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

Absent: From staff, Linda Hull and Linda Shames

Media: None

President Bill Lyons called the work session to order at 6:08 p.m.

1. Waterfront Request for Proposal Responses: President Lyons stated the purpose of the work session was to discuss the responses to the Request for Proposals (RFP) received June 30, 2003 by William Smith Properties, Inc., Gerding/Edlen Development Company, LLC, and Naito Development, LLC in relation to what the RFP requested, and to determine the agenda for further discussion at the July 15 commission meeting. Because the RFP's had been received one day prior, and July 1 was the first opportunity that both staff and Commission members had to review the responses, there was consensus that more time would be required to fully review and compare the responses. During the work session, however, the three RFP's were reviewed separately with President Lyons directing the discussions. Lyons asked the Commissioners for their questions, comments, and observations as each RFP question was reviewed.

President Lyons closed the work session at 7:03 p.m., and called the regular session to order at 7:03 p.m.

1. ELECTION OF OFFICERS FOR 2003-2004: President Lyons stated that he was taking his name out of consideration for Commission President for the year 2003-2004. Lyons thanked the Commission for their support the past two years and stated someone other than himself might better serve the critical community interface that would be required in the coming year as the public process with regards to the Waterfront Zone progresses. Lyons reminded the Commission that Hoby Streich was not eligible for the offices of president or vice-president because he had not served on the Commission Board long enough. Lyons then opened the nominations.

President - Don Hosford was nominated by Commissioner Bohn
Vice President - Sherry Bohn was nominated by Commissioner Lyons
Secretary - Hoby Streich was nominated by Commissioner Lyons
Treasurer - Fred Duckwall was nominated by Commissioner Lyons

Each office was voted on separately and a unanimous ballot was cast for each office.

2. INTRODUCTIONS: Maui Meyer, Richard Lee, Linda Maddox, Susan Froehlich, and Ann Frodel introduced themselves to the Commission and Port staff.

3. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: None.

4. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: None.

5. APPROVAL OF MINUTES:

Motion: Move to approve the minutes of the June 17, 2003 work session/regular session meeting.
Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

6. REPORTS

a) Executive Director:
§ Discussions regarding a short-term lease of the Western Power Products Building are continuing. The prospective tenant is requesting upgrades to the building's electrical system, roof, siding, and general cleanup, and Executive Director David Harlan stated that alterations would be covered by budgeted funds. Harlan emphasized this is an interim usage of the building, with the tenant expected to relocate to another location within three to four years.
§ The Oregon Department of Transportation (ODOT) had three issues related to the bridge redecking project. Harlan reported the historical issue had been resolved, and that the environmental concern of chips of lead paint falling into the Columbia River was nearing resolution. Discussions regarding the HS20 Standard, which deals with road and structure designs in relation to the bridge's width and truck weight limitations are continuing, and the Port's bridge engineering firm, HNTB, is working on related analysis work. President Hosford allowed a question from Ann Frodel, who asked if the redeck project would create a bike or pedestrian lane, and the response was no.
§ Recent improvements to the marina park include the completion of additional Riverwalk paving by Munson Paving; landscaping by Richter Landscape, benches by Schock Welding and Eternity Ironworks, and new speed bumps.
§ Harlan reported he would be meeting the following day with Jeff Tashman, who had been provided copies of the RFP's in order to work up some tax increment financing (TIF) models and analyses. It is anticipated that Tashman's TIF presentation to the Waterfront Task Force/Port Commission/City Council will occur on either July 21 or 23, and that Tashman has indicated he would be available for the Waterfront Public Forum on July 31. Harlan also reported that up to six Waterfront initiatives could appear on the November ballot for vote by city residents only. The Commissioners were also informed that the Community Incentive Funds, a combination of grant and loan dollars that was going to be used for construction of the Second Street road extension on the Waterfront, most likely will not be available from the State of Oregon because of the state budget crisis.
§ Harlan stated he would be meeting with Columbia Gorge Community College representatives tomorrow to continue discussions on the college's proposal to place modular classrooms south of the Expo's paved parking lot. The modular units will be required to meet snow, wind, and seismic codes and the units anchored to the ground. A pre-application meeting with the City is anticipated to discuss utility services hookup fees.
§ The Humanities Software lease, at the current Columbia Building location, is being extended to December 31, 2004. Harlan reported a new sales agreement for the Columbia Building is ready to submit to Key Development, and Harlan stated he has had discussions with DaKine Hawaii about the new agreement with Key Development and DaKine's right of first refusal. Harlan also requested a meeting of the Real Estate committee to discuss revised numbers of the Humanities building cost estimates.
§ Two local real estate agents have requested lease percentages for customer referrals that have become, or may become, Port tenants. Harlan complimented Linda Hull on the task of pulling data together from different agencies having real estate policies. Once the data is finalized, Harlan stated the Real Estate committee would first review a draft policy.
§ The bid for an Automated Weather Observation System (AWOS) at the Ken Jernstedt Airfield closed at 10:00 a.m. on June 30. Two bids were received and Harlan stated the Commission would need to formalize the award of the bid and that an amendment to the grant amount would be required. Further discussion of the AWOS continued under New Business.
§ Harlan recommended the Airport Advisory Committee, which includes citizen participation, be finalized because of the Airport Master Plan process; and that other committee assignments for the Commissioners should be an agenda item for the July 15 meeting.
§ Harlan commented on an additional item not included on the meeting agenda. The environmental cleanup at the UTS Portsite proved more extensive than anticipated. Rather than remobilize contractors, who were currently on site, Harlan stated a staff decision had been made to allow the contractors to continue the cleanup. (The good news is that the contaminated soil was identified as not being hazardous.) Harlan requested further discussion under New Business to ratify the expenditure amount, which had originally been authorized for $4,400.00.

b) Other: Commissioner Duckwall thanked Bill Lyons for his tenure as Commission President, stating that Lyons was instrumental in establishing a positive working relationship with the City and building trust between the two agencies. Lyons was applauded by the Commission, staff, and audience.

7. ITEMS FROM WORK SESSION: Executive Director Harlan stated the timeline presented to the Waterfront RFP developers, who had responded to the Port's request for additional information, was that their answers would be reviewed at tonight's meeting and deliberation would take place at the July 15 meeting. Harlan inquired if a matrix of the responses should be prepared for Commission review, or would the Commissioners prefer the respondents be invited to the July 15 meeting for further interviews. The Commission consented that a matrix would be helpful in reviewing the answers submitted by the three respondents; and that all three developers had addressed the questions that had been asked of them and that it would not be necessary to invite the respondents to the July 15 meeting for interviews. The Commission also consented to holding a work session at the July 15 meeting to further discuss the responses.

8. NEW BUSINESS:

a) AWOS Bid Award:

Motion: Move to award the Automated Weather Observation System bid at the Ken Jernstedt Airfield to PCR, Inc. in the amount of $110,259.20 and amend the grant budget to reflect the actual construction award amount.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) Medical Benefits Resolution No. 2003-04-1:

Motion: Move to adopt Resolution No. 2003-04-1 authorizing a change in the employee healthcare plan option and authorizing reimbursement of employee deductible costs.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) Approval of Accounts Payable:

Motion: Move to approve Accounts Payable in the amount of $9,775.99 to Special Districts Association of Oregon for the workers' compensation policy year 2003-2004.
Move: Lyons
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich, Lyons
MOTION CARRIED

d) UTS Portsite Environmental Cleanup:

Motion: Move to authorize a payment not to exceed $6,500.00 for additional environmental cleanup costs at the UTS Portsite.
Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich, Lyons
MOTION CARRIED

9. EXECUTIVE SESSION: None.

10. NEXT MEETING DATE: July 15, 2003 at the Expo Center Conference Room, with a work session beginning at 6:00 p.m.

President Hosford adjourned the meeting at 8:05 p.m.

---

THESE MINUTES ARE NOT OFFICIAL, as they have not been approved by the Port Commission. These minutes are for review and are subject to change and/or approval at the August 5, 2003 meeting.

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

Absent: None

Media: None

President Don Hosford called the work session to order at 6:05 p.m. Hosford stated that public testimony is not taken during work sessions, and advised the audience members (roughly 27 in attendance) that the regular meeting agenda allows a thirty-minute limit for public comment.

1. Waterfront Request for Proposal (RFP): President Hosford began the deliberations by discussing his preferences of which developer the Port should begin negotiations with for development of the Waterfront. Hosford ranked Gerding/Edlen Development Company, LLC (Gerding) third stating the developer's expectation would require a greater degree of Port involvement in the project. Hosford stated the development teams represented by Naito Development, LLC (Naito) and William Smith Properties, Inc. (Smith) were both good and evenly ranked in his opinion, but Hosford did say his second preference was Smith, and his first preference was Naito.

Commissioner Lyons stated the Port could not lose with any of the three development teams. Lyons stated his approach to ranking the developers was to compare what he felt the Port wanted to the developers' responses. Lyons ranked Gerding third, stating that Gerding would act as more of a consultant and Lyons felt the Port Commission and staff did not have the resources to administer the development project. Lyons also stated his opinion that a large part of the financial risk would be borne by the Port rather than Gerding. Lyons then stated that Naito and Smith were fairly evenly ranked, however, he was uncomfortable with Naito's high reliance on residential and high-end yachting development on the waterfront, which does not provide for long-term employment, therefore Lyons ranked Naito as his second preference. Lyons first preference was the Smith team, which he felt was more innovative and daring, and experienced in writing mixed-use zones and design guidelines. Lyons was impressed that Smith had done his homework on Hood River's wages and schools, and had indicated a market analysis of the residential need on the waterfront would be completed.

Commissioner Bohn ranked Gerding third, commenting it would be a good opportunity to work with this developer, however, Port staff time and financing that would be required were lacking. Bohn stated that Smith and Naito were highly qualified and ranked both developers evenly. Bohn felt that Naito's team had a better pulse on Hood River, however, she was concerned with the residential and marina allocations presented in their conceptual plan. Bohn also commented that she was impressed with the way Smith succinctly answered one question then moved on to the next question in the RFP for Additional Information.

Gerding was also ranked number three by Commissioner Duckwall for the same reasons expressed by Lyons and Bohn. Duckwall also felt uncomfortable with Naito's housing percentage and marina concept, thus ranking them second. It was Duckwall's opinion that Smith's approach was powerful, with no preconceived plan because a marketing analysis would provide that information. Duckwall ranked Smith as his first preference.

Commissioner Streich commented that he did not rate the developers after his review of the generic responses to the RFP for Additional Information questions. Streich stated that Gerding, Naito, and Smith were all qualified, and he did not consider the percentage of land designated as residential by the Naito team as a negative issue because the plans are, at this point, conceptual. Streich expressed concerns about due diligence of the developers and wanted to ensure adequate controls were in place.

A lively discussion followed with Commissioner Lyons stating the pressure would definitely be on the developer of first choice but he felt that the other two teams would be willing to partner in the waterfront development if their schedules allowed. Lyons further stated there was no question that due diligence would be done--but in the negotiation process. Streich stated he felt the Commission was putting the cart before the horse and he would want to know more about the developer, such as financial information, making site visits, or talking to development tenants. Commissioners Bohn and Duckwall both responded by saying a developer would not reveal any financial information unless they were certain the Port was serious about the waterfront development project, and that the financial information would be shared during the negotiation process. Regarding site visits, Lyons reiterated the Commission's concurrence that site visits would be done by staff, who would then report their findings to the Commission. Commissioner Streich emphasized he wants the project to move forward, but felt that he was not ready to make a decision at this meeting. Executive Director Harlan stated that staying on track was his concern, and that the developers had been given a timeline that should be honored because the process for entering into a pre-development agreement will take at least 60 to 90 days, and potentially considerably longer, including conducting the necessary due diligence.

The ranking results of the work session discussion are as follows:

Naito Smith Gerding
Hosford: 1-Naito 2-Smith 3-Gerding Edlen
Lyons: 1-Smith 2-Naito 3-Gerding-Edlen
Bohn: 1-2: tie Naito and Smith 3-Gerding-Edlen
Duckwall: 1-Smith 2-Naito 3-Gerding-Edlen
Streich: Not Rated

President Hosford closed the work session at 6:58 p.m., and called the regular session to order at 7:05 p.m.

1. INTRODUCTIONS: Audience members present at the opening of the regular session introduced themselves to the Commission and Port staff.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: Commissioner Lyons requested that a discussion on Key Development and the Columbia Building be added to the agenda, as a previous Work Session Item, or under New Business.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: Brent Foster expressed his disappointment and surprise at the nature of the development on the "crown jewel" stating he was disappointed that a decision could be made without public comment. Foster asked the Commission to take a different course of action by not putting the cart before the horse and that public brainstorming ideas should be solicited. Greg deBruler questioned why a developer was going to be chosen prior to a master plan process, which would determine the best development for the public, and future needs. Mr. deBruler asked where the public process had been and requested the process be opened. Andy von Flotow commented that he had watched plans come and go the last 15 years, which included various degrees of reservations on Lot 6 for a park, and inquired what had happened the last two years to cause those plans to now be irrelevant and thrown out? von Flotow expressed his concern that the public would be informed of a plan without having any public input, and emphasized that the developer be bound to public input regarding the master planning process. Jacques Rajotte commented that statements had been made about job creation and asked what that meant? Rajotte also asked if financial information was available. Stephen Clark commented that he had recently moved to the area, coming from a "helter skelter" built community whose population grew from 20,000 to 100,000 in 7 to 8 years, which could be not supported by the infrastructure. Cindy deBruler thanked the Commission for the opportunity to speak and for past Port decisions that allowed the community to survive. Mrs. DeBruler's advice to the Commission was to think through their decisions, provide developer information to the public, and take three months for public input in order that the best interest of the community is taken into account. Cory Roessler asked if development on the waterfront would consider any potential impacts to the kiteboarding and windsurfing sports, and if windshadow guidelines would be required and binding? Roessler also mentioned the relocation of a park from Lot 6 to Lot 7. Maui Meyer, a local representative on the Naito team, validated the public, Commission, and staff comments he'd heard at the meeting. Meyer concurred that any development is tough, but he would be committed to an open process with public input. Meyer stated the Naito response should not be penalized for what's on paper now because it's not a set plan but their team wanted to show how quickly they could move from conceptual to reality.

Commissioners and staff responded to the questions raised by stating the public input process has been ongoing (stakeholder interviews conducted by the Leland Group; open Port, City Council, and Waterfront Task Force meetings; and Port newsletters, for example) and would continue with the master planning process, with considerations imposed for windshadow issues. Two public forums discussing 'where we were, where we are now, and where we're going next' are scheduled for July 31, which the audience was encouraged by the Commission to attend. A marketing analysis, which will be a negotiated item in any pre-development agreement, will assist in determining what's economically viable and sustainable for the waterfront development. Without a master plan in place, lodging designations have not been preset, and the audience was reminded the current zoning on Lot 6 is industrial manufacturing.

The thirty-minute time limit was exceeded, and President Hosford closed the comment period by thanking the audience for their participation.

4. APPROVAL OF MINUTES:

Motion: Move to approve the minutes of the July 1, 2003 work session/regular session meeting.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

5. REPORTS

a) Executive Director:
§ A draft lease for interim use of the Western Power Building has been prepared and the prospective tenant is aware they will need to relocate to another facility in the next 2 to 3 years.
§ A three-month lease has been given to Luhr Jenson, who will be using a portion of the UTS Portsite building for smoker storage.
§ Executive Director David Harlan reported the Oregon Department of Transportation (ODOT) has tentatively delayed the bid date on the bridge redecking project from September 11 to October 23 even though the Port has not failed to provide timely information. With the ODOT bid delay and current bond rates starting to climb, a bond sale is now becoming a crucial issue for the Port. Harlan also reported on the seasonal backups at the I-84 Exit 64 off ramps, stating that the volume of traffic and the freeway interchange are the sources of the tie-ups. Harlan reminded the Commission that an attempt to secure state funding from ODOT for tollbooth plaza improvements had been unsuccessful.
§ Dennis Whitehouse, Campus Services Director for Columbia Gorge Community College (CGCC), cancelled a meeting due to a family emergency; however, Harlan reported that schedules are getting back on track for internal meetings to discuss the college's immediate short-term needs, including pre-application meetings with the City. Commissioner Lyons questioned the possibility for an Intergovernmental Agreement to allow the Port to assist CGCC with hookup fees the college had not budgeted for; and Commissioner Bohn commented that the college's designation as the only state approved First Responder training center may generate federal dollars in the future. CGCC intentions are to have modular units placed adjacent to the Expo Building in time for January 2004 classes.
§ A revised sale agreement for Key Development's purchase of the Columbia Building has been drafted, and Harlan stated further discussion would take place during Executive Session.
§ Engineering cost overruns have been incurred for the Wasco Business Park due to the City not having clear industrial street infrastructure standards. The Immediate Opportunity Funding application has been rescheduled for hearing by the Oregon Transportation Commission to an August meeting from a July meeting. Harlan reported the storm water runoff permit had been received.
§ Harlan reported that scheduling conflicts have delayed the July 21 or 23 presentation by tax increment financing expert Jeff Tashman. Harlan anticipates Tashman's presentation to the Waterfront Task Force/Port Commission/City Council would be rescheduled for the following week. Tashman has indicated he would conduct additional presentations, but that additional costs for his professional services may be incurred. As an informational item for the Commission, Harlan stated the Citizens for Responsible Waterfront Development have until July 28 to obtain the required number of voter signatures, otherwise the initiative petition will not appear on the November ballot for vote by City residents.
§ Harlan reported that distribution of the Port Newsletter has been completed.
§ Staff is continuing to work on a real estate referral policy that will be brought back to the Commission for approval.
§ The Department of Homeland Security has announced interim port security regulations, which would require security assessments, plan development, and implementation of security measures and procedures for port facilities handling passenger vessels with capacity of 150 or more. Final rules will be published by October 25. Harlan reported the Port's cruise ship dock would be affected because it met the 150 passenger threshold.
§ Harlan reported the Federal Aviation Administration had approved the grant adjustment request for the Automated Weather Observation System at the Ken Jernstedt Airfield.
§ Harlan reported that he, and President Hosford, would be on the KIHR Radio Talk Show on Monday, July 21 at 8:00 a.m.

b) Other: President Hosford tabled the discussion on Committee Assignments until the August 5 meeting.

6. ITEMS FROM WORK SESSION:

a) Key Development: Executive Director Harlan stated a discussion on the sale offer of the Columbia Building to Key Development would continue in Executive Session.

b) Waterfront RFP: Commissioner Lyons began the discussion by stating he felt the 'table was properly set' and the Commission should go on to the next phase by deciding on a developer. Master Planning is the next major step, which a developer would be bound to. Lyons stated the Port needs to begin negotiating an agreement with a developer, and complete the due diligence process. Lyons also stated, for the record, that a rumor regarding a potential conflict of interest was unfounded, and that his son-in-law worked for Brooks Resources, and not William Smith Properties, Inc., as was being reported.

Commissioner Duckwall stated that Lyons's comments were a fair summation and that the Commission should choose a developer tonight in order to get the team started on an economic analysis to ensure any development is going to be viable and to start on a Master Plan the public can comment on.

Commissioner Bohn stated her appreciation of the audience comments, but commented from her standpoint that public input had been heard - and will continue to be heard.

Motion: Move to open negotiations with William Smith Properties, Inc. for the Waterfront development.
Move: Lyons
Second: Duckwall
Vote: Aye: Duckwall and Lyons
Opposed: Bohn, Hosford, and Streich
MOTION FAILED

************************************************************

Motion: Move to open negotiations with the Naito Development LLC team for the Waterfront development.
Move: Bohn
Second: None
THE MOTION FAILED FOR LACK OF A SECOND

Commissioner Duckwall stated there was a need for a process to address the Commission's concerns relative to action not being taken on the Waterfront RFP. Commissioner Lyons pointed out the good quality of the discussion at tonight's meeting is that action by one Commissioner is not rubber stamped by all other Commissioners. Harlan stated the timeline providing that the developers would be made aware of the Commission's decision no later than July 22 should be adhered to, and a decision, popular or otherwise, needs to be made. Attorney Jaques stated that a 24-hour notice of a special meeting is required, and that notice is accomplished the same as a regular meeting (by website posting, media notification, and a special meeting notice posted at the Port administration office). The Commission consented that the President and Executive Director would decide on the date and time for a meeting to continue discussion on the Waterfront RFP developer decision.

7. NEW BUSINESS:

a) Executive Director's Employment Contract:

Motion: Move to approve the Executive Director's three-year contract.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) Approval of Accounts Payable: Executive Director Harlan stated the Wasco Business Park engineering cost overruns were due to the City not having clear industrial street infrastructure standards, and his recommendation to the Board was to approve the legitimate costs associated with the Change Order.

Motion: Move to authorize Account Payable in the amount of $3,500.00 to Seaborn Engineering, P.C., for Change Order #1, which revises the Wasco Business Park engineering contract amount from $29,568 to $33,068.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, Lyons
MOTION CARRIED

9. EXECUTIVE SESSION: President Hosford called the Commission into Executive Session at 8:28 p.m. under ORS 192.660(1)(e) Real Estate, and ORS 192.660(1)(f) Exempt Public Records.

At the conclusion of Executive Session, the Commission was called back into Regular Session at 8:48 p.m. The following action was taken as a result of Executive Session.

Motion: Move to authorize the Executive Director to sign the sale agreement with Key Development for sale of the Columbia Building.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Streich, Lyons
MOTION CARRIED

9. NEXT MEETING DATE: August 5, 2003 at the Expo Center Conference Room.

President Hosford adjourned the meeting at 8:49 p.m.

---

THESE MINUTES ARE NOT OFFICIAL, as they have not been approved by the Port Commission. These minutes are for review and are subject to change and/or approval at the August 5, 2003 meeting.

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

Absent: Linda Shames, from staff

Media: None

President Don Hosford called the Special Meeting to order at 6:02 p.m.

1. Introductions: Audience members present at the opening of the special meeting introduced themselves to the Commission and Port Staff.

2. Unscheduled Items from the General Public: Susan Froehlich commented on the canvassing that was underway to gather signatures for a November city ballot initiative that would protect the Waterfront green space. Froehlich guessed that less than 4% of those contacted were unwilling to sign, and that many people felt strongly about keeping Lot 6 as open space.

3. Tashman Presentation Timelines: Executive Director David Harlan stated he was looking for a scheduling consensus from the Commission regarding a tax increment financing presentation by Jeff Tashman, and that the presentation would need to occur prior to August 8 because of vacation conflicts. Commissioner Lyons asked City Councilor Linda Rouches, who was in the audience, if she remembered a comment from the April 7 joint Council/Port meeting about financial matters being considered initially at the Task Force level. Rouches said she did not recall, but it was her preference to have all members present, and because the last meeting was during a Council session then it seemed fair to her to have the Tashman presentation on a Port meeting night. Harlan stated he would contact Tashman about his availability for an August 5 Port work session presentation.

4. Waterfront Request for Proposal: Executive Director Harlan opened the discussion by stating the Naito Development, LLC (Naito), Gerding/Edlen Development Company, LLC (Gerding), and William Smith Properties, Inc. (Smith) teams all had great credentials, proven track records, and represented the best development teams in the Northwest. Harlan stated the time had come for the Commission to choose a developer and it was his hope that the teams not chosen might continue to have some involvement in the project. President Hosford began his poll of the Board with Commissioner Lyons, who deferred to Commissioner Streich.

Commissioner Streich reviewed the dilemma he experienced at the July 15 meeting in choosing one developer, when all three were clearly capable, based on his review of the Request for Proposal for Additional Information. Streich commended his fellow Commissioners and Executive Director Harlan for their concern of his dilemma and offers to discuss any questions he had. Streich stated the last seven days offered the time he needed for further review of the Request for Qualification information and team interviews, as well as making site visits to the Portland area to view the developments and get a sense about the quality. Streich stated he was now ready to make a decision and his first preference was Gerding whom he thought had a good mix, and good presentation. Streich's second choice was Smith because he feels the Hood River waterfront will be a tough location to develop, comparing Bend's Old Mill District as being more similar to Hood River than developing a more metropolitan location. Streich also liked Smith's idea of teaming with Gerding. Streich then emphasized he found nothing wrong with the Naito response, but his feelings for the other two developers were stronger.

Commissioner Duckwall stated he had given the decision on the choice of a developer a lot of thought the past seven days and had used the time for more research in order to make the best possible decision. Duckwall stated his original selection of Smith remained his number one preference. Duckwall thought Smith was more creative and imaginative; that market analyses would be one of the first steps taken in the master planning process; and that he liked Smith's approach that whatever was built would adapt to change in order to sustain the development's viability. Duckwall also liked Smith's willingness to partner with Gerding.

Commissioner Bohn stated she also used the past seven days for research and reflection. At the July 15 Commission meeting, Bohn stated she had ranked Naito and Smith equally, but had now made the decision to rate Smith as her first preference, with Naito second, and Gerding third. Bohn stated the turning point for her was Smith's involvement in the planning process; his philosophy that no one has a monopoly on ideas; and his team will work with, and listen to the entire community to build a development that's adaptable.

President Hosford commented he had used the past seven days to reflect on his decision stating he was aware of the public's concern about selecting a team that would develop the waterfront, then leave. Based on Smith's vision, Hosford selected this team as his preference, with the Naito team second and Gerding third.

Commissioner Lyons stated that any of the three development teams could do the job, but his decision was based on which team could come closest to what the Port wanted. Smith remained Lyons's first preference, stating Smith was more interested in a horizontal development; the team's experience in writing a mixed-use zone and working with the City of Bend in the development of the Old Mill District; and his opinion that Smith would present the lowest risk to the Port not only in terms of what happens, but time and financial commitments from the Port. Commissioner Lyons recommended that staff work with the Real Estate Committee to develop a Term Sheet for the process to begin negotiation with a quality developer to ensure quality returns, and if negotiations break down with the preferred developer then the Port would proceed with negotiations with the second or third choices.

Motion: Move that the Port of Hood River select to work with and negotiate with William Smith Properties, Inc., of Bend for development of the Waterfront.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

5. Adjourn: President Hosford adjourned the meeting at 6:30 p.m.