Staff outlines $4.9M grant, design alternatives and developer talks for Gateway site

Staff gave the board a detailed update on the Gateway redevelopment project, saying the city has received an updated disaster‑recovery grant award totaling $4.9 million and that 30% design plans should be completed in the coming weeks. Staff said RH2 was selected through competitive solicitation to design the improvements and outlined three alternatives that primarily differ in the number and placement of access points to the site.

Staff described the alternatives and noted one developer team’s preference for a two‑entrance option while also emphasizing elements such as on‑street parking, a neck‑down, and neighborhood‑sensitive step‑down building heights. "We should have 30% design completed in the next couple of weeks," staff said, and later added that design will show access locations, on‑street parking and how existing trees relate to proposed improvements.

The presentation included a discussion of Gangness Drive cross‑section choices — options include limiting parking to one side, providing sidewalks on one side only, or using a queuing street approach to keep pavement widths modest while accommodating traffic. Staff said they plan neighborhood meetings to gather resident input about what they want for their street and welcomed informal conversations with neighbors.

Staff identified immediate priorities that could be added to the Gateway project budget, including alley improvements and fire‑access upgrades (adding hydrants), and transforming an existing southern swale into a more park‑like amenity with landscaping. Staff estimated design‑stage budget flexibility at "at least a few hundred thousand" dollars but said the full figure remains uncertain until 30% design is complete.

On development negotiations, staff said Matt Eid, principal of Eid and Co., is the preliminarily selected applicant and that the firm has refined site plans to step building massing down toward adjacent neighborhoods. Staff described active work on Eid and Co.'s financial model and said the agency has the option to extend an exclusive negotiation agreement if financing market conditions warrant patience rather than strict deadlines.

Staff also described the concept of a moderate‑income revolving loan (MERL) program, explaining it would allow the city to borrow against approximately 10 years of expected future tax revenue from a development to provide incentives, with repayment from the development's incremental tax receipts over that period; staff noted the approach involves some foregone short‑term tax income and may pair with a long‑term land lease to balance risk.

The agency's redevelopment fund (TUR) retains roughly $600,000 and staff said there is a small sidewalk gap between the promenade and the Gateway site that likely requires property or an easement from "T" (the rights holder). Staff asked for board agreement to begin discussions with the property owner and to spend modest funds on design work to refine the promenade and pedestrian connection, noting the promenade and that sidewalk gap lie outside the Gateway project's environmental review footprint and may require separate funding.

Board members also discussed a prior parking study showing peak downtown demand during limited periods; staff proposed exploring flexible parking on the Valley View Extension and promenade using permeable surfaces that can serve as event space when not needed for parking to avoid paving large downtown areas for occasional peaks. Staff said the promenade, tree preservation or relocation and existing urban forestry resources would be shown alongside the 30% plans.

Staff requested a head‑nod to begin property discussions and limited design spending to investigate the promenade connection and flexible parking options; board members did not record a formal vote on that authorization at the meeting but indicated support for further study and neighborhood engagement.