Also, this project went before the Design Commission on Thursday. The audio hasn't been posted yet, so I'm not sure if it was approved, but the
staff presentation [PDF - 3MB] was... and holy shit is the developer being extorted by the City. In order to gain approval for the FAR transfer they are offering a $625,000 contribution to the Affordable Housing Fund and a $375,000 contribution to Portland Parks & Recreation. (That is on top of, and not instead of, the millions of dollars in SDCs the project will pay).
I have two objections to this.
Firstly, I'm skeptical that it's legal for the city to demand it. Nowhere in 33.510.255 does it state that any money or public benefit has be obtained for an FAR transfer to be approved. I'm sure the applicants have come to the same conclusion, and decided that an appeal to City Council and possibly LUBA will delay the project.
Secondly, one of the major reasons for allowing FAR transfers is to encourage the preservation of historic buildings that have unused FAR. If we make it so difficult and/or expensive to transfer FAR away from buildings then it starts to make more sense to just demolish the buildings and redevelop the site to its highest and best use.