Two sides continue debate on ‘blight’
Challengers to urban renewal expansion to meet with city leaders
By Jim Redden
The Portland Tribune, Mar 26, 2009
Mayor Sam Adams and Commissioner Nick Fish have agreed to meet with members of a group that successfully challenged the $344 million expansion of the urban renewal area that includes the thriving Pearl District.
In a January ruling, the state’s Land Use Board of Appeals upheld a portion of a challenge to the expansion by Friends of Urban Renewal. That ruling has put several major redevelopment projects on hold, including the construction of a Resource Access Center in the Old Town/China Town area north of downtown Portland to help the homeless.
The meeting – which has not yet been scheduled – is in response to a letter from Friends of Urban Renewal member Bob Ames, a developer and former chair of the Portland Development Commission that administers the city’s urban renewal area. The Friends of Urban Renewal group includes other former members of the PDC, former PDC employees and urban renewal experts.
In the March 9 letter, Ames lists six changes to the planned expansion of the River District Urban Renewal Area that his group supports.
Members of the Friends of Urban Renewal have argued that the expansion violated state laws requiring that urban renewal funds to be spent to eliminate blight. They’ve argued that the River District is no longer blighted, and that a part of the expansion plan – to send $19 million to the David Douglas School District to help build a new school and community center far outside the urban renewal area – was also illegal.
According to Ames, if the City Council agrees to his group’s proposed changes, the group would not challenge the expansion again. If the council does not agree to the changes, however, Ames said, the group reserves the right to challenge the expansion again – including a possible appeal to the Oregon Court of Appeals, a process that could keep the expansion stalled for a year or so.
Despite the agreement to meet, it appears that finding a compromise will not be easy. Fish called the proposed changes “a non-starter” and said the council has not previously changed the creation or revision of an urban renewal area because of threatened legal challenges.
“This expansion has the support of the PDC [board of directors] and the council,” said Fish.
Ames said that although he welcomes the meeting, he is puzzled by Fish’s stance.
“I find it a little that odd that Fish would agree to talk but dismiss our proposals out of hand,” said Ames. “We’ve given this a lot of thought, done a lot of research and are united in our concerns. Right is right and laws need to be obeyed.”
Funds for school districts
The dispute started even before the City Council voted to extend the life and expand the boundaries of the River District urban renewal area on June 25 of last year. Ames and other group members testified against the expansion then.
After the expansion was approved, the group appealed it to the state board, which has jurisdiction over land-use matters. Although LUBA dismissed many of the group’s grounds for appeal, it agreed on two important points. First, it ruled the council had not proved the River District was still blighted. And second, it ruled the council had not proved the money sent to the school district would benefit the River District.
As a result, LUBA remanded the proposed expansion back to the City Council for further work. According to Fish, the council is confident it can prove the River District is still blighted and is preparing new language – called “findings” – to be included in the expansion resolution.
Fish said the council has not yet made up its mind about the school district funds, however. A bill is pending in the Legislature to specifically authorize spending urban renewal funds on schools outside urban renewal areas.
Even if the council amends and reauthorizes the expansion, however, the Ames’ letter outlines potential grounds for challenging it again. The six changes listed in the letter concern proposed projects the group does not believe would eliminate blight, as required by state urban renewal laws. They include $54 million in economic development aid, $35 million to buy an office building for Multnomah County, $50 million for affordable housing and $17 million for the portion of the east side Portland Streetcar loop that would run through the River District.
The letter said these projects either must be eliminated or greatly reduced for the group to support the expansion.
jimredden@portlandtribune.com