility would create jobs in Madras that would help to recruit new residents to support other District businesses.

MRC


The MRC will work to recruit a brewery to Madras our unique assets. There are generally two categories of breweries: small production facilities or brewpubs (under 5,000 square feet and around $700,000 in investment) and larger production facilities (around 10,000 square feet, and $2 million in investment).1


§ Issue identification and initial connections. - Hold meetings with Central Oregon brewery representatives to understand needs. - Identify and work with possible brokers or consultants to position Madras. There are

consultants that work exclusively with breweries to help to identify potential growth opportunities and manage the brewery startup process. The MRC could consider working with one of these consultants to identify potential brewery partners and market the MRC’s offerings.

- Explore partnerships with the agricultural community, including the Mecca Grade Malt operation north of Madras.

- Based on these conversations, identify sites that meet brewery requirements. These include, truck loading, a site with topography for gravity flow, and adequate power and water supply.

§ Create brewery recruitment collateral. Develop summary of Madras’ advantages for a brewery, including: high quality water, lack of competition, low cost of doing business, quality of life, through traffic, existing businesses (including Malt Grade’s estate malt operation). The material should include the following: - Letter of introduction including compelling reasons why downtown Madras makes sense for their

business. - General information and photos of the community highlighting its assets. - Current downtown market position and goal statements. - New developments demonstrating public and private investment downtown. - Trade area geographic definition and demographic and lifestyle data. - Non-resident consumer data (including daytime population and tourism visitation). - Major employers and institutions. - Vehicle and pedestrian traffic volume. - Mix of existing retail, service, dining, housing, office, and lodging in the market area. - Press coverage and testimonials highlighting success stories. - Downtown opportunity sites (based on information gathered in the first step). - Summary of city and other public incentives and other business assistance available in the

business district. § Identify leads. Use the information above to contact emerging entrepreneurs, existing businesses,

and brewery consultants. In addition, the MRC should consider hiring a brewery consultant to contact successful existing breweries in other locations that may be interested in expanding or even relocating to new locations to take advantage of potential new markets – or, know of former employees, business partners, or other potential recruited individuals who would be interested in a

1 Conversation with Tomas Sluiter, Brewery Consultant.

Project Sheets 35

starting another brewery. § Send letters of introduction and make recruitment calls. Document these calls meticulously. § As opportunities arise, identify suitable sites, work with property owners to make sites

available, and negotiate a public-private partnership.

When: Phasing Short-term

Partners Chamber, businesses, ag community, investors


Marketing materials Staff time for outreach Incentives package for individual developments to be determined


C Development Recruitment Toolkit


Technical analysis and outreach point to a need for new development in Madras, and specifically in the Urban and Civic Core. In open houses and community surveys, Madras residents and downtown stakeholders discussed a strong desire for a more vibrant “heart” in Madras that includes new retail opportunities, more attractive storefronts, and a more visible center for the community. New development generates revenues needed to support future investments. However, downtown Madras’ development market and existing development create barriers to site development and reduce development feasibility. Most of the recent new development in the District has therefore been incented through public investments. A targeted developer outreach strategy and predevelopment program could help to focus investments in the core and create a more vibrant market that may not need as much support in the future.

Findings from outreach and analysis will provide fodder for attracting new private investment in the District. One of the City’s key assets is relatively low-cost vacant and undeveloped land. The Action Plan includes an inventory that can be a helpful starting place for connecting interested developers with potential projects.

MRC


This action creates a system for developer outreach and opportunity tracking. It also outlines targeted development assistance in the form of MRC grants/loans and predevelopment assistance.


§ Develop a consistent approach to marketing to developers, brokers, and property owners.

- Hold an annual or bi-annual developers / brokers roundtable program to bring together development community representatives, gather their input on how the development market is changing, and provide them with information about available properties and the development support programs that the City provides. Invite developers from around the region to attend, including Portland-area development entities.

- Develop and maintain a set of marketing materials regarding development opportunities and City / MRC programs to support new development.

- Maintain relationships with key property owners to understand their plans for improvements or changes to their properties.

§ Target MRC grant/loan funding. - Support potential investors or property owners as they consider redevelopment of their properties

in uses that match the vision for the District. This support may take the form of predevelopment assistance (see below) or grants or loans to underwrite construction costs.

- Ensure that those investments are financially sound by evaluating tax increment revenues associated with new development and comparing them to the upfront public investment necessary to catalyze development. Consider using a predevelopment agreement (a legally-binding agreement between the City and a developer or property owner) to ensure that public goals are met and to provide certainty to the private partner.

§ Continue to evaluate opportunities to sell or redevelop City and / or District-owned properties; consider opportunities for redevelopment on other publicly-owned properties. Catalyzing redevelopment is easiest on sites that are publicly-controlled. With site control, the City could release an RFP to identify developer and partners and develop a conceptual plan for the site. - Carefully consider whether the sites are well-located for catalyzing redevelopment in the

core. If not, selling them could help to capitalize urban renewal funds and provide financial resources to support other projects.

Project Sheets 37

- If any sites are appropriate for redevelopment, carefully consider public-private partnership to move the project forward. The public sector will have the greatest leverage near the beginning of a market cycle (not at the peak, as it appears to be at the time of this Action Planning process), when construction costs are lowest and when developers are seeking new projects.

§ Track opportunities to pursue property acquisition in the core area. If a suitable opportunity arises, the MRC can help prepare the parcel for sale/redevelopment; master plan for new retail and services destination.

Predevelopment assistance. The City can work with a developer or property owner to assist with typical due diligence issues (site design or engineering, property consolidation, market analysis, permitting, financial analysis), to help catalyze projects that align with the goals of the Action Plan.

When: Phasing Near-term, with ongoing attention throughout the life of the URD

Partners Developers, property owners, brokers, development financers, Chamber


Staff time to convene local developers and put together systems to track development opportunities. Specific incentive levels will be determined through negotiation on individual development proposals.


D Clarify Development Processes


Stakeholder outreach conducted as part of this Action Plan process uncovered a sentiment among some that the City’s development processes permitting, development fees, etc. are overly complicated and expensive, and may be driving away or stopping new development from occurring. A review of the City development processes and regulations by property owners, realtors, developers and Chamber will provide feedback to City staff on any necessary changes to the City development processes and standards. A review of systems development charges led by City staff found that Madras’ fees are cost competitive with other cities in Central Oregon.

MRC


Clearly document the steps in the development permitting process, fees involved, and other requirements. The purpose of this project is to clearly document, share data, and inform stakeholders regarding how Madras’ processes work, development regulations, where funds go, and how its development fees stack up to surrounding communities, so that lack of clarity around development processes cannot act as a hindrance to development.


§ City staff is to hold an annual meeting to review the City’s development processes, regulations, and fees, and solicit feedback from property owners, realtors, developers, and financiers

§ Develop communications materials (web content and brochures) § Work with counter planning staff to ensure consistency in communication and application of all

requirements. Consider using the “Development Ready Communities” framework developed for jurisdictions in the Portland Metro area.

§ Evaluate options to provide MRC financial assistance for projects that meet certain public goals based on a performance standard.


Partners Local property owners, realtors, developers, financiers


Staff time hold annual meeting to review development processes, regulations, and fees. Staff time to develop materials and update website content. Staff and City Attorney time to amend City ordinances in response to stakeholder feedback Printing costs

Project Sheets 39

E Explore Changes to Facade Improvement Programs


Building maintenance and facade improvements were key themes from Action Plan community outreach. Improving the look of businesses can be important to ensuring that the business captures its market share; however, these investments can be challenging for small businesses to finance. This is particularly challenging for tenants, who do not own and control their properties. The City has made investments to support façade improvements in the past, but could do more to ensure that these investments are made equitably and are truly targeted to achieve public goals.

MRC


Consider adjustments to the structure of existing Madras storefront improvement programs. Options include:

§ Focus improvements on the core area. Limiting grant-eligible properties to just the core and civic areas of the URD. Other areas could continue to be eligible for storefront improvement loans.

§ Adjust criteria. New criteria for eligibility could be based on the visibility of the building and impact of the improvements on the overall appearance.

§ Provide financial assistance for building maintenance. If there are buildings in the core area that are not in need of a complete façade renovation but need maintenance, financial assistance could be extended to property owners for such work. Building maintenance costs are often less than a complete façade renovation and ensure buildings in the core area are attractive and consistent with the vision for the URD.

§ Change grant specifics. This could involve changing the maximum grant allowed, adjusting the grant/loan balance, and the required or desired financial contribution from a property owner. Another option could be to offer the services of an approved architect to work with owners to develop plans.

§ Target specific properties. In addition to the rolling application process, staff will identify specific buildings that might benefit from Urban Renewal investment and approach property/business owners with a proposal for improvements.

§ Allow tenant improvements. These adjustments could allow small businesses/building owners and would help to fund electrical upgrades, ADA compliance, and other infrastructure that are critical to opening/maintaining a business.


§ Develop and adopt Façade Improvement and Building Maintenance investment policies. Review similar policies of urban renewal districts around the state as a starting place. Implications from this review will inform changes the City makes to program materials and website content for these programs.

§ Identify potential changes to the existing programs to improve participation and ensure more targeted investments. Focus on projects that increase building value, appearance and marketability, including cosmetic improvements (e.g. paint or awnings).

§ Initiate conversations with property owners and brokers to ensure the revisions and policies are responsive to area needs.

§ Edit program materials and website content to state adjusted program parameters.


Partners Property Owners, Businesses, Realtors, Chamber


Laying out the options for annual budget allocations for these programs will be the subject of future MRC meetings.


F Downtown Clean Up Program


Public outreach results show that Madras residents are concerned with the cleanliness and maintenance of their downtown corridor. Cleanliness in the physical environment affects their sense of pride and safety. Further, a tidier downtown would better appeal to tourists and incentivize motorists to stop in Madras rather than passing through.

The MRC / Community Groups


Community-based cleanup of the core of Madras would foster community ownership of downtown through maintenance (the removal of garbage, graffiti cleanup, power-washing, weeding, etc.) as well low-cost improvements to improve the area’s appearance (murals, tree plantings, small-scale painting projects, etc.).

Options for this program could include one or more of the following:

§ An annual or semi-annual volunteer cleanup program that would last half a day and be sponsored by the City and/or local businesses to provide food and materials. The annual or semi-annual clean-up efforts could be completed before the Memorial Day weekend and/or before the City hangs the holiday lights on the street trees in November of each year. An example is the City of Astoria’s Earth Day Clean Up. http://www.astoriadowntown.com/News/1085.

§ A small committee that would commit to different aspects of downtown cleanup on a regular basis (for example, monthly). § Hire low-cost parole and probation work crews to do some of this work on an ongoing basis. § Program to improve appearance of vacant lots with simple things like wildflower seeding or even low hedges to screen from

sidewalks. § Work with the City to explore street sweeping schedule and coordinate with volunteers.


§ Explore partnerships with local groups § Identify funding sources § Identify ongoing projects


Partners Community groups, businesses, Chamber, City, local philanthropic organizations


The cost for sponsorship and materials would likely be low. The main consideration for this program is the level of effort required to organize an event and the ability for such an event to attract volunteers.

Project Sheets 41

G Core Area Sidewalk Improvements


Improving sidewalks in the core area and completing the sidewalk network was a high priority for community members. Addressing these needs can help to make the area more accessible for pedestrians and support connectivity. While the City’s sidewalk Ordinance places the responsibility for sidewalk maintenance upon the adjacent property owner, City provision of sidewalks adjacent to core area opportunity sites can remove a development barrier for potential developers. The City has received complaints about uplifted sidewalks that are in need of repair. Many times, the sidewalk damage has been caused the roots of a street tree.

City of Madras


This project will be implemented using two existing City programs: § Sidewalk Repair Grant Program. The MRC understands the burden to businesses’ to repair their adjacent sidewalks due to

damage caused by street trees and wants to provide relief to the property owner by providing assistance through the Downtown Sidewalk Repair Grant. More information can be found at http://ci.madras.or.us/index.php/city-business/public-works/sidewalk-grant-program/

Capital Improvement Program. The City actively manages a set of capital improvement projects which include future investments in sidewalks. The map below shows the status of existing sidewalks. Streets with a directional classification mean that sidewalks are only present on one side of the street.

§ Exhibit 1 shows the designation of sidewalks in the core area. The biggest gaps exist along north-south streets. In addition, the City should check that its existing palette for new trees includes street trees allow enough growing space to avoid root heave.


§ As part of the process described in Project H, partner with the City and ODOT to repair sidewalks along the U.S. 97/26 couplet.

§ Identify locations for new street tree plantings.

§ Continue to plan for and fund sidewalk capital improvements. § Market sidewalk grant program to property owners located in the core area that have the highest

levels of damage.

When: Phasing Short-term to Mid-term

Partners Downtown businesses, Local community groups, ODOT


Funding sources include the City of Madras Capital Improvement funds and MRC Sidewalk Repair Grant funds


The map below shows the status of existing sidewalks. Streets with a directional classification mean that sidewalks are only present on one side of the street.

Exhibit 1. Downtown Sidewalks

Source: City of Madras GIS

Project Sheets 43

H Improvement Pedestrian Safety on Highway 26 / 97


Traffic on the Highway 26/97 couplet presents many challenges to pedestrians who wish to access businesses in downtown Madras. About 13,000 vehicles per day travel through Madras’ core on the US 26/97 couplet.2 The highways act as a barrier, creating challenges with creating a contiguous business district and a place that feels like a “core” of the City. Improving pedestrian safety along this corridor was a high priority in the Action Plan public outreach process. There have been two significant vehicle-pedestrian accidents at 5th and D Street and 4th and D Street. Additionally, the Dance Studio at 4th and E and the Kids Club at Westside Elementary School generate a lot of traffic weekdays between 3 and 6 p.m.

City of Madras


Improvements should be focused in the core area, and could include new crosswalks and traffic calming strategies such as curb extensions, road diets (in coordination with ODOT), street trees, and on-street parking. Priority intersections include 4th and E St., and other un-signalized intersections or crossings. The City of Madras will work with ODOT to identify processes to improve pedestrian safety.


§ MRC will convene key stakeholders from the business community, Library, School District, City, County, Kids Club, and other community groups to meet with ODOT to identify viable pedestrian crossing and other improvements. This discussion should begin by documenting key pedestrian destinations and possible new development sites in the core area, identifying specific needed improvements at key intersections.

§ With information from that discussion in hand, consider pursuing an ODOT Transportation Growth Management Grant that would allow a more detailed study of transportation issues in this corridor. This process would enable the City to work with ODOT to document necessary investments, feasibility for improvements, and an appropriate phasing strategy.

When: Phasing The community process should be near term, but it is likely to take several years for improvements to take place. Some improvements may be phased with new development.

Partners ODOT, City, School District, Kids Club, Businesses


No near term funding is likely available through the MRC, but a TGM grant could provide funding for a more detailed study of these issues.

2 Summary of Trends at Automatic Traffic Recorder Stations, 2014. http://www.oregon.gov/ODOT/TD/TDATA/tsm/docs/Summary_2014.pdf

Madras Urban Renewal Action Plan4 4

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Th e C ity is well p ositioned to ov ercom e its barriers and ach iev e g rowth . Su ccessf u l im p lem entation of th e actions in th is Plan will req u ire th e collectiv e and coordinated inv estme nts of ma ny indiv idu als and org aniz ations. As a su mma ry , th e actions described in th e Plan seek to imp rov e com p etitiv e p osition by bu ilding on th e C ity ’ s ma ny adv antag es: its p osition at th e h u b of Riv er C any on C ou ntry and in th e center of m any transp ortation connections, its sm all- town f eel, its div ersity , and th e inv estme nt in ame nity th at th e C ity h as already m ade. T o do so, it mu st ov ercom e th e k ey dev elop m ent ch alleng es identifi ed in th e analy sis. At th e h ig h est lev el, h ere’ s h ow th e Plan does th at:

IDENTIFIED DEVELOPMENT BARRIER OR RETAIL NEED ACTION PLAN RESPONSE

L ack of a “h eart” f or th e URD C oncentrates p roactiv e inv estm ent in an identifi ed “ core area”

T raf fi c th rou g h th e C ity

� Recog niz es som e of th is traf fi c as an op p ortu nity , and recomme nds attractions and new bu sinesses to cap tu re g reater sales

� Recog niz es th at im p rov em ents at th e N orth and So u th Ys h av e already im p rov ed fl ow

� C reates a core th at inclu des east- west streets as well as th e h ig h way cou p let, to g et som e traf fi c of f of th e h ig h way in a mo re walk able and u rban env ironm ent

F loodway limi ts dev elop m ent op p ortu nities

� C learly identifi es dev elop m ent op p ortu nities th at th e fl oodway does N O T im p ede

� A comi ng fl oodway rem ap p ing p rocess is lik ely to ch ang e th e location of th e fl oodp lain; Plan recog niz es th e need to rev isit dev elop m ent op p ortu nities th rou g h th is p rocess

W eak m ark etAction Plan recog niz es th e need to su p p ort new dev elop m ent in a weak m ark et, and p rioritiz es th ose p roj ects th at will cataly z e additional new dev elop m ent

N eed to targ et “ m issing ” ma rk et seg me nts to redu ce retail leak ag e

Actions inclu de a f ocu s on creating op p ortu nities to k eep local dollars local ( th rou g h attracting a g eneral m erch andise retailer) and to cap tu re new sales and new dev elop m ent ( th rou g h attracting a brewery or distillery and creating a m ore recog niz able core f or th e C ity )

Madras Urban Renewal Action Plan

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