Auditor: Metro misses connection with transit-oriented projects

Report says regional agency needs to set clear policies and improve program's operation

By Steve Law

The Portland Tribune, Aug 20, 2008, Updated Oct 30, 2009 (13 Reader comments)

Metro’s efforts to spur new housing and retail near MAX stations and bus lines took some hits Wednesday in a report by the regional government’s auditors.

Metro Auditor Suzanne Flynn said the agency’s Transit-Oriented Development Program is still finding its way, and needs to get clearer and more consistent policies to improve its operations.

The program, which has garnered some prestigious national awards, seeks to build transit ridership by promoting housing and mixed-used projects within walking distance of bus and train stops. Metro has doled out money to stimulate projects in Portland, Gresham, Milwaukie, Beaverton and Hillsboro.

The audit raised questions about The Beranger condo-retail development in downtown Gresham. Metro initially talked about supplying $275,000 in subsidies for 52 apartments, but the project sputtered and designs changed. Metro wound up providing $687,400 to subsidize 24 condos.

Metro has worked with the developer of that project, Peak Development, on four other transit-related projects, more than any other developer. Auditors raised concerns that Metro is relying too much on a small circle of developers.

In other findings, Flynn and her team of auditors found:

• Metro’s procedures for selecting projects are “ad hoc” and inconsistent.

• Metro has strayed from its original goals by awarding money for rooftop gardens and energy-efficient building techniques.

• The agency has little data to demonstrate that subsidized projects are building transit ridership.

• Metro has failed to keep adequate records when hiring consultants.

• The steering committee that awards subsidies often receives project descriptions only one week before making decisions on awards.

Despite the criticisms, Flynn said she found no glaring problems at the Transit-Oriented Development Program, and depicted some of the issues as growing pains.

“This is a fairly unusual program and also a young program, so they’re kind of learning as they go,” she said. “It’s a pretty lean staff.”

Leading a market

Tri-Met, the regional transit authority, shifted its fledgling transit-oriented development program over to Metro in 1996. The program, which has only four employees, has since subsidized 14 completed projects in cities in Washington, Clackamas and Multnomah counties. Four more are under construction, and 12 are in the pipeline.

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