Contact: Shawn Uhlman, PDC, 503-823-7994
June 24, 2015
At its June 24, 2015 meeting, the PDC board approved agreements that will advance three significant projects in the Lents Town Center, marking a milestone in PDC’s larger disposition and investment strategy for the neighborhood.
If all three projects are completed as currently contemplated, the collective mix of market rate and affordable housing, retail, office, and community space will make a considerable contribution to the transformation of Lents Town Center that has been a longtime goal for Lents stakeholders, PDC, and the City of Portland.
The Lents Five Year Action Plan approved by Portland City Council in May 2014 built on previous plans and laid out a strategy for focused investments that would have the greatest impact and benefit for existing residents and businesses. The plan calls out neighborhood centers, commercial corridors, and affordable housing as the focal points for cultivation and investment. As the owner of multiple parcels along SE 92nd Avenue and Foster Road in and around the Lents Town Center, PDC issued a Request for Interest in fall 2014 to identify proposals for the disposition and development of several of those parcels that would advance the goals of the Action Plan.
Since the formation of the Lents Town Center Urban Renewal Area in 1998, PDC has invested $90 million in infrastructure, facilities, transportation, affordable housing, and business development, but actual transformation of the area has lagged. The following projects and funding approved by the PDC Board stand to spark more robust change in the area:
- Williams/Dame & Associates (WDA) –$1.2 million pre-development loan to determine feasibility of the project; a development and disposition agreement for .63 acre of PDC-owned property at SE Foster Road & 92nd Ave; $4.75 million development loan (conditional) for mixed use, mixed income development of market rate and affordable residential units, ground floor commercial space, and surface parking, with an estimated total project cost of $15.7 million. PDC has the option to purchase WDA interest after 10 years, offering the opportunity for a cash-flowing asset that would contribute to the agency’s financial sustainability. Expected completion July 2017.
- Asian Health and Service Center – predevelopment loan of $786K; development and disposition agreement for .72 acres at 8931 SE Foster Road; $3 million development loan for mixed use development that will include community meeting space, AHSC office space, medical clinic space, two market-rate commercial spaces and one level of parking. Completed construction expected by January 2018. Total project cost of $10 million.
- Palindrome Communities, Inc. – $1.3 million predevelopment loan; development and disposition agreement for 1.07 acres at northwest corner of SE Foster Road and 92nd Avenue; $5.1 million development loan for construction of mixed-use, multi-block development of affordable residential units, ground floor commercial space, and associated parking spaces. Palindrome intends to acquire two additional privately-owned properties, commonly known as New Copper Penny and Chevron Station, as part of the project. Total project cost estimated at $40 million. Expected completion in November 2017.
All three projects will comply with PDC’s equity and green building policies and have community benefit agreements that detail additional requirements in exchange for the public investment. Including specific measures designed to mitigate community impacts through public participation, reducing temporary impacts cause by construction activities, and the generation of commercial affordability for neighborhood business tenants.