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Economic Development in Tigard

Hunziker Core Infrastructure Project

March 2017: Six firms submitted proposals to complete the final design of the first phase of the EDA-funded Hunziker Infrastructure Project.  Proposals are under review by city staff.

February 2017:  The City of Tigard secured funding to build a new street, connecting Hunziker Street to 72nd Avenue via Tech Center Drive, based upon $1.7 million in funding. The regional Joint Policy Advisory Committee on Transportation (JPACT) coordinated through METRO approved $1.7M in funding for the second phase of the City of Tigard’s Hunziker Infrastructure Project.

“Tigard is investing in infrastructure that supports development and ultimately job growth,” said Tigard Mayor John Cook. “This funding proves the regional significance of these investments and Tigard’s businesses.”

Combined, phase one and phase two of the Hunziker Infrastructure Project are expected to cost more than $8 million. It unlocks the development potential of at least 40 acres and completes a road connection for freight and commercial vehicles to route around the overloaded Hunziker/72nd Avenue and Hwy 217 intersections just south of the Tigard Triangle.

“Building new road connections in industrial areas of Tigard improves the economy and furthers the city’s vision to become more connected, healthy and walkable,” said Kenny Asher, Director of Community Development at the City of Tigard.

The first phase of the project is funded in part through State of Oregon via Lottery Bonds, US Department of Commerce Economic Development Administration funding, developer’s contributions and the City of Tigard. The addition of $1.7 million in funding for the final phase of the project comes from a regional flexible funds (RFFA) allocation for freight projects. Region-wide only $7.3M was available for projects like this from this funding source.


Hunziker Core Context Map“The City of Tigard is extremely grateful to Senator Merkley and Representative Bonamici for supporting our EDA grant request. Their offices have been engaged in this project for nearly two years helping the city navigate the federal process and ultimately bring this federal investment to Tigard,” said Mayor Cook.  “The EDA grant will help stimulate investment, economic growth and job creation in our community.”

September 2016: According to Congresswoman Bonamici and Congressman Merkley, the U.S. Department of Commerce has awarded the City of Tigard $2 million to help fund the Hunziker Infrastructure Project. Federal funding will be paired with State of Oregon funding and a developer’s contribution to build a public road from Hunziker Street to the heavy rail tracks and eventually to Tech Center Drive. Federal funding comes from the U.S. Department of Commerce Economic Development Agency’s Public Works and Economic Development Assistance fund. Funding like this is used in projects across the county. The city can now begin the process of final design and construction.

August 2016: The City of Tigard applied for a Metro RFFA-Freight grant to help fund a complete road connection from Hunziker Road to Tech Center Drive and 72nd Avenue. This project completes a road connection for freight and commercial vehicles to route around the overloaded Hunziker Road /72nd Avenue and HWY 217 intersections in Tigard. This is the main surface road connection to Hwy-217 and I-5 for the Tigard Triangle to the north and Oregon Business Park to the south. The Hunziker Industrial Core and 72nd Avenue Industrial Corridor are home to more than 300 freight depended manufacturers, warehousing, and distribution facilities and commercial businesses serving regional and national clients.

This investment also supports new development by unlocking access to more than 40 undeveloped acres of industrial/commercial property in the Hunziker Industrial Core.  Use of this undeveloped industrial area reduces pressure on the urban growth boundary, ensuring existing, but currently empty, industrial sites in can be used for industrial activities without the current limits imposed by an incomplete and undersized road network. Developer Trammell Crow is proposing a 2017 development of about 225,000 SF in multi-tenant commercial facilities in this investment area.

Notification of the RFFA grant award for this connective segment of road is expected in early 2017.

June 2016:
The City of Tigard updated its grant request to the US Department  of Commerce Economic Development Agency seeking $2.2 in federal matching funds.Hunziker aerial  The proposal has been through two rounds of grant review, an EDA staff review and a review by the EDA Seattle Office Funding Committee. The city expects to hear whether or not this federal funding is available sometime in late July. 

A nationally recognized developer, Trammell Crow, is interested in developing 18 acres of industrial zoned property adjacent to this public infrastructure. If this project moves forward as a public/private partnership, Trammell Crow would be responsible for covering the cost of street frontage improvements adjacent to the sites they develop.

April 2016: Engineering consultancy MSA completed 30% Design for the Hunziker Infrastructure Project. Total construction costs are estimated to be $7 million to convert Wall Street (currently a two lane private drive) into a fully functioning public street with full utilities.
DWG 30% Submittal
January 2016: The city submitted a $3 million request to the US Department of Commerce, Economic Development Agency’s Public Works and Economic Development Assistance program. This request for funding would be matched against state and local funding to support more than $8 million in infrastructure improvements in Tigard’s Hunziker Commercial/Industrial Core. 

December 2015: The Economic Development Agency approved the first of a two-phase grant application encouraging the city to move forward with a funding request seeking Federal funds to cover some of the cost of public access, transportation, sewer, and water service that will catalyze private investment, development and increased employment in 138 acres of Tigard's Hunziker Industrial Core.


Project Background
In the Portland Metro region, only 54 large lot industrial sites are in the pipeline ready for development according to the 2014 regional large lot study. Only 14 sites in the region are ready for development in the next 180 days. This project unlocks 138 acres of regionally relevant industrial property ¾ mile from Hwy 217 and I-5 for private sector investment.

Development Potential
This investment supports infill development reducing development pressure on the regional urban growth boundary. In this investment area, 96 acres are developed but underutilized. Forty acres are undeveloped and limited in development capacity due to lack of public access and insufficient utilities. The area exemplifies the challenge inner ring suburbs face when trying to support business growth. Limited site access and incomplete infrastructure make private investment unlikely even in times of an expanding economy. The 138 acre Hunziker Core originally developed for warehousing and distribution facilities to serve regional demand. New public infrastructure will set the foundation for this area’s maturation into a mixed use employment center with a wider range of businesses supporting higher levels of employment.
Hunziker jobs per acre

Infrastructure Investment Supports Jobs
Based upon a 2013 economic analysis by ECONorthwest, this investment area should support 150 to 300 jobs for residents from around the region with average wages of $75K (based upon 2012 IMPLAN data). Direct and indirect economic output from new economic activity on the first 40 acres of industrial/commercial property unlocked through this project is estimated at $123M with another $37.2M in earnings accruing to employees from around the region. Immediate private sector investment is estimated to be at least $36 million in new industrial/commercial construction including employing as many as 600 people and generating $140 million in economic output.



Hunziker real market value In the 2015 Legislative Session, the State of Oregon appropriated $1.5M in capital construction funding to support this project. Locally, the City of Tigard is planning more than $3 million in Capital Improvement Projects to upgrade utilities in the Hunziker Core.

Strategy Developed
Beginning in 2014, in collaboration with Oregon’s Department of Land Conservation and Development, and in coordination with private sector stakeholders, the City of Tigard developed a Public Infrastructure Finance Strategy to set benchmarks for public infrastructure, private sector investment and increased employment in the Hunziker Industrial Core.

Hunziker annual income per acre

Property Tax Abatement
The City also worked with the State’s Economic Development Agency to implement a property tax abatement program for traded-sector businesses in this investment area. The Tigard Enterprise Zone provides local property tax abatement for traded-sector firms when they make an investment in new capital and employees. In 2015, four firms were certified as Enterprise Zone eligible. This program will reduce investment costs for existing and new firms in the Hunziker Industrial Core.
  

Staff Contact
Dylan Dekay-Bemis
Economic Development Coordinator
DylanB@tigard-or.gov | 503-718-2560

Hunziker project

August 26, 2016
Collecting core samples for the Hunziker Infrastructure project.


August 10, 2016
Diggin' Deep at the Hunziker Site

 Hunziker infrastructure project
June 9, 2016

Geotechnical survey underway for 18 acres of industrial zoned property
in the Hunziker Industrial Core.

Rail spur on Hunziker
April 27, 2016

In preparation for private development and public infrastructure, an unused rail spur crossing Hunziker Street was removed in spring of 2016.

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