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Council discusses small-business incubator, market study and city ownership for Gateway commercial space
Summary
During the Jan. 29 study session, councilors signaled preference for small, neighborhood-serving commercial uses and incubator space at the Gateway site, discussed the option for the city to retain ownership of commercial parcels and asked staff to pair the RFP with a local market study and outreach to mission-driven developers.
The joint study session moved from housing to commercial uses for the Gateway site as consultants asked councilors which types of nonresidential activity the city should encourage. "We talked to there was a little bit of a discussion about this, last time," Matt Brinkley said before asking the council to indicate preferred commercial uses.
Councilors repeatedly favored small, neighborhood-serving businesses rather than large regional retail. Councilor Eleanor Panaloff said she was “in love with the idea of an incubator space,” suggesting a small-scale kitchen or maker-space that could anchor commercial activity and link to an adjoining plaza. Other councilors backed a mix of small professional offices, cafes and studio/manufacturing incubator space modeled after local examples such as Phoenix Studios.
City role and incentives: Councilors raised the idea of public ownership or a public–private partnership to secure desired community uses. One councilor summarized staff—s recommendation that the city retain ownership of some commercial spaces, noting that nonprofit and urban-renewal funding could support incubator operations. "I think there's a, yeah, there's probably even a nonprofit component to it where nonprofit dollars can be, incorporated into that as well with the city retaining ownership," a councilor said.
Market study and outreach: Consultants recommended a small, localized market study prior to releasing the RFP so developers understand realistic commercial demand and the right sizing of commercial square footage. Brinkley and Nye said that an initial single RFP that invites a master developer is preferable, with the option to separate commercial and residential components later if responses indicate that approach.
Why it matters: How much commercial the city requires or retains affects potential revenue, the public subsidy needed for middle-income housing, and the character of the Gateway site. Councilors stressed outreach to mission-driven and nonprofit developers in the region and to state programs that support community or incubator space.
Next steps: Staff was directed to draft RFP language that signals city preferences for neighborhood-serving commercial, to consider a localized market feasibility check and to include outreach to nonprofit and mission-oriented developers.
