Minutes of April 5, 2005 Regular Session Meeting
Expo Center Conference Room, 7:00 P.M.

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

Absent: Laurie Borton

Media: None

1. CALL TO ORDER: President Bohn called the regular session to order at 7:05 p.m.
a) Introductions: The Commission welcomed Andrew Ball, Paul Blackburn, Brad Dezurick, Martin Campos-Davis, Ann Frodel, Kris Gann, David Hmiel, Christine Knowles, Linda Maddox, Paul McKinzie, Linda Rouches, Jim Schlemmer, and Jody Seaborn to the meeting.
b) Modifications, Additions to Agenda by Commissioners: None.

2. PUBLIC COMMENT:
§ Jody Seaborn read a letter addressed to both the City Council and Port Commission and signed by 11 people regarding cooperation to pass the waterfront zoning ordinance.
§ Paul McKinzie asked that the Commission consider his proposed airport development that would accommodate expansion of local businesses stating that currently in Hood River there is no space or room to grow.
§ Brad Dezurick, vice-president and general counsel for Advanced Navigation & Positioning Corporation (ANPC), spoke in support of Mr. McKinzie's airport project stating that ANPC expects to add up to 40 jobs within two years and needs office space, assembly space and parking which is unavailable in Hood River.
§ Christine Knowles, Park Development Committee (PDC) member, thanked the Commission for agreeing to the changes in the Inter-governmental Agreement (IGA) with the City for park development to facilitate the grant application.

3. APPROVAL OF MINUTES:
Motion: Move to approve the March 15, 2005 (work/regular sessions) meeting minutes.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Abstain: Hosford
MOTION CARRIED

4. INFORMATION-COMMUNICATIONS:
a) Guests: None

b) Executive Director's Report:
§ Bridge Update: Executive Director Harlan stated there was a good turnout on March 28 from the County, City and Port elected officials to walk the site and to thank Congressman Greg Walden for obtaining the $500,000 earmark for preliminary engineering and design of the new Frontage Road Crossing over the Hood River. Harlan will meet with Senator Gordon Smith on April 8 and may possibly return to Washington DC in late May. Exit 64 Interchange: There is an open house scheduled for April 21 at Waucoma Center from 4:00-7:00 PM to show computer models of the proposed solution to reroute the approximate 4,000 local daily trips off the freeway. The proposal includes three signals and a four-lane approach to the tollhouse. This should complement the future tollhouse renovation project that will incorporate electronic toll lanes. Redecking Project: There is nothing new to report on the archaeological issue. Bridge Feasibility Study: Harlan asked the Commission to consider the timeline for a feasibility study by HNTB for a new Columbia River bridge for budgeting purposes.
§ Waterfront Update: Harlan stated the Commission is supportive of the park development and a letter so stating will be sent to the City this week. The park area survey will be finalized by Roy Gaylord shortly. Harlan will be checking with the City on the status of the wastewater treatment plant study this week. The Park Development Committee rescheduled its April 6 meeting to April 20. Integra Realty said they could do an appraisal of the park area for $3,500. The IGA states the City will do the appraisal and the Port may share in the cost. City Manager Bob Francis is on vacation and the appraisal needs to be ordered by the April 15 grant application deadline. The sale of property to Hood River Distillers could also utilize the appraisal information. Harlan will follow up his letter to Luhr Jensen regarding its leased area. Harlan also reported that the City's waterline project to the waterfront is not completed; the Port gave the City $150,000 toward the costs of the project for matching grant funds. Harlan will discuss the situation with Mr. Francis. The Event Site beach maintenance work will be done in time for the U.S. Windsurfing National events this summer. The Spit and Hook roads will be worked on as soon as weather permits. A Waterfront Recreation Committee meeting will be scheduled this month.
§ Wasco Business Park Update: The office building completion date looks like it will be mid-August due to construction delays. Harlan is in discussions with DaKine and Key Development in regards to Humanities' moving timeline. The Commission is invited to tour the new building on April 14 at 3:30 PM. The Post Office was given until May 31 to purchase its identified property. Columbia Area Transit was notified of this.
§ Big 7 Building Update: Shred Alert has requested a downsizing in its leased area.
§ Airport Update: The environmental report has indicated no problem with the Orcutt property. The heating oil tank may need to be decommissioned at a cost of $2,000. The house inspector rated the house at above average.
§ Other: Harlan will be attending an Oregon Ports Group meeting in Salem April 6 as they wrestle with legislative issues. Harlan reported the maintenance crew is working hard to rebuild the bank underneath the Port's office due to erosion. Harlan reported last Wednesday's meeting with local government officials regarding lack of industrial land went well. Harlan did submit a letter to the City requesting consideration to purchase City property at Wasco and Jaymar. However, Harlan said the property is involved in an IGA between the City and Parks & Recreation for a disc golf site. Harlan reported there is to be an event with the governor in Cascade Locks tomorrow. Harlan attended a Community Survivors workshop last month and obtained good information. Harlan has a May 27 tentative reschedule date for a Commission board training-retreat. Harlan would also like to schedule the strategic planning session in preparation for the budget sessions.

c) Commissioner, Committee Reports:
§ President Bohn reminded the Commissioners that their Statement of Economic Interest forms need to be sent in by April 15.

5. ACTION ITEMS:
a) Approval of Audit:
Motion: Move to approve the 2004 audit as presented.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

b) Resolution 2004-05-2/FAA Grant:

Motion: Move to adopt Resolution 2004-05-02 authorizing the acceptance of a Federal Aviation Administration Airport Improvement Program Grant in the amount of $608,760 for acquisition of property.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

c) Budget Committee Appointments:

Motion: Move to appoint Brad Dezurick to the Budget Committee position vacated by Kathy Watson and expiring March 1, 2006.
Move: Hosford
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

Motion: Move to reappoint Mike Benedict to the Budget Committee position that expires March 1, 2008.
Move: Watson
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

d) Airport Master Plan: Mike Doke recommended that the Airport Advisory Committee review the new 20-year Airport Master Plan next week prior to the adoption of the plan by the Commission at its next meeting.

e) Strategic Planning/Budget Schedule: Finance Manager Linda Shames told the Commission the budget meetings must start no later than the first week of May. The strategic planning sessions, which drive the budget, were set for 4:00 PM on April 19, prior to the next regular Commission meeting and April 25, 8:00 AM, if needed. The Budget Meeting was set for May 2, 5:00 PM, at the Expo Center Conference Room.

f) Accounts Payable:

Motion: Move to approve accounts payable in the amount of $7,294.75
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

g) Appraisal of Waterfront Park Parcel: Harlan stated that Integra Realty submitted an estimate of $3,500 to complete an appraisal of the park property. Attorney Jaques read from the IGA, 7(A) Land as Grant Match, which states, "For purposes of grant applications, the value of the Park land may be determined by an appraisal of the property by the City. The Port may agree to share the cost of such an appraisal." President Bohn asked Mayor Linda Rouches if she knew if City Manager Francis had ordered this done already. Rouches did not know and thought Francis and Harlan were discussing the matter.

Motion: Move to order the appraisal of the park property with the City to pay the costs.
Move: Duckwall
MOTION died for lack of a second.

Motion: Move to order the appraisal of the park property with the City and Port to share the costs.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

President Bohn stated that the Commission met in Executive Session before the Regular Meeting to discuss the transfer of the park land to the City. Bohn stated the Port Commission will honor the timeline and schedule of the Park Development Committee and transfer the property in accordance with the terms of the IGA. In regards to Ordinance 1851, Bohn stated that given the concern of many regarding potential housing development at the waterfront and growing community concern regarding the lack of available land to accommodate expanding local businesses and firms seeking to relocate to Hood River, the Commission needed to step back and revisit the direction of development of the waterfront at its upcoming strategic planning sessions. The Commission will notify the City of its desire to discontinue the adoption process of Ordinance 1851 at this time and will request the IGA be revised to reflect the Commission's consensus and direction. Mayor Linda Rouches stated she respected, supported, and appreciated this decision of the Commission tonight.

President Bohn called the Commission into Executive Session under ORS. 192.660(2)(e) Real Property at 8:00 p.m. At the conclusion of Executive Session, the Commission was called back into Regular Session at 8:50 p.m. No action was taken as a result of Executive Session.

The meeting was adjourned at 8:51 p.m.

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Minutes of April 19, 2005 Port of Hood River Commission
Strategic Planning Work Session
Expo Center Conference Room

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 May 24, 2005 meeting.

Present: Commissioners Sherry Bohn, Don Hosford, Fred Duckwall, Hoby Streich and Kathy Watson; Attorney Jerry Jaques; from staff, David Harlan, Mike Doke, Linda Shames and Linda Hull; Others: Linda Maddox

Media: None

President Sherry Bohn called the work session to order at 4:10 p.m. for the purpose of discussing the 2005 strategic plan objectives as the Commission prepares for the budget process that includes updating the 5-year capital plan. The capital plan identifies projects for which revenue resources such as grants, investment, etc., can be leveraged to accomplish over five years.

Introduction/Strategic Planning Overview:
Executive Director David Harlan suggested the Commission review a marked-up version of the 2004 Strategic Plan to guide the discussion. Based on the Commission's decision to step back and review the zoning of the waterfront development from mixed-use back to light industrial, Harlan asked the Commission to focus the discussion today primarily on that issue. The next strategic planning session can focus on budget priorities. Harlan stated the Port's goal continues to be to reduce reliance on bridge revenues to support current and future assets and to create a long-term strategy for each asset center to be self-sustaining.

President Bohn asked about the definition of return on investment (ROI)-can it be measured only in dollars or can the community return be considered? Bohn asked the Commission to keep in mind the community benefits of the Port's assets as well as how to pay off the investment in them. Bohn said at the Waterfront Recreation Committee meeting, Linda Shames reminded everyone of how long-term planning and vision from prior Commissions created cost centers that were to be self-supporting. The Marina Park, for example, was designed to have enough commercial build-out to support the park and marina. The Commission at that time did not want the amenities to be a drain on revenue. However, building plans stopped in 1994 due to an initiative to prohibit new construction in that area. One or two more buildings would have paid for the park amenities. Another example is the airport where the landing strip facility is supported by hangar leases and other airport development. The Diamond Fruit Complex redevelopment was unpopular at the time of initiation; however, private investors would not do it-and it was a blight in the city. The long-term benefits are being enjoyed today from small companies in the redeveloped buildings, all due to the long-term vision of the Port Commission. Even though these projects did not meet ROI goals immediately, over time they returned enough to invest in other projects. Bohn said that past Commissions had both vision and intestinal fortitude to move forward with unpopular projects.

Shames said if assets are not self-supporting then the goal is to find alternative sources; i.e., fees, transient room tax (TRT), urban renewal, bonds, taxes, etc. Commissioner Watson asked if we could measure the economic impact of parks and open space? The Port looks at these assets as revenue drains when Watson believes they are part of the quality of life that attracts companies to the area. She would like to know how many jobs were created by people who came here to play and then brought their businesses back, and that the cost/benefit to the greater economy should be considered. Shames said the Port's problem remains to find sources of revenue to match expenses. Should revenue come from the public at large, or TRT, or property taxes; we cannot be out of balance forever and should work toward self-sustenance. Harlan agreed that livability is a factor for businesses relocating; however, space available, existing buildings, etc., are always critical issues when companies are seeking to relocate. In the 1980s, space was available through the Diamond redevelopment. In Cascade Locks, there is a beautiful waterfront park, however, businesses are not relocating there just because of it. You have to look at the total picture of an area and the Port cannot lose sight of where to put businesses that want to come here or expand here.

Watson stated in her opinion we should target creative non-manufacturing companies, spend the money we have now to make the investment in them to improve job creation. Watson asked, with full build-out accomplished, what then-that the Port could be dissolved. Commissioner Streich disagreed and said he believed in the longevity of the Port; it's done a good job in the community, leveraging grants to pay for development and amenities for everyone and can continue to do so. Commissioner Duckwall thought talking about a sunset for the Port was premature.

Shames said the Port's tax base for 2005 is $38,400 per year. This covers the statutory requirements of a board of commissioners: liability bond, audit, compensation, insurance, legal counsel, etc. The ability to increase the tax base is limited because of tax compression. Harlan's concern is when there is no revenue to pay for operations and amenities and how to plan for it now.

Bohn said the Port's strategic planning is an opportunity to be visionary because the Commission gets lost in the day-to-day issues, in particular, the waterfront development issues. What do we want to do in the future and how do we accomplish it? Mike Doke stated we also don't want to lose businesses currently operating here. For years the waterfront has been a huge void because of the planning-zoning process. Doke has had just John Weber Business Park and Wasco Business Park to show to potential businesses. Harlan said the new building at Wasco to house Humanities Software is a good start. Commissioner Hosford said with Google coming to the Gorge other high-tech companies may follow. Watson believes we should be identifying and targeting these kinds of business clusters. Harlan said the fact that other areas like Bend are running out of land and our freeway access to Portland is a benefit to Hood River; more businesses will be looking in this region.

Financial Policy Review: Current objectives in the Strategic Plan were then discussed. Harlan asked that they consider the remaining 20-year life of the bridge and how to replace that revenue by then. The reason the Port purchased the bridge in 1950 was to preserve the vital economic link between the two states. If the two states do not succeed in replacing the current bridge, should the Port study the feasibility of replacing it? The study would provide information to begin the financial planning now, if feasible to build it.

The Commission discussed the 4% ROI target for assets. Shames stated that if the asset does not meet the ROI standard, then a 5-year plan to meet the goal should be formulated. Streich said development of structures and shovel-ready infrastructure should be done first to support amenities. Discussion regarding the Pedestrian Access Way (PAW) development raised questions of who and when or if requirements can be stated in leases and sales agreements. Harlan said the PAW would be a benefit and that it has to be identified in the Master Plan itself. Watson felt we should target certain industries and also ask our current tenants about their projected growth to accommodate it. Harlan stated you can target certain industry types; however, it should be based on a business profile (# of employees, etc.) and not just what they do.

Bohn asked for clarification on the 75% of capital projects should be completed in the five-year cycle. Shames explained this is to measure if things get done. Due to the waterfront zoning process, nothing has been accomplished recently, other than the bridge redecking project. The 2nd Street construction is still designated in the budget; it is designed and permitted. Staff will check with the engineers to get cost estimates for changing the direction. The current 2nd Street is the utility corridor and that must be factored into any business park master plan.

Asset Management: More discussion was held regarding Port properties not meeting return on investment goals. Shames stated the objective for planning is to create a plan that achieves balance over time. For example, the new building at Wasco Business Park will not meet investment ROI goals immediately until the construction costs are absorbed over a 10-year time period. Harlan stated there are economic development projects the Port can do that will take some time to develop-beyond the waterfront. This area has limited shovel-ready or marketable land available. The middle valley area has potential for expansion of the urban growth boundary, including the airport area. The Port can work with the County to jointly invest in light industrial potential. The Port should also look at transportation alternatives from the middle valley to main arterials.

The Marina Park was discussed in regards to further development of more space to make the asset self-sustaining. The potential of a new Frontage Road connection should be considered. A $150,000 grant application for the rehabilitation of the fuel/pump-out dock will require 25% matching funds.

Waterfront Complex: Harlan will revise this section of the Strategic Plan for Commission review at the next meeting. Bohn also said the Waterfront Asset Management committee formed for the mixed-use zone had good ideas and could assist with the master planning for a business park concept. Discussion was held regarding William Smith Properties doing the master plan. Harlan said Bill Smith is still interested; however, he was not in favor of donating the park land.

President Bohn then ended the work session prior to calling the Commission into regular session at 7:00 p.m.

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Minutes of April 25, 2005 Port of Hood River Commission
Strategic Planning Work Session
Expo Center Conference Room

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 May 24, 2005 meeting.

Present: Commissioners Sherry Bohn, Don Hosford, Fred Duckwall, Hoby Streich and Kathy Watson; Attorney Jerry Jaques; from staff, David Harlan, Mike Doke, Linda Shames and Linda Hull; Others: Linda Maddox

Media: None

President Sherry Bohn called the work session to order at 8:10 a.m. continue discussing the 2005 strategic plan objectives as the Commission prepares for the budget process that includes updating the 5-year capital plan.

Strategic Plan Revisions:
Executive Director David Harlan suggested the Commission start by reviewing the changes made to the Waterfront Complex of the Strategic Plan. Harlan revised language throughout that section to capture the consensus of the Commission to move forward in master planning a light industrial business park on the waterfront.

Commissioner Watson asked the Commission to revisit their thinking on waterfront housing in the context of live-work scenarios, if that would support our goal of job creation by identifying and accommodating companies within that environment. Harlan said the market would dictate the need for that type of arrangement and that the master planning process could incorporate it. Attorney Jaques reminded the Commission there is commercial zoning already in place at the Expo and the Barman properties and other parcels can be rezoned as they are incorporated into the master plan. Bohn stated this time she would like to see a "picture" - an actual visual plan of the whole area, at the beginning of the process and that it would help the City make its decisions.

Harlan said the 2nd Street engineer is working on the alternative scenarios and should have cost estimates to us this week. Watson asked that the City's issues (PAW, setbacks, heights, view corridor) be addressed in our Strategic Plan as master planning elements. Bohn said the 2nd Street alignment is the view corridor. There was discussion regarding the City's ability to overlay a zone onto the light industrial zone on the waterfront and Jaques explained the process. Commissioner Duckwall said if the elements are part of our master planning process and approved in the Strategic Plan as such, the City should wait to see the approved Master Plan before they initiate an overlay zone. He believes the amenities add value to our development and our intent is public record and done in good faith; it's a 2-way street on trust and the Port has acquiesced to everything to try to get something done. Complicating this issue is the timeline for transferring the park land to assist the City in obtaining a state grant. City Council will discuss the issue at its meeting this evening and President Bohn will attend.

Watson told the Commission that she discussed the Expo Center redevelopment with David Meriwether, County Administrator. Consensus was to ask County, City, Chamber entities to meet together to look for alternative sites for large community events, in particular, the Harvest Fest. Bohn said the PDC was also asked to address incorporating areas for large tent events into their park plan.

Harlan asked if the Commission wanted to pursue the Marina Planning for this year. He said the Waterfront Recreation Committee discussed the potential build-out for the marina property by the Port offices to contribute to the support of the park and marina amenities. Jaques said the 1994 vote to restrict building west of the Port offices was an ordinance and as such can be repealed or amended by the Port Commission. Consensus was to include funds for a new building in the 5-year capital plan.

Commissioner Hosford asked if the Pedestrian Access Way should be part of the "River Walk" that's in the Marina? It would provide consistency and connection. Bohn asked if the investment of an infrastructure development of a "pathway" could be recouped after funding it upfront? Finance Manager Linda Shames explained a percentage of a land sale can contribute and also through CC&R maintenance assessments; it's however it is master planned. Shames would like a master plan in place so that costs can be assessed per linear foot-remember the lesson from the Marina Park development. Watson stated if it was the "right thing to do" then we should commit and do it-and not base it on other development surrounding it. She reminded the Commission of her earlier statements regarding the economic value of the facilities and amenities.

Commissioner Streich asked about the target percentage for return on investments and if they should be 5% and not 4%. Shames said it is in the cash flow management section and is a judgment call; no entity can operate in a deficit. Consensus was to increase it to 5% as a target.

Discussion was held regarding Strategic Assets and Land Management. Streich asked for a clarification on why the Commission would consider the sale of property if it does not need capital to move forward on another project? Bohn said the Port's offer on Lot 7 is just that; it was not a decision to sell land. Harlan stated that businesses today do not prefer to lease, but to own; leasing space is more "old school" business operations. Duckwall said each situation is unique and there may be cogent reasons, both strategically and financially, to consider both. He thinks the two should be separate; for example, bringing new jobs to the area would be a good reason to consider it. Watson said they are just tools to use to reach objectives and goals and each transaction should be analyzed individually. Staff will add new language regarding achieving its goals and mission to the strategy of land management.

Five-Year Capital Plan:
Shames reviewed the handouts with the Commission operating revenues and source of funds. She explained there is approximately $860,737 in discretionary funds to be used for consulting services. She reviewed the services that may be utilized in the coming year and included those for waterfront master planning, marketing, economic impact studies, public relations, RV park feasibility, and 2nd Street engineering. The lots north of Portway can be partitioned into legal parcels, up to three per calendar year. Industrial land development can qualify for SPWF low interest loan/grants. Streich asked that funds for an RV park be included for infrastructure (utilities, cable, telephone, etc) and restrooms. He asked for $250,000 to be budgeted for a restroom/shower facilities on Lot 6. He will meet with staff this week to review the analysis.

At 10:25 a.m., President Bohn welcomed guests Roger Malinowski, President; Damon Noller, V-P Sales & Marketing; and Stephen Ford, Bend real estate agent, to discuss B.O.B., the company that would like to purchase Lot 7 for relocating its business. Mr. Malinowski explained the business is fast-growing and they need expansion room. Their situation involves a 1031 exchange so they must identify a building and land to purchase very soon. Hood River is one of three sites they are looking at to purchase. He indicated they are unhappy in Bend and that it is not an environment friendly to business. He also asked about the political/business environment here and said they recognize the limitations on the property. Right now they are unclear on what the legal parcel will look like and have not received anything from the Port except a request for a 14-day extension to review the proposal. Mr. Noller indicated they do not want to waste time and need to make a decision this week. There was discussion regarding the pathway property and their hesitancy to purchase land with easements on it. Bohn said the pathway is a reality of the waterfront and that north of Portway property is contentious at this time with political ramifications. They assured the Commission that they are good corporate citizens. The Commission reiterated that their company would be a good fit here in Hood River and thanked them for coming in to meet them.

At 11:15, President Bohn called for continued discussion regarding the Capital Plan. Shames explained the line items, including projects for the toll house upgrade, replacement of UTS-Portsite Building, replacement of Port office & DMV buildings, Expo conversion, and future industrial land purchases.

Discussion regarding tax increment financing was held. Watson thought the City is ready to discuss the use of this funding mechanism. Harlan suggested the master planning project could incorporate the use of various funding mechanisms, including this one, but the City has been unresponsive to this one in the past.

Streich asked if the Port could loan funds to the City to build a parking structure. Jaques said a this would typically be done in an intergovernmental agreement. Watson thought this would be a good idea for joint investment with the County as well and asked that the joint governmental investment idea be added to the Strategic Plan.

The Commission then went into Executive Session under ORS 192.660(2)(e) Real Property at 11:45 a.m. At 12:30 p.m., the Commission came out of Executive Session. The consensus of the Commission was that companies such as B.O.B. are the types of companies we would like to accommodate; however, there are numerous barriers to this deal being completed within its timeline criteria. Harlan will discuss the situation with the company so that they can make a decision this week.

President Bohn then ended the work session at 12:35 p.m.

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Waterfront Recreation Committee
Minutes
April 18, 2005