Staff Report

1 STAFF REPORT FOR COUNCIL MEETING IN CONSIDERATION OF RESOLUTION NO. 26-5631, FOR THE PURPOSE OF AWARDING 2040 PLANNING AND DEVELOPMENT GRANT FUNDS FOR CYCLE 26Q3 Date: September 9, 2026 Department: Community Investments Meeting Date: October 1, 2026 Prepared by: Serah Breakstone, 2040 Grants Program Manager Presenters: Hau Hagedorn, Community Investment Manager, PD&R Serah Breakstone, 2040 Grants Program Manager, PD&R Length: 20 minutes ISSUE STATEMENT The purpose of the 2040 Planning & Development Grants program is to fund planning work in the region that supports Metro’s regional vision for growth. The grants are funded through the construction excise tax (CET) established in 2006 with the purpose of funding regional and local planning. The grants are intended to facilitate planning that makes land ready for development, supports economic prosperity, and implements Metro’s long-term plan for livable communities, as outlined in the 2040 Growth Concept. Funding is available to local governments within Metro’s boundary, federally recognized Tribes, and unincorporated community groups who are interested in incorporating. Grants applications are evaluated and awarded on a quarterly basis. This report provides a summary of recommendations for 2040 Planning & Development Grant awards for the third quarter cycle of 2026. The process for this cycle included: Reminder email sent to 2040 Grants interested parties/stakeholders Applicant letters of interest and optional meetings with Metro staff Final applications submitted July 10 Staff and screening committee evaluations Screening committee meeting to develop recommendations for Metro COO Metro COO review and development of recommendation to Metro Council Metro received four complete applications for this cycle: City of Portland, Parks & Recreation, Waterfront Park Redevelopment, Part 2 Multnomah County, Vance Property Development Plan City of West Linn, Waterfront Vision Implementation Plan, Phase 1 City of Portland, Prosper, Regal Site Redevelopment Concept 2 The Grants Screening Committee met on August 12, 2026 to discuss their evaluations of the grant applications and developed a recommendation for funding. The committee recommended funding three applications. The Prosper Portland application for the Regal Site Redevelopment Concept was not recommended for funding due to lack of a detailed scope of work and concerns about the applicant’s ability to implement the project under its current ownership. The Regal Cinema site was purchased at auction by Terry Emmert in 2025 and remains under private ownership. Staff met with the Metro Chief Operating Officer (COO) on August 19, 2026 to review the committee’s recommendations; the Metro COO endorsed the recommendations without changes. More details about the grant proposals are provided in Attachment A. The full grant applications can be viewed here: 2040 Grant Applications_26Q3. ACTION REQUESTED Staff requests that Council consider approving Resolution No. 26-5631 to award 2040 Planning and Development Grants as listed below. This action would authorize expenditure of CET funds and allow staff to work with the grantees to develop final project scopes and execute intergovernmental agreements (IGAs). Applicant Project Award Amount 1. City of Portland, Parks & Recreation Waterfront Park Redevelopment, Part 2 $ 750,000 2. Multnomah County Vance Property Development Plan $ 480,000 3. City of West Linn Waterfront Vision Implementation Plan, Phase 1 $ 392,400 Total $ 1,622,400 STAFF RECOMMENDATIONS Staff recommends that Council approve Resolution No. 26-5631 to award the 2040 grants identified herein. STRATEGIC CONTEXT & FRAMING COUNCIL DISCUSSION The proposals recommended for funding this cycle support Metro’s goals and strategic priorities in the following ways: The Tom McCall Waterfront Park grant will support efforts to reimagine Portland’s waterfront and how it is accessed and enjoyed, catalyze economic recovery and revitalization in the Central City, and create opportunities for new housing and jobs. The project aligns with multiple partner agency initiatives, including All in on Central City (Portland Central City Task Force), the Central City Waterfront Urban 3 Design Study and Central City Code Amendments Project (Bureau of Planning & Sustainability), the Pink Light District activation work (Bureau of Transportation), Prosper Portland’s Westside Tax Increment Finance District, and others. Council previously awarded $750,00 to support the first phase of the park redevelopment effort. The Vance Vision Development Plan will implement a critical next step to planning for redevelopment on a County-owned property in a neighborhood that has experienced historical dis-investment. The work will advance a community-led vision to plan for a complete community that includes housing, open spaces, and employment opportunities. Council previously awarded $50,000 to support development of the Vance Vision. The West Linn grant will allow the City to prepare for future development along its waterfront in an intentional and strategic way that is responsive to community vision and recognizes the complexities of the site and its surroundings. This work will align with multiple other efforts currently underway for restoring river access and honoring the deep cultural and spiritual significance of Willamette Falls for many Tribes in Oregon and beyond. As a reminder, the total funding target for 2040 Planning & Development grants in 2026 (calendar year) is $4 million. If the recommended grants for this cycle are awarded, the total spending for this year will reach that target and a fourth quarter cycle will not occur. Funding will become available again in January 2027. ATTACHMENTS 1. 2040 grant application summary for 26Q3