Authorize agreement with Historic Parkrose for management services of the Parkrose Forward Enhanced Services District for an estimated amount of $3,876,970 over five years

This ordinance approves the new five-year agreement with Historic Parkrose for Enhanced Services District (ESD) management services. A companion ordinance is also before the City Council, to meet previsions in City Code 6.06, establishing the new Parkrose Forward ESD property management license fees, district boundaries, and establish the Parkrose Forward ESD. Historic Parkrose, a non-profit that has served the Parkrose neighborhood since 2012, has petitioned the City to create a new Enhanced Services District (ESD). Historic Parkrose is uniquely qualified to manage the provision of District services. Historic Parkrose is a "qualified contractor" as defined in PCC 6.06.020.N. In absence of any other qualified non-profit who could fulfill the work within the Parkrose Forward ESD, in accordance with City Code 5.33.120.c, a Sole Source Procurement Notice was published on June 4, 2026, and remained posted for a minimum of seven business days. The City may award a sole source contract in accordance with City Code Chapter 5.33.

The expected economic impacts experienced due to the authorization of a new five-year Historic Parkrose contract includes new ratepayers being assessed the property management license fee for five years, beginning July 1, 2027, with the option to extend for another five years starting July 1, 2032. The property management license fees support the ESD programs and services that would be conducted by Historic Parkrose, benefiting the entire district. This work includes sidewalk cleaning, ambassador program, industrial and commercial district connection programs, business engagement and communication, advocacy and public agency coordination. These supplemental services would be above and beyond what the City can provide and are meant to enhance the Parkrose Forward ESD. These added services are meant to make Parkrose a more desirable neighborhood for real estate development and investments. Furthermore, they should lead to a more inviting, activated, and economically resilient neighborhood for businesses, residents, and visitors.

Historic Parkrose has identified the programs and services desired by the Parkrose community following robust outreach and engagement within the proposed ESD boundaries since July 2025. This outreach and engagement involved input from a range of potential ratepayers including non-profits, industrial property owners, and small business owners.The desired enhanced services include sidewalk cleaning, ambassador program, industrial and commercial district connection programs, business engagement and communication, advocacy and public agency coordination, all benefiting the entire district. These enhanced services are outlined in the five-year contract and will be funded by property management license fees.

This five-year contract will be a new agreement between the City and Historic Parkrose. The City's costs to administer the program include 2-3% of collections that fund the Revenue Division's cost to collect and distribute the license fee, and 2% to pay for a portion of the ESD Coordinator's position costs. This arrangement continues in the proposed contract.

Not applicable.