US 101 and SE 35th Street, Newport Oregon Development Opportunity RFP Page 1 of 12

Request for Proposals 2.3-Acre Development Opportunity US 101 and SE 35th Street, Newport

Urban Renewal Agency of the City of Newport, Oregon April, 2024

US 101 and SE 35th Street, Newport Oregon Development Opportunity RFP Page 2 of 12

Table of Contents

1. INTRODUCTION…………………………………………………. 3

2. SITE CONTEXT……………………………………..…………… 4

3. DEVELOPMENT CONSIDERATIONS………………………… 5

4. EXAMPLE CONCEPTS…………………………………………. 7

5. SUBMISSION AND EVALUATION…………………………..… 10

6. EXHIBITS……………………………………………… ……. 11

EXHIBIT A - SOUTH BEACH/US 101 REFINEMENT PLAN

EXHIBIT B – DRAFT DISPOSITION AND DEVELOPMENT AGREEMENT

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INTRODUCTION

The Urban Renewal Agency of the City of Newport, Oregon (“Agency”) is seeking to partner with a private developer(s) to redevelop 2.3 acres in the City’s South Beach neighborhood with retail service uses to serve those that live, work or visit the area.

Potential uses may include a specialty grocer, general merchandiser, micro-restaurant/food carts, or small-scale mixed retail/office/service uses.

Nestled on the south side of the Yaquina Bay Bridge, South Beach is developed with a mix of regional institutions, recreational facilities, neighborhoods, and retail businesses, including the popular Oregon Coast Aquarium, Hatfield Marine Science Center, OMSI’s Camp Gray, Oregon Coast Community College, Newport Municipal Airport, and the Port of Newport’s South Beach Marina and RV Park. The City’s largest residential planned development is also located in South Beach, known as the “Wilder” community.

Agency’s property is situated at the northeast corner of the newly signalized intersection of US 101 and SE 35th Street. The few remaining buildings will be removed, and the site will be made available in a ready to develop condition with requisite utilities and public services. The site frontage is fully developed with new driveway approaches, sidewalk, a multi-use path, underground utilities and street lighting.

Through development and sale of the site, Agency seeks to achieve one or more of the following objectives (1) create a neighborhood hub and gateway to South Beach,

(2) support food entrepreneurs and surrounding businesses, (3) provide a gathering space for residents and visitors with a variety of retail and/or restaurant choices;

and (4) create a stopping point for users of the South Beach pedestrian and cycling network that connects the site with key destinations.

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SITE CONTEXT

Agency’s vision for the 2.3 acre site and surrounding area is that it will be become a gateway to South Beach. Its visible and central location on US 101 could attract investments in buildings that could house additional services or retail (e.g. specialty grocery, restaurants, shops) as well as a central gathering space for eating and convening of groups to serve South Beach area residents and employees.

The site will also serve as a key node along South Beach’s iconic bicycle and pedestrian loop, which connects all of the key destinations in the area, including the Oregon Coast Aquarium, Hatfield Marine Science Center, South Beach State Park, Rogue’s pubs, OMSI’s Camp Gray, and Aquarium Village.

There are opportunities and challenges associated with redevelopment of the site, and developer(s) are encouraged to consider them when preparing proposals.

Those identified by the Agency include:

Opportunities Challenges o Highly visible with lots of through traffic on a corner intersection o Far from downtown and other commercial activity o Close to key destinations o Context is arterial/commercial o Can be part of the South Beach brand o No existing building as centerpiece for adaptive reuse o Can be a key node for multimodal path o Development must weather coastal conditions

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DEVELOPMENT CONSIDERATIONS

There are a number of factors that may have an impact on the redevelopment of this site. This section provides an overview of these considerations, which should be taken into account as interested parties explore their vision and ideas for the property.

Site Availability: Agency owns the property and it is not subject to any active leases. There are currently three vacant buildings on the property.

Building one is a 9,060 square foot, two story metal frame structure previously occupied by the South Beach Church.

Buildings two and three are metal framed storage buildings that are collectively 3,880 square feet in size.

Site Preparation/Services: The above referenced buildings, attendant foundations, and other paved areas will be removed, and the site will be leveled and covered with compacted gravel.

Agency has provided the City of Newport with funds to prepare the site for redevelopment and the City is currently soliciting bids from qualified contractors.

Remediation work should be complete, and the site ready for redevelopment, no later than September 1, 2024. Water, wastewater, storm drainage, power, and fiber are all available to the site. The property possesses one driveway approach onto US 101 and two on SE Ferry Slip Road. These should be the assumed points of access for redevelopment of the property.

Environmental: The property is free of environmental constraints. In the 1980’s a portion of the property was developed with a convenience store and card lock fueling station. That building, later converted to a restaurant, has been demolished and the tanks removed consistent with Oregon Department of Environmental Quality requirements. A 1,200 gallon underground concrete holding tank is situated immediately north of the building occupied by South Beach Church. That building had previously been used as an automotive repair shop. The holding tank has been cleaned and sealed, and it will be removed by Agency as part of the site preparation work. Anderson Geological performed Phase I and Phase II Site Assessments in 2014 prior to Agency acquiring the property. Those documents and associated records can be made available upon request.

Development Charges: The City of Newport provides a dollar-for-dollar System Development Charge (SDC) credit for improvements existing on a property within the last 10 years. Given the extent of previous development on this property, which in addition to the above included a 4,675 square foot restaurant and 240 square

2.3 acre Agencyg y site New

Intersection

South Gateway

US 101 and SE 35th Street, Newport Oregon Development Opportunity RFP Page 6 of 12 foot drive through coffee establishment removed in 2020, it is unlikely that any SDCs will be payable. A School Construction Excise Tax (presently $0.78 a square foot), Affordable Housing Excise Tax (1% of construction value), and building permit fees will apply to new development and should be factored into proposals.

Zoning: The property is zoned C-1/“commercial retail-service,” a designation that allows the desired uses without discretionary review. A 15-foot setback is required from US 101, and that area will be required to be landscaped. The property is subject to a 50-ft maximum building height limitation and lot coverage is capped at 85 percent of the property. Proposals will be required to comply with all applicable clear and objective zoning standards.

Gateway: Agency is committing at least $1.0 million in additional funding to enhance placemaking in South Beach to help promote a development concept for this 2.3 acre site, and transform the southern entrance to Newport. That effort will be in concert with, and parallel to, the redevelopment of this site and will include public art, wayfinding, and landscaping improvements (example below)

Investment opportunity: Left - Existing multi-use path along Ferry Slip Rd.

Right – Example of trail improvements: Indianapolis Cultural Trail is a 3-mile trail connecting Downtown Indianapolis with integrated art and landscaping. Photos compiled by SERA Architects.

Public/Private partnership: Depending upon the value proposition offered by the selected developer(s), Agency could offer up to the full cost of the land as a write down. Agency prefers; however, that any such write down not reduce the value of the property below $750,000. The selected developer(s) will be expected to enter into a Disposition and Development Agreement outlining the specific terms for redeveloping the property, and obligating its use for the intended purpose (example enclosed). Development concepts for the site should include a public restroom and stopping point as a user amenity given the site’s proximity to the City’s looped multi-use path network. The City would be responsible for ongoing maintenance of the facility, per the terms of a maintenance agreement.

Public outreach: A significant amount of outreach has been undertaken by the Agency, the results of which are outlined in the South Beach/US 101 Refinement Plan a copy of which is included as an exhibit. Developer(s) are encouraged to review that document and anticipate public vetting of their vision for the property before a proposal is selected by the Agency.

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EXAMPLE CONCEPTS

Agency worked closely with South Beach stakeholders to identify three potentially market viable redevelopment concepts to illustrate the types of end uses the community hopes to see at this location. The concepts were informed by outreach to individuals that live, work or visit the area and were vetted with business professionals familiar with the Newport market.

Alternative A: “Food Destination” Specialty Grocery Plus Micro-Restaurants.

The Agency-owned site will host a small/medium grocery with prepared food, a deli, and perhaps small counter-service dining. Adjacent to the grocery will be a cluster of food carts with possible structured shelter and partial indoor space, and a micro-restaurant pod with an indoor/outdoor blend.

Credit: SERA Architects

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Alternative B: Mixed Retail.

The Agency-owned site will host a cluster of smaller retail/service/office uses, such as food carts, offices, coffee shop, retail, small medical, and similar uses. Ideal retailers should be oriented to serving the local community, in addition to visitors, and filling gaps in the South Beach neighborhood.

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Alternative C: “Go Big” Large Anchor and Retail.

The 2.3-acre Agency-owned site north of 35th Street will host a major tenant like a Bi-Mart style general retailer/grocery on roughly 75% of site. The rest of the site will fill out with detached additional retail and/or open space with trail amenities.

The southern parcels, which currently contain Airrow Heating, Columbia Distributing, and Hoover’s Pub and Grill, will contain a small retail cluster and single large stand-alone Restaurant (new or refresh). These properties are privately owned, and concepts will be influenced by ongoing conversations with the current business and property owners. Agency has reserved funding to facilitate redevelopment of these sites including removal of the two legacy billboards.

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SUBMISSION AND EVALUATION

Agency seeks to select a developer(s) with the most creative and compelling vision for redevelopment of the property that is both market viable and in line with the stated community objectives. Further, the developer(s) must demonstrate that they have the capacity to implement the concept they envision for the site. With that in mind, responses to this RFP will be evaluated using the following criteria:

1. Vision for the site accomplishes community objectives.

2. Development proposal is financially feasible.

3. Developer(s) success in previous public-private partnerships.

4. Quality of representative projects.

5. Qualifications of the project team members.

Written responses should be succinct. There is no formal page limit on the length of a proposal; however, Agency suggest that the submittal not exceed 20 pages, excluding appendices. Resumes, cut sheets, and other marketing materials may be included in an appendix. Content should be organized as outlined in the table below.

Proposal Submittal Requirements Suggested Page Limit

Total Points

Development Team

Identify the developer(s) and describe their role(s). If possible, include potential joint venture partners or others who would play a significant role in implementing the development.

2 pages 5

Vision Provide a concise description of your vision for redevelopment of the site and how the concept aligns with community objectives. This should include a written business plan, an illustrative site plan, and elevation drawing or photographs of planned site improvements. Identify probable development phasing (if applicable).

12 pages 50

Financial Capacity

Include a statement regarding the capability of developer(s) to secure financing necessary to implement the development project, including:

o Description of ownership and operating model o Conceptual sources and uses of financing

2 pages 20

Development Team Experience

Describe development team qualifications and experience in development of up to three (3) high quality, successful development projects. For each, please provide:

3 pages 20 o Project name and location o Description of project o Total development cost o Total building area by use o Developer(s) role in project o Financing structure o Development partners o Demonstrated use of local contractors and/or minority and women owned businesses o Project timeline (site control through occupancy) o Images of project

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References Contact information for at least three (3) individuals that developer(s) have partnered or contracted with to construct past projects.

1 page 5

Appendices May include supporting materials to supplement above responses, such as resumes of key personnel, non-binding letters of support from financial partners, and testimonials from partners or stakeholders.

No limit 0

Interested developer(s) may submit proposals electronically by email to Community Development Director Derrick Tokos, AICP at d.tokos@newportoregon.gov.

Proposal may also be submitted in hard copy form to the attention of the Community Development Director at Newport City Hall (169 SW Coast Hwy, Newport, Oregon 97365).

Evaluation Schedule, Process, and Award

April 11, 2024: Request for proposals released.

June 11, 2024: Deadline for questions.

July 3, 2024: Deadline for Agency to issue addenda (this will include a summarized list of questions and answers).

August 15, 2024: Responses due by 5pm PST.

September/October: Selected developers(s) will be invited to present their proposal to the Agency. This may be in person or on a digital platform like ZOOM.

October/November: Selection announced.

The site is publicly accessible and available for self-guided tours at any time.

Public Records Disclosure

Information provided to the Agency will become property of the Agency and will be subject to public inspection after completion of the evaluation in accordance with Oregon Public Records Law, ORS 192.311 et seq. If an entity responding to this RFP believes that a specific portion of its response constitutes a “trade secret” under Oregon Public Records Law (ORS 192.345(2)) and is; therefore, exempt from public disclosure, the entity must clearly identify that specific information as a “trade secret.” Identification of information as a “trade secret” does not necessarily mean that the information will be exempt from disclosure. The agency will make that determination based upon the nature of the information and the requirements of Oregon Public Record Law.

Designated Contact

For questions regarding this RFP please contact Derrick I. Tokos, AICP, Community Development Director, City of Newport, at d.tokos@newportoregon.gov or 541-574- 0626.

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EXHIBITS

November 2021Newport, OR

SOUTH BEACH / US 101

REFINEMENT PLAN

Acknowledgements

City Staff: Interviewees:

Andrew Grant, Wastewater Treatment Plant Supervisor Laura Anderson, Local Ocean Chris Janigo, Acting City Engineer Ann Armstrong, Yaquina Bay Economic Foundation Sherri Marineau, Executive Assistant Jeff Bertuleit, Bertuleit Donald J Trustee Spencer Nebel, City Manager Charlotte Boxer, Commercial Developer Clare Paul, Assistant City Engineer John Bungay, Bungay Properties, LLC Derrick Tokos, Community Development Director Bob Cowen, Hatfield Marine Science Center Garrett Bush, Airrow Heating Brett Fox, White-Fox LLC Urban Renewal Agency: Peggy Hawker, Public Arts Committee Beatriz Botello Travis Henry, Henry Point Development, LLC Aaron Collett Phillis & Marvin Hoover, Commercial Property Owners Dietmar Goebel Carrie Lewis, Oregon Coast Aquarium CM Hall, Council President Jonathan Ledesma, Project PDX Cynthia Jacobi Lyle Mattson, JC Market Thriftway Ryan Parker Paula Miranda, Port of Newport Dean Sawyer, Mayor Bonnie Serkin, Landwaves, Inc Lance Vanderbeck, Newport Airport Committee Jack Waibel, Rogue Brewery City Committees: Alan Wells, Commercial Real Estate Broker Airport Committee Planning Commission Public Arts Committee

Table of Contents

1. PLAN PURPOSE AND BACKGROUND

2. OPPORTUNITIES AND CONSTRAINTS SUMMARY

3. INVESTMENT FRAMEWORK

4. ACTION PLAN PROJECTS

Exhibit 1. Urban Renewal Investment Areas

Peninsula and

US 101

Investment Area

Airport Investment Area

The South Beach Urban Renewal Area comprises 1,169 acres and features two interconnected but distinct geographies which have different investment needs.

South Beach / US 101 Refinement Plan - Fall 2021 1

1. Plan Purpose and Background

The new intersection of US 101 and SE 35th Street that was installed as part of the 2021 US 101 improvements in South Beach creates an opportunity for redevelopment for adjacent parcels, including the Agency-owned site on the NE corner.

Credit: City of Newport

South Beach / US 101 Refinement Plan - Fall 2021 2

South Beach Urban Renewal Plan Objectives South Beach Blighting Conditions (1983)

The South Beach Urban Renewal Plan was created to reduce or eliminate blighted conditions in South Beach, including:

Sub-standard street improvements, rights of way, and traffic signalization and management

Incomplete pedestrian/bicycle circulation systems and Tsunami evacuation routes

Inadequate water storage capacity and distribution lines

Undersized or absent sanitary sewer collection service lines

Incomplete winter storm water management systems

Inadequate neighborhood recreation facilities and open space

Source: South Beach Urban Renewal Plan Amendment 5

South Beach in 2021: While the Agency has made progress in solidifying the area as a functional district within the city, several constraints remain:

While US 101 runs through the area as the key transportation spine, South Beach’s most charming attractions are hidden from view.

South Beach’s many bike paths provide an alternative to car transport, but the network feels patchy in places.

South Beach lacks a strong sense of place and could use landscaping and public art installments more effectively.

Invasive species are a problem in South Beach, and current management is insufficient.

Residents, visitors, and employees in the area point to a lack of retail services in the area, requiring them to cross the Yaquina Bay Bridge for any goods or services they might need.

Traffic congestion remains a concern, especially at 40th Street, which is poised to see growth as the Wilder residential area builds out.

At the district’s southern end, lack of sewer infrastructure limits development opportunities on industrial and commercial properties near the Airport.

South Beach / US 101 Refinement Plan - Fall 2021 3

Plan Investment Priorities

Aquarium Village offers an eclectic blend of makerspaces and businesses serving visitors, such as gift shops and restaurants. Credit: ECONorthwest

The City and Urban Renewal Agency are interested in helping South Beach to contribute to the overall vision for Newport:

“In 2040, the Greater Newport Area is an enterprising, livable community that feels like home to residents and visitors alike.

We have carefully planned for growth with well-maintained infrastructure, affordable housing for all income levels, robust public transportation, diverse shopping opportunities, and distinct, walkable districts and neighborhoods.”

Source: Newport Vision 2040

South Beach / US 101 Refinement Plan - Fall 2021 4

Refinement Plan Process and Public Involvement

Exhibit 2. Refinement Plan Timeline and Tasks

South Beach / US 101 Refinement Plan - Fall 2021 5

This Plan proposes to enhance South Beach’s sense of place by investing in landscaping, improving wayfinding, and adding amenities including public art (See Project Sheet F for details). Eighty-five percent of survey respondents indicated that new wayfinding and public art should include water-based themes related to existing uses in the area. Photos compiled by SERA Architects.

How do people perceive South Beach? Survey respondents indicated that South Beach suffers from traffic congestion and lacks a sense of place.

“No identity, just a place from which businesses operate.”

“Traffic nightmare”

However, many respondents also indicated that the area has natural amenities and untapped potential

“Potential to be the fun…district of Newport.”

“Natural beauty”

South Beach / US 101 Refinement Plan - Fall 2021 6

2. Opportunities and Constraints Summary

Funding projects that enable new development and job creation at the Airport was not a priority for survey respondents.

Only 7% identified it as very important while 40% indicated it was not important at all.

The Oregon Coast Community College serves around 2,000 students and employs 45 faculty. Credit: ECONorthwest

The right-of-way closure at the US 101 and Ferry Slip Rd.

provides a location for a southern gateway to Newport.

Credit: ECONorthwest

South Beach / US 101 Refinement Plan - Fall 2021 7

This Plan proposes a new traffic signal at the intersection of US 101 and 40th St. to improve safety and ease of access to the Wilder Development, Oregon Coast Community College, and the planned OSU student housing development (see Project Sheet H). Credit: ECONorthwest

While there were other challenges and opportunities identified in South Beach, this plan focuses on those most relevant for urban renewal investment

The full Opportunities and Constraints Report is in Appendix A and includes opportunities and constraints maps with corresponding tables.

South Beach / US 101 Refinement Plan - Fall 2021 8

Land Use Policies, Zoning and Regulations Audit

Exhibit 3. Land Use Audit Findings and Recommendations

Key Findings Recommendations Mapping -- The mix of commercial and light industrial zones along US 101 generally aligns with Urban Renewal District goals.

There is potential for select re-designation from industrial to commercial for key areas.

Expand commercial district along US 101 to encompass the SE 35th St gateway site and surrounding properties.

Rezone the NE corner of SE 40th St and US 101 for commercial taking advantage of potential new signal.

Rezone parcel on south side of SE 40th St from heavy industrial to light industrial to reduce potential use conflicts. Identify sites for heavy industrial farther south.

Annexation - Nearly 25% of the district is outside of the City limits and cannot yet be developed to urban levels of intensity or served by urban infrastructure. More than half of these areas are designated for industrial uses.

Actively pursue annexation of industrial properties using island annexation provisions coupled with financial incentives to offset infrastructure costs, engaging with individual property owners to understand priorities and needs.

Engage with Lincoln County to complete the Urban Growth Management Agreement to ensure an orderly transition from County to City zoning and infrastructure.

Zoning - The City’s Zoning Code clearly delineates zones with use standards and site development standards. The prevalent Light industrial zone benefits from allowing a flexible mix for industrial and commercial uses however this can result in uncertainty about the compatibility of future development.

Limit uses inconsistent with district development goals by prohibiting uses associated with low employment for all or highway-abutting light industrial sites.

Introduce a 15-foot setback with required landscaping for both industrial and commercial properties along US 101.

Develop landscape screening, buffering and/or fencing standards to improve compatibility of light industrial uses.

Maintain existing land use and building permit procedures, which minimize discretionary reviews.

Other Considerations - The City should continue to monitor issues such as parking demand and trip allocation within South Beach and adjust as appropriate.

Review the employment and tax generation potential of uses permitted within the district to determine if future modification of permitted uses is justified within the light industrial zone

Consider using development agreements for greater certainty on proposed development for select sites

Monitor parking demand and implication of current parking ratios for site development feasibility. Explore options for shared parking on individual sites and district-wide parking reductions.

Review the impact of commercial rezoning on the SBTOZ trip budgets and reallocate trips within the district as necessary.

South Beach / US 101 Refinement Plan - Fall 2021 9

South Beach Opportunity Sites

This Plan proposes to promote development of the Agency-owned 35th Street site with uses that meet community needs.

The Barley Pod in Portland is an example of a food cart pod anchored by a brewing company, a concept that could work well on the site. Credit: ECONorthwest

Community engagement and market analysis revealed key service gaps in South Beach including:

Grocery stores

Gas stations

General retail

Casual restaurants

South Beach / US 101 Refinement Plan - Fall 2021 10

Agency-Owned 35th Street Site

Exhibit 4. Opportunities and Challenges for the Agency-Owned 35th Street Site Opportunities Challenges

• Highly visible with lots of through traffic on a corner intersection

• Close to key destinations

• Can be a part of the South Beach brand

• Can be a key node for multimodal path

• Far from Downtown and other commercial activity

• Context is arterial/commercial

• No existing building as centerpiece for adaptive reuse

Project Sheet A includes additional details that will inform the 2022 RFQ including:

Development objectives for the site

Public private partnership potential

Zoning considerations

Community preferences on development concepts.

Community Preferences

Which uses were most popular for the 35th Street site? Survey respondents who were South Beach residents and employees favored a small or specialty grocer whereas those who lived in Newport or elsewhere identified food carts or microrestaurants as their top choice.

Which concept was most popular for the 35th Street site? Survey respondents indicated that they would like the site to become a “Food Destination” with specialty grocery and microrestaurants

“The realignment of the traffic signals [at US 101 and 35th] and the location just south of the bridge is an opportunity to give South Beach a ‘go-to’ destination for a new type of shopping experience” - South Beach Stakeholder

South Beach / US 101 Refinement Plan - Fall 2021 11

Illustrative Site Plans

Exhibit 5. Alternative 1: “Go Big” Large Anchor and Retail

South Beach / US 101 Refinement Plan - Fall 2021 12

Exhibit 6. Alternative 2: “Food Destination” Specialty Grocery Plus Microrestaurants

Credit: SERA Architects

Food cart pod / microrestaurant considerations

Tenanting/rightsizing will be important with 8-10 unique concepts being the ideal. More would be too difficult to manage and less would not provide enough choices.

The City should gauge interest among local entrepreneurs or existing restaurants for satellite locations.

The City should consider recruiting a master lessee to operate/manage subleases and establish ground rules.

South Beach / US 101 Refinement Plan - Fall 2021 13

Exhibit 7. Alternative 3: Mixed Retail

South Beach / US 101 Refinement Plan - Fall 2021 14

3. Investment Framework

Who: The Agency and Partners

Where: Two Investment Areas

When: End of 2025

Established in 1983, the South Beach Urban Renewal Plan has an original maximum indebtedness of $38,750,000. Key recent milestones include:

2009: The URA was extended at a reduced size for the purpose of upgrading the infrastructure and acquiring land to support economic development. With public input, a new project list was developed with the 2009 extension, to be funded with revenue bonds over three six-year phases.

2018: The URA completed a substantial amendment of this plan to move the deadline for awarding projects from December 31, 2020, to December 31, 2025. This amendment extends the date after which no bonded indebtedness can be issued with respect to the Plan.

South Beach / US 101 Refinement Plan - Fall 2021 15

How Much: Up to $9 million

Why/How: Investment Criteria

Investment opportunity: Left - Existing multi-use path along Ferry Slip Rd.

Right – Example of trail improvements: Indianapolis Cultural Trail is a 3-mile trail connecting Downtown Indianapolis with integrated art and landscaping. Photos compiled by SERA Architects.

Funding Scenarios

Pay as you go - $5.15 million The Agency collects TIF dollars through FYE 2025 and pays directly for projects without acquiring new debt. This scenario could complete most projects with limited incentives. Tax increment would return to the districts in FYE 2026.

Additional Loan - $8.97 million The Agency collects TIF through FYE 2027 by taking out a loan prior to 2025 to leverage last two years of TIF. This scenario could fully fund all projects. Tax increment would return to the districts in FYE 2028.

2021 Forecasts by Tiberius Solutions

South Beach / US 101 Refinement Plan - Fall 2021 16

4. Action Plan Projects

Final Project Selection

What’s included in the project sheets?

A description of the project

Rationale for including the project on the list

Alignment with South Beach’s 2040 vision

Implementation Steps

Outreach considerations

Potential partners for the City to engage on the project

Planning cost estimates and

Additional funding considerations

Two projects were removed from the list during prioritization and do not have project sheets.

Provide transportation access to east Airport properties – these properties are unlikely to develop soon and therefore do not have a pressing need for transportation access

Install a traffic signal at SE 50th and US 101 – demand for this signal is very low at this time

South Beach / US 101 Refinement Plan - Fall 2021 17

Exhibit 8. Refinement Plan Projects to be Funded with Remaining Tax Increment

Key Project Rationale Meets

Priorities Public

Support Estimated Cost

A Redevelop 35th Street site to meet community needs providing strategic investments in neighboring properties to promote redevelopment concepts

Promote development that meets public goals combined with a gateway that improves the arrival experience and business / destinations visibility. Potential for strategic investments in part

Yes High

$1.3 million ($300K for public restroom and path user amenities $1 million for investments in neighboring properties; land write down of up to $1.5 million not included; would be variable depending on the dev’t concept)

B Incentivize annexation of unincorporated properties with a focus on US 101 industrial sites, and target predevelopment assistance to vacant or underutilized sites

Assist in annexing unincorporated properties within the plan boundaries and condition issues with vacant or underutilized sites to help meet community needs and improve the area’s vibrancy.

Yes Medium

Up to $500,000 (assumes all eligible properties are annexed at the same time)

C Provide sewer infrastructure to industrial sites near Newport Municipal Airport

Expand the types of development possible and reduce developer uncertainty. Yes Low

$600,000 - $2 million

(depending on technology used)

D Improve fire suppression capability at Airport industrial sites

Expand the types of development that would be able to locate at the Airport

Yes Low $150,000 - $500,000

(preliminary estimate)

E Install redundant Yaquina Bay water pipeline

Improve South Beach’s resiliency to water line failure

Yes Medium

$750,000 (if grant unsuccessful, Agency could pay closer to $3 million; surplus from other projects could be directed here to fully fund)

F Enhance South Beach placemaking through improvements to landscaping, public art, and gateways

Bolster the area’s sense of identity through targeted improvements. Yes Medium

$1 million ($150-250K in consulting fees, up to $850,000 in improvements)

G Enhance mobility for cyclists and pedestrians through South Beach Loop path improvements

Improve mobility for cyclists and pedestrians while enhancing sense of place and navigability. It would also improve disaster preparedness

Yes High

$1.3 – 1.45 million (high priority projects only, excluding ROW acquisition)

H Install a traffic signal and enhanced pedestrian facilities at SE 40th Avenue and U.S.

Open the door for planned development and ease congestion Yes High

$1.5 million (not including bike/ped improvements, which are included in Project G)

Total Project Costs Up to $9 million

South Beach / US 101 Refinement Plan - Fall 2021 18

Detailed Project Sheets

A

Redevelop SE 35th Street site to meet community needs providing strategic investments in neighboring properties to promote redevelopment concepts.

Project Description Lead

The Agency-owned site at 35th Street could be South Beach’s neighborhood hub and the gateway to South Beach, given that the site sits at the District’s entrance to the key destinations of the Newport Aquarium, Hatfield Center, South Beach State Park, Rogue’s pubs, OMSI’s Camp Gray, and Aquarium Village. Community members have expressed a desire to see this area transformed to better reflect the many attractions and natural beauty of South Beach.

Development objectives:

Serve as a neighborhood hub and gateway to South Beach.

Provide stopping point for users of South Beach Loop path. The site will also serve as a key node along South Beach’s iconic bicycle and pedestrian loop, which connects all of the key destinations.

Provide gathering spaces for residents and visitors, with lots of retail and restaurant choices.

Support food entrepreneurs and surrounding businesses.

Build upon the gateway opportunity at the closed ROW at the former entrance to Ferry Slip.

Potential uses: The highly visible and central location could attract investments in buildings that house services or retail (e.g., specialty grocery, restaurants, shops) and offer a central gathering space for eating and convening groups to serve South Beach area residents and employees.

Partnership with adjacent property owners:

Expanded development concept: On the southern parcels, which currently contain Airrow Heating, Columbia Distributing, and Hoover’s Pub and Grill, Alternative A shows a small retail cluster and single large stand-alone restaurant (new or refreshed Hoover’s). The southern parcels are privately-owned, and concepts will be influenced by ongoing conversations with the current business and property owners.

Partnership with adjacent businesses: Prior to RFQ release, the City should reach out to South Beach Market, Barrelhead, Columbia Distributing, Airrow Heating, and other restaurants to get feedback on the concepts, answer questions, discuss compatibility with potential commercial concepts, and gauge interest in partnerships.

Billboard removal: Two legacy billboards on the Hoover’s site constrain redevelopment opportunities on this site and detract from the desired village feel of the 35th Street site. The Agency will consider paying out the remaining contract that Hoover’s has with the billboard company to remove the billboards and allow for more flexible reuse of the site.

Urban Renewal Agency / Community Development / City Manager’s Office

South Beach / US 101 Refinement Plan - Fall 2021 19

Rationale

Because the Agency controls the 35th Street site, it can help promote a development concept that meets public goals. Coupling these improvements with gateways and public art would help transform the southern entrance to Newport. Currently there is no clear indication that a visitor has arrived in the community when driving north on Hwy 101 into South Beach.

Alignment with Vision 2040

A3. Transportation Corridors [Partner] A13. Strategic Investments and Partnerships [Lead] A14. Developable Land [Partner] Depending on businesses recruited:

E2. Medical Professionals and Specialists [Support] E12. Access to Health Food [Support]

Implementation Steps

Consider adjusting zoning to accommodate desired development type (from industrial [I-1] to commercial [C-1]). The commercial/retail uses proposed here are all permitted outright in the I-1 district. There is concern, however, that surrounding I-1 sites could be developed with actual light industrial uses, including things like vehicle repair or storage, self-storage, warehousing, and distribution, that could be incompatible with the atmosphere desired for this site. The I-1 zone also requires a 50-foot setback from Hwy 101 that would limit the development area on this site. This could be addressed through rezoning to commercial (C-1) that has no front setback requirement or revising the setback for the I-1 district as recommended in the code audit.

Continue to discuss potential partnership with property owners of Hoover’s and Airrow Heating sites, which could provide a cohesive gateway to South Beach. Acquire additional properties, if feasible, to develop the desired program.

Release RFQ to attract a developer in Spring 2022, using development objectives developed through the refinement plan process.

Analyze cost implications for the city of ongoing maintenance for the gateway.

Public or stakeholder outreach needed

The City conducted outreach with developers, existing restauranteurs, potential tenants, key stakeholders, and the public as part of the refinement plan to develop objectives and vet concepts. The City will reach out to property owners of parcels that may need to be acquired.

The City may also coordinate with the Urban Renewal Agency to seek their input on site programming goals.

Partners Potential developers, South Beach businesses, and organizations

Estimated Cost Funding Considerations

Up to $1.3 million

($300K for public restroom and path user amenities and $1 million for investments in neighboring properties)

(land write down of up to $1.5 million not included; would be variable depending on the dev’t concept)

Funding for public-private partnerships on the site will come from urban renewal funds, with technical assistance from the City.

Land write down: Depending on the value proposition offered by the selected development team, the Agency could offer up to the full value of the land cost as a write down. The city prefers the potential land write down not exceed $750,000 but the decision would be subject to the development proposals solicited as a part of the RFQ process. The Agency would need to evaluate the cost of public amenities and be receptive to developer feedback about the cost and time required to develop commercial buildings on the coast.

Direct subsidy: The Agency may consider providing direct support to help pay for public amenities like a public restroom and Loop path user amenities.

South Beach / US 101 Refinement Plan - Fall 2021 20

ILLUSTRATIVE SITE PLANS

Exhibit 9. Alternative 1: “Go Big” Large Anchor and Retail

Exhibit 10. Alternative 2: “Food Destination” Specialty Grocery Plus Microrestaurants

Exhibit 11. Alternative 3: Mixed Retail

South Beach / US 101 Refinement Plan - Fall 2021 21

Community Feedback

ZONING CONSIDERATIONS

South Beach / US 101 Refinement Plan - Fall 2021 22

USE EVALUATION

Exhibit 12

Exhibit 12. 35th Street Site Use Evaluation Matrix

General Merchandiser

Specialty Grocery Microrestaurants / Foodcarts

Retail

Community Support Medium High High Medium

Local Partner(s) Required for Dev’t/Financing

No No Yes Maybe

Potential Agency Contribution Likely High Likely High Medium Low

Tenant Management Required

Low Low High Medium

Entrepreneurship Potential Low Low High Medium

PRECEDENT IMAGERY

South Beach / US 101 Refinement Plan - Fall 2021 23

RESTAURANTS, FOOD CARTS, GROCERY, RETAIL, COMMUNITY SPACE

Restaurant with outdoor plaza (Wilsonville, OR)

New/Renovated Commercial Strip (Portland, OR)

Latino Food Hall in renovated building (Portland, OR)

Pop-up event space and food cart pod (Oakland, CA)

Restaurant/Brewery Manufacturing and dining (Bend, OR)

Brewpub with outdoor dining on busy commercial street (Bozeman, MT)

South Beach / US 101 Refinement Plan - Fall 2021 24

The Ocean food hall (Portland, OR) Small restaurant conversion (Portland, OR)

Restaurant with outdoor seating on sharp angle corner site (Portland, OR)

Container pod restaurants and shops (Albuquerque, NM)

Food Cart Pod (both mobile and permanent-installed dining shed with bar and firepits) (Bend, OR)

Food cart pod (St. Johns, Portland, OR)

South Beach / US 101 Refinement Plan - Fall 2021 25

New-construction corner businesses: stores and offices above

Retail strip (St. Johns, Portland, OR)

Indoor/outdoor farmers market Electric Island charging hub (Swan Island, Portland, OR)

Full-service grocery (Portland, OR) Micro-grocery (Portland, OR)

South Beach / US 101 Refinement Plan - Fall 2021 26

B Incentivize annexation of unincorporated properties with a focus on US 101 industrial sites, and target predevelopment assistance to vacant or underutilized sites

Project Description Lead

Approximately 25% of land within the South Beach URA is outside of City of Newport limits, which makes it difficult for the City to provide key services to large parts of South Beach. Through a predevelopment fund, the City would provide an incentive to annex into the city for US 101 property owners that are outside of city limits but inside of the URA boundary. The City would prefer to discuss annexation potential with property owners to ensure it meets their goals.

However, properties that are surrounded by the city can be annexed without consent using the island annexation provisions under ORS 222.750 and would be best served by annexation assistance (see Exhibit 13 for unincorporated properties).

Key to this strategy would be working with those property owners to annex the unincorporated properties into the City all at once, which would reduce overall costs. The City could cover the annexation expenses, which includes survey costs and old bond debt that the Seal Rock Water District accrued when it provided service to these properties (the properties now receive City water service). The City could also provide incentives for these properties to connect to City sewer service by agreeing to (a) pay wastewater SDCs for existing uses that would otherwise be payable upon connection and (b) provide a rebate of up to $10,000 to reimburse owners for the construction of new residential service laterals and $15,000 for commercial/industrial service laterals.

Beyond the annexation and SDC costs, the Agency could offer additional assistance to help those property owners overcome market or infrastructure development barriers related to site preparation/grading, removal of invasive species (Scotch Broom), and adding or improving utility and transportation infrastructure.

Community Development, Planning Commission

Rationale

Annexing properties outside of city boundaries would:

Make it easier for the City to provide infrastructure and services to those properties.

Help to increase the desirability of those properties for industrial development.

Help the City to achieve its economic development goals by enabling development at urban intensities and limiting development under County regulations that may be less compatible with urban renewal development goals.

Normalize the municipal boundaries for emergency service providers.

Create a condition where urban scale development can occur, improving the tax base for all taxing districts.

Prevent property owners from having to retire old Seal Rock Water District debt for services they no longer receive.

Alignment with Vision 2040

A14. Developable Land [Partner] C8. Local Businesses Support [Support] E6. Disaster Preparedness [Lead]

Implementation steps

Refine the list of potential properties for outreach.

South Beach / US 101 Refinement Plan - Fall 2021 27

Discuss predevelopment needs and annexation potential with identified property owners.

Engage with Lincoln County to coordinate review of any development within the UGB to ensure that it is consistent with City goals and standards upon future annexation.

Determine which zones are desired upon annexation to provide greater certainty and transparency for landowners and developers.

Explore options for “island annexation” under ORS 222.750.

Conduct outreach with property owners.

Before proceeding with annexation:

o Calculate specific amount of annexation expenses the City will cover.

o Calculate the specific incentives needed to connect the property to the City’s sewer.

o Develop language for agreements and a plan to have all properties annexed at one time to reduce costs.

Coordinate with Lincoln County to complete the Urban Growth Management Agreement to ensure an orderly transition from County to City zoning.

Public or stakeholder outreach needed

Outreach with property owners to is needed to determine development interest and whether the timing for that development would fall within the Agency’s investment window of 2022- 2025. The City should engage with property owners to better understand specific concerns or uncertainties about annexation and encourage annexation. One approach could include developing informational resources for property owners highlighting development potential within the City compared to existing County regulations. In addition to tax and financial implications, these resources could outline any financial incentives for infrastructure development that could be available through the urban renewal area.

Partners Conduct outreach with property owners to gauge interest in joining the City.

Estimated Cost Funding Considerations

Up to $500,000 (Preliminary estimate from the City of Newport;

assumes all eligible properties are annexed at the same time)

Completing annexation of all willing properties at one time as opposed to piecemeal can reduce the overall costs associated with the annexation survey and staff time.

South Beach / US 101 Refinement Plan - Fall 2021 28

Exhibit 13. South Beach Unincorporated Areas within the Urban Renewal Boundary

0ROAD

0ROAD

0ROAD

0ROAD

0ROAD

3011600 302402

500 602

6001800 6011801

1900 1100

1000 1001 20002001 900

801 802

0ROAD

700 702

0ROAD 3500

3300 25012800

0ROAD

0ROAD

701 702

200 100

0ROAD

1200800

1300101

0ROAD

1200300

400 1100

1000500 600

800700

0ROAD

200 403

300 500

802801

0ROAD

900 1000800 1100

City of Newport Community Development Department 169 SW Coast Highway Phone:1.541.574.0629 Newport, OR 97365 Fax:1.541.574.0644

South Beach / US 101 Refinement Plan - Fall 2021 29

C Provide Sewer Infrastructure to Industrial Sites Near Newport Municipal Airport

Project Description Lead

The City will help implement sewer infrastructure investments to facilitate industrial development at the Airport. Based on a preliminary evaluation of the investment alternatives, the two that are most feasible are (1) Expand Airport Septic System (LOSS) and (2) Onsite Treatment WWTP (Package Plant w/Land Application) as determined in the Opportunities and Constraints Report.

Lincoln County concurrent with Animal Shelter project (with reimbursement from Agency).

Rationale

Currently the sewer main stops at 50th Avenue and there is no sewer access to the Airport. This limits the types of industries that can function on nearby sites. Certain development projects that have been envisioned for the Airport industrial sites include airport hangars, flex warehouse, and industrial condominiums among others as noted in the Opportunities and Constraints Report. Sewer infrastructure would expand the realm of possibilities for these sites and reduce developer uncertainty around dealing with effluent.

Alignment with 2040 Vision

A1. Infrastructure Investments [Lead] A14. Developable Land [Partner] B1. Sewer and Stormwater Management [Lead] C4. Airport Improvements [Lead]

Implementation steps

The LOSS is the most cost effective solution; however more detailed analysis is needed to confirm feasibility, including:

Discuss implementation steps and process with WWTP.

For the LOSS, evaluate suitability of soils for a drain field, working with County sanitarian.

Refine cost estimates against the agency’s funding capacity; factor in additional operations and maintenance expenditures.

Determine if regulatory barriers can be overcome – both alternatives require permitting and the LOSS requires FAA review.

Analyze cost implications for the city for ongoing maintenance of the system.

Pursue installation of LOSS, preferably through development agreement with Lincoln County, if system is viable. Fully vet package plant option only if LOSS is not viable.

Identify fee structure for future system connections that is equitable to all users.

Public or stakeholder outreach needed

The City will conduct outreach with property owners where appropriate.

Partners

Urban Renewal Agency, City of Newport Public Works, Airport Committee, property owners

Estimated Cost Funding Considerations

Planning estimates:

LOSS - $594,000

Onsite Treatment

WWTP - $1,960,000

Leveraging a development agreement with a lessee that would otherwise have to construct their own septic system will reduce Agency costs; the balance of funding would be from Urban Renewal.