City Council - Regular Meeting

Do you want a letter?

Well, thank you for having me here.

I appreciate it. Yes, we represent basics. We've been working with them for probably 10 years now doing a lot of their work and they are looking there. They've outgrown their capabilities, their current capabilities. I don't know if many of you have been out there, but they are just bursting at the seams. So You know, they're looking at expansion again, but there's certain things that, you know, they need to look at as they talk about their capital improvement investment, where they invest. So part of this was, has anybody, has everybody had a chance to review the development agreement, the proposed development agreement? Parts of it, yeah. Parts of it? Okay. That is Exhibit B. So currently, Basics Aeon, their main location is on 21st Place, out the old Walmart building on the south end of town. They lease several other buildings around the area in Redmond and Sisters. They're trying to consolidate those and coming up into one location just for efficiencies and their growth. They currently already use the fairgrounds, which many of you probably have seen, especially if you fly in, the number of units they store out there and they distribute from there. So access to the fairgrounds, I mean, Keith is correct, looking at development out on 18th Street, but even just access left turn out of their current facility is critical to their operations because they're moving those pieces of equipment over there on a daily basis and then shipping out. you know, their intention is to expand. They're looking at, well, let me back up. So we've been tasked with going through this process of looking what it would take to expand in Redmond. Does it make sense to expand in Redmond? And there's many things that come into play that we're working on. You know, one is just their CapEx budget. What is the investment here? You know, getting out of their facility, incentives, all those things. We're going through all those things. We're working with the state. The state lands out on 18th Street. And they're a large company. If you're not familiar, Basics did get bought out by Aon. They're an international company, publicly traded company. So they're a large company, so they got shareholders to answer to. So when they look at investment, they want to make sure they're checking all the box. That's what we have been tasked with. One of the things that has been on our agenda for quite some time is, again, separate from even developing on 18th Street, is how do we know in the future, how do we protect our access to businesses? get our left-hand turn lane out of the current facility to go east either to the fairgrounds or to 18th or somewhere east beyond that and so that's what this development agreement does and it this wasn't even on the table when we started working with them but when we looked at the current uh transportation of the TSP the city has put together It came to our attention that in that TSP, there's a proposed median that goes down Airport Way that limits ride-in and ride-out traffic for both 21st Street and 21st Place, which that's already in the TSP. So we were asking that, you know, since that's already there, could we amend that and come up with a plan to have left turn lanes out of 21st Place, which is how Basics access their facility? So Aon paid for the study. We did a traffic study. Joe Bestman did the study for us. There's a copy is out there. I think, Keith, everybody may have gotten that copy. It's large. There's an abbreviated version that was also sent out. And there were some pages that were noted in the full traffic report, just kind of the highlights of it. Generally, and I'll just maybe stop talking if you have questions, but basically this would give Basics Aon at least a 10-year window to access their needs turning left out of their facility. Understanding that right in, right out, only on the southern portion is maybe not preferred. hardship to any property. It's already in there. It's just eliminating the median and doing the pork chop design that we came up with the traffic engineers and the civil engineers. is willing to participate in the cost of that or pay for the cost of that mediation for that. And that would only come into play if 21st Street at some point gets extended and ties in somewhere else or there is actual development on the 700 acres of state lands out on 18th Street.

We can, we've got the slides here too.

So this is the short version of the big traffic report. So You know, in short, the median that's there that was proposed in the TSP actually creates more traffic and more hardship and more safety concerns than not having it there. So that was what was proposed in the TSP, the city. You want to back up to that? Sorry. Yeah, I mean, so obviously this is right in, right out only for both sides of the street. But with this, Railroad crossings, number of trips, and all those numbers are in this short version of this report. All those numbers are in there for the increased number of trips back and forth, because now you have to come back, go back, go to the roundabout, cross the railroad tracks, come back over. So we're increasing trips across the railroad tracks. Queuing gets larger. So that's why this was, we felt, a good option is to do the pork chop version on the other end, which is maybe a couple of slides up. This just talks about different options which were explored. The one on the right is the pork chop. And then we've got a Merge Lane dashed yellow down on the lower right-hand corner. So as trucks come out of the Aon or Basics facility, they can go into the merge lane, which improves congestion because they can time it and wait for traffic rather than just, you guys have been at that intersection at times when everybody leaves, it gets pretty congested. This way they have a lane to merge into and then pull out when time permits with a break in the traffic. Steve, quick question.

That image, if you go back. The image on the left was that you said that's out of our TSP like factual. I don't know if the image is correct, but the median is yes. Okay, so the TSP does it talk about right in right out off at 21st Street as well as it doesn't.

It only says 21st Street, not 21st place. So that's why I kind of missed that until we actually saw, you know, I don't know if there was a drawing or it was referred to that we realized, well, if the meeting goes in, it's going to eliminate 21st Place as well. But it only talks about 21st Street. So does it make sense? And like I said, our charge right now is to work with Aon. I mean, obviously, they're the city's largest employer. They're talking about development. They're talking about where's the best place to develop. They have the existing facility here. The two original owners of Basics are both from this area. They would love to just expand here and do everything here, but there are certain things that we need to solve and manage to present to their board, which is the first part of and the budgets by October. But this is just one of the items that we're trying to get you know we're checking all the boxes off and this is one of them that they need to get some confidence and long-term stability for. So one thing as far as traffic goes that you're worried about? I think so. Yeah. I mean, the roundabout is going in. We've been working with the city and just understanding the roundabout at 19th Street. They have what's called a double drop trailer. It's their largest units. I mean, it takes a special trailer that they have to drop the trailer down. And if they go on the highway, they have to get flaggers every time they move a piece of equipment. The double drop trailer, we've been working with the city on the roundabout at 19. I guess that roundabout has now been approved to be a double lane roundabout. So the city is taking that into consideration. This is not just a basics specific. I mean, there's 700 acres of industrial land out there. all will probably have large truck traffic. So it's really for the development of the 700 acres.

Any other questions?

Yeah, I don't know if somebody on city staff in the room can answer this or not, but I have concerns about Forgive my, I'm going to use the terminology that I grew up with. So we've got kind of that suicide lane that's kind of headed kind of down and to the right. So we're going to have semis pulling out, turning left, pausing in that suicide lane until they can get over. I'm worried about vehicles trying to turn, I guess, kind of left.

Without realizing the change in traffic pattern.

Without, well. wheeler stopped in the middle of the street there. And there's going to be somebody coming down that grade over the tracks.

Coming westbound on the airport way.

So somebody's going to be coming west.

21st Street.

Yeah. going west out of 21st Place. Yeah, I'm trying to orient myself. So we've got north is kind of up and to the right.

Correct.

So we've got somebody who's, you've got a semi that's basically heading up the grade over the tracks, but they're paused. And now we've got somebody who's trying to head east or they're eastbound going to be turning left.

You can't turn left off the eastbound lane with the pork chop. That's the purpose of the pork chop.

So these businesses are constrained. I'm saying on Airport Way, they're turning left off of Airport Way. Except now that there is an 18-wheeler there sitting in the middle between the two, between incoming and between the traffic there, blocking basically visibility. And having somebody come down that grade over the tracks and a T-bone to me seems.

So if I understand it, Steve, the yellow dedicated lane would not allow, would not be a left turn lane into 21st Street.

Correct.

And so there would be no left turn lane into 21st Street.

I'm talking about the exact opposite of that. I'm talking about somebody who's. Don't point it out. Yeah. All right.

Somebody who is penniless.

Because I think you're directionally challenged.

You've got a car heading this way, and you've got a semi paused here. This car is going to turn here. You've got a semi blocking visibility so that a car heading this level is going to go straight into here. That's my concern. That's actually legitimate. I'm worried about somebody turning left there. I don't know. I don't have the expertise or the technical skills to answer those questions, but I worry about finding the site.

Yeah, so I mean, and again, right now, none of this exists. So if they're operating, they're functioning now. Yes. So they're coming out. They're functioning now. All those trucks come out. It just gives a minute to pause. I think it's more for just traffic movement. You know, would they, are they, I mean, this is obviously the traffic engineer, you know, coming, trying to come up with the best plan to mitigate traffic and provide safety. But, you know, I don't think basics is, they're not requesting that we have this merge lane. This is just something that they came up with. So, I mean, it could stay as is. And I think that's the, you know, that's one of the points I think about this whole, you you know, this, I guess, traffic mitigation plan that we're talking about, you know, right now nothing changes and probably will not change for several years, right? So if, you know, what we wrote in the development agreement is that this would not even have to happen until 21st Street connected maybe over to 19th Street or they start developing on the 700 acres.

I think that'd be a good question for Jess, though.

Yeah, they're going to be able to see. Yeah. That's what I'm saying. This already exists. I mean, take off the yellow stripes. It's all there. They still do all these same actions currently. So not really much changes.

Yeah. And again, of course, correct this, Steve Buettner. What Anne is looking at is, how do you remove risk of a change of that intersection? And the TSP anticipates projects section which you know is getting worse as you all know I don't have any traffic engineering skills but as told by Jessica we can't put a four-way traffic signal there just given the proximity to railroad track a lot of things so a different kind of a solution had to be made and the agreement that is before you is Aon's attempt to say, hey, let's try to mitigate some of this. When we had talked to them back in, this was kind of February, March, April, in those few months when we were meeting, was how do we also try to encourage Aon to invest here? So we were trying to figure out if we could make a linkage between their commitment to investing with some other kind of change, and we found some kind of a middle ground. But the agreement speaks to trying to protect BASIC's interests, trying to encourage them to stay, and also the concern that the city had about blocking off the property out. And those are some of the balancing tests we were trying to make because it was put together.

So anybody coming from the airport that needs to access the hotel or the south side has to go down and do the loop-de-loop at the future roundabout and come back and turn right.

which we didn't like.

Yeah, but it is also very typical. I mean, frontage roads and, you know, going down to the roundabout and coming back, I mean, you know, any town, you know, larger city that has traffic has frontage roads. So, I mean, I think they would get used to that. The other thing that, you know, Basics is also committed to, and they do, I mean, they're a good partner, I mean, obviously for the city of Redmond, and they've already, they're already timing their deliveries, like off hours, not at peak trip equipment across currently to the fairground they are doing it in off hours when they can manage it well when they're not blocking traffic so it's not like they wanted you know and that's in here that they would continue to do that look at scheduling their deliveries at different times a day

And there's the potential, I think, correct me if I'm wrong, Steve, that they may move most, if not all, their manufacturing down to DSL if they invest there.

Yeah, and that's part of the future plan and future expansion. Right now, they assemble on 21st Place. They're looking at... Part of the development, one is warehouse. It is our research and development and then also assembly, which now they're doing on 21st place. So they would move start to move some of the assembly over to the DSL land on 19th Street, which would eliminate some more truck traffic. And to Keith's point, when we started looking at this, Scott, just because we didn't really look at the TSP maybe for the first month or two, that whole median got missed for quite some time. So our focus was on what is our capital investment here in Redmond? You know, they are just finishing a facility in Memphis and does the exact same thing they do here. So, you know, they ship their products all over the country and the world. So, you know, where they manufacture them is probably a little more irrelevant than some companies. They do like Redmond. Like I said, they're kind of the owners, the current owners or the former owners, I should say. You know, they really believe in Redmond. And I think most of you know that, you know, everything that Basics does for the community and, you know, it's your largest employer. So they really try to do the right thing and they'd love to stay here, but they do need to grow. And I can say that if they don't have assurance that they have left turns out of this facility over to 19th Street, highly unlikely they would do that. And we're talking, you know, this facility across the way is no less than 300 to 300, 400,000 square feet. I mean, it's very positive development for not just Redmond, but the state and the industrial and state lands. So, but to be handcuffed and not being able to do fluid traffic that's efficient, I don't think that would work. I mean, yes, could they stay here in their facility currently, but then they're going to start thinking about having to expand somewhere else.

And let me, I want to continue to kind of peel this some more perspective as well.

It's just if they had to go to the right and go around Veterans Way, basically, It's not worth it.

Steve, let me just interrupt you on that. So if that was looked at, so in the traffic study, we looked at that. If you went out, came out of their facility, turned right, got on the highway, had the flaggers, do everything you had to do, you cannot make the corner back onto that Take out their sign in the corner even if you swung all the way out into the left-hand lane a big wide loop You still take out their sign and everything else.

It doesn't work for their larger trucks and and it works right now currently It would kick in the TSP barrier. So yeah, because the roundabout at 19th is going to be developed here later this fall and into next year, the double lane roundabout. But the TSP says after there's $2,400

And that was my question. If we're talking about moving all the assembly away from 21st Place and not having necessarily the large truck traffic or what we're discussing right now, if it will be moved off-site to a different location, why constrict the businesses of 21st Street to ride in only or ride out only?

I mean, basics, this is because this is in the TSP. So this median's in TSP. So now we're all looking at it, and they're looking at it going, well, wait a minute. What if we go and invest on 19th Street, and all of a sudden this median goes in in two years, three years, and we cannot make this trip anymore? So if nothing happens.

The question is to change the TSP, basically, and not constrict left-turn access. But then part of the conversation, again, why restrict with TSP?

Well, I think that the triggers, it's not going to be restricted until it's needed. And if I read this correctly, if that pork chop goes in, there has to be an alternative in-out from 19th to 21st for the people on the hotel side. Is that correct? That's one of the triggers. How are we going to ensure that that can actually happen because there's a rail crossing involved in that?

Well, like we talked about, we won't get another HACREG is change to a grade-separated crossing, which is, as I understand it from Jessica, a long-term plan.

And where does that long-term plan align with the timeline for these items?

They do not align directly. And obviously, going under the railroad track at Airport Way is going to be very expensive. We only have one grade separated crossing in the city now. We definitely need more.

versus ODOT, which one is easier?

Flip a coin. Any other questions for Steve?

I have lots of questions, but I don't know that you can answer them.

Well, we'd love to know the questions.

What I would like to know is, SpaceX is Redmond's largest private Are we bringing good jobs to Redmond by doing this, or are we bringing Walmart jobs? No, they're good jobs.

I mean, Steve, you have all that data. I mean, that's data we can provide. It's both.

There's high-paying jobs, and there's manufacturing jobs. There's both.

I mean, I get that the C-suite offices pay better, but if they're paying so much more that they're throwing the curve off, I'm less inclined to say. kind of jobs that Redwood actually needs.

So the manufacturing jobs, I mean, there's still family wage jobs.

Yeah, well, you have everywhere from, you know, the assembly folks, which would make a little bit less, to the engineering project managers, all the way up to the C-suite. And, you know, Matt, Matt Tobolsky, one of the founders of Yeah, so he's located here, obviously.

So I mean, no, we can get, right, your question is, you can get it through one of the Steve's, right? What's the breakdown of the jobs with Basics Now? What's the breakdown of, you know, kind of a forecast of what the jobs might look like with an investment in software programs?

Yeah. What does it look like for us to obligate ourselves to this type of agreement with a single employer in the city of Redmond versus the

I mean, I can't say it sets a precedent, but when you have the largest employer asking for some help, that makes a difference. And there's no guarantee, even if we do this agreement, that they will stay here. But it is a component of their decision making.

Yes, it's one of the hurdles that we need to check off the list.

Going down this list, has anybody had a conversation with the largest employer on the other side?

On the other side of what?

The 97 workshop. Has anybody said, hey?

That's a good question. But one of the challenges here is that this may not happen for 10 or 15 years. So it's hard to have that conversation now when it won't happen for that long. But it's probably a conversation that would be worthwhile. Yeah.

Again, nothing needs to be done currently, right? I mean, it's not that it's not working right now. And I think if you talk to the largest employer on the south side, I mean, the TSP restricts their access. So that's already, that's in the TSP. And so, you know, I don't know if that, you have to amend the TSP to take that out.

Does the fairgrounds think this will impact any of their traffic flow for their larger venues? or create problems? Not like they ever have problems with their large venue parking.

They currently store those large finish units.

I'm just thinking about the large venue parking and how people get bottlenecked up there anyway trying to do weird, wonky things and missing turns and turning around and cycling through. And now we're taking it down to the nightclub. Did we overlook the crazy moment?

basically, except for large events.

And the fairgrounds has been at the table with the design of the roundabout, talking about their big, large events. So they've had input. They've been a stakeholder in the design of that. We have not been a part of it, so I don't know what those conversations have been.

Yeah, I'm not worried about the roundabout. I'm just seeing the cluster when people try to get in and out of places and make poor decisions, which we can't control. So there is that.

So the The TSP is currently structured, is based on the triggers, is going to basically say write in, write out only on both directions in that intersection. And the request is only implement half of that restriction. Am I not understanding this?

No, as I understand it, and you guys correct me if I'm wrong, the TSP only talks about the south side.

putting in a median. If you're putting in a median, inherently, it's right in the fold.

If you did put in a median.

And that's what's in the TSP. And that's what's in the TSP. Right. That's what I'm saying. So you are correct.

Yeah.

But the pork chop will allow the right out here, left in on the south side. It would be flexibility to the north side, but not. And then flexibility for baselines on the north side. And then my only other really random concern is, and you're currently using it that way, if we use the suicide lane, I love that. Because we're going to have to retrain an entire group of people thinking there's nothing to stop people from getting into that lane thinking they have access from Google until Google corrects itself into that hotel. So as they're coming from the airport and they're looking, how do we warn them that this could be like a head-on with a semi that's sitting where it should be in a lane that looks like a left turn lane?

Would this be, I don't know, you do on 21st? And nearby McDonald's, you want to have like a thing down the middle so you cannot get in there.

I don't think that helps the track whatsoever.

I don't know. Put a curb in on a left turn dedicated line. I mean, this is pulled in for a reason. So it doesn't, so it allows for that larger curve for their larger vehicles. So I don't think you could do something like we have on 21st. It would inhibit the direct traffic.

You'd have to do it further up the hill so that it'd be visible.

passive?

Do you have any questions?

No, I really don't. I think questions are good and we have answered them. I lean towards if we can help our base employer out a little bit, it doesn't really hurt us. It may not happen for 5, 10, 15 years.

Then we'd be fully shot. Catherine, any thoughts, questions?

thought right now is having a real concern for taking a right out of 21st Street headed eastbound and the number of people I can picture right now up in a U-ey right before the tracks.

That might be another question. If we're not that dedicated, left turn lane would make that impossible.

Right. So that's kind of what I was listening to there. Is there a barrier to keep the U-turn? And we've seen that happen. With the changing of that exit going on 97 into Bend, the number of U-turns there?

Yeah, there is currently, right at the railroad tracks, there is a median at the railroad tracks right now. Honestly, I can't tell you how far it is on the east side, but it is there already.

I'm just kind of picturing it happening right here.

Yeah, and that's at the end of the yellow line right there. There's a concrete median that you cannot do the U-turn. So that's, yeah.

And the saving grace here might be the roundabout's so close, it would just be another 100 yards, maybe, to do it safely. I can see people flipping UIs in the yellow area. Signage would be great at that point, showing there's a roundabout ahead to come back. I mean, I don't have a problem with that, if there's appropriate signage. I also worry about .. I apparently think most drivers are stupid.

I worry about ice. Traffic conditions and ice, and that semi is coming to a stop, and that, and then having to get going.

So do we have a list of questions? We can maybe get to Jessica and Lindsay. Well, why don't we do this, right?

We knew Jessica was going to be out this week, so I wasn't surprised Lindsay stopped for a couple weeks on vacation. But why don't we, we're going to do walkthroughs next Monday, but we're actually covering quite a few topics today.

Yeah. No other questions for me then.

Council approved the food and beverage piece of this, what we call a procession contract. So today you're here to hear about the retail and vending portion. We kind of followed around the same path as we did with the other one. We had a selection committee made up of these members, including Catherine, our counselor. During these meetings, actually throughout the last year, we've had about six meetings. During this time, we did a lot of data collection, kind of all this data. proposal, interviews, and ongoing and final scoring. And I'll walk through just a few of these. So what this group did and what we had our consultants do was look at the existing retail conditions. We did the same kind of market analysis and concept makes beverage. We also put together the lease agreement draft and the RFP for the development to went out on the street. RFP evaluation and selection once we received the proposals. And we graded those as a selection team. And we are here today to make, well, we will be here on Tuesday next week, to make a suggestion to council for approval. Real quick, the market analysis is a lot more in depth than this, but what we really found out and what you've probably all seen is we don't have much retail right now at the airport at all. Just a little portion up front here in our coffee shop post security. We know it needs to be visually cleaner, more inviting, easier access, larger space, more options. And granted, this portion of the airport did not have enough space to do that.

So we are going to be fixing that problem as part of the terminal expansion.

Some other things we wanted to take into consideration, customer experience, engaged in high-performing partner, the sense of place that we talked about also with food. And then, of course, kind of number four, we believe that all of number one, two, and three leads to number four, but we always keep an eye on what is that revenue that's coming in to support the airport. So we did an open house and pre-proposal meetings, 52 companies, 140 participants during that. a lot of regional representation. And our group actually reached out and directly contacted 40 companies. So this looks just like the food and beverage one because it is. So when this process started, we actually had one RFP go out, split into kind of two packages. During that process, it made more sense to kind of split them completely. So you got food and beverage first. We got retail and vending now. But it did follow the same path up front. That's why you're kind of seeing the same numbers, if you'll remember those. So what are we talking about? One, we're talking about redeveloping the pre-security retail travel essential store that we have now, which is just about 1,100 square feet. And then also the brand new build out that will be on the second floor concourse, a larger retail and travel essentials of almost 1,900 square feet. On the pre-security, how do you sell beverages because you can't take them through? Yeah, we don't sell a lot of water and beverages pre-security. I just saw in the picture, it looked like there was. Well, you'll see that there has been a lot of, there's a call for people waiting, readers and meters, to have some sort of option. Also, loss leader. Yeah, it's really the, this store would not be there without the first, the post-security store to make up for the revenue loss that we see on this one. So it's more of a customer kind of, So what we've got, we had two responsible bidders. The same bidders we had for food and beverage, Aviano, which is our current concessionaire, and then Tailwind Hospitality Incorporation that was awarded the food So these are some of the evaluation criteria scoring. I won't read through all this. Again, we're not going to be coming to Council until Tuesday. They also give you a package that has kind of all this information in there. So go ahead and take a look at that. But we've looked at these five main components to be scored. And once those were all scored, Tailwind Hospitality between the initial score of what you're seeing in proposal and then the interview score in which we interviewed both, Tailwind

Selected. Selected. Pretty high scores comparatively for a lot of different reasons that I'm welcome to go into.

I did not put slides up on specific financials between the two different groups, but happy to provide that if needed. So our suggestion is to move forward with Tailwind Hospitalities. And what is it that they're proposing? So this is pre-security. redoing this store to where you can kind of see here, and I'll give you a better view here. But as you walk into the store, you'll see this basically vending on both sides. So when the store is closed, based on the hours that we give them, they can actually shut the main store and then have vending available at all hours for people. And we're talking pretty good vending. You can get homemade pizzas made hot, other things like that you're starting to see in other airports. You're also going to see here what we don't have is a sister's coffee. probably one individual working the store and being able to make some coffee, which is a big thing we've heard from our meeters and greeters, especially at the airport. It'll kind of look like this. And then on the host security side, that 2,000 square feet or so is our larger Both of them are Basecamp and they are working with Destination Redmond. So both have been called Basecamp, which is kind of cool. You'll see here kind of the layout here, proposed layout. Again, everything will still have to go through approval and back and forth with the development team in the airport and have council involvement if you want to be more involved. So there's a look at that. Here's kind of a... One kind of thing that's a little unique in the food and beverage is there's no really identified partners that are going to be there at all times. It's going to include rotating stock. It's going to include them bringing to us basically like, hey, this sold really well. This doesn't. Can we swap this out for something else? There's going to be a lot of back and forth between the airport and the concessionaire. We are going to require local. You can see here some current brands they're working with. But you might see things come in and out. You might see seasonal changes. And then, of course, they also during their interview are like, hey, bring us recommendations. Bring us things that you guys would like to see. We'll try it. There's no guarantee. It's got to sell. But at the same point, that interaction that we saw with Tailwinds was pretty good. So we're excited to work with them on that too through the process.

And I think kind of their default answer right out of the gate as it relates to teaming up with local partners was they would go to the fair and expo and just as a starting point and try to find these local vendors and go out from there. So a good solution for that.

So questions for myself or Catherine was in there, James was in there, finance phase two, if we have some more specific finance questions. The only thing I can say on finance is between the two groups, our current concessionaire did no MAG, offered no MAG at all. Minimum allowable guarantee. And they also went at the lowest level of every rent possibility that we gave them. Tailwinds did the opposite. They went the highest rent for every category and also a pretty high MAG. So financially, based on the grading, that's why you saw that big change too in the points there.

Do you mind expanding on how that mag influences an airport when flights are taking off or ?

It's a minimum. Let's get this. Revenue guarantee. Revenue guarantee. Minimum allowable guarantee, which basically means that they are promising Per passenger, they give us a certain percentage of rent regardless of what they sell or how much revenue they bring. So basically, it's like you're going to give us $100 a month regardless of what you sell or don't sell. It's higher than that, right? But I'm just using $100. Why that's important, even like through COVID when there wasn't enough traffic, the airport can actually show to our creditors, to the... Jason, bonding, bond underwriters, they can use that to show that, hey, there's incoming revenue regardless. So there's a lot of things there at play. I don't know if that answered your question completely, but it's important to us on the back side too, not just to collect rent. And truthfully, with our current concessionaire, we've never had to really activate the MAG. We're always making more than the MAG, and that's where that other percentage

look like a photo finish between two horses. So it was a rough race at the end.

So we don't have a guarantee of specific local suppliers. But we do have an agreement to use local suppliers. However, they'll kind of roll through the inventory, find out what sells and what doesn't. And if something isn't selling, they'll pull it from the shelves and they'll find a replacement item for it or a replacement vendor, correct? Correct. What is the plan or how do you ensure that just through attrition over time, we're not moving away from local vendors because, oh, well, because none of this sells, but this cheap stuff we can get on T-MU will sell better than the stuff that's made in Central Oregon. So all goods out on the, are approved by the airport. Right. Right. So that's kind of where our. But if they're coming to you and they're saying, hey, we want to sell this teddy bear, but we can't find a locally sourced teddy bear. What do you do?

I think that's a question that we would have to have as counsel at some point, too. The nice thing about this is everyone sees what's going to actually be for sale. So if we start to get that input that we're not seeing local or we're not seeing it ourselves, that's where we'll step in and say, hey, you need to increase or try this or that.

tracking numbers or things on an annual basis? Yeah, we can see their tracking. We can audit at all times, but we can get their numbers. I forget what they said. It's like almost weekly. Okay. But they'll be able to tell you how many things are local, how many things they're having to bring in because they don't have a local sort of resource for whatever it is they're selling.

Yeah, they will because they get that component in our agreement, which is kind of a little carrot. It's that local discount that we offer for local goods.

So they got to

It's a better way to put that. Any other questions on the airport? So is this going to come to us next week?

Tuesday is the plan unless there's... Everyone okay with that?

All right. So what we want to do is we want to talk to you a little bit about North Point. We're finally at the point where our master development team and their partners are ready to move to the phase of their PUD submission. We've been working with them over the course of really the last year. I think we last were in front of council with kind of a presentation like this. I want to say it was like September or October as far as where we kind of looked at some things. We had some challenges ahead of us. And we then worked through our agreement with Polish. We've since found a provider for the multi-family and so we're starting to make some progress and so we've been working with them. So what I want to do is just walk you through some of what's come out of this, give you an idea of what some of the product is, showing you kind of the diversity of that product from not only the type of whether it's rental or ownership but also from a price range. So that really creates that that real mix of economics and as I always will quote John, the aspirational aspect of going from the different levels of home ownership, rental, and the different scale. So with that in, one of our primary partners is Polish Homes that we are working with. This is the area that is highlighted here. It's a combination of three different products. Those products are a unique one to our valley. It's actually a relatively unique one for them. It's basically, they call it a village cluster as opposed to a cottage cluster. You'll see those up on the very northern section, we'll call it purple. That is going to be your lowest price homes. Those will range from approximately the low 400s, 410, Up to about 460. So that is sort of from a home ownership. That is that range. You move to their next product, which you'll see below that to the right and then on the curb, which are their detached rear load units. Those detached rear load units range from the upper fours to the mid fives. And then you will see to the left the single family detached front load, which are going to be adding another $50,000 to $75,000 on that. That gets you in that $650,000 range in there. Just to give you an idea of the village concept, this is what you're looking at, a picture of a series of four-unit kind of clusters. They're all detached. It's kind of a single-family home. What is unique about this is they have the back units have this shared driveway access that gets to them where they can kind of, instead of building multiple driveways for each, the idea is you can still get that unit, the unit size, and some of the characteristics with it But what you will find is you can do that more affordably on a smaller footprint. Linda and I and Kyle went to Newburgh, Oregon, where they are selling this product. And they were just building it. These are the pictures from that. These are the first units that sold. They sold, there's three, there's four units. One of them is the model home. Within one week, they sold all of these. They're the fastest ones that they're selling right now. Price point is probably a significant part of that. So Steve, on the, if you go back to the subdivision.

Subdivision. area on the North side of these clusters. Is it still anticipated that will be Maple Avenue.

Yes, so one of the things and then we'll show you one of the bigger one later plans we are maintaining the right of way. Right now it will be open space, but that right away if Maple continues to go straight across that will be maintained that's part of it.

So these have a decent buffer for me.

Yeah, we look at that as not only having a landscape path, landscaping, detached sidewalk, then landscaping, so that they still have that 15, 20 feet. So it's not like you've got a fence right up against the sidewalk.

Like the obsidian cottages off of 35th and Obsidian.

Right where it's...

Right there.

Right there, yeah.

Is it more like a meandering path?

Well, right now what's going to go in here is a very much a meander because it's just through open space right now, but it has the space to afford us, whether you want to curve it to where you can do landscaping behind the fence, do the sidewalk, and then you can basically have your green strip of whatever you, you know, whether it's trees in there. So it creates that a little bit more of a parkway.

There are the, you know, real lot size.

They're very, they're minimum lot size.

The other ones, what's lot size?

Yeah, and so as you start getting up into the rear load units, so the rear load units, those will have setback from the back, a minimum of 20 feet. Just let that be, you know. noted. And then what they'll have is they do where they through the easement. So they have five feet on each side. But what they do through the shared easement, I'll just use this as an example, this unit here, they have usable space, which is 10 feet all the length, and then the house next to it has 10 feet all the length. So So that's where they do that.

We already have this product here in town. These are very similar to the detached homes over in Fieldstone Crossing off 27th, if you've ever looked at those.

This is their rear alley area. The width of the road is approximately 22 feet. So our minimum standard for the updated is 20 feet. So you can kind of see how this doesn't feel like a tight alley. And their minimum when they do this, ours is going to be pretty, the way that they've designed it is a straight alley, not a meander. But you'll see they do minimum at 20. Some of them are like 24 to 26 feet. Ours will be consistent just because of their design. And then they have their product that is their front load product that you will see something like that. So that's the polished section. What we have is we have the affordable home ownership. As you all know, Rooted Homes is currently in the process of doing this pink section right here. And we've been in conversations, our master developer with Rooted Homes as well as Habitat and looking at other partners for another section of affordable ownership in that little section as well. We do not have a partner secured as of yet, but we're working on that particular one. And that brings us to the multifamily rental. And this would be market rate. Okay, this is the one that we came to you guys. I don't know. We'll call it a baby two months ago a month ago. This is the cobalt product. That's what they are looking at building right in here. Got a total of 192 units. This is their product of that unit that they have out in sisters. This is what kind of the model that they're looking at doing for us here. And then this would be the multifamily affordable, approximately 120 units. This would be the one we're working with Housing Works. They'll be applying for lift funding in the next round of funding in order to do that. This has been redesigned a little bit, working directly with Housing Works to assure we have all of the, you know, the right amount of parking, all of that type of stuff. Uh, even though affordables don't require as much parking, the reality is working with housing works, we're building the appropriate amount of parking, not taking the exception because it's important. Um, One of the things you'll see in the blue circle is we've been working with our master developer to secure a location and a parcel of land for daycare, we are also working with. Both Polish and Cobalt kind of through some negotiations that we'll do to construct that in what I would kind of call a corn shell so that it could be a tenant finish, but that makes that much more attainable for a daycare, a nonprofit, what have you to get into. to make that successful. In conversations with some of our nonprofit partners who do take care, we talked about the location. And this is kind of their preferred location. It's next to the park, not that you can necessarily forego some of the space you're required for the park. But it does make for a nicer setting. And it kind of puts it in and not right in the middle of where there's commercial or high activity. And it does have parking. Yep, and for the drop-off and folks coming in. Sorry, I skipped commercial. This is one of the area that we are still in negotiations and having conversations with. What you're seeing here is a footprint of about 2,000 to 2,500 square feet of commercial. We think they can do better. Linda and I are meeting with Cobalt and Mark and Jill on Wednesday this week, continuing some conversations and discussions. We're really targeting something closer, more of that 4,000 square feet of commercial. And so... They're willing to have the conversation. We're kind of going through that right now. I would say our win right now is they have acknowledged and are willing to work with us on commercial. That's a good start. And now we're really trying to zero it in to get something closer to that 4,000. If we can get 4,500, it would be a little better.

what commercial goes in there?

You know, there's a couple different things we might be able to do. One of the things we can talk about if there's, it's a lot easier to say what we don't want to go in there and we can make that part of it. The other thing is we're still kind of working through how are the ownership, how do we go through that. At this point, we're really trying to get it memorialized in the PUD as a requirement because that changes the, once that is part of the entitlement, uh, both the entitlement aspect, but also the requirement aspects, which same, same thing, um, that actually opens up the conversations and that strengthens our position, uh, in that conversation. As you know, one of the important things is this plan does continue to maintain good pedestrian circulation with trails, sidewalks, and movement through the site. Also moving up to Maple to open it up to if Maple Avenue gets through. They've actually extended the open space, if you can kind of see in the middle at the upper end, to where it's not just a little alleyway. It's actually sort of the park kind of extends up. So not only visually from the park to Smith Rock, but it also just makes it more inviting as you're walking down Maple to come into the public park. The park that you see right here, I want to make sure everybody realizes this is from the original plan. This is what I would consider to be the Taj Mahal Park. This isn't typically what we had built in a neighborhood park. And so we're working with the master development team and the parks division to make sure that it is right sized as far as the amenities per the park master plan, per what you would see in another neighborhood park. One, that is, creates it from being a regional draw. If you have all of these type of amenities, you're no longer a neighborhood. You're pulling people in from outside of the community, not the goal. And then it also will maintain a cost that will be more attainable for us to be able to ensure that this can be built at the time of completion through the funds that we have what combination of STC's and some of the revenues from the sales So Before I ask for questions just kind of in closing on this This is kind of where we've been listening to counsel working with counsel over the well for me only the last couple years for everybody else for a decade and a long time, and we really are at the turning point. As you all know, Rooted is out doing construction, getting their homes going. They hope to be able to have those available for occupants in 2027, in the spring of 2027. All of the road infrastructure's in. We're going through a little bit of details in sort of some punch list items out there. The lifts, the sewer lift station is under construction. So we're getting rid of all that infrastructure that will set this up. or the master developer will be the one that is doing the PUD application. They will submit for their pre-application probably tomorrow. And then that will, they'll go do their pre-application, hold their public meeting, and then get going on their final application submittal, which we hope to have in the first part of August to get the entitlement process going. And so we're pretty excited to get that happening. So we wanted to do before all of that work goes in, we wanted to have a touch point to you all to show you what we've come up, we hope. And when I say hope, I really do think this reflects all of the conversations that we've had. And I think we've been able to capture what we believe we heard were the priorities from Council. But we want to make sure if we're wrong, let us know that, but we're ready to move forward. So with that, Linda and I will answer any questions you guys have.

We can't finish this by next year, right?

How about we break ground on some houses by next year? How's that?

I will tell you both Cobalt and Polish are like

They are the best ways why we got to here. They are pushing our master developers like nobody's business. They are ready to get started. So I can honestly say we will be breaking ground on a lot of this stuff next year because of those partners, because financially they're ready to roll.

I will make myself more known. I just have a question on the Taj Mahal Park. It's one of my priorities to make sure that we're including accessible play spaces and teen spaces and all the designs. Is that a consideration in being implemented?

Yeah, you know, and you've talked to me a little bit about this as well. And I think those are definitely within the park, neighborhood park amenities. You know, you really want to have spaces where All demographics have a space that works for them. The things that we're trying to not have, like this original plan had things like splash pad, more amphitheater draws in something that much larger from a maintenance point of view, plus it's not make sense. But all of those type of components, absolutely. Accessibility is obviously very important. So like accessible swing sets and things. Exactly.

And another thing that we've talked I've been about also, because this is fairly dense, so people have very small yards, very small space around the house. So a place for you to take your dog. Because people aren't necessarily going to have big backyards for their dogs. And we all love our dogs. I'm not a forecast person. Small dogs take small space.

Yeah. And all the data says is that you should have a separate space for the two. And like you said, the small dog space really does not take a lot of space. So we will certainly work on some of that separation.

whether or not we ask COID or whatever to delay that until we know we're going to have an aquifer recharge. There's kind of like three legs to the stools. They pipe it, more efficiency. They pour the water over into North Unit. Jefferson County gets water. Spotted Frog gets water from the North Unit, but we don't get anything right now.

So... We get a drop and we get a hit on the use of the aquifer.

Right. So anyway, that's a conversation we'll continue to have. We brought it up at COCO this morning, this morning, this afternoon. And we're going to be meeting with WRD Water Resources in August. And I talked to Mike afterwards. And yeah, they're all excited to pressure WRD on the aquifer recharge because of this. So that was good. Anything else anyone needs to bring up?

We still haven't heard the cause of the canyon fire. When we hear it, we'll let you know, as always.

Oh, I know. Suicide. I don't know why I thought of that, but. What are you doing on your face? By the way.