After months of delays, the Portland City Council held its first hearing Thursday on a package of amendments to urban renewal areas on both sides of the Willamette River.
The series of proposals would put more property back on the tax rolls, increasing money in the short term for local governments, while also directing more money to help encourage development in the Central Eastside and near the Portland-Milwaukie light-rail line.
"There are places in this city where we can now declare victory," Mayor Charlie Hales said to open the meeting. Hales said the package of changes is an attempt to "right size' the practice that dates back decades though the current plan would also extend the life of one of the oldest urban renewal zones.
Portland Development Commission officials said the changes would net $8.2 million in fiscal 2015-16 for Portland, Multnomah County and other taxing jurisdictions.
The city is shutting down the $200 million Willamette Industrial Urban Renewal area, and removing more than 970 acres from the Airport Way urban renewal zone. An additional 35 acres in the River District will return to property tax rolls.
But victory isn't being declared in the South Waterfront. Despite city assurances that the changes to the North Macadam URA would result in a $47 million for affordable housing, advocates said they want more specifics.
The City Council heard testimony from Gretchen Kafoury, a former city and county commissioner, former member of the PDC and former Housing Bureau director.
"Believe me, I know how hard this is," said Kafoury. "But I still don't think this is enough," she said of the housing promises.
The tension surrounded proposed amendments in the North Macadam URA, which would add 45 acres -- 35 from the soon-to-be ended Education District downtown.
Patrick Quinton, PDC's executive director, said eliminating the Portland State University-centric urban renewal zone will still result in a net increase in the investment of affordable housing citywide.
He said the city is committed to spending $9 million on affordable housing in North Macadam, but that would increase to $47 million with the addition of more property and five more years of indebtedness.
Quinton emphasized the city's pledge to build at least 200 units of affordable housing on its property at 2095 S.W. River Parkway as a key proposal.
But the urban renewal amendments don't exist in a vacuum in the South Waterfront, as PDC and the Zidell family continue to discuss a development agreement tied to the family's 30 acres.
Several speakers said the city was letting go of its chief bargaining chip by moving forward with urban renewal amendments without a development agreement that specifically sets affordable housing goals on the Zidell land - in exchange for an estimated $27.4 million in public infrastructure improvements.
Debbie Aiona, with the League of Women Voters of Portland, said her organization wouldn't support the amendments without more certainty on the Zidell property.
"The public is understandably skeptical," she said of the city's pledge to build housing without the development agreement in hand.
Commissioner Nick Fish said he spent the past three months negotiating the latest iteration of the urban renewal amendments. He said advocates want to have both the development agreement and the proposed housing project in hand at the same time, but Fish doesn't want the 200-unit housing project to be "held hostage."
"We have no power to compel an agreement with Mr. Zidell, or any other property owner," Fish said. "We can't force a deal."
Former Housing Bureau Director Will White said the city's characterization of $47 million in affordable housing in North Macadam is misleading, given that the citywide net increase is closer to $3.5 million.
"Before we ink that deal," White said of the Zidell development agreement, "I think we should get the right quid pro quo."
The other notable amendment would extend the life of the Central Eastside Industrial District urban renewal zone, adding 16.2 acres around the Clinton Triangle TriMet Station Area. That policy would increase potential revenue over the life of the district from $105 million to $126 million, which PDC said could be to buy properties near Southeast Water Avenue and help build affordable housing around the station.
But Kathleen Hersh, co-president of the League of Women Voters' board, said the Central Eastside district has run its course, and the city already owns much of the land near the Clinton Triangle.
Pushing the district's life out to 2023 would make it the oldest URA, Hersh said. "Additional projects that would be nice to do will continue to come up," she added.
The Portland City Council will discuss the proposed changes March 12.
-- Andrew Theen
atheen@oregonian.com
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@cityhallwatch