*Authorize grant application for $15 million from the United States Department of Transportation to fund local streets at Broadway Corridor

Purpose of proposed legislation and background information: PBOT is designing new urban streets and a new traffic signal critical to unlock four million square feet of mixed-use, mixed-income, urban development at the former USPS site in Portland's Central City. While the City of Portland has a funding and finance plan for these and other Broadway Corridor improvements, staff have identified a federal funding opportunity through the U.S Department of Transportation's Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant to significantly offset local financial commitments. Quantifiable financial benefits to the community of the redevelopment of the 14-acre former USPS property include: Directly creates at least $16 million in construction contracting opportunities for minority and other disadvantaged business enterprises, including application of the City Community Benefits Agreement (CBA) policy which supports Black, Indigenous, and people of color, as well as women in the construction trades. Leverages $1 billion in multi-phase public and private investment with delivery of equitable community benefits through a precedent setting Community Benefits Agreement, including quality jobs and wealth creation during construction through ongoing operations. Any grant award would be executed through an upcoming agreement between the U.S. Department of Transportation, Federal Highways Administration, and the City of Portland. If the City does not receive the grant funds, it would revert to the Council approved funding and finance plan, which includes funding from PBOT SDCs, Prosper Portland land sales, and LIDs.

Financial and budgetary impacts: The total project budget is $22 million; staff intend to submit a RAISE grant request for $15 million, which would be matched by $6 million in Local Improvement District (LID) revenue and $1 million in Systems Development Charges (SDC). If awarded, the financial impacts include: Reducing PBOT's SDC contribution by about $2.5 million Reducing LID payments attributable to Portland Housing Bureau's development of affordable housing by about $1.5 million Reducing the cost and risk of LID payments attributable to any parcels remaining in public ownership when LID payments come due around 2032 by an estimated $9 million Eliminates need for Phase 1 LID debt financing costs (~$6M)

Community impacts and community involvement: There has been considerable community involvement over the past five years related to Broadway Corridor. More specifically to the RAISE grant application, staff will be requesting letters of support from the following organizations: Healthy Communities Coalition Pearl District Neighborhood Association Old Town Community Association Portland Streetcar Amtrak TriMet Multnomah County State and federal elected delegation