Commissioner Rubio Statement on East Portland and Central City Investments

I want to share an exciting update about our recent partnership with community to bring desperately needed investments in economic revitalization and stabilization to Portland.

Under my direction, Prosper Portland and the Portland Housing Bureau have been exploring new Tax Increment Financing (TIF) districts inEast Portland and the Central City. That process is now complete, and community-endorsed proposals for six new TIF districts are moving forward for adoption this fall! Please join me in thanking everyone who participated in shaping the future of Portland.

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 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. More recently, TIF resources have increasingly been used to help stabilize and support small businesses and residents in neighborhoods experiencing gentrification and displacement - for example, with grants that allow an entrepreneur to install a commercial kitchen or help a family buy their first home.

As we look toward the future, new TIF districts have the potential to create new dedicated funding streams to advance our shared priorities in East Portland and Central City.

In East Portland, as private market pressures intensify, there is an urgent need for stabilization of existing business and residents and inclusive economic growth. According to the City's 2022 State of Housing Report, between 2016 and 2021, four neighborhoods in East Portland showed the most significant increases in median home sales price, which disproportionately affect low-income communities and communities of color. Here are the proposed East Portland TIF districts:

Meanwhile, our Central Cityis experiencing longer-term and more permanent changes as a result of the pandemic and increased remote work. While office buildings sit empty, high interest rates and rising construction costs have impacted the production of housing within the Central City. At the same time, a handful of large-scale redevelopment efforts are gaining steam, and there is an opportunity for targeted public investments to help move these catalytic projects forward and create new, mixed-income neighborhoods on both sides of the Willamette River. Here are the proposed Central City TIF districts:

The work is not done yet! The six proposed districts will be presented at Prosper Portland's board meeting August 28th. This will be followed by a Council report on September 11th and a public hearing then Council vote in October.

I want to share my sincere gratitude to all of the community stakeholders who participated in this exploration process, including those who dedicated hours and hours over the past year to participate in one of the steering committees or work groups, as well as those who took the time out of their busy schedules to attend an event to learn more and share their feedback.

TIF is a powerful tool to help keep people and businesses in their neighborhoods and create a Portland where everyone has an opportunity to thrive. Your input, passion, and dedication to your neighborhoods were essential to the work.