Portland's vision for the South Waterfront may finally be within reach.

The Zidell family on Thursday unveiled a master plan that, if realized, would complete the long-missing piece of the district in the city's south end, developing the industrial holdout amid the shiny condos and OHSU towers.

Though construction on Zidell Yards was supposed to begin by year's end to align with road construction, the city is working to extend that deadline.

The plans for the 33 acres that stretch under the Ross Island Bridge are ambitious.

The property that now houses the Zidell barge business would be redeveloped to accommodate 2,600 residential units, 1.5 million square feet of office space, a grocery store, a retail anchor, restaurants, parking, a 200-room hotel, three parks, a public plaza and a waterfront greenway that includes recreational access to the Willamette River.

The developers were scheduled to present the plan to the Portland Design Commission on Thursday, but the meeting was postponed due to inclement weather.

Revised plans

A 2015 development agreement between Zidell's ZRZ Realty Co. and the Portland Development Commission set the completion date for project's three phases in 2035.

But that plan has changed.

Developers revised their plans after the company decided in September to close the barge business at Zidell Yards, said Thomas Henneberry, ZRZ's chief operating officer.

While the old plans called for the first round of construction to occur along Southwest Moody Avenue, the new plans put the first phase at the south end of the property, surrounding the spot where the barge building now sits.

A retail anchor will take its place, with a grocery store nearby, along with buildings that will house restaurants, apartments and creative office space.

Though Zidell failed to lure Nike to the site three years ago, Henneberry believes tech companies might find the site attractive. He declined to name any potential retail tenants, but said he hopes to find a big name to occupy the anchor space.

The first phase, tentatively scheduled for completion in 2023, also includes a plaza and two parks, as well as a recreational dock with access to the Willamette. One of these parks will stretch under the Ross Island Bridge, and amenities could include a basketball court or table tennis.

Though the 2015 development agreement required Zidell to begin construction by Dec. 31, PDC spokesman Shawn Uhlman said the commission is working to extend the deadline by a year.

The extension would give the Zidell family time to make the transition from barge-builder to developer. According to Hennebery, the last barge is scheduled to launch around June 1, and demolition and site preparation should begin next fall.

New construction is slated to start in fall 2018; Hennebery expects to open the first buildings two years later.

Henneberry said the area should have no trouble drawing residents and employers, even if the economy slows, given the improved waterfront and transit access that came with the recent construction of the Tilikum Crossing.

"I think we're going to be best-in-class, and we're going to be in a neighborhood that people want to live," he said.

Bond Avenue

Much of the Zidell Yards development hinges on the extension of Bond Avenue, which runs parallel to Moody Avenue through the lower end of the South Waterfront, until it stops at Whitaker Street, near the tram terminal.

The new master plan envisions the two roads as the development's main arteries, with Moody as a one-way street southbound and Bond going one-way northbound.

In the original development agreement, the PDC pledged urban renewal dollars and Portland Bureau of Transportation funding to pay for the extension of Bond and additions that would help connect it to downtown. The PDC also promised funding for the project's waterfront greenway.

Though the new master plan renders much of the details in that agreement moot, the framework -- and included funding -- still stands, said Lisa Abuaf, the PDC's director of development and investment.

That framework calls for the road construction concurrent with the surrounding development by Zidell. This enables the city to use tax revenue from the project to fund the road construction.

But as the Zidell's construction plans have moved back, the timing and sequencing for Bond will need to be renegotiated, Abuaf said.

She said an amended development agreement, with new plans for funding and phasing the development and infrastructure, will need to be approved by the PDC's board of commissioners and by the City Council.



Affordable housing



The 2015 development agreement identified a parcel of Zidell land that the Portland Housing Bureau could potentially purchase for affordable housing.

Though city officials originally didn't plan to require affordable housing as part of the development deal, the option to buy the parcel was added after the city was criticized by housing activists.

According to the agreement, that parcel, located north of the Ross Island Bridge and east of Moody, has a total development capacity of at least 180,000 gross square feet, though the amount of land would be a fraction of that. The space could accommodate about 200 units.

This fall, the parcel was appraised at $310 per square foot. Costs will increase each year based on the consumer price index.

According to the 2015 agreement, the city has until fall 2021 to purchase the land. If the city does not buy it, Zidell will be free to sell or develop it without affordable housing.

-- Anna Marum

amarum@oregonian.com

503-294-5911

@annamarum