RFQ Planned for 'Cascadian Phase 2' Site

PORTLAND-The Cascadian was to be this city’s ode to the “vertical subdivisions” of Vancouver, BC but it never panned out. The developer’s inability to obtain second-phase financing for the project left two thirds of the three-quarter block site undeveloped, much to the dismay of first-phase homebuyers who were promised additional amenities in the second phase. Now, however, the Portland Development Commission, which owns the site, has recommitted itself to making something happen. Late last month, PDC staff told the commissioners plans were moving forward to issue a formal Request for Qualifications to gauge market interest. If there is interest, it would lead to a Request for Proposals and, eventually, a major high-rise residential development.In 1998, then owner of the entire site, Enterprise LLC submitted plans to the City for Cascadian, a two-phased 300-unit high-rise condominium development that was expected to generate $85 million in sales. The first phase, Cascadia Court, a nine-story affordable condominium tower with 60 units and 14 paring spaces was completed on one-third of the site. At the time, there was little ownership housing in the Lloyd District and this was considered a pioneering project, which is in part why the PDC provided financial assistance to Enterprise in the form of a $1.4-million construction loan out of a total project cost of $8.3 million. When people were considering purchasing units, they were told they would be able to utilize various amenities and purchase parking spaces in the larger second phase. The PDC purchased the remaining half block from Enterprise in November 2000 for $1.4 million to hold the property until the market matured, such that Enterprise could obtain financing for the project. Enterprise never was able to obtain financing for the second phase and at some point gave up on its plans, leaving the property in the hands of the city. Nearly four years later, in 2004, the city’s housing director instructed staff to review and prioritize PDC-owned properties in the Lloyd District that were purchased with the intent of developing housing. The site was again marked as best suited for a high-rise residential-over-retail development and dubbed a high-priority project, in part to provide funds for the Oregon Convention Center hotel project, which has had some setbacks of its own recently.There is already at least one developer interested in the site, and he’s from BC. According to the PDC, the developer called the agency in search of viable sites for a condominium projects and was informed of the Cascadian site. The PDC says the developer is now interested in acquiring the site for a project similar to the Cascadian Phase 2 concept, which called for a 30-story residential tower with ground-floor retail space and a fitness center at the corner of Northeast Grand Avenue and Holladay Street. “Rather than negotiate with (the developer) exclusively, an RFQ process will ensure that all potentially interested developers have a fair chance to respond to the opportunity,” PDC staff wrote in its report to the commissioners late last month. There’s no word yet when the RFQ will be issued. The site’s current market value is $2.4 million, according to a May estimate by PGP Valuation Inc. PDC staff told commissioners they don’t expect urban renewal funds will be available to assist the developer in the project.