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

Absent: None
Media: None
Public: Linda Maddox

President Don Hosford called the Special Meeting to order at 12:30 p.m. for the purpose of a work session to discuss the pre-development agreement negotiations between William Smith Properties and the Port of Hood River facilitated by Richard Hill and David Blum. Prior to this discussion, the Commission added the following topics to the agenda:

1. Bridge Redecking Project - HNTB Supplemental Agreement Number 5A

Executive Director David Harlan explained that for HNTB to continue progressing the Bridge Redecking Project to Notice of Award, HNTB is requesting that the amount previously approved in Supplemental Agreement Number 5, for time and materials to complete the bidding process, be increased by $15,361. The scope of work remains the same.

Motion: Move to authorize David Harlan to sign HNTB's Supplemental Agreement Number 5A, effective September 9, 2003, increasing the not-to-exceed limit by $15,361 for a total of $34,983, for time and materials to complete the bidding process.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Lyons, Hosford, Streich
MOTION CARRIED

2. Homeshield

Harlan informed the Commission that Homeshield has begun making improvements to the building at this time, including electrical upgrades and removal of insulation, and in accordance with the lease terms.

3. Senator Wyden's Visit

Harlan briefed the Commission on Senator Wyden's visit on September 6. Apparently there was no mark up for Tech Center funds in the appropriations; however, he will continue to push the project but stated he could make no promises. Harlan will be meeting with Dennis Whitehouse from the community college on September 11 to explore other options.

Waterfront Pre-development Agreement Work Session:

Richard Hill updated the Commission on the progress made during Harlan's vacation, stating he and David Blum appreciated the assistance of Mike Doke and Linda Hull during his absence. Task 1, Project Orientation and Planning, in the Scope of Work is almost completed. Hill and Mike Doke have met with local real estate brokers, met with Mike Benedict and Bill Fashing, toured properties, reviewed prior history, and prepared a background summary/matrix. Blum has been reviewing materials and preparing analytical documentation in preparation for negotiating a pre-development agreement. The discussion in today's executive session should identify the negotiation issues and approaches for the initial meeting with William Smith in Bend on September 17.

President Hosford then called the Commission into Executive Session under ORS 192.660(1)(e), Real Estate Transactions (Negotiations).

At the conclusion of Executive Session, President Hosford called the Commission back into regular session at 3:15 p.m. No action was taken as a result of Executive Session.

The formation of an Ad Hoc Waterfront Asset Management Technical Advisory Committee was discussed. David Blum told the Commission he would facilitate this committee and it would represent broad community areas such as business, economic development, retail, manufacturing, technology, recreation, tourism, transportation, agriculture, historical, non-profit/education, media, and relevant government. The committee would consist of 12 people and 3 alternates and its function would be to assist and support the Port's waterfront development process and to provide interactive communication for resolving development issues. It would also work closely with the Port's Community Relations Committee to promote public input and information distribution as part of a public information program.

Motion: Move to establish the ad hoc Waterfront Asset Management Technical Advisory Committee to provide assistance and support for the waterfront development project.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Lyons, Hosford, Streich
MOTION CARRIED

Richard Hill stated that it is critical for the Port to evaluate the financial strength and past business dealings of William Smith. Mr. Hill is sure that Mr. Smith will not share business and financial information with the Port if it will be made public. He asked about the procedure for gathering proprietary information while preparing the pre-development agreement. Attorney Jaques stated that Oregon law permits a person in cases such as this to request that proprietary information submitted to the Port be kept confidential. If the request is reasonable because of the type of information to be received, the Port may agree in good faith not to disclose the information. Unless there are countervailing public interest factors which require disclosure, the proprietary documents Mr. Smith gives the Port, which the Port receives in confidence, will be exempt from public inspection.

Motion: Move that any information submitted by William Smith Properties deemed proprietary and accepted by the Executive Director in confidence, will be exempt from disclosure.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Lyons, Hosford, Streich
MOTION CARRIED

It was agreed that confidential reports from the consultants regarding due diligence information during the pre-development agreement negotiations would be submitted directly to Attorney Jaques.

Richard Hill explained the industrial lands preliminary research has been documented and inserted in the Commissioner's binders for their review.

The applicants for the Community Relations Committee were discussed. It was agreed that due to the waterfront development issues and the bridge redecking project that this committee should begin immediately. Commissioners Bohn and Streich, Mike Doke and Linda Hull will be participating on this committee.

Motion: Move to appoint Paige Rouse, Kathy Watson, and Charles Bugge to the Community Relations Committee.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Lyons, Hosford, Streich
MOTION CARRIED

Commissioner Bohn asked that a press release be sent out regarding these appointments. The Waterfront Recreation Committee is still under review due to the large number of applicants. Staff will also start advertising formally for applications to the ad hoc Waterfront Asset Management Technical Advisory Committee for a 2-week period beginning September 17, in the local newspaper and on the website, with applications due by September 30.

The meeting was adjourned at 3:55 p.m.

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Minutes of September 23, 2003 Port of Hood River Commission Work Session/Regular Meeting
Expo Center Conference Room
5:30 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 Don Hosford called the work session to order at 5:33 p.m.

1. Revised Waterfront Mixed-Use Zone: Executive Director David Harlan reported on the Hood River City Council meeting he attended the previous evening, which included a discussion of the draft waterfront mixed-use zone. Harlan stated he did not participate in the Councils' discussion on the zone, and that public testimony was not taken at that meeting. The Commission discussed language revisions and additions made to the zone by the City Council, and points that should be addressed by Harlan at the October 1, 2003 City Planning Commission public hearing.

2. Needs and Issues Inventory: Harlan reported on the September 24 deadline for submitting the Port's 2004 Needs and Issues Inventory to the Hood River County Economic Development Coordinator, which is an annual process to prioritize projects through the County and the Oregon Economic and Community Development Department (OECDD). Harlan commented that while the Integrated Technology Center is still a priority, it was his recommendation that acquisition and development of "shovel-ready" industrial property be a higher priority. Commissioners Duckwall, Hosford, and Streich agreed, while Commissioners Bohn and Lyons were concerned with placing such a high priority on acquisition when the development status of the Waterfront and Wasco Street properties is pending.

President Hosford closed the work session at 6:55 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 Bohn requested a discussion on the Expo Center (Reports-Other), and Commissioner Streich requested a discussion on the Waterfront Master Plan (Reports-Other). President Hosford stated the presentation by Hood River County School Superintendent Pat Evenson-Brady would follow the Approval of Meeting Minutes.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: None.

4. APPROVAL OF MINUTES:

Motion: Move to approve the meeting minutes of the August 19, 2003 work/regular session.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED
************************************************************

Motion: Move to approve the minutes of the September 2, 2003 (special) meeting.
Move: Lyons
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED
************************************************************

Motion: Move to approve the minutes of the September 10, 2003 (special) meeting.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

7. NEW BUSINESS

a) Local Option Levy: Pat Evenson-Brady, Superintendent of Hood River County Schools, informed the Commission the school district is discussing the possibility of running a local option levy to fund school and community activities. The district is following the model of the Ashland Public Schools, which partnered with the Ashland Park and Rec District. Evenson-Brady stated the boundaries of the Hood River Parks and Rec District are not contiguous with the school district, so the district is talking with local government agencies in hopes of garnering their endorsement for a 3-year option levy they anticipate having on the March 2004 ballot. Evenson-Brady stated schools that provide sports and community activities attract businesses and residents and would enhance the economic development and job creation in Hood River County.

5. REPORTS

a) Executive Director:

§ Waterfront Planning Update: Executive Director David Harlan commented on his meeting the previous week with Richard Hill Associates and William Smith Properties in which parameters for moving forward were discussed. Harlan reported that Smith made it clear that a zone had to be in place in order for him to move forward with the waterfront redevelopment. A Commission work session will be scheduled for September 30 introducing Smith to the community. Harlan reported that he will attend the October 1 City Planning Commission public hearing and present testimony on the proposed waterfront mixed-use.
§ Bridge Redecking Project Update: The Oregon Department of Transportation (ODOT) is scheduled to bid the project on October 23. Harlan reported that construction management proposals have been received from HNTB, the Port's bridge engineering firm, in the amount of $531,600; and from ODOT, in the amount of $593,350.
§ Community College Update: Columbia Gorge Community College is showing an interest in potential classroom space at the Big 7 Building. Harlan indicated a reduced lease rate might be considered with the understanding the rate would ratchet up. Parking may be an issue, but Harlan reported that staff is checking on parking rights at Waucoma.
§ Homeshield Update: Harlan reported that Homeshield is pleased with the cleaning done by the Port maintenance crew and that Homeshield is starting to advertise for jobs through the Employment Office.
§ Wasco Infrastructure Update: The Oregon Transportation Commission approved $141,412 in Immediate Opportunity Funds that will be issued to the City, and Harlan reported that an Intergovernmental Agreement would be prepared. A notice to proceed on the infrastructure bid awarded to JAL Construction of Bend has been issued.
§ Humanities Software Update: A letter of commitment from Humanities' CEO is anticipated, and Harlan reported Kittelson & Associates's proposed cost for a traffic study is between $1,800 and $2,300.
§ Port Committees: Appointments to the Waterfront Recreation Committee will be made at tonight's meeting. The application deadline for the Waterfront Technical Advisory Committee (TAC) is September 30; Harlan stated he would be making recommendations regarding TAC appointments to the Commission for their consideration at the October 7 meeting.
§ Airport Master Planning: Afternoon and evening meetings are scheduled for October 8.
§ Oregon Ports Group: Harlan reported that he and Mike Doke attended the meeting in Newport on September 18-19 and legislative discussions included HB 2011 (shovel-ready industrial land); HB 2300 (OECDD omnibus); HB 2491 (commissioner reporting requirements); and HB 2691 (mill site bill).

b) Other - Community Relations Committee: Commissioner Streich presided over the first meeting of the Community Relations Committee, which will meet again in two weeks. The committee established a goal of addressing issues in a proactive manner, communicating the positive things the Port has done, and is doing; and educating the public to build a base support for the Port with the outcome resulting in a clear understanding of the Port's role and mission to do the right things within a legal framework and a market reality.

Commissioner Streich reported that he had been approached by Andy Gurtner, of Swiss Swell, regarding the possibility of an ice rink on the Waterfront. Streich informed Gurtner that he would inform the Commission of Gurtner's interest and the information would be given to staff as reference.

Commissioner Bohn expressed concern about restroom problems, during events, at the Expo Center and stated if the Commission decided the building was going to be promoted, then an ongoing maintenance program should be considered. Staff will direct the maintenance department to make sure all restrooms are operational prior to the Harvest Fest Event in mid-October.

6. ITEMS FROM WORK SESSION:

a) Needs and Issues Inventory:

Motion: Move to approve the 2004 Needs and Issues Inventory Local Priority List for the Port of Hood River as follows:

#1 - Waterfront Development, including Second Street Extension
and Other Infrastructure;
#2 - Shovel-Ready Industrial Site - Acquisition and Development;
#3 - Hood River Integrated Technology Center;
#4 - Hood River Interstate Bridge Improvement - Redecking
Project; and
#5 - Toll Plaza Improvement Project
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) Wind Shadow Resolution: Commissioner Lyons perceived Port property north of Portway Avenue as being "held hostage" by the current wind shadow language written into the September 15 draft of the waterfront mixed-use zone. Lyons prepared and read a draft resolution, which he felt would protect the winds and not the land, which the Commission and Attorney Jerry Jaques consented to. The resolution will be presented as part of the Port's testimony at the October 1 City Planning Commission hearing.

Motion: Move to approve Resolution No. 2003-04-2 committing to the completion of a wind shadow study as part of the Waterfront Master Planning.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

7. NEW BUSINESS:

b) Waterfront Recreation Committee: Harlan stated the purpose of this committee would be to assist Port staff and Commissioners on various issues concerning waterfront recreational activities, and that the composition of the committee should represent different perspectives and expertise regarding policy decisions that would be made. The Waterfront Recreation Committee is different from the Waterfront Technical Advisory Committee (TAC) in that the TAC will be an Ad Hoc committee, and once specific issues are addressed the TAC would disband. Each Commissioner then presented his or her list of six applicants, stating the reason for their selections. The applicants receiving the most votes would be elected to the Committee and tie votes would be determined by the President.

Commissioner Streich's list included Jim Bison, Steve Gates, Richard Sassara, Michael Schock, Joe Sheirbon, and Lori Stirn, saying this group represented windsurfing and boating users, a political aspect, interest in the Port, and Parks and Rec background.

Commissioner Bohn's list included Jim Bison, Ann Frodel, Steve Gates, Michael Schock, Richard Sassara, and Lori Stirn, which is a diverse group who has indicated a willingness to serve.

President Hosford's cross-sectional list he perceived as carrying no baggage included Joe Deckard, Chris Lynn, Richard Sassara, Dennis Shypertt, Ann Frodel, and Joe Sheirbon.

Business and financial backgrounds, along with different perspectives, was the basis for Commissioner Duckwall's list, which included Ann Frodel, Steve Gates, Richard Sassara, Michael Schock, Dennis Shypertt, and Lori Stirn.

Commissioner Lyon's list included Steve Gates, Joe Deckard, Richard Sassara, Ken Woodridge, Ann Frodel, and Lori Stirn, indicating this diverse group represented people whose livelihood depended on the waterfront, a newspaper and Parks and Rec connection, and people who are passionate about and use the waterfront.

Motion: Move to appoint Steve Gates, Ann Frodel, Lori Stirn, Richard Sassara, Michael Schock, and Dennis Shypertt to the Waterfront Recreation Committee for a 3-year term.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) Construction Management Contract - Wasco Infrastructure:

Motion: Move to authorize the Executive Director to sign the Wasco Avenue Industrial Park Construction Services contract with Seaborn Engineering P.C. in an amount not to exceed $9,780.00.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

d) Construction Management Contract - Bridge Redecking Project:

Motion: Move to award the Bridge Redecking Project construction management contract to HNTB in an amount not to exceed $531,630.00.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

e) Approval of Accounts Payable:

Motion: Move to approve the Accounts payable in the amount of $16,725.08 to Jaques, Sharp, Sherrerd & Fitzsimons; and Standard and Poor's.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

8. EXECUTIVE SESSION: President Hosford called the Commission into Executive Session at 8:14 p.m. under ORS 192.660(1)(e) Real Estate.

At the conclusion of Executive Session, the Commission was called back into Regular Session at 8:43 p.m. No action was taken as a result of Executive Session.

9. NEXT MEETING DATE: The next regular meeting of the Port of Hood River Commission will be held on October 7, 2003 at the Expo Center Conference Room.

President Hosford adjourned the meeting at 8:55 p.m.

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Minutes of September 30, 2003 Port of Hood River Commission Special Meeting
Hood River Inn Gorge Room
6:30 p.m.

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; Richard Hill and David Blum of Richard Hill Associates

City Mayor Paul Cummings, and Councilors Andrea Klaas, Scott Reynier, Linda Rouches, and Paul Thompson; from staff, Jean Hadley

William Smith, Marney Smith, and Matthew Smith from William Smith Properties. Inc.

Absent: From staff, Linda Hull

Media: RaeLynn Ricarte
Public: Reference Attached Sign-in Sheet

President Don Hosford welcomed audience members and Hood River City Council members and staff to this introductory public meeting with William Smith Properties, Inc. (Smith). President Hosford stated that public comment would not be taken at this joint Port/City work session. Hosford turned the meeting over to Mayor Paul Cummings, who announced a quorum was present and opened a City Council work session at 6:35 p.m. Cummings stated the City's attendance was not connected with the Waterfront Zoning Ordinance or the public hearing process and that Council was attending the meeting as interested community members. Hosford then opened the Port Commission work session at 6:37 p.m.

Port Executive Director David Harlan commented the work session was an opportunity for the Council and public to hear Smith discuss his company's development of the Old Mill District in Bend and lessons learned from that project. Harlan then introduced Bill Smith, Marney Smith, and Matthew Smith.

Bill Smith moderated a Power Point presentation on the Old Mill District's past, present, and future and addressed Council and Port questions. Smith's development vision is to enhance the existing community, with a uniqueness all its own, that will be valued for generations to come. Past project experience has taught Smith that redevelopment should be done in small phases, to use a master plan to place the project in larger context and in the design process, and to incorporate design guidelines into design solutions. The public input process throughout a development project is an expectation of the Smith team.

Items specific to the Hood River Waterfront, which Smith commented on, included the use of looping trails, a 75-foot "average" setback (because nature doesn't follow a straight line), addressing the waste water treatment plant odor, and building a vehicle bridge across the Hood River connecting the Waterfront to the Marina. Smith would place a higher emphasis on retail, and the lowest priority on lodging on the Waterfront. Smith recognized the need for a mixed-use zone, which he said needs to be in place in order for him to move forward with the redevelopment, as well as the importance of wind shadow consideration relative to recreational users.

Harlan and David Blum of Richard Hill Associates commented on the 12-member ad hoc Waterfront Asset Management Technical Advisory Committee to assist in the Waterfront development. This committee would also work closely with the Port's Community Relations Committee to promote public input and information distribution as part of a public information program. The application process was advertised and committee members will be selected from broad community areas such as business, economic development, retail, manufacturing, technology, recreation, tourism, transportation, agriculture, historical, non-profit/education, media, and relevant government. The committee will be appointed at the first Commission meeting in October.

Harlan ended the meeting by thanking everyone for attending and stated other meetings would be held in the future.

President Hosford then called the Commission into Executive Session under ORS 192.660(1)(e), Real Property, at 7:38 p.m.

At the conclusion of Executive Session, President Hosford called the Commission back into work session at 8:50 p.m. No action was taken as a result of Executive Session. The formation of an Ad Hoc Waterfront Asset Management Technical Advisory Committee was discussed in further detail.

The meeting was adjourned at 9:20 p.m.