‘Worthwhile projects’ could stumble over urban renewal appeal

Critics of PDC say the agency’s claim is ‘pretty silly’

By Steve Law

The Portland Tribune, Aug 12, 2008, Updated Oct 30, 2009 (2 Reader comments)

Tribune file photo

The River District urban renewal area is under fire because of plans to expand the district. Portland Development Commission officials worry that an appeal of the plan could hold up several projects.

A planned service center for the homeless and at least seven other proposed Old Town/Chinatown development projects could be on hold several months, according to Portland Development Commission leaders.

Leaders of the city urban renewal agency said they can’t devote significant money to the projects because they lie in an area recently added to the River District urban renewal area — a move critics are challenging before the state Land Use Board of Appeals.

“The challenge to this amendment jeopardizes our ability to invest in Old Town/Chinatown, where most of the projects are located,” said Bruce Warner, PDC executive director, in a media release.

Some critics of the River District expansion said PDC is exaggerating the impact, perhaps for political gain.

But it’s also possible that the LUBA appeal could take far longer than seven to nine months, potentially putting the projects in limbo for a couple years or more.

In July, the Portland City Council added about 50 acres to the River District urban renewal area, mostly by moving parcels out of the Downtown Waterfront urban renewal area.

The move reflected the wild success of the Pearl District, which forms the heart of the River District, and the urban renewal funds being produced via rising property values. The council also voted in July to authorize $344 million in additional spending in the River District, including several projects in Old Town/Chinatown.

‘Can’t afford to wait’

Urban renewal taps property taxes derived from rising property values in an urban renewal district. Taxes that otherwise would go to the city, schools, and other local governments instead go to the PDC, to pay for projects in the urban renewal districts.

A group composed largely of former PDC insiders appealed the River District expansion decision to LUBA. The critics also appealed a companion city decision to add about 8.5 acres into the River District from the David Douglas neighborhood in outer Southeast Portland, a so-called satellite district that is several miles away from the River District. The critics include PDC’s former executive director, development director, attorney and board chairman.

The critics oppose the satellite district concept, and say the River District projects go well beyond the traditional goal of erasing “blight” with urban renewal funds.

If LUBA overturns the council decision, that leaves the Old Town/Chinatown properties outside any urban renewal area, and thus ineligible for funding derived from urban renewal.

“Any project that is within the 50-acre amendment area, there is going to be some question whether they can go forward, pending the result of the appeal,” said Bob Alexander, PDC special projects manager. “That’s at least eight projects.”

PDC has only publicly identified one of the projects in jeopardy: the Homeless Resource Access Center. That is slated to get $750,000 in PDC funds this year and $27.3 million in 2009-10.

1 | 2 Next Page >>

Facebook	Digg	Del.icio.us
Newsvine	Stumbleupon	Reddit