TEN PRINCIPLES FOR...Metro TOD Program Lidwien Rahman ODOT Amy Rose Metro Elissa Gertler Portland...

TEN PRINCIPLES

FOR

Leland Consulting GroupParsons Brinckerhoff

Ten Principles for

Achieving Region 2040 Centers

Funding for this work has been supported by a Periodic Review Grant from the Oregon Department of LandConservation and Development.

Cover Illustration was redrawn from Farr Associates Architecture and Urban Design.

Participants

PHASE III STEERING COMMITTEE

Andy CotugnoMetro Planning Director

Mary WeberCommunity Planning Manager

Brenda BernardsSenior Regional PlannerMetro Project manager

Hal BergsmaCity of Beaverton

Bob ClayCity of Portland

Michael DennisTri-Met

Maggie DickersonClackamas County

Meg FernekeesDLCD

Marc GuichardMetro TOD Program

Lidwien RahmanODOT

Amy RoseMetro

Elissa GertlerPortland Development Commission

CONSULTANT TEAM

David C. Leland, CREProject PrincipalManaging Director, Leland Consulting Group

GB ArringtonProject PrincipalSenior Professional Associate, Parsons Brinckerhoff

Shelby T. EdwardsProject ManagerAssociate, Leland Consulting Group

Kimberly K. Iboshi SloopProject ConsultantPlanning & Policy Analyst, Parsons Brinckerhoff

Stephen OringdulphGraphic Designer, Parsons Brinckerhoff

The Project Team and the Steering Committee thank the numerousdevelopers, real estate professionals, the Oregon Chapter of The Counselorsof Real Estate, community leaders and public officials for their generousand candid contributions to this project.

Table of Contents

Introduction .................................................................1

The 10 Principles for Centers .....................................7

1. All Centers Are Not Created Equal.........................9

2. Understanding Market Impact ..............................13

3. Private Investment Follows Public Commitment ..17

4. Reward Leadership..............................................23

5. Build Communities, Not Projects..........................25

6. Remove Barriers ..................................................31

7. Metro As Coach ...................................................37

8. Balance the Automobile .......................................41

9. Celebrate Success...............................................47

10. Take the Long View.............................................49

Conclusion................................................................53

Ten Principles for ACHIEVING REGION 2040 CENTERS 1

Introduction

Oregon is recognized nationally as a leader in the way it adoptsand implements policies about how its land will be used – usinga blend of thoughtful public policy, rigorous attention to technical

research, a willingness to think and act creatively, and a commitment tomeaningful public participation. Oregonians understand the importanceof managing growth wisely and have witnessed in their own communitiesthe effects of good land-use policy. We are ahead of the gamecompared to most metropolitan areas, but have yet to realize the fullpotential of 2040.

Oregon’s land-use leadership began in 1973 when the state adoptedunprecedented state land-use laws and again in 1995 when the Metroregional government adopted its Region 2040 Growth Concept. It isimportant to note that both efforts were momentous in their results and intheir process. They had no precedent, no case studies from which tolearn, and no prior models as a basis for knowledge. State and regionalefforts truly have been, and are, viewed as innovative and ahead of theirtime.

A key component of the Region 2040 Growth Concept is that land withinthe urban growth boundary, or UGB, should be used more intensely, thussaving farm and forest land from being developed as well as effectivelyusing infrastructure. As a result, the growth concept required that futuregrowth occur primarily in the following hierarchy of urban concentrations:

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� Central City – DowntownPortland, with the region’shighest numbers of jobs,housing and recreationalopportunities.

� Regional Centers – Largeregional cores that serve as ahub for employment andhousing; serve about 100,000people.

� Station Communities – Highlyconcentrated areas that fan outin a 1/2-mile perimeter aroundmajor transit stations, providingservices, recreationalamenities and high-densityhousing that is convenient tomass transit.

� Town Centers – Smaller but stillsignificant areas that serve asthe heart of medium-sizecommunities; serve about10,000-50,000 people.

� Main Streets – Small but vitalcores that serve as the focus ofneighborhoods, providingspecialized services andshops, along with nearbyhousing.

Since Metro adopted its Region2040 Growth Concept, the regionalgovernment has continuallymonitored and evaluateddevelopment activity in the region –recognizing that it is vitallyimportant to conduct regularchecks to see what is working andwhat needs extra attention. As partof that effort, Metro has initiatedspecific studies to examine theeffectiveness of regional and towncenters. A concern at this point isthat while medium- and high-density housing is progressingwell, the rate of both employmentconcentrations and retaildevelopment in centers arelagging.

Metro retained the consulting teamof Leland Consulting Group (realestate strategists) and ParsonsBrinckerhoff (planners and policyanalysts) to prepare potentialstrategies for bolstering investmentand growth in centers. The teamdevised a set of guiding principlesthat serves as the backbone of thisdocument and of futurediscussions. These ten guidingprinciples were derived based onseveral factors, including:

� Review of Metro research andrelated reports.

� Discussions with Metro seniormanagers.

� Experience with Metro andmany jurisdictions within theregion.

� Experience with developers,lenders and investors.

� Confidential interviews withdevelopers, builders, mortgagelenders, commercial real estatebrokers, mayors, citymanagers and planningdirectors.

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� Workshops with the MetroPhase III Centers SteeringCommittee and interviews withthe State of Oregon’sCommunity Solution Team.

� Experience with downtowns,various types of centers, transitvillages and corridors.

� Experience in projectnegotiations for complex,mixed-use partnerships thatinvolved both the public andprivate sector.

The principles are designed to beboth timeless and interactive. Thatis, the principles work together andapply to centers of all size, mix ofuses, character and stage ofdevelopment, and should beapplicable both now and in thefuture.

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A BoldStrategySince these Ten Principles aredynamic and action-oriented, it isimportant to emphasize that thisdocument is not a study. Studiesshould and do have their place inany successful planning program,but there are times whensomething more is required. Nowis such a time. This is a documentthat addresses the future in aproactive way – intending to createa change in perception, whichleads to alterations in attitude, andultimately can change behavior.That desired behavior is anenhanced partnership betweenregional government, localgovernment and the private sector– working together to bring aboutquality development and themeaningful growth of centers. Weassume our audience comes froma range of backgrounds, interestsand professions. The overridinggoal is that “Principles for Centers”will help recognize existing barriers

to development, provide tools forremoving those barriers, andstimulate investments in ourregion’s centers. If the process issuccessful, it will be because themessage and lessons within theTen Principles are understood andsupported by the public and privatesector interests alike.

A lesson learned repeatedly is thatthe single most significant factor inwhether a center will be developedsuccessfully is, quite simply,people. Whether as individuals oras part of a larger institution,people can make or break asuccessful development projectand successful center, dependingon their attitude toward public-private partnerships, innovativesolutions and problem solving. Thereader will note this prevailingtheme throughout most of the TenPrinciples. Recognizing the role ofpeople – whether championing theforward-thinkers or nudging thenaysayers – is no magic bullet.But it is a tried and true tenet thatmerits a great deal of new strategicthinking and positive action.

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Defininga Center

Although every center isdistinctive, and in some casesunique, they all contain somecommon, essential elements,including:

� A sense of vitality, with acompact urban form that isoriented toward walking and amix of uses

� A commitment to innovativedevelopment, a flexibleapproach, and the removal ofbarriers

� Evidence of leadership andcommunity vision

� Excellent accessibility totransit and major roads

� An environment that fosterssafe, enjoyable walkingamong the various uses

� Responsiveness to thefundamentals of marketsupply and demand

� A mix of land uses(residential, retail,employment, civic, cultural,and recreational) and aconnectedness betweenthose uses and centerdistricts

CapturingThat PioneerSpiritOregonians have long blazed atrail in the area of land use andplanning, whereas manymetropolitan areas are justbeginning the journey. But truepioneers do not rest on theirlaurels; instead, they keep askingquestions, they keep pushing fornew and better ideas, and theyconstantly question the status quo.Right now, Metro and its partners –local governments, citizens andthe business community – havemade great strides in managinggrowth wisely but are temporarilystuck in the status quo when itcomes to invigorating the region’scenters.

Much of the agency’s focus thusfar has been on regulation. Whileimportant, regulation by itself willnot lead to successful centers.New navigational tools, moreclearly defined roles andresponsibilities, and forginginnovative relationships should bedeveloped to complement a strongfoundation of regulation.

The Region 2040 Growth ConceptMap has been a useful planningguide, but it needs to move beyondthe “purple dots” – those areas onthe map that mark the location ofregional and town centers. Whilethe dots identify the centers andoutline their basic function, theyshould be fleshed out to recognizethe many types of centers, theircritical relationship to corridors,and the underlying markets and theeffects on centers.

This is another important journey –this time toward an innovative,active strategy that will bolster theregion’s centers and ultimately theregion’s future livability. The LelandConsulting Group/ParsonsBrinckerhoff team has attempted toassist Metro and its regionalpartners in developing a new set ofnavigational tools to help make thejourney as successful as possible.

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1. All Centers are Not CreatedEqual

2. Understanding MarketImpact

3. Private Investment FollowsPublic Commitment

4. Reward Leadership

5. Build Communities, NotProjects

6. Remove Barriers

7. Metro as Coach

8. Balance the Automobile

9. Celebrate Success

10. Take the Long View

The TenPrinciples forCenters

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The Metro 2040 Growth Concept includes 37 regional and towncenters and an even larger array of main streets and stationcommunities – each of which represents a distinctive place with

its own history, personality, character, condition, and state ofdevelopment. It is important to note that any strategy related to centersmust be flexible enough to acknowledge and accommodate thosedifferences, even among centers of similar size. Not all centers willachieve, or should achieve, the same mix or level of employment,housing and population densities, retail and services, civic and culturalfacilities, and amenities and recreational elements.

Implementing 2040 centers represents the single most important elementin achieving the goals outlined in the regional growth concept. Pursuing acookie-cutter approach toward these centers will only weaken, ratherthan strengthen, the 2040 implementation strategy of concentrating landuse. As such, policy must be sensitive to the different starting points,assets and market positioning of each center.

Each center actually is a collection of districts. Within any given centerthere might be a retail core, a civic component, a concentration ofemployment-related uses, and usually several adjacent neighborhoods ora concentration of housing within the center. It is entirely appropriate thatthe various districts within each center perform to different standards.The intensity of development for the retail district will be different than thehousing or employment districts. The public and common areas such asthe streetscape, signage, street furniture, lighting, parks, open spaces,public squares, environmental enclaves, and civic buildings should tiethese districts together into a seamless, appealing overall center. Inaddition, each center has its own public-private partnerships, creating anindividual flavor that melds the old and the new.

1All Centers AreNot CreatedEqual

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Because of the unique nature ofcenters, it is inappropriate toestablish uniform density targetsand implementation formulasacross the board. Each centermust find its own way and its ownvoice, and regulation should notserve as a hindrance. Centersserve a local population and thevision for that center should bedefined locally.

The Role ofCorridorsThe relationship between corridorsand centers, so far, has not beenintegrated effectively in this region.Deteriorating urban corridors havebeen identified by the Urban LandInstitute (ULI) as one of the mostpressing problems facing Americancities. Unfortunately, tiredcommercial strips and stripcenters, extremely land intensiveuses (e.g., used car lots), buildingsin disrepair, and overwhelming andunattractive signage arecharacteristics of many corridors.Yet corridors and centers share acommon link, since corridors formthe gateway to many centers andcan, if properly planned anddirected, serve as a valuablesupporting resource for centers.As a result, corridors should not beneglected. Nor should they betreated as an isolated problem oras an entirely separate urban form.They should be treated as anotherimportant piece of thecomprehensive and effectiveregional or town center. Centerssometimes array along a corridorsuch as the case of Milwaukie,Gladstone and Oregon City – pulsepoints of development and activityalong the common Highway 99corridor. Corridors should becarefully considered on a case-by-case basis to determine therelationship to the adjacent center.

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DifferentNeeds forDifferentCentersThere is no simple formula or ruleof thumb for deciding what level ofamenity and infrastructure isneeded to make a center attractivefor development. Since eachcenter is unique, so are itsindividual’s needs.

Having said that, there are certainkey infrastructure elements thatmust exist for any center to besuccessful. First and foremost onany list is transportation, or rather,several types of transportation. Byproviding extremely accessible

transportation and plenty oftransportation choices, the regioncan create centers that becomethe focus of economic activity andreal estate investment.

Primary infrastructure elements fora center include:

� High level of accessibility forvehicles on the regionaltransportation system.

� High level of transit accessibilityon both the regional and localtransportation systems.

� Well connected network ofsmall streets within the center.

� An environment and series ofamenities that encouragewalking.

� Distinctive informal publicgathering spaces.

� Amenities such as public art,street trees, landscaping,lighting, and other factors thatcreate a sense of place.

� Parking managementstrategies such as sharedparking and/or structuredparking to avoid a vast sea ofsurface parking lots.

STRATEGIESAND ACTIONS

1. Broaden the definition ofcenters to accommodate theunique nature of eachindividual place.

2. Consider revising currentpolicy to reflect the importantconnection between centersand their adjacent corridors.

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Acenter’s success depends largely on whether its public andprivate backers understand the demographics and market trendsthat influence a particular center and its associated districts. Just

as “centers are not created equal,” centers do not have equal marketopportunity based on location, state of evolvement, willingness to partner(with the private sector), competition and related factors and conditions.

Real estate markets, in essence, translate into people. In the real estatecontext, a market means a place to live, work, shop, visit, and play. Tounderstand what a center can expect in terms of real estate growth, eachcommunity must look first at its center’s size, character, role in themarket, and the population and visitors to be served. Household growth,household size, income, nearby employment and other populationcharacteristics also help define market opportunity. Markets are theexpression of people’s needs and desires, as well as real estate’s abilityto satisfy those needs and desires. In other words:

� Household growth determines housing needs and capacity.

� Income and other demographic characteristics determine retail needsand spending patterns.

� Employment determines office and industrial space needs.

� Population growth and policy determine public uses, institutions andthe role of government.

Markets consist of people who make decisions about how and wherethey spend their money, the kind of housing they will live in, and whatrecreational and entertainment opportunities to pursue. Except wherepoverty or subsidy is involved, people make discretionary choices aboutwhere and how they spend their time and money.

2UnderstandingMarket Impact

65 percent of retail sales are madeafter 5:30 p.m. and on weekends.

Gibbs Planning Group

Nationwide, family sizes are shrinking.In the Portland metro area, more than60 percent of all households have oneor two people – potential candidates forurban housing in centers.

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It is important to understand acenter’s position and potential inthe context of the larger Portlandmetropolitan market, since at somelevels of development, centers cancompete with one another. Moreoften, a center will compete with afreestanding concentration ofactivity such as a business park, aregional shopping center or apower center. To identifyopportunities for investment andgrowth, government mustunderstand and evaluate trends inresidential, retail, office, civic,cultural, and communitydevelopment from both a regionaland local market perspective. Amarket analysis should considerthe complexities of location, themarket area or geography to beserved, the competition, landvalues, density levels, access,price, quality, and demand. A goodmarket analysis serves as thefoundation for any investmentrecruitment effort.

Following a sound market analysis,a center must be the focus of adistinct market-based developmentstrategy. Market-based strategies– not studies – are essential sincespecific markets (e.g., the short-term opportunity for a grocery storeat a specific location) areconstantly changing. Investmentdecisions are based on the market,and if the target market does notexist or is not strong enough,investors will not put forth thecapital.

Market Study vs.Market Strategy

Market Study

§ Supply and Demand (whatcan you get – a formula)

§ Limited “shelf life” – not asshort as an appraisal butnot more than 18 months

§ Tends to be site specific

Market Strategy

§ Goal driven (what do youwant – a strategy)

§ Longer term perspective§ An evolving approach with

multiple solutions§ Responsive to incentives

and public intervention§ Requires public

participation andinvestment

§ Fluid and flexible

Source: Legg Mason Wood Walker, Inc. and Leland Consulting Group

Positive ButTight

Construction

Long-TermAverage Vacancy

Phase II - Expansion

Phase IV - Recession

Phase III – Hypersupply

Phase I - Recovery

•Increasing Vacancy

•New Construction

•

•

•Declining Vacancy

•New Construction

•Increasing Vacancy

•More Completions

NegativeRentalGrowth

BelowInflationRentalGrowth

Rents RiseRapidlyToward New

Levels

High RentGrowth In

Market

Rent Growth

Declining

BelowInflation &NegativeRentGrowth

Declining Vacancy

No New Construction

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Cost FeasibleNew Construction Rents

Supply/DemandInflection Point

Real estate markets are cyclical due to a time lag between demand and supply forphysical space.


What docenters havegoing forthem?PriceWaterhouseCoopers in itsannual real estate market report“Emerging Trends in Real Estate”noted that “properties in better-planned, growth-constrainedmarkets hold value better in downmarkets and appreciate more in upcycles. Areas with sensible zoning(integrating commercial, retail andresidential), parks, and street gridswith sidewalks will age better thanplaces oriented to disconnectedsubdivisions and shoppingstrips…” In other words, marketdemand does exist for quality,mixed-use development andredevelopment, and the market isresponding to that demand.


1. Provide educational materialand resources to localjurisdictions about markets,market research, marketstrategies and related topics.Help them to become moreknowledgeable aboutinvestment, analyze thelikelihood of reaching lease orsales goals, capture necessaryrevenues, etc. If the publicsector is to truly partner withthe private sector, jurisdictionalstaff and policy makers need tounderstand markets, theirdynamics, how they aremeasured, the factors thateffect change and othercharacteristics that impactsales or rents, revenues andtiming.

2. Provide ongoing and regulardiscussions between theprivate and public sector toexamine (and betterunderstand) trends such aslending practices, appraisalissues and techniques, loanunderwriting guidelines, cost ofdebt and equity, land valuesand rents by area, and otherissues. Changes in lendingunderwriting, appraisalinstruction, and insuranceunderwriting will effectinvestment and the way inwhich public privatepartnerships are written.

3. Provide opportunities forplanners and other governmentstaff members to view aninvestment situation from theinvestor’s point of view.

4. Provide ongoing updates toMetro and city and county staffabout changes in themarketplace, particularly thefast-moving retail industry.

“The urban growth boundary remainsthe developer’s unacknowledged bestfriend by keeping land prices highenough and developable land scarceenough to ensure that most projects donot get financing without substantialproof of viability.”

Grubb & Ellis 2002 Real Estate Forecast

“…big cities contend with chronicaffordable-housing shortages for lowand middle income workers – thebackbone of the service industry andmunicipal governments…this mustcontinue to be a high priority if cityneighborhoods are to thrive and supportbusiness growth.”

Emerging Trends in Real Estate 2002

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The history of downtown and center revitalization strongly supportsthe strategy that the public sector must take the primary leadershiprole and the initiative before the private sector is willing to commit

time and money. In addition, public leadership is needed not as a centeris being developed, but throughout the life span of the center. Thatinitiative process of the public being first, setting the stage, paving theway can be comprehensive:

� Assuring that the political will is aligned with the center objectives.

� Prepare new and modified policies and revise codes to achieve thecenter goals, both at the regional and local level.

� Commit necessary staff and capital resources to carry outdevelopment.

As part of the research for developing this “Ten Principles for Centers,”consultants interviewed many members of the development community.Their comments revealed an interest – in many cases a strong interest –in building in centers. But repeatedly, they cited “difficulty and cost” asfactors that prevented them from seriously pursuing that interest.

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Public andPrivateSector GoalSetting andExpectationsThe public sector (cities, counties,other local governments, regional,state and federal agencies) and theprivate sector (developers, lenders,investors, builders and others) lookat a potential project in a centerquite differently. The public sectorlooks long term – defining its goalspublicly, dealing with both publicperceptions and the politicalclimate while also seekingassurance from the private sector.

The private sector, on the otherhand, largely focuses on the shortterm, the period when aninvestment is most vulnerable.The private sector defines itsobjective privately – capital, marketand operating risk evaluations inrelation to investment. The privatesector wants speed and flexibility.

These goals (assurance versusspeed and flexibility) are notmutually exclusive. In centers, thepublic sector is looking fordevelopers who are capable –meaning they understand theintense public scrutiny and will notback out, have experience with theurban development process, canpoint to a successful track record,and are appropriately funded. Theprivate sector seeks a committedpublic partner with a strong politicalwill, a stable elected body andplanning commission, a dedicatedstaff with a focus onimplementation, and the ability tobring creative policy and financialincentives to the project. Bothsides need each other.

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Time andAssuranceOne of the private sector’s mostsignificant concerns aboutdeveloping in centers is the amountof time it takes to get thenecessary approvals. Assumingthe market exists and thepreliminary financial analysis ispositive, fear of the approvalprocess still prevents somequalified and capable developersfrom going ahead. It is essential,then, to address that very realissue and barrier toimplementation. A key factor inmoving forward on the region’scenters is to design an acceleratedprocess that:

� Provides much more certaintyfor developers generally and, inparticularly, with developerswho have experience anddemonstrated ability andwillingness to produce qualityprojects;

� Helps everyone meet thedesign guidelines andobjectives; and

� Fosters a true partnershipbetween developers and othermembers of the community.One aspect of the process inparticular – a true partneringduring the approvals phase – isfundamentally missing inessentially all centers. We asa community must findstrategies for making gooddevelopment in centers easierand more predictable.

Interviews with the developmentcommunity reveal an interest, evena strong interest from somedevelopers, to build in centers.“Difficulty and cost” was heard overand over by the private sector;difficulty and cost is what iskeeping many away. Even highquality, established developmentorganizations are fearful of anendless approval process,uncertainty, the cost of holdingproperty during processing, andstaff and consultant costsassociated with processing andrelated difficulties.

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InfrastructureDeveloping an adequate level ofinfrastructure and amenities priorto development also is animportant strategic necessity. Adeveloper with a quality project ismuch more likely to move ahead ifthere are infrastructure elementsand amenities – such as streets,water and sewer, utilities, nearbypolice and fire facilities, schools,and parks and open spaces –already in place. These favorableelements will serve dual purposes:to make an area more attractive tothe market and to break downbarriers for developers whootherwise might avoid that location.

STRATEGIES ANDACTIONS

1. Prepare new and modifiedpolicies and revise codes toachieve the center goals.

2. Commit necessary staff andcapital resources to carry outdevelopment.

3. Establishment of an internalstaffing team whoseresponsibility isimplementation rather thanregulation. Such an internalimplementation team shouldbe championed at a high level– the Mayor, City Manager, orAssistant City Manager.


Tualatin Commons Case Study -How private investment followspublic commitment

The planning initiative for Tualatin Commons began with the goal of givingTualatin a true civic and commercial downtown. The new 19-acre city centerhas given Tualatin a unique and positive identity.

Based on citizen response from public meetings, the Tualatin DevelopmentCommission and the Economic Development Department used the followingobjectives to guide the redevelopment effort.

1. Provide strong civic focus using public facilities and public spaces2. Encourage and influence diverse private development3. Promote pedestrian and vehicular circulation4. Promote day and night uses for downtown5. Create a strong visual impression at major entrances6. Enhance economic vitality for all downtown businesses7. Provide convenient and adequate parking8. Establish linkages to other uses downtown and to the Community

Park9. Retain retail market share downtown10. Build a downtown for the long term (50 or more years)

The City bought the 19-acre site in 1987. Tualatin Commons was plannedas a mixed-use redevelopment consisting of offices, row houses,combination live/work units, a hotel, restaurants and public spaces. Itreplaced a collection of low or inappropriate uses, including an abandoneddog food factory, and mitigated flood plain issues through the construction ofa 3.1-acre lake. The lake serves as a stellar community amenity, increasingthe marketability of developments adjacent to it.

The Development Commission mandated that three of the sevendevelopment parcels had to be committed to purchase before construction ofthe Commons (and the use of public money) could begin.

The success of Tualatin Commons can be attributed to strong leadership inthe Economic Development Department and the City’s strategic use of thefollowing tools:

· Public purchase of property and timely sale to developers· The City’s ability to hold the land allowed developers to avoid high

carrying costs· The use of urban renewal funds to leverage investment· The active and consistent involvement of both official and citizen

“champions” of the project· A greatly streamlined approvals process that allowed developers to

move forward rapidly· The City’s provision of all necessary infrastructure

Tualatin Commons sits in the heart of the Central Urban Renewal District,formed in 1975, and has experienced a 4-to-1 return on investment for theCity over a seven-year period.

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Leadership is essential to every center’s success, with greatleadership producing great results. There should be “champions”designated early in the center planning process to provide

motivation and resolve issues. Ideally, the relevant government agencyshould identify both an internal staff person and a political leader for thisrole. The political leader would be responsible for pulling together thehuman infrastructure – such as business leaders, developers, lenders,citizen activists, neighborhood groups, realtors and other interestedparties – to secure support and provide motivation. An internal staffperson can help coordinate the multiple departments within the localgovernment, quickly resolve issues and act as liaison to policy makers.A high-level partnership between both public and private leaders is crucialfor smooth and effective implementation.

It could be argued that leadership is the most essential element in acenter’s success. It is leadership from both the public and privatesectors that articulates the community’s vision and keeps things moving.A key criterion for determining whether to allocate regional or state fundsfor center development should be a notable demonstration of committedleadership. This commitment is exemplified by:

� Unanimous, or at least strong, support from the public sector’spolitical leaders and planning commission for a center revitalizationprogram.

� Designating an internal staffing team whose responsibility isimplementation rather than regulation. The internal implementationteam should be supported at a high level (e.g., the mayor, citymanager or assistant city manager).

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� A written budgetarycommitment to staff theimplementation team andsupport a yet-to-be determinedlevel of capital improvementsfor the center.

Without establishing thesecommitments (including staffingand budgeting), center revitalizationmost likely will falter, if not failaltogether. Government leadersmust be willing to modify theculture of local government by:

� Recognizing the need forinterdepartmental cooperationto ensure a fast, smoothdevelopment process.

� Focusing on establishing andstrengthening qualityrelationships with the privatesector.

� Streamlining regulations thatfrequently only protect theworst from happening and byshifting the approval process toreward quality design andresponsible developmentthrough fast track approvals,public endorsements in publicmeetings and similar proactiveefforts.

If professional city or county staffmembers want to be effective inhelping shape positive change inthe region’s centers, they musthave the assurance and backingfrom their leaders.

In addition, leadership plays otherequally important roles. Leadersshould demonstrate that theprocess of change can work in away that helps the entirecommunity – by showing fairnessand respect to neighborhoods, byattracting investment capital, andby establishing a city process thatworks with developers and

investors and not against them.Sponsoring and guiding economicdevelopment is another keyresponsibility for leaders, sincegrowth and positive changes willnot occur without jobs.


1. Publicly recognize greatleadership … repeatedly.

2. Consider establishing a“master developers program”that recognizes high-qualitydevelopers who havedemonstrated exceptionalleadership, experience andskill. This helps citizens, thepublic sector, and investorshave more confidence in theproject and the developer,and also can help facilitate afast track approval process.The program should be opento all and recognize the best.

3. Tie regional and State fundingallocations to a qualitativeassessment of leadershipcommitment to strengthenthe likelihood of success.

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Developing centers is all about “place making,” or creating a senseof place and community. The areas between the buildings andthe senses of sight, sound, smell, taste and touch all contribute to

creating the special places that make people feel connected and makethem want to return again and again.

The advantage that centers have over other places is density – theopportunity for interaction with other people. Successful centers are theones that make the transition from density to community, creating anactive environment where people want to gather, meet others andsocialize. The creation of a place results in tangible rewards, such asnew tenants and customers as well as an improved market position.Place Making works when people want to return to the center again andagain. It is inviting, secure, friendly, and interesting.

Place Making is the essence of realestate development.

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A Vision anda StrategyTo create the type of vibrant,compact, mixed-use centersenvisioned in the 2040 GrowthConcept, a strategic plan isessential. The plan can provide thevision and strategy for how all theindividual pieces can work togetherto create a better whole. Everydecision (whether majortransportation issues or theaesthetics of street trees) shouldbe made in context of the biggervision and on retaining vitality andurban character.

Each part of a center – includingcivic functions, retail services,housing types, and jobs – must beconnected to one another. The key

is to remain consistently true to thevision, rather than just buildingprojects. A vision guides how allthe large and small pieces cometogether over time to create asense of place.

Placing a residential multifamilystructure, a single-familysubdivision and a strip malltogether in one area does notcreate a center. A true center musthave an overall vision or strategythreaded throughout every aspectof the area. It also must haveconnections between the places(such as sidewalks connecting thedevelopments and the tree-linedstreets), amenities (the hangingflower baskets, neighborhood parkand benches), and the parking(tucked behind the building orlocated in a structure lined withground floor retail) to make it apeople place.

Great urban ideas all too frequentlydie when they are separated outfrom the whole. Frequently the“how” it is done becomes moreimportant than the “if” it is done.For the average person visiting acenter, the placement of attractivetrashcans or benches along thestreet does just as much, if notmore, to create a sense ofcommunity as redeveloping avacant lot into a multi-million dollarbuilding. Small things well donecan make a big difference.

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GreatCentersHave GreatStreetsAttention to the “public realm” isessential in creating successfulcenters. As such, strong centersmust have the right type of streetssince these function as de facto“great rooms” where the informalexchange among people occurs.Every transportation improvement(such as roads, transit stations andsidewalks) is an opportunity todefine, enhance or damage thepublic realm.

Managingthe CenterDesignating a person or group toprovide undivided attention topromoting, implementing andimproving centers is an excellentway to make sure a center remainstrue to its vision. The downtownassociation of Houston, Texas,Central Houston Inc., is a goodexample of an effective way tomanage a center. This Texasbusiness association negotiatedthe acquisition of the site for thenew Reliant Football Stadium,oversaw the preparation of masterplans to guide redevelopment of amain street corridor, and isoverseeing the design, fund raising

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and ultimately the construction andoperation of a new downtownsquare anchored by two light-railstations..

Building a sense of community willhelp spark a center’s developmentand evolution. Not every person ororganization is willing or able tofunction as a pioneer or champion.There is great hesitancy in theinvestment community to be first.Investors and developers want a“sure thing.” For this reason,community building becomesmuch more important than simplyproject building. Proposing a newstand-alone housing project in acenter may not succeed. Severalhousing projects grouped togetherwith appropriate public realminvestment, however, can bolstermarketing strength, offer choiceand contribute to a sense ofcommunity. Successful centersoften have dozens of projectsoccurring at the same time – frompainting streetlights, to infilling newhomes, to redeveloping an officebuilding into a mixed-use building.The constant activity showsinvestors and developers that thecenter is vital and growing and thatit is a worthy investment. Successbreeds success.


1. Keep the whole picture inmind by asking how eachproject connects to oneanother. Can projects bedeveloped together? Canthey be built differently, in adifferent location, with adifferent design, to create amore active place? Can theinfusion of a public elementmake the difference betweena good project and a greatcommunity?

2. Consider making “publicrealm” elements part of thebaseline required intransportation investmentsand an eligible funding activityfor transportation funding.Elements could include streettrees, benches and otherpedestrian amenities.

3. Create a design guidebook toshare design guidelines forcenters as well as best-practice examples. Thedocument should not dictatethe type of guidelines thatshould be in place but rather,provide examples that willhelp local governments andthe development communitydecide which example bestfits their situation.

4. To keep a center vibrant andprovide a sense of place,emphasize the need forentertainment uses as wellas programmed cultural andrecreational events.

Design of the community is the mostfrequently cited aspect of whatresidents like about Orenco Station.

Dr. Bruce Podobnik, Lewis & Clark College


5. Create a managementorganization at the local levelthat promotes and operatescenters. Similar to theAssociation of PortlandProgress, this type oforganization can be involvedin the planning, oversight,fund raising, implementationand management of publicimprovements in centers.

6. Structured parking often is notpossible for developers tobuild because of highconstruction costs relative toachievable rents. Publicinvestment can focus itsfinancial resources onstructured parking. When allother essential componentsare in place to propel the

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center to its next stage ofintensity, public subsidy canbe a logical and productiveway to make the parkingcomponent feasible fordevelopment. Since parkingstructures are expensive, thebenefits must be high towarrant the publicexpenditure.

7. Adopt a public policy orinvestment strategy thatfocuses public buildings andfacilities into the centerswhere possible.

8. Create a working, up-to-datelibrary of all projects in acenter. This package can beused to show investors therange of successful activityoccurring in a specific center.

Many, ManyProjects

Creating more vibrant communitiesrequires an implementation strategythat includes many projects movingforward simultaneously. A great planalways promotes multiple projects,large and small, moving forwardtogether. A center should have at

Window boxes Lighting Public promenadesStreet planters Park revitalization Merchants AssociationNewspaper stands Farmers markets Building renovationInformational signs Transit HousingBanners Flower baskets Seasonal lightingParking Garages Bike racks Infrastructure improvementsLand assemblage Sidewalk vendors Master planningSidewalk improvement Joint use parking LodgingUrban Renewal Districts Zoning code revisions Design standardsTrashcans Benches Landscaping

least 20 to 25 projects underway at thesame time to insure implementation ofa visionary plan. Without this level ofintensity, implementation will stall.Dozens of concurrent actions arerequired to create the needed energyfor center revitalization. The definitionof what constitutes a project is broad,including buildings, regulatory policy,code revisions, and organizations orprograms that affect the community. In

becoming a part of the plan, a projectcan broaden its initial constituency byadapting to the needs and concerns ofothers, creating a win-win situation.With multiple projects, success breedssuccess. Investors, developers, andlenders seek out environments withmarket opportunity and areas withprospects for success. A short list ofexamples includes:

30 Metro

Gresham Civic NeighborhoodCase Study -

Gresham Civic Neighborhood and Downtown Gresham are examples ofthe benefits of taking the long-term view and sticking with it. Startingwith Transit Station Area Planning in the 1970s, the 130-acre GreshamCivic Neighborhood site was identified as part of revitalizing Gresham’scentral area and restoring a true heart for the community. The Cityshowed leadership by passing on numerous proposals and waiting tosay “yes” to the project that met its objectives.

The City adopted The Gresham Civic Neighborhood Development Plan in1995 featuring transit-centered, mixed-use, urban development. ThePlan identified three regional components for priority funding and devel-opment: a new MAX station, a city plaza, and a new north/south mainstreet. Additionally, the City created SDC credits for developers to buildlocal infrastructure. With a vision in hand, Gresham was able to lever-age regional transportation investments to support the Plan.

In 1996, regional funds were allocated and Civic Drive, running north/south through Civic Neighborhood, and a new City Hall were con-structed. In partnership with Tri-Met, the City changed the design of aroad planned to serve the building by relocating the road away from theMAX station to create a plaza at the station. The City Hall centerincludes the MAX stop, City Hall, and a Municipal Building that housesGresham-Barlow School District, Fire & Emergency Services, andPolice.

Finally, Tri-Met agreed to construct a second LRT station on the site tiedto the Civic Neighborhood once a guaranteed number of “originatingtrips” could be reached. This requirement also includes a need formixed-use development at the station. With the completion of the firstpart of Phase II of the Civic Neighborhood, the new station will open. Acongressional funding request for the plan is pending this year.

Phase I of Gresham Civic Neighborhood, commonly known as GreshamStation, is a 24.5-acre retail complex. The grand opening was held inNovember 2000. Less than 18 months later, the Station was at 95%capacity.

Metro’s TOD program has acquired some key parcels adjacent to thefuture MAX station for dense residential development as part of Phase IIof the Civic Neighborhood. Other aspects of Phase II will include office,retail, and mixed-use facilities.

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At the heart of new implementation strategies for centers is thecompelling need to overcome or remove barriers that stand in theway. Centers should be the easiest and most desirable places to

develop good projects … in short, they should be recognized for their roleas the region’s development hot spots.

Barriers can be described as anything that unreasonably blocks orimpedes a project’s ability to move forward. Barriers can vary widely –some are physical, some are political, some are tied to fear or lack ofunderstanding, and some are timing. Some barriers relate to preparingfor future development and investment, while others involve correctingproblems of the past. An effective implementation strategy for centersshould address issues related to the past, present and future. And sincebarriers tend to either prevent or inhibit implementation, the issue needsto be addressed and dealt with directly.

Most barriers fall into one or more of these five categories:

1. Physical barriers generally involve a lack of or deterioratedinfrastructure, poorly maintained real estate, concentrations ofundesirable land uses, and other conditions of a physical nature thatrestrict or inhibit desired development and livability.

2. Financial barriers relate to problems with raising necessary capital(either private or public) to carry out desired development. Theproblem may be a lack of willing lenders, under-funded governmentprograms, weak rents that will not support new construction,excessively high land costs and similar conditions.

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Compact develop in Centers can helpreduce infrastructure costs (such as forwater, sewage, roads) to localgovernments and property owners by upto 25% through compact and infilldevelopment.

Costs of Sprawl Revised

3. Market barriers can be bothreal and perceived andgenerally take the form ofresistance to investing in aparticular area. Theresistance can stem fromexistence of physical barriers,inadequate traffic to supportnew retail, overpoweringcompetition nearby,concentrations of crime, lack ofsimilar uses, inadequatepurchasing power, or fear ofbreaking a price barrier in agiven center.

4. Regulatory barriers consistof governmental codes, policiesand procedures that restrict ordiscourage centers. It iscrucial that the region take acritical look at the codes,policies and procedures thatstand in the way of beneficialcenter development. Codecleanup and streamlining canhelp to overcome the developerconcerns about “difficulty andcost” perceived asimpediments to building incenters.

5. Political barriers can occur atthe neighborhood level (“not inmy backyard”), at the cityprofessional staff level, or at theelected official level. Politicalbarriers frequently stem from aresistance to change and thencarry over into developers’ability to implement positivechange. Political barriers andlack of leadership go hand inhand.

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Development“hot spots”Centers should be the region’sdevelopment hot spots, or theeasiest and most in-demand placefor new development to occur.Developers who propose qualityprojects in centers should be ableto partner effectively with the publicsector via targeted publicinvestments and “implementers”on local government staff who cannavigate through the process andprovide both flexibility and certainty.

At present, both the public andprivate sectors feel frustrated aboutthe level and type of process thatguides development. Thecomplaint is that the regulatoryframework seems to function onlyas a way to keep bad projects out,instead of rewarding good plansand positive development. Tacklingthe regulatory framework to providemore certainty, simplicity and aclear predictable path should be ahigh priority in any strategy for

centers. Process should not be an“end”, but rather, a predictable“means” to successful centerdevelopment and revitalization.

Just as important as regulations incenters is the regulatory frameworkoutside centers. The region has alimited market for the dense,compact, mixed-use developmentbeing sought in centers.Continuing to prune back theamount of land zoned for retail,office and commercialdevelopment outside of centerswhere it makes sense can helpstimulate center growth andrevitalization. This is particularlyencouraged as a means of dealingwith deteriorating, functionallyobsolete strip centers and tired,freestanding retail along corridors.

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SpendMoney toSave MoneyCenters present a classic dilemmawhen it comes to infrastructure: itis necessary to spend money tosave money. At a regional scale,centers can reduce totalinfrastructure costs (such as forwater supply, sewers and roads) tolocal governments and propertyowners by up to 25 percent throughcompact and infill development.However, public and privateinfrastructure costs for anindividual center may besignificantly higher in two importantrespects:

� First, it costs more to providepublic infrastructure in a centersimply because there is ahigher volume of need, activity,people and services.

� Second, the center modelplaces a heavier demand onpublic infrastructure comparedto traditional suburbandevelopment patterns. Asuburban cul-de-sac, forexample, has much fewerlinear feet of roads andsidewalks that require financingthan an urban center with amore complex grid of streetsand sidewalks.

The result often can be higherpublic and private costs for thecenter model on a project-by-project level but lower costs at aregional level. So while the totalregional cost of public and privateinfrastructure investments may belower, the public costs forinfrastructure and the private costsfor individual private developmentprojects tend to be higher incenters. Achieving regional costeconomies therefore, will requireregional financial assistance to thelocal level to offset the higher costsat the center.

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Urban infill development usually ismore expensive for the developerfor a variety of reasons:

� Costs increase even morewhen retail is located belowresidential because ofcommercial coderequirements.

� Stringent requirements aboutfloor area ratio (the relationshipbetween a parcel of land andthe amount of space a buildingtakes up on that parcel) andparking requirements do, ascurrently written in manyjurisdictions, result in highercosts.

� In addition, most new urbaninfill projects must meet high“amenity” or appearancestandards and face anextended permitting andapproval process – significantlyincreasing the time, andtherefore, the cost of a project.


1. Appoint a centersombudsman. Create apublic-private centersmanagement organizationthat will communicate thevision, promote the center,create momentum, and serveas an advocate fordevelopment and investmentin the center.

2. Adopt an attitude of “we areopen for business.” Onecommunity’s barrier can beanother’s opportunity. Do notunderestimate the value ofsending a clear signal to thedevelopment community that“we are open for business,our city is a willing partner forquality development, and weare ready to work with you.”

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3. Rezone outside centers. Tohelp revitalize centers,consider selectively pruningback retail and employmentuses in some nearbycorridors and employmentareas that may beencroaching on developmentthat should be occurring incenters.

4. Simplify development incenters. There isconsiderable frustrationacross the public and privatesectors about the level andtype of process that currentlyguides development. Theregulatory process is seen asoverly scripted, highlybureaucratic and difficult tonavigate. Hire some localgovernment staff memberswho are “implementers”instead of regulators.

5. Create a fund that provideseconomic incentives forcenter development. Explorecreating a regional funddedicated to making strategicinfrastructure investments incenters. There is a need totarget public investmentstoward infrastructure inindividual centers to helpoffset the higher costs forindividual projects.Investment can also betargeted specifically atbuildings facing added costpenalties due to therequirements of higherdensity and mixed-use.

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Metro has a new role to play – one where the regional agencyprovides enhanced leadership, support and encouragementto local governments as they move forward with

implementing Region 2040.

Early in the Region 2040 process, Metro played a strategic role,partnering with local governments, the business community and generalpublic to create a vision for the region. During the transition towardmaking that vision a reality, Metro has become a regulator, requiring localgovernments to adopt policies and plans consistent with Region 2040.Although the existing regional regulatory framework creates an importantfoundation for centers, regulation alone cannot and will not result instrong, successful center development.

It is time now for Metro to move forward and take the next step in thesuccessful implementation of Region 2040. Local governments are theexperts in knowing what is best in their communities. They may or maynot know how to make it happen and they do not always have theresources to make it happen. This provides a new opportunity andresponsibility for Metro to step in and help local governments makeregional and town centers a reality as envisioned in Region 2040. Metroshould provide and/or supplement the strategy, administration, supportand strategic capital to support the local governments. The agency’s roleshould be one of teacher, coach and resource, educating localgovernments and developers about best practices in the region. At thesame time, Metro should work nationally to link local governments anddevelopers with financing mechanisms and should assist with codewriting or review when necessary. This assistance should be done inpartnership – not as a mandate or through regulation.

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Local governments also need toredefine their role. They need toview Metro as an assistant andresource and not as Big Brotherwatching over them. Given thelimited resources available at thelocal government level, having aregional clearinghouse ofinformation and data should allowlocal governments to move forwardfaster in their center development.Local governments need to ask forspecific assistance and not wait forMetro to come to them. A valuableregional resource will be wasted iflocal governments do not takeadvantage of it. This opportunitynot only has the potential to createsuccessful centers, but it also canbe the beginning of many beneficialnew partnerships between Metroand local governments.

There may be limited opportunitiesfor Metro to assume a teacher/coach role when it comes toimplementing specific localprojects. These opportunitiesshould be taken strategically anddesigned to facilitate centerdevelopment.


1. Build a database ofsuccesses throughout theregion of developmentproducts and strategies thatare being sought in centers.This information can be usedin a recruitment, equityraising effort, or loan packageto help demonstrate whatalready has beenaccomplished both in theregion and in the specificcenter.

TOD ProgramCase Study –

Metro’s transit-oriented development(TOD) implementation programfacilitates the construction of transitvillages and projects throughout thePortland region. Operating throughcooperative agreements with localjurisdictions and developers, theprogram uses federal TOD funds toacquire sites and easements tooffset the very high costs associatedwith this type of development.

This program has been successfulin developing a series of innovativefunding tools and was the first of itskind nationwide. The TOD programhas a thorough inventory of existingexamples of creative lower-costparking solutions that should beprofiled and communicated to localjurisdictions and the developmentcommunity.

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Pleasant ValleyCase Study

Although not a center, PleasantValley is a good example of public-public partnering to address growthissues. Metro took a leadership rolein the Pleasant Valley Urban ReserveArea. This 1,500-acre urban reservearea in Pleasant Valley was beingconsidered for annexation inside theurban growth boundary. Three citiesand two counties could provide urbanservices for the area. Metro staffhelped the affected local govern-ments determine governance andservice provision issues and alsoassisted with public involvementactivities and education. The projectresulted in agreement by the affectedlocal governments on the futureservice providers and incorporationpatterns for the area, as well as apreliminary design concept andguidelines.

2. Provide expert panels toeducate local governmentsand developers about centerdevelopment.

3. Provide technical assistance,such as writing model codesor other consultantassistance.

4. Create a database of financialtools.

5. Develop center marketingmaterials, such asinformation that illustratesavailable sites, the regulatoryframework, discussion ofincentives, demographics,and real estate marketinformation.

6. Share stories of successfulcenters and interesting newdevelopment trends with thenews media.

7. Build a database of centersand their pertinent informationto distribute to developersand investors.

8. Sponsor workshops to sharewith other local governmentsthe process and stages ofcenter development.

9. Connect local governmentsand developers with financialresources.

10. Create an awards program torecognize innovative centerdevelopment.

11. Provide financial incentiveprograms.

12. Set priorities.

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The future success or failure of this region’s strategy for regionaland town centers is linked inextricably to transportation. The realityis that the majority of trips to and from centers today and in the

future will be by car. Finding a peaceful coexistence with the automobileis crucial for a successful center.

Superior transportation accessibility is a distinguishing characteristiccenters enjoy compared to many other places in the region. Every centermust find the right balance between having excellent automobile accessand having too much traffic. Without traffic a center cannot exist. Toomuch traffic, or poorly planned traffic, can create such a level ofcongestion and inconvenience that shoppers and other visitors will avoidthe center.

The transportation strategy for a center revolves around finding thebalancing point between traffic moving through the center and trafficwhose destination is the center itself. The needs of these two kinds oftraffic (center destined and pass through) provide an inherent point ofconflict; the center must strive to serve both masters:

� Superior accessibility to centers – with a combination of road andtransit improvements, centers can enjoy substantial accessibilityadvantages compared to other places within the region.

� Superior accessibility within centers – regardless of how visitors getto a center, or for those who live in a center, being able to walk easilyand safely to multiple destinations is a necessity.

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GoodCongestionvs. BadCongestionFor many years, Americanconsumers heard that allcholesterol was bad. Then thenews came down that there was“good” cholesterol and “bad”cholesterol. The same holds truefor traffic congestion. Sitting in thecar in traffic may lead someone tothink that all congestion is bad. Butthe reality is that some types ofcongestion are not only tolerable,they are good for the region’sshort- and long-term health.Slowing down drivers so they can“visually shop from their cars” asthey move through a center ispositive. The same is true forparking – a center can be overparked (too many spaces) andcreate a sense of emptiness.

Portland’s Northwest 23rd Avenue isan example of good congestion – itaccommodates plenty oftransportation choices such aswalking, cars, buses, rail andbicycles. All of the people usingthose transportation options areseeking something – whether it is anice meal, access to their live-workunit, a new pair of pants, or acouple of relaxing hours in a dayspa – on one of the hottest streetsin town. Good land-use planningresults in good congestion. If youtry to over-solve the “problem” ofgood congestion by widening theroad, the result ends up being acenter with inadequate pedestrianfacilities – a death knell for anycenter. Roads and streets through

a center should serve as “seams,”holding the two sides togetherrather than an “edge,” whichseparates the two sides.

The flip side is that the regioncertainly has its share of badcongestion, which is the result ofan imbalance betweentransportation and land use. Theseare situations in which vehiclesmust travel fairly long distances toreach areas where services andshops are inaccessible topedestrians. As with goodcongestion, widening roads doesnothing to fix the imbalance if it onlyfuels the cycle of sprawl. Trafficproblems may not have trafficsolutions – effective land use cango a long way to correcting trafficproblems.

In addition, not having congestionat all can be a bigger problem thanhaving it. If there is no congestionin a particular area, that probablymeans no one really wants to gothere.

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More Streetsand FewerArterialsThe traditional town grid is basedon a fine network of small streetsand roads. A bird’s eye view ofPortland and the surrounding citieswould reveal many more acres ofland devoted to streets in Portlandthan its neighbors. The suburbs’problem is the opposite – too fewsmall streets and too many bigroads (arterials). Portland’stransportation system worksbecause there are plenty of streetsto choose from, not just a fewmajor arterials.

We know from research andexperience that the pattern ofstreets in an area greatlyinfluences travel patterns in acommunity. People in areas with atight grid of streets and a mix ofland uses walk more, use transitmore and take up to half as manyautomobile trips than theirneighbors in typical suburbs.Interestingly, while residents ofthese communities use the carless, they take more total trips –meaning lots of short walking trips.

ParkingA center’s economic successflows from, and depends on,plentiful parking. Unfortunately,conventional approaches to parking(such as large parking lotsbetween the street and thebusinesses) can undermine thevitality and pedestrian atmosphereneeded in a center. Parking shouldbe treated as a separate land usewithin centers, serving all useswithin the centers. It is inadequateto address parking as a piece ofeach commercial, residential oroffice use. Parking managementshould precede building moreparking. Rather, it should firstmake effective use of existingresources and then build moreparking when needed.

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ThePedestrian inChargeIt is important to expendconsiderable time, energy andmoney to get people to a centerand to provide them with plenty oftransportation options. But oncethey arrive, there is one irrefutabletenet: they should be able to walkwherever they want within thecenter. In a center, the pedestrianreigns. Walking in a center hasrequirements. It should beinteresting and secure.Destinations are needed, as is acontinuity of pedestrian-friendlyimprovements. Shops need to beside-by-side, pulling a walker/shopper along from one interestingstore to another. Vacant lots andother holes along the wayfrequently disrupt pedestrian flow.


1. Reduce the amount ofparking – not necessarilyoverall, but for each of theland uses. Reducing theamount of parking will helpthe center achieve the rightdegree of compactness anddensity, thus reducingunnecessary trafficcirculation. Metro’s codetakes a positive step in thatdirection by reducing theamount of parking in areaswith good transit. With joint-use or shared parking (whereseveral businesses shareparking facilities), a centercan reduce its amount ofparking by 20 to 25 percent.

2. Manage the use of parking. Acenter must manage itsparking system to make sureit is functioning correctly oncethe initial cushion ofoversupply diminishes.Developing a parkingmanagement district for thecenter deserves primeconsideration. Are employersand employees parking infront of their stores andcreating a parking problem?Are commuters tying upspaces all day when freestreet parking is provided?Ask the right questions.

3. Use parking structures. Acenter should providemechanisms to allow parkingto move into structures overtime. For now, land prices inmost town centers will notsupport the high cost ofstructured parking. Ifstructured parking isrequired, public financialassistance is almost certainlynecessary.

4. Develop a grid of streets.Pedestrians and cars arewell served with a dense gridof streets with amplesidewalks. The grid providesalternatives for local trafficflow and helps avoidunnecessary congestion,whether trips are throughtraffic or internal.

5. Make parking compact, easyand convenient. Thisreduces the number of carscircling and looking forparking. This also reducesthe number of large, single-use parking lots that separateuses and make pedestriantravel difficult.


6. Institute accessmanagement. This strategywould examine and manageall aspects of gaining accessto the center – parking, trafficcalming and slowingtechniques, the number ofcurb cuts and access pointsto arterials, and signalcoordination.

7. Provide quality transit. It isimportant to provide a varietyof transit options to achievefast, reliable service betweencenters. Examples of thoseoptions include: light rail andfrequent buses, fare lessservice within centers, andflexible mini-buses toadjacent neighborhoods andemployment areas.

8. Incorporate good streetdesign.

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Orenco Transportation CaseStudy -The Orenco Station center in Hillsboro exemplifies most of the transpor-tation elements sought in a center – narrow streets, wide sidewalks,high quality bus and light-rail service, excellent road access, parkingreductions, and placement of parking behind retail buildings. All of thattranslates into great performance; a recent study found that 22% ofOrenco residents commute by transit.

Early in the project, the developer, PacTrust, decided to develop thenorthern portion of the site first to create a viable town center, which itfelt was necessary to attract residential tenants. To do this, thecompany wanted to tap into Cornell Road traffic, which does not runclose to the transit station. Most transit-oriented communities thathave relied primarily on transit traffic for their retail component have notfared well.

The decision to locate along Cornell Road posed another question:should the town center be on the south side of the road, should itstraddle the road, or should it be on the north side? PacTrust decidedthat locating on the south side would relegate the north side to second-class status and that straddling the busy street would be unwise thisearly in the project. Locating on the north, however, created its owndilemma, since light rail was at one end of the development and thetown center was at the other. PacTrust decided to locate the center onthe north side of Cornell Road.

Washington County’s transportation plan called for Cornell Road to beexpanded from five to seven lanes. PacTrust was concerned thepedestrian-oriented town center would not work with a seven-lanearterial. The company fought to secure a binding commitment from theCounty not to widen Cornell Road. That ultimately required a change inregional and state policy, stating that areas with planned high densityand quality transit options were not required to widen roads.

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This region’s innovative growth management programs, mostnotably Region 2040, are a testament to the degree in which thiscommunity cares about the land and future livability. Region 2040

is a success, both nationally and to some degree, locally. One factor thatwould help citizens, the business community, investors and localgovernments see how successful Region 2040 has been is to see andhear about projects (existing, underway and planned) that should beheralded.

Celebrating success is a key principle that should be used to create andenhance centers. Investors, appraisers, lenders, developers, politicians,planners, architects, governmental staff, and residents are interested inand attracted to success stories. People need to know about the manypositive accomplishments occurring in our region.

This principle speaks to acknowledging the success that has occurred oris underway in the region’s various centers. Too frequently, commentsare made that centers are “not working.” This is highly inaccurate,although they may be working differently than originally anticipated.

Success in centers can take many forms. It can include development ofwell-conceived plans, infrastructure improvements, quality builtenvironments, increased levels of private investment, improvements insidewalks and streetscapes, public amenities, civic plazas, newnewspaper boxes, or an art mural. Even the behind-the-scenessuccesses – such as efforts to create an appropriate developmentclimate and government processes that facilitate smart growth – areimportant to share with other community partners.

The key is to emphasize success at all scales, whether it is the newhanging baskets and trashcans or the large development project.

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1. Build an ongoing database ofcenter projects constructedduring the past eight years,projects under construction,and projects underconsideration or in theplanning stage. Thisinformation would bedistributed to localjurisdictions and the media.

2. Construct an economicprofile of projects andcenters. The purpose of thisstrategy is to provide anongoing documenteddatabase of the economicsinvolved in centerdevelopment. Thisinformation would beavailable to developers asthey prepare loan packages,appraisals, investorsolicitations, and otherfinancial-related uses.

3. Form a partnership with themedia. This would occur atboth the regional and locallevel and should includenewspapers, magazines,television, radio and websites. In addition, manynewspapers from around thecountry continue to writestories about the way thePortland region successfullymanages its growth. Havingsome key center projectsincluded in those nationalstories would be useful incommunicating success.The purpose of a partnershipwith the media is to informthe general public aboutsuccesses in the region’scenters. Include humaninterest stories about peoplewho bring about successfulcenters; testimonials fromcenter developers andlenders; stories about theelected officials andcommunity leaders thatmade it happen.

4. Explain the value and functionof centers to variousaudiences – including manypeople in the developmentcommunity who do not fullyunderstand the intricacies ofcenters and corridors. Metroneeds to better explain theintent and purpose of centersas part of Region 2040.

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Trite as it may seem, Rome wasn’t built in a day … and neither arecenters. Centers develop and evolve over time, often 10 or 20years or more, depending on their size, scope and vision. Each

center develops at its own pace, in its own way.

In broad, fairly simplistic terms it is helpful to think about the evolution ofcenters in three stages: planning, emerging and maturing. The reality ofeach center, of course, is more complex than that. Centers consist of aseries of sub-districts such as retail, office, entertainment and residential.Given the evolutionary nature of centers, it would not be uncommon tohave one center with different sub-districts simultaneously in each of thethree phases.

Most centers will reach their full potential with time. Some centers willmature quickly, while others may take decades. Some centers may notfully develop and be redefined in time. Just like full-size cities orcommunities, a center cannot be expected to move at a predictable oreven a consistent rate. Centers go through stages where growth occursrapidly, while other times things slow considerably. Growth will usuallycoincide with market cycles, with development occurring in times ofeconomic prosperity. Even during those slow-growth or lean times, smallsteps can still be taken that will keep centers moving toward their fullpotential. Even a center that supposedly has reached its full potentialreally has not done so – since centers constantly change and evolve.

The way a center evolves has significant implications when it comes toattracting investors and developers. The public policy embodied inRegion 2040 ultimately guides development and investment into centers.We, as a community and a region, must work to achieve a combinationof renewed energy and patience. Renewed energy comes in the form of

“there is no finish line”

10Take the LongView

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being proactive and making policy,human resource, and capitalinvestment decisions to invigorateour centers. Patience comes intoplay by acknowledging that centersare not created equal and that theywill grow at different rates.

The responsibility for helpingcenters reach their full potential lieswith local governments, developersand Metro. Barriers todevelopment must be removed,and opportunities must berecognized and acted upon toensure that center developmentcan occur in the long term. Asingular process cannot beidentified that will serve to move allcenters through the stages of

development. Different tools areneeded at different times, and thetoolbox used by local governmentsand developers should includedifferent techniques for each stageof development.


1. Strategically use publicresources. Identify how andwhere investing public fundscan get the most leverage forfuture development.

2. Include in the planningprocess a phasing schedulethat identifies what should(and could) occur in what

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order, but not necessarilyfollowing a specific timelinefor development. Byidentifying the order ofdevelopment and publicimprovements required, it willbe easier to see how eachproject fits into the biggerpicture.

3. Preserve future developmentopportunities throughregulation or even throughpublic acquisition of property.Allow certain non-centerdevelopment in the shortterm, with the requirementthat it be modified once thecenter can support it. It maynot be the best use of publicresources, for example, tobuild a parking structure in acenter that is just beginningits development process. Arequirement for structuredparking also makes theproject too costly for adeveloper. By allowingsurface parking in the shortterm and requiring structuredparking in the future, the landwill be preserved for anappropriate future use whilestill encouraging thedeveloper to proceed with theproject.

4. Allow the strategy to developover time. There is no way,of course, to predict what thefuture will hold. What seemslike a viable plan today maynot be feasible in ten years.Plans must be reviewed andmodified throughout everycenter’s life cycle.

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Lloyd District Case Study -

The Lloyd District has evolved from a series of disconnected, auto-oriented,commercial activities in the 1960s to a mixed-use center focused around fourMAX stations. The long-term vision of the Lloyd family was to create adowntown east. Until the coming of MAX, that vision was not realized. TheDistrict has been the beneficiary of nearly four out of ten dollars investedadjacent to the original MAX line.

The Lloyd District is a rich mix of public and private leadership, integratedlarge-scale investments (light rail, streetscape, convention center, RoseGarden, traffic calming) and private initiative:

� The Convention Center, built in 1990, is currently expanding from400,000 square feet to 655,000 square feet. The link to light rail wasimportant enough to the Convention Center that they paid for a newstation. The new Convention Center station and plaza create the frontdoor for arriving and departing conventioneers.

� Melvin Simon and Associates bought and completed a $200 millionrenovation and expansion of the 1.3 million square foot Lloyd CenterMall.

� Light rail has been a focal point for Ashford Development in its plans todevelop 70 acres of land they acquired paralleling MAX in the LloydCenter area.

� Liberty Insurance recently completed a $40 million 350,000 square foot17 story headquarters facing onto the Seventh Avenue MAX station.

The 20,340-seat Rose Garden opened in 1995 nestled between the RoseGarden MAX Station, the Convention Center and the existing 12,666-seatMemorial Coliseum. The Trailblazers bet $228 million of their money against$37 million in public funds on a master plan that relies on a strong transit andpedestrian emphasis to succeed. Like its neighbor the Convention Center,the Rose Garden is designed with transit in mind. The two projects have acombined total of just 3,446 off-street parking spaces for over 1.1 millionsquare feet of space.

The success of the Lloyd District as a center is yet to be determined,however, in comparison to any other center in the region, it has come furtherin the scale of its transportation and land use transformation.

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This region should be proud of its many accomplishments inmanaging growth wisely – both in the way the land is used and inthe way economic vitality remains a constant goal. Every day and

in every corner of this region, business leaders, local and regionalgovernments, investors and citizens can point to on-the-groundexamples of how we are achieving our goals outlined in the Region 2040program.

Regional and town centers function as an important chapter in thissuccess story, yet still remain somewhat elusive. Creating fullysuccessful centers is not beyond our grasp. We need to evolve ourtactics and strategies, just as a center itself evolves over time and undervarying market conditions. Only then will these icons of smart growthand economic prosperity reach their full potential as our region’s centers.

Conclusion

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TEN PRINCIPLES FOR...Metro TOD Program Lidwien Rahman ODOT Amy Rose Metro Elissa Gertler Portland...

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