Minutes of February 4, 2003 Port of Hood River Commission Work Session/Regular Meeting
Expo Center Conference Room
6:00 P.M.

Present: Commissioners Sherry Bohn, Fred Duckwall, Don Hosford, Bill Lyons, and Hoby Streich; Attorney Jerry Jaques; from staff, David Harlan, Mike Doke, Linda Hull, Linda Shames, and Laurie Borton

Absent: None

Media: None

President Bill Lyons called the work session to order at 6:05 p.m.

1. Waterfront RFQ: Executive Director David Harlan reported that interviews are being scheduled for the afternoons of February 11 and February 13 with the respondents who submitted Waterfront Requests For Qualification. An additional interview date, however, may need to be scheduled to accommodate one developer who is out of the country. Harlan stated that information had been forwarded providing guidance on the interview process. For consistency purposes, a standard list of questions will be asked of all developers, which may include questions on timelines, if there is an interest in particular properties only, whether or not any information has changed since the Request for Qualification was submitted, and if the team has experience in writing guidelines and CC&R's (covenants, conditions and restrictions). Attorney Jerry Jaques reported that he had done some research and found that there are not many mixed-use zones with CC&R's in place, and that he believes a consultant will need to be hired to finalize guidelines. The interviews are public meetings, and City staff and councilors may be in attendance, but the questions and responses will be Port directed.

Executive Director Harlan commented on a suggestion from City Manager Lynn Guenther that a combined Council/Commission meeting was in order to expedite the Waterfront Plan. Harlan explained that councilors who are not on the Waterfront Task Force would like to hold a joint meeting to avoid the perception of the two agencies having different agendas. Before a joint meeting is scheduled, the Commission recommended that Harlan and City staff define the purpose and outcome of the meeting and that a specific agenda be established.

President Lyons closed the work session at 7:00 p.m. and reconvened the regular session at 7:10 p.m.

1. INTRODUCTIONS: Matt Kosmata, Maui Meyer, Scotia Bauer, Bruce Peterson, and Linda Maddox were present at the meeting.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: Executive Director David Harlan requested the bi-monthly meetings decision be revisited and added to the agenda under New Business. Other additions to the agenda were made as topics were discussed later in the meeting.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: None.

4. APPROVAL OF MINUTES:

Motion: Move to approve the minutes of the January 21, 2003 work/regular sessions.
Move: Hosford
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

5. REPORTS:

a) Executive Director: Executive Director Harlan reported on the successful multi-agency teamwork effort to bring Cardinal Glass ("Project Light") to the community. Meetings were held on January 27 and 28, which also included a site visit to the lower Hanel mill in Odell, and a letter of intent was received on January 29. Harlan reported that Governor Kulongoski, Senator Metzger, and Representative Smith appeared supportive of possible legislation relative to expansion of the enterprise zone in an effort to make this endeavor happen. Harlan reported on the acceptance offer with Key Development for purchase of the Columbia Building. DaKine Hawaii will be notified relative to exercising their right of first refusal for purchase of the building. Harlan stated the mezzanine project at the Columbia Building intended to provide DaKine with additional office space has been put on hold by DaKine based on cost projections and construction timelines. DaKine has indicated some employees may be moved to the company's facility in The Dalles even though they have been shown available space in Port properties. Harlan had nothing further to add to the Waterfront RFQ discussion that took place in the work session. The Oregon Department of Transportation (ODOT) has requested a Traffic Impact Analysis be done of the Barman property and it was reported by Harlan that discussions with Kittelson & Associates, Bob Barman, and ODOT had already occurred. President Lyons indicated staff's recommendation to contract with Kittelson & Associates for the study and intention to abandon the third curb cut on the property once the Barman transaction is complete would be addressed under New Business. Harlan informed the Commission that once the City and ODOT comment on the Second Street construction, bid documents are ready to be finalized. Cost estimates are within budget and construction could begin as early as April. The Commission received a Bridge Closure Survey Form for their review and comment. Distribution of the survey to bridge users may be accomplished through direct mail, handout by toll collectors, and possible on-line access. The form will be revised to include a return date deadline. Harlan reported that an application will be made to the Oregon Housing and Community Services Department for Community Incentive Funds. An application for the Integrated Technology Center, or construction of the Second Street on the waterfront are two projects that would meet the funding criteria. Based on a readiness and commitment to proceed, having defined costs and supporting documentation, staff is recommending the application be submitted for the Second Street Project. President Lyons stated the Community Incentive Fund application would be discussed further under New Business. Harlan deferred to Mike Doke for the discussion on GorgeNet. Doke reported that improvement costs are approaching $40,000 to renovate the top floor of the Big 7 Building for March occupancy by GorgeNet, who will be signing a 5-year lease with a 5-year renewal option. President Lyons stated that action on the renovation budget would be taken under New Business.

b) Other: Commissioner Streich reported on his and Mike Doke's meeting with Century West regarding the Airport Master Plan Update and to identify grant projects the Port may want to apply for. Three projects identified include a runway extension to the east, for safety reasons; hangar development; and property acquisition on Orchard Road or the airport north access road for a runway extension. Executive Director Harlan stated that a runway extension would benefit existing and potential businesses by allowing corporate planes to land in Hood River, which now have to land in The Dalles.

6. ITEMS FROM WORK SESSION:

a) Waterfront RFQ: No further discussion.

7. NEW BUSINESS:

a) Riparian Access Authorization: Jennifer Donnelly, City Planning Department, attended the January 21 Commission meeting to report on the City's wetlands, riparian corridors and upland wildlife habitat inventory that is underway as required by Oregon Statewide Planning Goal 5. Executive Director Harlan reported that a request has now been received from Hood River County for access to Port property. Donnelly made no reference in her presentation on repercussions for not participating. The Commission is still uncertain about the necessity of granting the City authorization but had no problem with the County request.

Motion: Move to authorize Hood River County's Access Permission Request for the riparian corridors inventory.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) Non-Revenue Bridge Ticket Policy:

Motion: Move to approve the Statement of Policy Regarding Non-Revenue Passage.
Move: Hosford
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) Gorge Cup Request: Scotia Bauer, Gorge Cup Race Director, and Bruce Peterson, Gorge Cup Organizing Committee, requested the Commission consider a fee reduction for reserving non-exclusive use of the Event Site for their 6-series windsurfing races scheduled from May through August of this year. Bauer and Peterson provided budget information, which is already showing a deficit, unless the Commission is willing to grant an exception to the fee policy, which is $240 per event or $4 per participant, whichever is greater. Bauer and Peterson stated the Columbia Gorge Windsurfing Association would provide the required insurance.

Motion: Move to authorize an exception to the fee policy allowing the Gorge Cup event organizers to pay $4.00 per participant for the 2003 race series.
Move: Streich
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

d) Approval of Accounts Payable: None.

e) Barman Property/Second Street Traffic Impact Analysis:

Motion: Move to authorize the expenditure of $1,000.00 to hire Kittelson & Associates to complete a Traffic Impact Analysis for the Second Street rezone application.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

f) Community Incentive Fund: There was Commission concurrence that staff would pursue Community Incentive Funds for the Second Street Construction Project based on readiness to proceed and availability of supporting documentation. President Lyons commented the application for funding on this project does not indicate the Port is abandoning the Integrated Technology Center as a priority.

g) GorgeNet:

Motion: Move to authorize a budget up to $45,000.00 to complete the renovation of the top floor of the Big 7 Building.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

h) Bi-Monthly Meeting Schedule: Commissioner Duckwall stated he had second thoughts about the decision to resume a bi-monthly meeting schedule. Duckwall felt having one meeting a month on the first Tuesday, and by adjusting the Executive Director's Report to the Commission to the third week would alleviate the need for a second monthly meeting. Commissioner Streich commented the Port has a number of ongoing projects and felt the Commissioners not on the Real Estate Committee are at a loss on the status of those projects. Streich stated his preference would be to keep the bi-monthly meeting schedule. Commissioner Bohn stated her frustration at not knowing all the information and she would prefer the monthly 2-meeting schedule. Commissioner Hosford still liked the idea of bi-monthly meetings but felt the second meeting of the month could be more informal, possibly a brown bag lunch forum. President Lyons stated the purpose of any meeting is about communication and the flow of information and suggested a second monthly meeting be more of a worksession than a regular meeting. Lyons suggested the Commission could decide at the first meeting if a second meeting were needed that month. Consensus was to keep the bi-monthly meeting schedule, but cancel the second meeting if not needed.

8. EXECUTIVE SESSION: President Lyons called the Commission into Executive Session at 8:47 p.m. under ORS 192,660(1)(e) Real Estate; and ORS 192.660(1)(h) Litigation.

At the conclusion of Executive Session, the Commission was called back into regular session at 9:04 p.m. The following action was taken as a result of Executive Session.

Motion: Move to authorize staff and council to repurchase a vacant lot from Champion Manufacturing at the John Weber Business Park for the appraisal price of $60,000.00 with Champion paying all transaction costs, and waiving Champion's accrued interest since their last payment.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

President Lyons stated that a regular Commission meeting would not be held the second Tuesday in February because of the two Waterfront RFQ respondent interview meetings.

Mike Doke was commended by President Lyons and Executive Director Harlan on his behind-the-scenes efforts on "Project Light." President Lyons stated that Mike would not, unfortunately, get the public recognition that he deserved for the large part he played in bringing Cardinal Glass to the community.

President Lyons adjourned the meeting at 9:07 p.m.

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Minutes of February 13, 2003 Port of Hood River Commission Special Meeting
Expo Center Conference Room
12:30 p.m.

Present: Commissioners Bill Lyons, Don Hosford, Sherry Bohn, and Hoby Streich; from staff, David Harlan, and Linda Hull; from the public, Maui Meyer and Linda Maddox (3:00 p.m.), Bob Naito (3:30 p.m.).

Absent: Commissioner Fred Duckwall

Media: None

President Bill Lyons called the Special Meeting to order at 12:30 p.m. for the purpose of interviewing the respondents to the Waterfront developer request for qualifications, and immediately went into a work session. Three firms were interviewed during this work session: A-1 Hospitality, D.M. Stevenson Ranch, and Gerding/Edlen Development Company. Three other firms will be interviewed on February 20, 2003: William Smith Properties, Harper Houf Righellis, and Heritage Investment Corporation.

President Lyons introduced each interview session, stating our goals were three-fold: 1) To learn from each firm which properties they might be interested in, the timing of the development, any input into the Port's plans to date, and how they can assist the Port in reaching its goals; 2) To discuss the Port's next steps and decision in the RFP process; and 3) To answer any questions they might have of the Port.

Executive Director David Harlan gave each group an update on the status of the Mixed-Use Waterfront Zone, stating the City and the Port have scheduled a joint meeting for March 10, 2003. Harlan stated the 2nd Street engineering is complete and bid documents are being prepared. The Port has applied for $300,000 (50/50 grant/loan) from the Community Incentive Fund, with construction set to begin in the fall of 2003. Harlan also stated the Design Guidelines and CC&R documents are in the final processing stages.

1. A-1 Hospitality, represented by Vijay Patel and David Fishel of McCormack Construction Co., stated they were interested in an extended stay hotel development on Lot 6 only. They stressed their flexibility in working with the Port and other developers in the waterfront area. In regards to timing, they are ready to go. Mr. Patel stated any destination facility built here would need conference and banquet facilities, including small breakout rooms, which would generate more traffic to the area. They would prefer to purchase the land for easier financing of the project.

The Commission went into a recess from 1:35 p.m. to 2:05 p.m. at which time the work session was called back into order.

2. D.M. Stevenson Ranch, represented by Tom Stevenson and Chuck Hinman, stated they would be interested in a hotel development similar to the project they had proposed in 1994 to anchor the waterfront development. Mr. Stevenson believes most of the previous issues are addressed in the mixed-use zone and that Lot 6 would be the best site and would include convention facilities utilizing the Expo Center. He stated that multi-uses of the waterfront would bring 24-hour activity to the waterfront. Mr. Hinman discussed the current hotel market after 9-11 and lack of demand, stating that it should be back within 5 years, and would prefer to have a phased development of a full service convention facility. Their development team, including architectural and planning firm Zimmer Gunsul Frasca, is experienced in finance and zoning issues. They would prefer to purchase the land.

The Commission went into a recess from 3:15 p.m. to 3:30 p.m. at which time the work session was called back into order.

3. Gerding/Edlen Development Company, represented by Tom Cody, Scott Eaton, and Kelly Saito, included David Wark and Kip Richardson from Fletcher Farr Ayotte, and Carl Perron Architect from Hood River. Mr. Cody stated their expertise is building buildings, creating places and neighborhoods, and working with public/private partnerships in community development. They would offer a phased development approach, starting with 2nd Street and culminating with the ultimate development of a destination-type, full-service hotel facility on Lot 6. They are interested in developing all properties on the waterfront integrating the whole development, using a variety of public/private funding sources and completing Phase 1 within 3 years.

The meeting was adjourned at 4:45 p.m.

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Minutes of February 20, 2003 Port of Hood River Commission Special Meeting
Expo Center Conference Room
12:30 p.m.

Present: Commissioners Bill Lyons (left at 4:30 p.m.), Don Hosford, Sherry Bohn, Fred Duckwall and Hoby Streich; from staff, David Harlan, and Linda Hull; from the public, Maui Meyer and Linda Maddox.

Absent: None

Media: None

President Bill Lyons called the Special Meeting to order at 12:30 p.m. for the purpose of interviewing the respondents to the Waterfront developer request for qualification, and immediately went into a work session. Three firms were interviewed during this work session: William Smith Properties, Harper Houf Righellis, and Heritage Investment Corporation.

President Lyons introduced each interview session, stating our goals were three-fold: 1) To learn from each firm which properties they might be interested in, the timing of the development, any input into the Port's plans to date, and how they can assist the Port in reaching its goals; 2) To discuss the Port's next steps and decision in the RFP process; and 3) To answer any questions they might have of the Port.

Executive Director David Harlan gave each group an update on the status of the Mixed-Use Waterfront Zone, stating the City and the Port have scheduled a joint meeting for March 10, 2003. Harlan stated the 2nd Street engineering is complete and bid documents are being prepared. The Port has applied for $300,000 (50/50 grant/loan) from the Community Incentive Fund, with construction set to begin in the fall of 2003. Harlan also stated the Design Guidelines and CC&R documents are in the final processing stages.

1. William Smith Properties, represented by Bill Smith and Marney Smith, stated they are family-owned and prefer to acquire and develop properties for investment, but could partner with the Port or others. They would develop the waterfront in phases, believing small pieces allow for the greatest flexibility. Their power point presentation demonstrated their successful mixed-use redevelopment of the Old Mill District in Bend on the Deschutes River. Mr. Smith said he is ready to proceed.

The Commission went into a recess from 1:35 p.m. to 2:00 p.m. at which time the work session was called back into order.

2. Harper Houf Righellis, Inc., represented by Scott Keillor, and included Fred Bruning, Center Oak Properties; Jerry Johnson, Johnson Gardner; David Nelson, Nelson Development Co.; and Jeff Myhre, Myhre Group Architects, as team members. Their first step would be to refine a master plan, maintaining sensitivity to and compatibility with the community's character, and then to develop mixed-uses in phases for economic feasibility. They are ready to begin immediately and could either purchase or lease the land, using a variety of public/private partnerships.

The Commission went into a recess from 3:15 p.m. to 3:30 p.m. at which time the work session was called back into order.

3. Heritage Investment Corporation, represented by Bob Naito, and included Jim Winkler (Winkler Development Corporation), Rick Buck (Sundance Marina), Don Hanson (Otak), and Maui Meyer, (Nisei), as team members. They discussed two conceptual versions of their vision for the mixed-use development, engaging the waterfront to the downtown and becoming a signature destination/marina. They estimate a 10-year timeline to complete the phased development, starting with Lot 1.

Vice President Don Hosford adjourned the meeting at 4:35 p.m.