The two have entered into an intergovernmental agreement that will help the Portland Development Commission redevelop under utilized properties around the school, known as the University District, and help the university build a $50-million Northwest Center for Engineering, Science and Technology.
The IGA also states that PDC and PSU will enter into annual agreements in which the PDC would be retained on a non-exclusive basis to work with PSU on a fee basis on additional development activities.
PSU President Daniel Bernstein says the Northwest Center for Engineering, Science and Technology is essential to its plans to raise the university's national recognition, double research funding by 2010 and increase the number of science and engineering graduates. PDC Director Don Mazziotti says the center is necessary because a recent economic development study "pointed to a critical need for strengthening PSU's capacity to serve the high-tech employment sectors here."
PDC's intent is to use the property it is receiving -- the so-called "carpool lot" between Southwest Fourth and Fifth avenues at Montgomery Street and the "PCAT" block located between Fifth and Sixth avenues and Harrison and Montgomery streets -- for a multi-block, mixed-use redevelopment. Under the agreement, the PDC owns the PCAT block in partnership with PSU, and PSU will continue to occupy the building rent-free for eight years. Meantime, PDC and PSU will explore joint redevelopment of the site, which could include an assisted-living facility. The other property the PDC owns outright, and PSU will lease back the lot for $3,000 per month until the PDC starts its redevelopment, as well as half the cost of any soil remediation that may be necessary.
The money the PDC is using to pay for the properties is coming out of tax increment financing from the South Park Blocks urban renewal district. The PDC's money will be matched by the state.
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