Interstate Corridor
URA Redevelopment Loan Program

Important Dates

• February 27, 2009: Applications due for winter review
• March 27, 2009: Notification of application status
• May 1, 2009: Applications due for spring review
• June 1, 2009: Notification of application status

Interstate Corridor Urban Renewal Area
Redevelopment Loan Program Evaluation Criteria

The Portland Development Commission (PDC) anticipates having up to $3M over the next two fiscal years (2009-2010 & 2010-2011) to assist property owners and long-term leaseholders embarking on mixed-use redevelopment projects in the Interstate Corridor Urban Renewal Area (ICURA).

PDC can provide financial assistance for redevelopment or rehabilitation of existing structures demonstrating a significant public purpose and supporting the goals of the URA Plan. Loans are intended to supplement traditional bank financing and make a project financially feasible by filling a gap. The specific loan type that is currently available in this cycle is directed toward immediate construction and permanent financing. Funding for this program is through tax increment financing and, therefore, must be tied to the infrastructure and physical improvements (including tenant improvements) of real property within urban renewal areas. Loans are typically below market, subordinate, and terms are negotiable.

Redevelopment Funds Evaluation Criteria

Below are the criteria that will be used to evaluate applications for funds. Failure to meet one of the evaluation criteria doesn’t automatically disqualify an application. However, the more criteria met, the stronger the application will compete against others in a competitive pool.

• Project is located on a property that is blighted (vacant, abandoned or underutilized)
• Project will preserve or reuse a historic building (on City's Historic Inventory)
• Project is mixed-use (contains two of the following uses: office, retail, residential, community service, or commercial). Product types can be ownership or rental;
• Project is transit oriented – located within 1/2 mile of a light rail station or 1/4 mile of frequent bus service.
• Property, project, and/or program design is a catalyst for the neighborhood to spur additional private redevelopment and reinvestment;
  Catalytic projects are:
  • located in a highly visible area or intersection;
  • offer an identified service need in the neighborhood;
  • supportive of job creation and retention; and/or
  • likely to spur additional private investment and revitalization

• Project is in advanced stages of design or already permitted for immediate redevelopment/construction/renovation, i.e. project ready investment;
• Project contributes towards PDC's goal to support sustainable building practices
• Project supports PDC goals for wealth creation through homeownership or commercial condominium offerings.
• Proposed project meets URA Plan goals and objectives - www.pdc.us/ura/interstate; and

Other evaluation criteria

While not required, preference will be given to applications which meet the following:

• Owned property for at least 5 years;
• Capitalize prior PDC investment such as streetscape improvements and DOS;
• Projects located adjacent to high capacity transit corridors, including light rail and frequent service bus lines (within 1 block);
• Projects that meet or exceed LEED Silver; and/or
• Projects that preserve or reuse a building listed on the National Register of Historic Places.

Loan Information

• Applicants demonstrate that they have pursued and secured primary financing;
• Loan request must be at least $200,000; and
• Total amount of loan should be targeted to no more than 20% of total project cost.

Other PDC Requirements for Accepting Loans

Developers may be required to meet the following PDC Policies depending on the PDC loan amount AND the value of hard construction costs:

Application Timeline

Applications can be submitted at any time before February 27, 2009 for the winter review and May 1, 2009 for the spring review. Applications will be judged within a competitive pool.

Complete details about the loan program are available at: www.pdc.us/property. Applications are available by contacting Estee Segal via email, or telephone, 503-823-3317.

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