Letter to PDC Feb 23, 2010

DATE: February 23, 2010
TO: Chair Scott Andrews
PDC Board of Commissioners
FROM: League of Women Voters of Portland
CC: Commissioner Nick Fish
Margaret Van Vliet
Kate Allen
Steve Gray
Julie Massa
Lisa Abuaf
RE: Action item: Agreement of Assignment and Assumption of PDC's Rights in Block 33 of the South Waterfront Project of the North Macadam Urban Renewal Area to the Oregon Heath Sciences University and the Ninth Amendment to the Central District Development Agreement
The League of Women Voters of Portland has followed the North Macadam Urban Renewal Area development since the inception of the steering committee responsible for the district's 1999 Framework Plan. Over the years, we have encouraged PDC to leverage effectively urban renewal dollars with an emphasis on funding amenities that private developers would not undertake, including parks, the greenway, and housing affordable to a broad spectrum of incomes.
The Central District Development Agreement obligated North Macadam Investors to develop 400 units of affordable housing subject to the availability of sufficient PDC financing. The obligation to develop those units was assumed by the city when the 8th amendment was executed in 2006. Block 33 was identified as the location for those units at that time. That obligation will be cancelled in the Ninth Amendment and PDC will give up the air rights in return for $1 million in transportation system development charge credits currently owned by OHSU plus 25 percent of any profits realized by OHSU should it sell the property within seven years, up to a maximum of $2 million. It is worth noting that PDC paid $3 million for the air rights.
The League is extremely concerned about the future of this district in terms of the affordable housing commitments made in the Central District Development Agreement, the district wide affordable housing targets, and the city's broader equity goals. The North Macadam Urban Renewal Area Housing Development Strategy states that of the first 3,000 housing units produced, 788 will be affordable to households earning up to 120 percent of MFI (754 units affordable up to 100 percent of MFI). The Central District Development Agreement called for a minimum of 200 units developed in Phase 1 and 230 units in Phase 3. If development of more than 3,000 units occurs additional future development will match the city's income profile.
The North Macadam urban renewal area is 11 years old. To date not one unit of affordable housing has been developed. Many of the other projects outlined in the plan and the Central District Development Agreement, however, have been completed or are near-complete including the OHSU tram, streetcar, condo towers, streets and sidewalks, and Elizabeth Caruthers Park. During the early planning for this district fears were expressed that this area might become an enclave for the wealthy. Given the amount of public resources that will be devoted to this district we urge you to ensure that fear is not borne out.
In 2006, when the 8th amendment was adopted, PDC believed Block 33 was a viable option for 400 units of affordable housing. We do not understand why this is no longer the case and encourage you to ask that question of staff involved in negotiating the deal. Furthermore, the 8th amendment transferred the obligation to develop 400 units of affordable housing from North Macadam Investors to the city. What are the plans for fulfilling that obligation?
The League also urges you to ask PDC and housing bureau staff on Wednesday how they plan to meet district wide affordable housing goals and ensure that the significant public investment in South Waterfront benefits Portlanders at all income levels.