One way the city funds neighborhood and business district improvements is with tax increment districts [1]. Today we considered the future of the Central Eastside Industrial District tax increment district [2].
I am worried that there is not enough money in the proposed $35 million extension of the Central Eastside Industrial District to complete the Eastside Streetcar [3] Loop and the East Burnside [4] Couplet.
- Eastside Streetcar [5] Estimated Budget Gap:
o $22 to $42 million (still a early low confidence estimate)
I am pushing for a new streetcar spur from the River District [6] at NW Lovejoy, across the Broadway Bridge, through the Lloyd District [7] and down MLK Blvd and SE Grand to OMSI [8]. Without an adequate local funding match, we will not qualify for federal streetcar funds. Thus, no streetcar.
- East Burnside Couplet [9]Estimated Budget Gap:
o $11.2 to $20 million (still a early low confidence estimate)
U.S. Congressman Earl Blumenauer [10] has done a great job of obtaining federal funding for the East Burnside [11] Couplet project. But the project [12], which is going through preliminary engineering right now to get a more accurate cost estimate, has a substantial gap.
I also am concerned that without more tax increment resources to deal with the old buildings in the Central Eastside Industrial District it will gentrify away many Portland-based existing small businesses. And that all the housing to be built will be financially out or reach for most Portlanders.
So I proposed an amendment today – that the City Council approved on a three (Adams, Leonard, Sten) to two (Potter, Saltzman) vote -- to raise the Central Eastside Industrial District debt extension from $35 million to $50 million. The ordinance itself will be considered in mid-July. We will have a City Council Worksesion on this matter at 9:30 am on Tuesday, July 5, 2006.
Most of the small business advocates [13] and many neighborhood advocates expressed support for my amendment.
I am interested your thoughts on this hearing from you.