FOR IMMEDIATE RELEASE: OCT. 30, 2024
Media Contacts:
Christina Ghan, Commissioner Rubio’s Office
Policy Director
503-865-6668
[email protected]
Gabriel Mathews, Portland Housing Bureau
Public Information Officer
503-865-6867
[email protected]
Shawn Uhlman, Prosper Portland
Communications Manager
503-823-7994
[email protected]
PORTLAND, Ore. – Today Portland City Council approved legislation championed by Commissioner Carmen Rubio to establish six new Tax Increment Finance (TIF) districts that will bring in more than $2.5 billion over the next 30 years to spur economic growth, create jobs, and invest in a range of housing options in both the Central City and East Portland.
Under the direction of Commissioner Rubio, Prosper Portland and the Portland Housing Bureau led a year-long co-creation process with community members to identify shared priorities in shaping the future of the Rose City. That process resulted in proposals for six new TIF districts, which were adopted by City Council today:
- 82nd Avenue Area
- East 205
- Sumner Parkrose Argay Columbia Corridor
- Central Eastside Corridor
- Lloyd-Holladay
- Westside
Over the next several decades, the new TIF districts are anticipated to direct resources toward community priorities, including more than $1 billion for affordable housing and $400 million for public infrastructure.
“This was a huge undertaking at a moment in Portland’s history that demanded swift, bold action. These new TIF districts will help us realize our vision of prosperous, thriving communities in East Portland and a revitalized Central City,” Commissioner Rubio said. “This plan creates a new, substantial source of public investments dedicated to advancing that work and ushering in a new chapter for our Central City – and it does so without raising taxes for our residents or businesses.”
“Through the Council vote today, the City of Portland has an opportunity to invest in clearly identified community objectives over the next three decades,” Mayor Ted Wheeler said. “Focus on these areas will have long-term positive impacts throughout the city. I am proud to reach this milestone, and I appreciate everyone’s involvement in this critically important work.”
What is TIF?
Tax Increment Financing, or TIF, is a long-term source of public funding that can be invested in community priorities for physical improvements within specific areas of Portland. It is not a new tax: Once created, these TIF districts will capture increases in property taxes that happen over time and invest the increase within set geographic areas to support local priorities related to housing and economic development.
TIF resources have also been one of the most significant ways that we fund the construction of new affordable housing. To date, half of the affordable housing in Portland was created with the help of TIF.
Previous TIF districts helped leverage public-private partnerships to enhance the Pearl District, South Waterfront, Central Eastside, Lents.
More recently, TIF resources have increasingly been used to help stabilize and support small businesses and residents in neighborhoods experiencing gentrification and displacement.
Six new TIF districts
The three East Portland districts will address the urgent need to stabilize existing businesses and residents and to ensure inclusive economic growth for current and future generations. Future TIF investments will focus on providing a range of housing options, neighborhood infrastructure and support for small businesses. TIF resources can also be used to assist first-time homebuyers with their down payments and to fund critical repairs that allow longtime residents to stay in their homes.
The three Central City districts will ensure a vibrant, active downtown and economic hub for our state. The TIF funds will bring resources into our hardest-hit areas of downtown, expand and preserve housing options, and help move catalytic redevelopment projects forward to create new, mixed-income neighborhoods on both sides of the Willamette River.
“The discussions we’ve had over the past year with our public, private, and nonprofit partners as well as the extensive community involvement has provided clear guidance on district priorities as well as community concerns,” said Prosper Portland Board Chair Gustavo Cruz. “That partnership and feedback is invaluable and has set the stage for years of critically needed investment in areas across the city. We are eager to start this shared work and continue to add to the vibrancy of Portland.”
“Portland is uniquely positioned to deploy TIF districts for the development of affordable housing, and I am extremely proud of our in-depth, community-led process to bring these districts to Council,” said Portland Housing Bureau Director Helmi A. Hisserich. “Thanks to the City’s 45% TIF set-aside for affordable housing, these funds will enable us to build on our momentum over the coming decades, as we produce thousands of affordable homes, for rent and for purchase, in historically underserved neighborhoods.”
“At a time when other cities are losing the ability to leverage TIF as a tool to spur development, Portland has leaned into a new co-creation model that centers both growth and equitable opportunity,” said Prosper Portland Interim Executive Director Shea Flaherty Betin. “This thoughtful approach ensures future investment of TIF resources is responsive to community priorities – and can serve as a replicable model for future co-creation efforts.”
With these new districts now adopted, implementation will start early next year with the formation of advisory groups and the development of action plans for each district. Initial resources will start to become available in FY2025/26.
What others are saying
Several community leaders shared their support for this work with the City Council last week:
Jill Sherman, Edlen & Co
“We have work to do – together – in our Central City that’s going to require the combined efforts of business, the nonprofit sector, philanthropy, as well as government sector. And we really will need the resources of all of these sectors to work together to accomplish what I think will result in an equitable, thriving downtown. We need resources for … affordable housing … middle and mixed income … infrastructure … and for support of small businesses as well. TIF provides that key tool for the public sector.”
Peter Andrews, Melvin Mark
“Tax Increment Financing is one of the most vital tools available to our local government. TIF funds investments in public-private partnerships, placemaking, housing, and infrastructure, which are all essential for the long-term recovery of our Central City. By working together and leveraging tools and incentives like TIF, I am optimistic that our ability as a community to envision and create a future Portland that is welcoming and inclusive for all.”
Andrew Hoan, Portland Metro Chamber
“You are sending the message that Portland is open for business, and we thank you…. Portland is turning the corner. Your actions continue to provide evidence of public-private partnerships that our communities need to thrive.”
Duncan Hwang, APANO
“Along 82nd Avenue in particular … having a complementary TIF district to support affordable business development and affordable housing really complements the other public investments in the corridor and leverages both for greater results for the community.”
Sabrina Wilson, Rosewood Collective
“We really needed to balance the investment both in affordable housing and economic development, while leaving room for much-needed infrastructure improvement in East Portland…. The project team engaged in meaningful and thorough community engagement throughout this process.”
Molly Hogan, Welcome Home Coalition
“The skyrocketing costs of housing that are in the news every week are national, but Portland’s increases have been obscene…. These polices are tangible opportunities to make real improvements on this issue.”
Corky Collier, Columbia Corridor Association
“This TIF district has the potential to build infrastructure that benefits employees and residents…. Building community helps good companies employ people that live nearby.”
Alando Simpson, City of Roses Disposal & Recycling
“People are looking at us as leaders in this space…. It’s time for us to double down and invest in those areas to really show the rest of the world how they can come to Portland and learn best practices on how to stand up sustainable economic development – not just for today, but for the future generations of tomorrow.”
Andy Miller, Our Just Future
“I urge you to build on success stories like [Our Just Future development] the Nick Fish by creating the proposed new TIF districts…. If we do this right, Portland can make history.”
Margaret Salazar, REACH CDC
“REACH strongly supports Portland’s continued commitment to affordable housing development, particularly in the Central City and in East Portland…. When we build and improve affordable housing developments, we’re making a lasting investment in the built environment of our city…. TIF financing will help us work together, not just to expand new housing opportunities, but importantly, to ensure that we have the resources that we need to stabilize existing properties, and to make critical repairs to preserve long-term viability and affordability of dozens of existing homes.”
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