Redevelopment commission approves $400,000 consolidated grant to convert downtown building into eight small suites

The Milwaukie Redevelopment Commission voted on Dec. 2 to approve a consolidated $400,000 Urban Renewal Agency (URA) grant for an adaptive-reuse project at Main & Monroe that will reconfigure an underused building into eight commercial suites and is intended to activate downtown Main Street.

Sierra Fox, the city—s economic development coordinator, told the commission the applicant met program eligibility (property-owner applicant, verifiable 50% match), had curated tenant prospects and demonstrated catalytic potential for downtown economic activity. The staff analysis noted the consolidated request was allowable under program rules because the project demonstrated redevelopment and economic leverage that justified an above-the-limit award; the URA program allows larger requests with MRC approval.

Developer Jordan Ward described project details: eight suites ranging from about 1,500 to 2,500 square feet, shared restrooms and rear egress, building sprinklering and a shared 500-gallon grease trap to lower tenant startup costs. Ward said five leases were already signed and two others were near completion, leaving one or two vacancy opportunities. He and staff said the developer is offering tenant-improvement support and shared professional services (architect, mechanical design) to lower barriers for small businesses.

Councilors asked practical questions: whether the applicant would pay separate System Development Charges (SDCs) for each suite (staff said yes, depending on fixture counts and final floor plans), how the match is composed (property owner match), and how retaining some TI funds for unassigned suites could help new small businesses.

The commission motion to approve the consolidated application passed by voice vote with no opposing vocalizations recorded; staff said the award would leave about $600,000 available from the $1 million recapitalized URA budget after accounting for other pending applications (roughly $200,000 in other requests).

What happens next: staff will execute the grant award paperwork and coordinate with the applicant on disbursement and compliance terms. The MRC and staff said they expect the redevelopment to be catalytic for downtown and that project-specific CIP and pedestrian improvements may be phased around the broader downtown infrastructure plan.

Notes: The project also has a separate historic rehabilitation grant in process; the developer indicated that grant will be part of the overall match for the project.