June 16, 2004
Naito Corporation Offers Alternative Proposal For Fire Station On Block 8
Council Withholds Condemnation Authority -- For Now -- To Allow Further Negotiations
We were going to wait on this until and unless any of the various parties we've contacted about getting copies of the new proposal got back to us, but we've decided to move forward with this now, and flesh out the details if and when anyone ponies up the goods. Since we were watching online, rather than in Council Chambers, we didn't have access to those present.
This morning the City Council considered a new amendment to the Downtown Waterfront Urban Renewal Plan which would have authorized the Portland Development Commission to acquire Block 8 (otherwise known as the Import Plaza block) by any legal means necessary -- a kind of code for the authority to initiate condemnation proceedings under the City's power of eminent domain.
Revealed for the first time (to us, anyway) was a new counter-proposal from the Naito Corporation which would accept the relocation of Fire Station #1 to Block 8, but make changes to the specifics -- for example, placing Portland Fire & Rescue administration in the historic Globe Hotel, and locating the Learning Center across the street at the site of a parking lot owned by the City.
The first indication of this new proposal was presented by Commissioner Dan Saltzman, who asked representatives of PDC and PF&R for their thoughts on it, suggesting that it might be a "win-win situation" for both sides.
PDC said that they are interested in such a win-win situation, called the proposal "promising," said they would like to establish a firm cost, and indicated that there is another negotiating session scheduled for next Monday.
Fire & Rescue said they were "encouraged to see the station and administration sites on the block," but cited "security aspects" (in part involving having the bureau's adminsitration in the adjacent Globe Hotel rather than in the station proper), and said they would have to "explore the basic safety issues of young children crossing the street to tour the facility."
Commissioner Randy Leonard said he had also received a briefing on the new Naito proposal, and seemed encouraged that the gulf between the Naitos and the City appeared to have been narrowed. "My understanding was that the Naito's were not agreeing just on principle to sell for relocation," he said. He went on to say that he is now convinced that this indeed is the best site for the relocation, and was "impressed with the Naito's presentation."
Urging the two parties to "earnestly attempt to compromise," Leonard said that he has been, and will continue to be "greatly influenced by the behavior of both parties."
Vern Naito (to our knowledge this is the first time the Naitos have appeared to testify about this matter before Council, but if we're wrong, someone please correct us) asked Council for the "gift of time" for negotiations to continue without the threat of condemnation, asserting that PDC was asking the Council to "make a rush decision."
While he said that the Naito Corporation continues to disagree with Fire & Rescue's contention that Block 8 is the best or only site for the relocation, Naito conceded that they now accept it "could be made to work for the bureau and the neighborhood." They continue to have concerns over a potential parking shortage and the capacity of a fire station to serve as an "activating use" in the area.
At the end of public testimony, the other side of the Naito family showed as well. Bob Naito, saying he spoke for the "majority of shareholders" (amounting to something like two-thirds of the stock) testified that they support the relocation of Fire Station #1 to Block 8.
"We believe it would be in the best interests of the City, the neighborhood, and the corporation," he said. He went on to assert that Sam and Vern Naito "have said they have no plans to redevelop Block 8," that their arguments against the relocation "don't hold water," and that the shareholders he represented would support condemnation proceedings if they became necessary.
Much of the long and intervening testimony today, between that of the two Naito factions, simply rehashed that given at prior hearings on the same matter, with arguments regarding both the relocation and the potential new uses for the site of the current Fire Station #1 once it was moved to Block 8 -- including, of course, the proposed Portland Public Market (which we link here because, as readers know, we support it).
What was new this time around was what happened when the hearing came back around for questions and comments from members of the City Council.
Commissioner Jim Francesconi, saying that this was "a big idea that needs to happen," and that the Council "needs to make a tough decision," offered this as the central question at this stage: "Can we execute a big idea that doesn't run over a family that has helped contribute to building a historic City." He said that it's a matter of when the Council makes the final decision, not whether it makes the decision.
"We're not talking about other sites, we're talking about this site," he said. "We can't delay this such that it costs the taxpayers money or doesn't happen." Saying that he was prepared to support condemnation if he were "convinced that the Naito family is being unreasonable and is not cooperating in negotiations," he suggested that the latest movement on those negotiations prompt the Council to delay a decision on condemnation for perhaps thirty days.
"All we have to do is hold it open for that vote, and at that point I'll be prepared to make a decision," Francesconi said.
Commissioner Leonard jumped in to say that his intention was to make a motion to hold over the ordinance for six weeks. "I'm prepared to second," said Francesconi, "but I'd like to hear discussion."
And so discussion commenced.
Leonard said that he agreed with Francesconi. "We have seen movement on the part of the Naito family," he said, "from not agreeing to sell the block to agreeing to sell the block with a development that looks something like what they've proposed."
He said that he wanted to encourage "that kind of thinking," but didn't want to create an unlevel playing field at the negotiating table by authorizing condemnation authority.
"Having said that," he added, "if we come back at the end of this time period and I've learned that the Naito family has used this as an excuse or delaying tactic, I think you can predict where I'm going to come down." However, he also warned PDC not to similarly delay in order to run out the clock and receive their condemnation authority.
Commissioner Saltzman said that he would support Leonard's motion. "I do believe that if we were to pass this next week," he said, "I don't think there would be any further discussion."
"This 45-day period," Saltzman added, "does send a signal to both parties that we want movement from both sides." He did, however, also warn that he "could change my mind."
Commissioner Erik Sten asked the PDC to comment on how such a delay would affect the envisioned timeline for the relocation. Don Maziotti (executive director of PDC) said that it related to a "drop-dead" date on July 18: "We must begin acquisition process by the end of July to get it dont in a timely fashion."
He added that the new timeline, with the delay being proposed, "could eliminate options we have to acquire the property," and asserted that there was "no lack of will on our part to try to come to a win-win outcome." He also reiterated that Block 8 is the only site being considered for the relocation.
In the end, the City Council voted unanimously (minus the absent Mayor Vera Katz) to push back the second reading of the ordinance from next week's City Council session to a 10:15 "time certain" on July 28 -- six weeks from today. At that time, there will be no public testimony, but there will be invited testimony so the negotiating parties involved can provide an update to Council as to whether or not an agreement as been reached.
Judging by the comments of members today, if at that time an agreement has not been reached, Council very likely could vote to grant condemnation authority to PDC through the ordinance in question (or, alternatively, simply vote themselves to begin condemnation proceedings rather than passing that decision to PDC).
To our mind, this particular decision makes perfect sense, and it's hopeful rationale was nicely explained by Commissioner Leonard.
It has the beauty of taking the Naito's new proposal at face value as a real proposal, but also warns that the Council wants their negotiations to be serious, and threatens to come back with condmenation authority if they need to do so. At the same time, it holds back the authority for condmenation in order to urge PDC to commit to serious negotiations regarding the new Naito proposal without there being a clear imbalance of power in PDC's favor.
It also (not at all incidentally) properly places the decision regarding the power of condemnation firmly in the hands of City Council itself -- where it belongs -- rather than simply passing it off to PDC to weild or not at their own will.
Meanwhile, we'll be back for more on this matter if we manage to get our hands on the new Naito proposal, so we can offer our thoughts on how it compares to the current plan out of PDC.
Comments (12)
pdxkona on 17 Jun 2004
I never really thought about this till now, but is the Naito Corporation, and hence Parkway, in any way related to Mult Commish Lisa Naito? Just curious.
hilsy on 17 Jun 2004
She is married to Kenneth Naito of that same family. For some entertaining reading here is a case from 2001 involving the Naito family intra-squabblings:
http://www.publications.ojd.state.or.us/A107052.htm
The One True b!X on 17 Jun 2004
Yeah but can you keep track from one week to the next which part of the family says NAYTO and which part of the family says NIGHTO?
Alan DeWitt on 17 Jun 2004
Speaking of "the basic safety issues of young children crossing the street" I ran across this today: http://news.statesmanjournal.com/article.cfm?i=82004
Thought y'all might be interested.
The One True b!X on 17 Jun 2004
Thus far, the only contact information I've found online for the Naitos has not resulted in me getting ahold of this new proposal. Anyone out there have any ins and can hook me up?
Isaac Laquedem on 17 Jun 2004
I believe that Lisa Naito is actually the former wife of Ken's elder brother Steve.
shelly winters on 17 Jun 2004
Vacant Old town drug dealing dead zone / nightclub vermin or firehouse restaurant retail tourist friendly new orleans stlye jewel. Seems like an easy decision.....
The One True b!X on 17 Jun 2004
By the way, there's been some movement finally on finding my way to people who can hook me up with the specifics on this. The main points gleaned so far appear to be these (in no particular order,, although we have numbered them):
1) Renovate the Globe Hotel, and place Fire & Rescue administration there, rather than in the new fire station.
2) Site the proposed "learning center" at the Old Town parking structure across NW Davis, rather than in the new fire station.
3) Address the lost parking caused by siting the new station on Block 8.
4) Ensure access to the Japanese-American Historical Plaza, which is across Naito Parkway.
I'm not certain about this, but I assume that siting both administration and the learning center in spots other than directly within the fire station would reduce the size of the station itself, thereby allowing additional other uses for space on Block 8.
torridjoe on 18 Jun 2004
The usual comments about me speaking for myself and not on behalf of PF&R (which, along with the "Fire Bureau," is how they like to be referred) apply here...
Having neither seen the testimony nor the counterproposal, I don't want to make any assertions about the sincerity of Vern Naito's request to delay condemnation for other solutions. However, it should be said:
1) Referring to a "parking concern" is a bit of a canard, since apparently he is talking about giving back a little of the open air lot adjacent to the Import Plaza building, while taking away a fair bit of a multilevel garage across the street. It should also be noted that, to my knowledge, underground parking for PF&R staff is a given for the new structure.
2) Obviously one side of Davis or another matters little for emergency response times, but it really is true that Block 8 is the best and pretty much only option for relocation.
3) Splitting the facilities defeats part of the purpose of a new building, which is to consolidate PF&R personnel. Is it the greatest purpose? No, but I can tell you from experience that shuttling around across the bridges to meet with other employees costs the City time and money. You must also factor in duplicate infrastructure, especially in the area of telecommunications. Any LAN to connect admin, the Learning Center, and Station 1 will be unnecessarily complicated by different sitings. And of course now you're building an additional structure entirely, which raises costs as well.
4) As you note, it seems odd that the minority shareholders are finally coming very late to the party, publically speaking. For me it raises a flag.
Is it worth considering the proposal if six weeks doesn't kill the original plan? Probably. Does it seem like an unnecessary complication of what was a pretty good plan to begin with? I personally think so.
B!x, have you tried simply calling Fire up to see if they have a copy of the counterproposal? 823-3700.
torridjoe on 18 Jun 2004
whoops--no new structure if admin goes into the Globe Hotel. I wonder what the suitability of the hotel is, particularly as concerns disasterproofing requirements.
Brian Jefferies on 18 Jun 2004
The income generators for the Naitos in old town are night clubs and parking. Would a relocated firehouse shut down or limit night club activity due to noise proximity? The Naitos are tring to run an all night video bar/arcade in block 8 and are landlords to bars across the street: McFaddens, Voodoo Lounge, OHM and Barracuda. The Naitos have a history of letting their properties in Old Town sit vacant but are now trying to create a night club district. As the 'pearl district' gentrification flows through Old Town, a consolidated firehouse in block 8 would help to balance a sense of community that does not currently exist. The firehouse's new presence would rejuvenate a mixed community. It would discourage the rampant drug dealing and crime in the current nightclub environment. Instead of creating a nighttime only district why not restore this area and promote a tourist friendly, safe neighborhood with mixed use buildings, low income housing, restaurants, cafes, and retail stores.
Isaac Laquedem on 18 Jun 2004
b!X, as for keeping the pronunciations straight, Bill Naito's branch Americanized the name to NAY-toe; Sam Naito's branch retains NYE-toe as an approximation of the Japanese pronunciation, something like Nah-Ee-Toe.
As Bill Naito was out in Front (so to speak) on civic donations, and Sam Naito's branch is leading the fight against condemnation, you could say in Cole Porter's terms:
"You say do-nate-o
And I say to fight-o
You say it's Nay-toe
And I say it's Nye-toe."