Assign certain City owned property, at Swan Island Lagoon, from Environmental Services to Parks and Recreation. (Ordinance)

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1 ORDNANCE No. Assign certain City owned property, at Swan sland Lagoon, from Environmental Services to Parks and Recreation. (Ordinance) The City of Portland ordains: Section The Council finds: The Bureau of Environmental Services (BES) manages 10.5 acres at the west intersection ofn. Emerson St. and N. Basin Ave. This land includes a 7.2-acre industrial site, a 2.8-acre river recreation lot (which includes the Swan sland Boat Ramp), and a 0.5-acre community tract currently described as N. Emerson St. BES received the boat ramp portion of this property without any initial monetary consideration. nstead BES took over contractual requirements with the Oregon State Marine Board and Oregon Fish and Wildlife to continue operating the boat ramp through June 30, BES acquired this land as one lot in 1996, with the intention of building a wet weather facility for the Combined Sewer Overflow (CSO) project. n 2001, it was determined that the location did not fit the needs for the CSO project and the site was declared surplus via Ordinance in The surplus process was delayed as BES split this site into the three current lots to accommodate the contractual requirement to maintain the Swan sland Boat Ramp open for public use. As of July 1, 2010, BES no longer has any contractual requirements to keep the boat ramp operational. BES has restarted the surplus property process to accommodate new procedures as required by Council Resolution The Commissioner-in-Charge of BES declared the sites excess to the needs of BES on March 16, BES, through the City Real Property Coordinator, conducted an internal notification to other City agencies/bureaus of the potential availability of this property on March 19, Portland Parks and Recreation (PP&R) expressed interest in the property, and requested BES delay the surplus process while PP&R investigated potential uses at this site. PP&R has interest in recreation facilities, and currently operates two boat ramps on the Willamette River. The Swan sland Boat ramp is the third public use boat ramp accessing the Willamette within City limits, and is filled to capacity during summer months and fishing seasons. 6. PP &R is currently in need of an industrial zoned location to conduct wood chipper operations. 7. BES and PP&R have agreed to terms to transfer the Swan sland Boat Ramp, along with 1.86 acres of the industrial site, from the real property portfolio of BES to PP&R. 8. The established purchase price is $970,757, which will be paid for with Parks' System Development Charge (SDC) funds. 9. The Director of Parks reports that the property meets the Parks' SDC acquisition guidelines and that there is adequate revenue from the Parks' SDC to fund the acquisition and stabilization of the property.

2 10. Parks estimates that the annual Operations &Maintenance (O&M) costs will be approximately $60,000. Parks will request ongoing O & M funding through the FY budget process. FY O&M costs will be absorbed within Parks budget to the greatest extent possible. To the extent any costs exceed the Parks ability to absorb in FY , the Parks will request these one-time funds in the Spring Budget Monitoring Process. Stabilization costs are estimated at $600,000, which include the costs of significant repairs to the dock and boat ramp that are needed to make the site safe and secure. Stabilization costs will be funded with Parks' SDC funds. NOW, THEREFORE, the Council directs: a. Upon the completion of the Property Line Adjustment and payment of the purchase price, as outlined in the attached nteragency Agreement (Exhibit A), the land known as Tract 2 will be assigned to PP&R real property portfolio. b. The Director of Parks is directed to transfer $970,757of Parks' SDC funds from P10487 to BES' s Sewer Construction Fund Account Cost Center ESBS00004 and to fund stabilization costs with Park SDC funds. c. BES will retain rights pertaining to sewer infrastructure located within Tract 2. Passed by the Council, Commissioner Nick Fish Commissioner Amanda Fritz [Eli Callison, BES, Zalane Nunn, Parks] [May 12, 2016] P10487 Mary Hull Caballero Auditor of the City of Portland By Deputy

3 Exhibit A City of Portland nteragency Agreement Portland Parks and Recreation (PP&R) & Environmental Services (BES) A. Recitals: BES manages three parcels comprising 10.5 acres at the west intersection ofn. Emerson St. and N. Basin Ave. These parcels are a 7.2-acre industrial site, a 2.8- acre river recreation lot (which includes the Swan sland Boat Ramp), and a 0.5- acre community tract currently described as N. Emerson St. BES received the boat ramp portion of this property without any initial monetary consideration. nstead BES took over contractual requirements with the Oregon State Marine Board and Oregon Fish and Wildlife to continue operating the boat ramp through June 30, As of July 1, 2010, BES no longer has any contractual requirements to keep the boat ramp operational. BES acquired these parcels as one lot in 1996, with the intention of building a wet weather facility for the CSO project. n 2001, it was determined that the location did not fit the needs for the CSO project and the site was declared surplus via Ordinance in The surplus process was delayed as BES split this site into the three current lots to accommodate the recreational use on an industrial zoned lot. BES has restarted the surplus property process to accommodate new procedures as required by Council Resolution The Commissioner-in-Charge of BES declared the sites excess to the needs of BES on March 16, BES, through the City Real Property Coordinator, conducted an internal notification to other City agencies/bureaus of the potential availability of this property on March 19, PP&R expressed interest in the property, and requested BES delay the surplus process while PP&R investigated potential uses at this site. PP&R has interest in recreation facilities, and cujtently operates two boat ramps on the Willamette River. The Swan sland Boat ramp is the third public use boat ramp accessing the Willamette within City limits, and is filled to capacity during summer months and fishing seasons. PP&R is currently in need of an industrial zoned location to conduct wood chipper operations, which is currently being conducted at the East Pad of the Columbia Boulevard Waste Water Treatment Plant (CBWTP). Expansion of operation at the Columbia Boulevard Wastewater Treatment Plant (CBWTP) by BES requires full access to the East Pad by June 30th, A Property Line Adjustment (PLA) is needed to reconfigure the BES property to create a new lot consisting of the boat ramp and approximately two acres of industrial land that BES will trnnsfer to PP&R. 1! j:_ :.

4 B. Premises The process of transfening the Premises will be a two step process. i. PP&R will take over interim management of the boat ramp and the two acres once BES has successfully terminated a lease with UPS on the two acres and retaken possession. ii. Once City Council has approved the transfer and the PLA has been fully approved, Parks will pay the purchase price and the Premises will be formally transferred to PP&R's portfolio. The Premises is those portions of the BES property commonly referred to as the 'Swan sland Boat Ramp' and 'Swan sland Lagoon' shown as "Tract 2" on Exhibit A and more particularly described in Exhibit B. i! 1 :. t! ; ' i C. Term This Agreement shall be effective when executed by the Commissioner-in-Charge of each bureau (Effective Date) and shall tem1inate on one of the following two conditions. The date upon which both the PLA has been recorded and City Council, by ordinance, has transferred the Premises to the portfolio of PP&R. 90 days after the date of the ordinance purporting to transfer management of the Premises to PP&R, if that ordinance is not approved by Council. D. nterim Use of Property Upon 15 days notice that BES has terminated or modified its lease with UPS and has full possession of the Premises, PP&R will take full management and maintenance responsibilities of the Premises. t is expected that PPR will take possession on June 1, E. Final Disposition of Property Subject to approval by City Council and final approval of the Prope1iy Line Adjustment, BES agrees to transfer the Premises to PP&R, and PP&R agrees to pay BES $970,757 within the latter of the following two dates. 1. Two weeks after the approved ordinance authorizing this transfer. 2. Two weeks after the final approval of the Property Line Adjustment creating the tract to be transfened.,. Page 2 of 6 i '

5 F. Responsibilities of PP&R Apply and pay for a PLA to create the new taxlot as shown on Exhibit A. Take over all mainten~nce and management responsibilities and costs of the Swan sland Boat Ramp. Apply and pay for a PLA to revert the property back to its original lot configuration (or as near as possible under current zoning regulations) if PP&R chooses not to pursue the transfer of the Premises. Vacate all operations from the Columbia Boulevard Wastewater Treatment Plant (CBWTP) by June 24th, G. Responsibilities of BES Support and respond to 'owner requirements' of the PLA as requested by permit review staff. Terminate or modify the current lease with UPS on the Premises and allow PP&R to access all portions of the Premises by June 1, Deliver the site in a reasonably clean condition without significant debris or abandoned vehicles. Allow PP&R interim access to Parcel B (9363 N Columbia Blvd) to facilitate the move from the Waste Water Treatment Plant to the Premises. H. Project Managers PP&R's project manager is Zalane Nunn Petersen, who can be reached at BES's project manager is Eli Callison, who can be reached at Miscellaneous Risk Management. Liability claims filed against the City in association with this agreement will be app01tioned between bureaus in accordance with the policies and procedures of the City's Risk Manager. Vacating the Columbia Boulevard Waste Water Treatment Plant. n the event, for any reason, that PP&R is unable to move wood chipping operations to the Premises, PP&R will still vacate the location of operations at the Waste Water Treatment Plant by June 24 1 \ PP&R wi11 be able to use Parcel B (9363 N Columbia Blvd) as a short tenn center of operations in return for in kind services to BES. BES and PP&R staff will enter into discussions to dete1mine leasing anangements. Page 3 of6

6 Signatures: Portland Parks & Recreation Environmental Services ~~l,jv Amanda Fritz, Commissioner Nick Fish, Commissioner Date: 5 J h) J l 6 Date: 5 / 1 / ( ~ t The remainder of this page is left blank 1.!! i i Page 4 of 6

7 Exhibit A 5D / 50 \ SCALE: 1" 60' SWAN island BASN ARCEL 2 ARnTON 'LAT NO, TRACT 1 2f.6:.71S S.F. t.djeifd,!r(a 312.6:S4 5.f. [X6l~,JtC., Page 5 of6

8 Exhibit B r 1. A tract ofland situated in the northeast one-quarter of Section 20, Township!North, Range East, Willamette Meridian, City of Portland, Multnomah County, Oregon, and being described as follows: Parcel 2, Partition Plat No , Multnomah County Plat Records; AND NCLUDNG the following described tract ofland: Beginning at the most easterly comer of Parcel 1, said Partition Plat No , said point being on the northwesterly line of Tract 'A' (N. Emerson Street, a Private Street), said Partition Plat No ; thence tracing the boundary of said Parcel along the following courses: North 52 15'59" West, a distance of feet; thence South 72 27'22" West, a distance of feet; thence South 31 08'05" West, a distance of 7.03 feet; thence leaving said Parcel 1 boundary South 52 15'59" East, a distance of feet to a 5/8-inch iron rod; thence North 87 18'58" East, a distance of feet to a 5/8-inch iron rod on the southwesterly line of Tract 'A', said Partition Plat No and a point of non-tangent curvature; thence northeasterly along said southwesterly line on the arc of a foot radius curve right (the radius point of which bears North 87 18'58" East) through a central angle of '52", a distance of feet (chord bears North 49 44'24" East, a distance of feet) to the northwesterly line of said Tract 'A' and the point of curve left of a foot radius curve; thence along said northwesterly line on the arc of said curve right through a central angle of 64 25'49", a distance of feet ( chord bears North 69 56'55" East, a distance of feet); thence continuing along said northwesterly line North '0 " East, a distance of feet to the Point of Beginning. f,. j i i 1. AND EXCEPTNG the following described tract ofland: Beginning at the westerly southwest comer of Parcel 2, said Partition Plat No , said point also being the most westerly comer of Parcel, said Partition Plat No ; thence North 52 33'30" West along the southwesterly line of said Parcel 2, a distance of feet to the most westerly comer of said Parcel 2; thence North 37 27'36" East along the northwesterly line of said Parcel 2, a distance of feet to a 5/8-inch iron rod; thence leaving said northwesterly line South 52 15'59" East, a distance of feet to the southeasterly line of said Parcel 2; thence South 31 08'05" West along said southeasterly line, a distance of 431. l 8 feet to the Point of Beginning; Contains 168,759 square feet, more or less. Page 6 of6

9 MPACT STATEMENT Legislation title: Contact name: Contact phone: Presenter name: Assign certain City owned property, at Swan sland Lagoon, from Environmental Services to Parks and Recreation. (Ordinance) Eli Callison (BES), Zalane Peterson (PP&R) (Eli), Eli Callison and Zalane Peterson Purpose of proposed legislation and background information: The BES 'Swan sland Lagoon' property is a 10.5 acre site that was acquired from the Port of Portland in 1996 for a potential wet weather facility. Prior to acquisition by BES, the Port received grants from Oregon State Marine Board (OSMB) and Oregon Fish and Wildlife (OFW) to install a public boat ramp at this site. This grant funding came with certain obligations (such as keeping the ramp open for public use) and required repayment of the funds should these obligations not be met. When BES acquired the property - the boat ramp facility was not included in the purchase price. nstead this portion of the land was given to BES at no cost, and BES took responsibility over the grant obligations. n 2001 it was determined that this location did not meet the needs of BES for the Combined Sewer Overflow wet weather facility. This site was declared surplus in 2003, and BES began to look for ways to dispose of the property. During this process, it was determined that selling the entire property (with the boat ramp included) would either; 1) hinder the sale as BES would need to find a buyer willing to take on the obligation of maintaining a public boat ramp, or 2) result in BES defaulting on the obligations under the grants funding the boat ramp, and result in BES being required to repay OSMB and OFW. To resolve this issue- BES divided the site into a 7.2 acre industrial lot, and a 2.8 acre recreation lot (which includes the boat ramp and a vegetated buffer along the Willamette River), the remaining area is a community tract known as N Emerson St. After Council adopted Resolution 37143, BES is attempting to again dispose of this property under the new policies. Per Resolution 37143, BES worked with the City Real Property Coordinator to notify other City agencies and bureaus that this property was potentially available. PP&R expressed interest on this site for two reasons: 1. PP&R has interest in recreation facilities, and currently operates two boat ramps on the Willamette River. The Swan sland Boat ramp is the third public use boat ramp accessing the Willamette within City limits, and is filled to capacity during summer months and fishing seasons. 2. PP&R is currently in need of an industrial zoned location to conduct wood chipper operations, which is currently being conducted at the East Pad of the Columbia Boulevard Waste Water Treatment Plant (CBWTP). Expansion of operation at the Columbia Boulevard Wastewater Treatment Plant (CBWTP) by BES requires full access to the East Pad by June 30 1 \ (BES and PP&R have entered into an AA to allow PP&R access to the Swan sland property prior to this ordinance being passed.) PP&R has requested to take the Swan sland Boat Ramp, along with 1.86 acres of the adjacent industrial land. BES and PP&R are working together on a Parcel Line Adjustment, which will modify the industrial property by combining the 1.86 industrial acres needed by PP&R with the boat ramp property. This will leave BES with a 5.3 acre industrial lot that will be disposed of following the City Disposition Policy.

10 Financial and budgetary impacts: For BES- BES will receive $970,757 from PP&R for the transfer of this property. BES will also save on O&M costs and staff time associated with operating a boat ramp. For Parks- Parks will fund the purchase price of $970,757 with Parks' SDCs. Stabilization costs, estimated at $600,000 will also be funded with SDCs. Stabilization will include significant repairs to the dock and boat ramp for safety reasons, installation of a gate for security, and other improvements needed to make the site safe and useable. O&M is estimated at $60,000. For FY , O&M costs will be absorbed in Parks' existing budget to the extent possible, and ongoing O&M will be requested through the FY budget process. Community impacts and community involvement: Following Resolution community outreach for the disposition ofreal City property does not occur until the decision has been made to request Council declare a property surplus. Because this transaction is still under the internal City notification period, and the intent of this ordinance is not to remove property from the City inventory, community outreach has not occurred. BES has received several inquiries about the fate of this ramp from the fishing community. There have been concerns that BES would close the ramp, or sell the property to a company that would not keep this ramp open to the public. This boat ramp is one of three public ramps to the Willamette within the City of Portland, and is at capacity during fishing season and the summer months. Because BES does not have the expertise of running a boat ramp, and because investing rate-payer dollars into improvements of a recreation facility are inconsistent with the proper use of these funds, BES has maintained this site at the lowest level possible. Transferring ownership of this property to PP&R will result in an improved experience for anglers and recreation users of this facility.

11 Budgetary mpact Worksheet Does this action change appropriations? DYES: Please complete the information below. D NO: Skip this section Fund Fund Center Commitment Functional Area tem Funded Program Grant Sponsored Amount Program

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