MLK Commercial Redevelopment Strategy, Portland, ORTHE SOUL DISTRICT

ENVISIONED BY:Black Investment Consortium for Economic Progress (BICEP)

DRAFT:November 1, 2014

Photo rights: Shawn Records

TABLE OF CONTENTS

VISION 04 The Vision The District Target Clusters Values & Criteria

BACKGROUND 10 The Issues Past Planning Efforts

STRATEGIES 12 1: Key Business Opportunities 2: Key Opportunity Sites 3: Funding Sources 4: Land Assemblage & Business Development

MAKING IT HAPPEN 18 Who is BICEP? Staff Support Budget Conclusion

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VISIONThe VisionAll cultural communities deserve the opportunity to create, impact and transform their realities. For this to be possible, these communities must have an economic base.

As members of Portland’s African American community, we feel that the time has come to engage more strategically and collaboratively with public and private partners in creating a new diversified economic base for our community, and a place that will attract and serve a broader group of people and businesses.

We propose developing a geographically concentrated collection of commercial economic, social, and cultural assets located near the N.E. Martin Luther King Jr. Boulevard, which will not only provide an economic base for the African American community but will also, provide greater diversity and vitality to the economic revitalization occurring in Northeast Portland.

We envision Portland having the best MLK Jr. Blvd. in the country. All over America, MLK Jr Boulevards serve as a true monument to the struggle and triumph of the African American community.

We believe that a district with a focus on Portland’s MLK Jr. Blvd can become a beacon, and a symbol of pride, hope, possibility and hospitality for the African American community, and for all individuals and groups who continue to strive for the “American Dream” of economic prosperity, well being, and self-sufficiency.

The SOUL District will be a revitalized commercial business district in N.E. Portland that will add economic capital to the surrounding community and Portland as a whole.

The DistrictThe SOUL District will include a portfolio of key developments focused on the MLK corridor with a spread north to south from N.E. Broadway to N.E. Rosa Parks and east to west from Interstate-5 to N.E. 7th Avenue.

The goal is to create a series of development nodes with the character of a connected place that will serve as an economic base where African-American and other small, minority, and like-minded businesses can locate, be showcased and prosper.

MLK’s historical importance to the African American community, and its proximity to Alberta Street’s Last Thursday, PCC’s Cascade Campus on N.E. Killingsworth Street, the Legacy Emanuel Hospital campus on N. Williams, Swan Island, the Columbia Corridor and the Moda Center/Memorial Coliseum provide a symbolic focal point around which to build this economic base.

One of the major factors in determining what level of commercial revitalization is possible is the availability of developable land that is properly zoned in the area. Most of the new development that has occurred on MLK over the past twenty years has been affordable housing with at least nine projects located on or near MLK, and two more publicly owned sites designated for future projects.

Revitalizing MLK as a commercial corridor cannot happen if the strategy continues to be developing all vacant commercial sites with affordable housing; as these projects do not attract or expand commercial revitalization.

Although additional affordable housing is critically needed in this area of the City, BICEP hopes to encourage future development within the district that will support a commercial, business, and a workforce housing mixed-income agenda.

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The SOUL District strategy will focus on attracting new retail and commercial development to bolster the economic vitality of the area and to supply a job base for its residents.

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Target ClustersThe Portland Development Commission, the city’s economic development agency, has defined a series of targeted industry clusters that Portland uses as the basic building blocks for its local economy.

The City has developed strategies for job growth in these key industry clusters that are intended to be pivotal to the city’s current and future economy. These clusters are Athletic & Outdoor; Clean Tech; Advanced Manufacturing; and Software.

Building on this idea, we feel that the SOUL District can create its own set of target clusters that will build on its current cultural assets, economic trends, and enhance future growth opportunities within NE Portland and the City.

MLK’s close proximity to downtown; easy access to I-5 and I-84; proximity to light rail on Interstate; future connections to Google’s and other company’s proposed fiber optic network with nodes at MLK/Broadway and MLK/Killingsworth; and its thriving residential population make it a perfect place for seeding a collection of new businesses and enterprises that not only will revitalize the MLK commercial corridor, but also will be welcomed and embraced by the entire community.

The clusters listed to the right and on the next page provide opportunities for the SOUL District to attract and concentrate new local businesses and uses in the NE community.

Technology Services & Product Industry

Software development, social media companies, app development, start-up companies, and incubator for youth tech development.

(example: Girls Who Code, Black Girls Code)

A

Creative Production Industry

Graphic design firms; urban film/video production; incubator for young designers; art galleries; street/graffiti artist’s co-op; and creative non-profits.

(example: Caldera, The Red Book Project, Pensole)

B

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Entertainment Industry

Hip-hop performance café; jazz club; spoken word café, studios, hip-hop channel, and school of hip-hop.

(example: Clear channel, House of Blues, Apache Café Atlanta)

CNeighborhood Goods & Services

Full-service fitness center, black business center, small business incubator, university satellite campus, educational service providers, and job training institutes

(example: Northwest School of Construction)

E

Food Industry

Soul food fusion restaurant; commissary kitchen; culinary institution satellite; ethnic restaurants; African and ethnic foods market; and international marketplace.

(example: Cordon Blue Eastside, Gladys Knight’s Chicken & Waffles)

D

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Values & CriteriaIf the plan for the SOUL District is to be successful as envisioned, projects sited and developed in this district need to be responsive to a set of community goals and values in order to gain community support. The SOUL District’s key values can be divided into three broad categories: 1) Economic Development, 2) Social Responsibility, and 3) Youth Education and Workforce Development.

The objective is that every development project constructed in the SOUL District meet at least one of the criteria listed in each category, and that every publicly supported development project in the District is responsive to two or more of the criteria in each category:

Provides new jobs for long-time area residents (low, medium, and high wage)

Provides spaces for like-minded companies (invested in the future prosperity of the black community and the inner N.E. neighborhoods) to relocate or expand on MLK

Brings in new retail shops that fulfill a needed void in the community

Provides affordable spaces for established businesses to locate or relocate

Provides an attractive streetscape and vibrant day and night retail activity that is inviting to residents and visitors alike

1 ECONOMIC DEVELOPMENT

CHECK ALL THAT APPLY:

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Utilizes a minimum of 20% MWESB (Minority, Women and Emerging Small Business) contractor participation during construction

Provides equity participation for MWESB (Minority, Women and Emerging Small Business) businesses

Provides business incubation for companies owned, operated and/or providing services to the African-American community, and other cultural communities

Unlocks the value of land owned by long-term property owners in the District

Brings in new retail shops that provide culturally diverse goods and services

2 SOCIALRESPONSIBILITY

CHECK ALL THAT APPLY:

Provides uses that create opportunities for minority youth to participate in and contribute to the community’s cultural life and growth

Provides educational opportunities and training opportunities for underrepresented youth and young adults that advance their upward mobility.

Provides internships and learning experiences for minority youth in the community

Provides apprentice participation program for construction projects that gives preference to the district’s minority youth

3 YOUTH EDUCATION & WORKFORCE DEVELOPMENT

CHECK ALL THAT APPLY:

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BACKGROUNDThe IssuesThere are some key historical and economic issues related to the revitalization of the inner Northeast Portland neighborhoods to date that the creation of the SOUL District, and this vision seek to ameliorate.

Economic DisparityGentrification is occurring in inner city neighborhoods in Portland at a rapid rate. Numerous agencies* have acknowledged their historic role and responsibility in fueling the gentrification in inner N.E. Portland and have stated their commitment to work with the remaining historic residents most impacted by this trend to mitigate further negative effects of this economic trend.

African Americans are experiencing ongoing job loss, and business and housing displacement due to the rising cost of land and affordable commercial rental space, and the loss of affordable rental housing.

In N.E. Portland the cost of commercial space in new market-rate developments is not affordable for most of the long-standing businesses that have been located in the N.E. community for decades. As older buildings which house these businesses are sold or rehabbed, many of the long-standing local businesses are being pushed out of the community. When these businesses disappear, so do the jobs they provide for local residents.

There needs to be new development that provides new jobs for these residents while providing some affordable space that allows the long-standing businesses to remain in the community, if they desire to do so.

* The Portland Development Commission, City of Portland, State of Oregon, Federal government, Legacy Emmanuel Medical Center, METRO, the Memorial Coliseum, and the Rose Garden/Moda Center, etc.

Land Use and Street ConstraintsWhile many areas of the City are undergoing significant transformation, the land adjacent to MLK has remained relatively unchanged for the last twenty years. More vibrant, catalytic commercial development is needed at specific nodes to transform this important vein of the City into a revitalized commercial hub and the SOUL District we envision.

The physical design of MLK as a “highway” with a center median, limited on-site or off-street parking, few crosswalks except at lights to get pedestrians safely across the busy street, and fast moving traffic, creates challenges to developing a pedestrian friendly streetscape along MLK.

There needs to be some thought given to how this character can be mitigated and made more supportive of new business and pedestrian activation on the street, on a development by development basis.

Land Ownership and Ability to Assemble Land Long-term property owners who do not have development knowledge or access to capital make redevelopment and land assemblage along MLK a challenge.

There still are a number of commercial sites owned by African Americans on MLK, and on connecting commercial feeder streets, who do not have the development knowledge or financial capacity to redevelop their sites or participate in the revitalization that is occurring.

Although the PDC has been active in educating these landowners on development options, a lack of trust and an inability to act still persists. There needs to be further exploration of the types of real estate investment and development entity structures that might provide opportunities for these owners to benefit and prosper from the redevelopment of their long-held assets without having to sell their property.

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Past Planning EffortsThere have been several commercial development strategies prepared for the MLK Blvd corridor over the last twenty years.

All of these strategies were developed with extensive participation of community stakeholders so we don’t feel that this process needs to be repeated.

The most recent of these studies include the MLK Commercial Development Strategy (1997), the Fremont/MLK Vision Study (1998), the King Neighborhood Commercial Center Development Strategy (1999), and the MLK Blvd Economic Development Study (2007).

These studies laid the groundwork for the redevelopment that has occurred over the last twenty years on MLK. The most successful of these efforts have come out of community led, generated, and/or supported efforts.

Because the land use and development conditions have not changed substantially in this timeframe, any remaining public dollars available to assist with MLK revitalization ought to be invested in creating a commercial development plan which identifies and facilitates the development of specific projects at the key revitalization nodes already identified along MLK in previous studies, rather than spent on additional extensive community planning efforts.

Images from: NE Martin Luther King, Jr. Blvd. Economic Development Study (2007)

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STRATEGIESThere are several potential commercial development opportunities along MLK, and on the connecting neighborhood commercial streets, which could ultimately provide places for African Americans, members of the African Dispora communities, minority and other small businesses to co-locate, congregate, prosper, and generate a variety of important economic benefits for the surrounding community and the City.

The following commercial development strategies can be used to activate these opportunities and make this vision realty.

STRATEGY 1:Identify Key Business Opportunities

In preparation for developing the long-term revitalization strategy, not only is it important to determine what development opportunities actually exist but also what businesses, goods and services are needed and desired by the existing community so that development projects will meet the intended vision and target clusters of the District.

Action Plan: Market Study

A market survey of desired potential businesses and services needs to be prepared. This research will help to identify the development and business potential of the District moving forward and to understand where the best opportunities are for creating an economic base for the African-American community and other cultural groups living in the NE community.

The market study needs to be done by a major firm that specializes in this type of work and has an extensive background in market analysis for real estate development opportunities in developed inner-city communities, like Eco-Northwest. The study’s scope should include:

1. Inventory of the types and categories of existing businesses in the District, what goods and services are now provided, and how much market capacity there is for added goods and services in each category based on the demographic profile of the neighborhood.

2. A citywide targeted inventory and categorization of businesses and stores that are African-American or minority owned, or tend to provide goods and services to African-American and other multi-cultural consumer groups. This inventory might include identifying businesses wishing to relocate or set-up business in the Portland area that might fit the desired character, values, and target businesses categories of the SOUL District.

3. Market analysis of the supply and demand market leakage, and potential business growth opportunities in the District. Description of the typical site, space, and amenity needs of these businesses.

COMMERCIAL DEVELOPMENT STRATEGIES & ACTIONS PLANS

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Examples of current businesses along MLK Boulevard (Photo rights: Shawn Records)