Portland mayor and Oregon governor propose waiving fees to spur housing production
KGW News
[{'start': '0.400', 'end': '4.240', 'text': "I'm proud to stand with the governor"}, {'start': '2.480', 'end': '6.640', 'text': 'today to push forward a simple but'}, {'start': '4.240', 'end': '8.400', 'text': 'powerful idea. Both the mayor and I are'}, {'start': '6.640', 'end': '10.000', 'text': 'impatient. We are impatient types'}, {'start': '8.400', 'end': '12.719', 'text': 'because we see the urgency and we want'}, {'start': '10.000', 'end': '15.280', 'text': 'to move forward with big and bold ideas'}, {'start': '12.719', 'end': '17.920', 'text': 'when we have the opportunity. So that'}, {'start': '15.280', 'end': '20.400', 'text': "idea is to temporarily wave what's"}, {'start': '17.920', 'end': '23.680', 'text': 'called system development charges or'}, {'start': '20.400', 'end': '25.760', 'text': "SDC's in Portland for the next 3 years."}, {'start': '23.680', 'end': '29.039', 'text': 'During that time, the mayor wants to'}, {'start': '25.760', 'end': '31.359', 'text': 'build 5,000 new housing units. Okay. So,'}, {'start': '29.039', 'end': '33.760', 'text': 'what are these SDC charges they want to'}, {'start': '31.359', 'end': '36.399', 'text': 'wave and how will that help spur more'}, {'start': '33.760', 'end': '38.160', 'text': 'housing? The fees are normally charged'}, {'start': '36.399', 'end': '40.320', 'text': 'when a developer wants to build in'}, {'start': '38.160', 'end': '43.200', 'text': 'Portland and when the project would'}, {'start': '40.320', 'end': '45.120', 'text': 'impact infrastructure like sewer, water,'}, {'start': '43.200', 'end': '47.920', 'text': 'parks, and streets, which you would'}, {'start': '45.120', 'end': '50.000', 'text': 'guess is very often. That money from'}, {'start': '47.920', 'end': '51.760', 'text': 'those charges would then go towards say'}, {'start': '50.000', 'end': '54.160', 'text': 'covering the cost of water and'}, {'start': '51.760', 'end': '56.719', 'text': 'transportation improvements needed for'}, {'start': '54.160', 'end': '59.960', 'text': 'new developments. Now, those fees can'}, {'start': '56.719', 'end': '62.160', 'text': 'range anywhere from 15,000 to'}, {'start': '59.960', 'end': '64.479', 'text': "$50,000. That's according to the Oregon"}, {'start': '62.160', 'end': '67.439', 'text': 'System Development Charges Study. And'}, {'start': '64.479', 'end': '70.159', 'text': 'those fees can equal up to 6% of an'}, {'start': '67.439', 'end': '72.560', 'text': "entire project's budget. So, it's really"}, {'start': '70.159', 'end': '75.119', 'text': "no surprise that it's become one of the"}, {'start': '72.560', 'end': '77.920', 'text': 'leading causes for why so few housing'}, {'start': '75.119', 'end': '80.240', 'text': 'units are being built in Portland.'}, {'start': '77.920', 'end': '83.600', 'text': 'Right now, developers are ready to build'}, {'start': '80.240', 'end': '86.720', 'text': '4,000 homes in Portland, but too many'}, {'start': '83.600', 'end': '88.880', 'text': 'projects stall because of costs. Waving'}, {'start': '86.720', 'end': '91.200', 'text': 'SDCs can cut thousands of dollars of'}, {'start': '88.880', 'end': '94.880', 'text': 'cost of building a home. This temporary'}, {'start': '91.200', 'end': '97.040', 'text': 'waiver of system development charges is'}, {'start': '94.880', 'end': '99.040', 'text': 'a strategic way to say we are open for'}, {'start': '97.040', 'end': '101.360', 'text': 'business, that we need that help with'}, {'start': '99.040', 'end': '104.000', 'text': 'the private sector to get these projects'}, {'start': '101.360', 'end': '105.520', 'text': 'to pencil and get to construction. Now,'}, {'start': '104.000', 'end': '108.880', 'text': 'Mayor Keith Wilson says there are'}, {'start': '105.520', 'end': '111.280', 'text': 'currently only 800 homes being permitted'}, {'start': '108.880', 'end': '113.439', 'text': 'and built in Portland this year. In part'}, {'start': '111.280', 'end': '115.200', 'text': 'because of these hefty fees, and that'}, {'start': '113.439', 'end': '117.040', 'text': "doesn't even come close to meeting the"}, {'start': '115.200', 'end': '120.000', 'text': 'housing goals set by Governor Tina'}, {'start': '117.040', 'end': '121.759', 'text': 'Cotek. And the governor set out a bold'}, {'start': '120.000', 'end': '124.320', 'text': 'vision this last couple years. She wants'}, {'start': '121.759', 'end': '125.920', 'text': 'to build 30,000 homes in Oregon, which'}, {'start': '124.320', 'end': '130.399', 'text': 'means that Portland has to be building'}, {'start': '125.920', 'end': '132.959', 'text': '5,000 or 6,000 homes per year. Per year.'}, {'start': '130.399', 'end': '135.200', 'text': 'Also there today, local developers,'}, {'start': '132.959', 'end': '137.520', 'text': 'including a rep from one company that'}, {'start': '135.200', 'end': '139.680', 'text': 'currently has more than 300 units under'}, {'start': '137.520', 'end': '141.560', 'text': "construction in Portland's Goose Hollow"}, {'start': '139.680', 'end': '144.000', 'text': "neighborhood. They're set to open this"}, {'start': '141.560', 'end': '145.440', 'text': 'fall. We are currently experiencing a'}, {'start': '144.000', 'end': '147.680', 'text': 'crisis in multif family housing'}, {'start': '145.440', 'end': '149.360', 'text': 'development in Portland. For developers'}, {'start': '147.680', 'end': '151.200', 'text': 'such as Security Properties who design'}, {'start': '149.360', 'end': '154.000', 'text': 'and build multif family projects at'}, {'start': '151.200', 'end': '155.840', 'text': 'scale, the market is essentially frozen.'}, {'start': '154.000', 'end': '157.840', 'text': "It's important to also recognize this is"}, {'start': '155.840', 'end': '160.239', 'text': 'not a silver bullet. The proposed SDC'}, {'start': '157.840', 'end': '161.920', 'text': 'moratorium is an important first step in'}, {'start': '160.239', 'end': '164.000', 'text': 'a series of actions that we need our'}, {'start': '161.920', 'end': '166.480', 'text': 'public officials to take in order to'}, {'start': '164.000', 'end': '169.599', 'text': 'galvanize new development. Now, the'}, {'start': '166.480', 'end': '171.760', 'text': 'timing of waving these fees to some may'}, {'start': '169.599', 'end': '173.440', 'text': 'seem like a bad idea given the city is'}, {'start': '171.760', 'end': '176.160', 'text': 'in the middle of filling a historic'}, {'start': '173.440', 'end': '178.920', 'text': 'budget deficit. And the idea of taking'}, {'start': '176.160', 'end': '180.640', 'text': 'revenue away from the city seems'}, {'start': '178.920', 'end': '183.840', 'text': 'counterintuitive. Well, that was not'}, {'start': '180.640', 'end': '185.599', 'text': "lost on leaders today. So, yes, we're"}, {'start': '183.840', 'end': '187.840', 'text': 'going to be losing that capital, but'}, {'start': '185.599', 'end': '189.920', 'text': "we're confident that the shortterm loss"}, {'start': '187.840', 'end': '192.239', 'text': 'of the capital will really help out with'}, {'start': '189.920', 'end': '193.840', 'text': 'long-term gains for Portland. In a tight'}, {'start': '192.239', 'end': '196.239', 'text': 'budget environment, should you be doing'}, {'start': '193.840', 'end': '197.760', 'text': 'something like this? And I say when'}, {'start': '196.239', 'end': '199.840', 'text': 'things are tight and things are'}, {'start': '197.760', 'end': '201.840', 'text': 'challenging, you need bold ideas, you'}, {'start': '199.840', 'end': '204.720', 'text': 'need to be creative, and this, I think,'}, {'start': '201.840', 'end': '206.640', 'text': 'is a strategic way to do that. So,'}, {'start': '204.720', 'end': '209.360', 'text': 'again, they want to build 5,000 new'}, {'start': '206.640', 'end': '211.040', 'text': 'units in about 3 years, still far below'}, {'start': '209.360', 'end': '213.200', 'text': "the governor's housing goals, by the"}, {'start': '211.040', 'end': '216.319', 'text': 'way. And recent data shows there are'}, {'start': '213.200', 'end': '218.879', 'text': 'nearly 15,000 homeless people in Multma'}, {'start': '216.319', 'end': '220.720', 'text': 'County. So that begs the question, how'}, {'start': '218.879', 'end': '223.599', 'text': 'many of these units will be considered'}, {'start': '220.720', 'end': '226.080', 'text': 'quote unquote affordable? Turns out the'}, {'start': '223.599', 'end': '228.319', 'text': "mayor doesn't plan on having any new"}, {'start': '226.080', 'end': '230.560', 'text': 'affordability requirements. However,'}, {'start': '228.319', 'end': '233.040', 'text': "we're told some developers are planning"}, {'start': '230.560', 'end': '234.959', 'text': 'to include units available to moderate'}, {'start': '233.040', 'end': '237.120', 'text': 'income households.'}, {'start': '234.959', 'end': '239.920', 'text': 'So I just want to be clear like this'}, {'start': '237.120', 'end': '241.360', 'text': "isn't no affordability. It's using the"}, {'start': '239.920', 'end': '242.799', 'text': 'existing affordability requirements that'}, {'start': '241.360', 'end': '244.400', 'text': 'are on the books here in Portland and'}, {'start': '242.799', 'end': '246.080', 'text': 'encouraging folks to include them in the'}, {'start': '244.400', 'end': '248.560', 'text': 'projects that are ready to go today. But'}, {'start': '246.080', 'end': '251.120', 'text': 'the other side of it is job activity.'}, {'start': '248.560', 'end': '253.200', 'text': 'Portland has the lowest job creation'}, {'start': '251.120', 'end': '255.360', 'text': "rate in the nation. What we're doing"}, {'start': '253.200', 'end': '259.280', 'text': 'with this is stimulating workforce'}, {'start': '255.360', 'end': '260.959', 'text': 'development and more workforce and jobs.'}, {'start': '259.280', 'end': '262.960', 'text': 'Now, I asked the mayor if these would'}, {'start': '260.959', 'end': '264.800', 'text': 'all be new builds or if some of the'}, {'start': '262.960', 'end': '266.800', 'text': 'empty office space downtown would be'}, {'start': '264.800', 'end': '267.919', 'text': "turned into housing. And here's what he"}, {'start': '266.800', 'end': '269.680', 'text': 'said.'}, {'start': '267.919', 'end': '272.240', 'text': "That's a great question and it's all the"}, {'start': '269.680', 'end': '275.919', 'text': "above. So, it's for new permits for new"}, {'start': '272.240', 'end': '277.600', 'text': "housing, but waving SDC's has a material"}, {'start': '275.919', 'end': '280.160', 'text': 'benefit to start looking at these'}, {'start': '277.600', 'end': '282.240', 'text': 'offices to convert to residential. If'}, {'start': '280.160', 'end': '284.720', 'text': 'you want to take one of our towers'}, {'start': '282.240', 'end': '287.520', 'text': "downtown and convert it, it's all about"}, {'start': '284.720', 'end': '289.600', 'text': "the SDC's. And if you want to bring 250"}, {'start': '287.520', 'end': '291.840', 'text': "units into one building, we're willing"}, {'start': '289.600', 'end': '294.400', 'text': "to wave those SDC's for office towers as"}, {'start': '291.840', 'end': '296.800', 'text': "well. Now, it's important to note this"}, {'start': '294.400', 'end': '298.880', 'text': 'is not final yet. Portland City Council'}, {'start': '296.800', 'end': '301.280', 'text': 'still has to approve this idea, but the'}, {'start': '298.880', 'end': '303.520', 'text': 'mayor is confident that they will.'}, {'start': '301.280', 'end': '305.680', 'text': 'Councilors, including Jamie Duny from'}, {'start': '303.520', 'end': '307.919', 'text': 'District 1 in East Portland and council'}, {'start': '305.680', 'end': '310.720', 'text': 'president Elana Pleginey were there'}, {'start': '307.919', 'end': '313.120', 'text': 'today in support of the plan. This is'}, {'start': '310.720', 'end': '315.919', 'text': 'about keeping Portlanders in Portland.'}, {'start': '313.120', 'end': '317.919', 'text': 'Seniors need to be able to age in place.'}, {'start': '315.919', 'end': '319.440', 'text': 'Families, students, and young workers'}, {'start': '317.919', 'end': '320.880', 'text': 'need to be able to feel good about'}, {'start': '319.440', 'end': '322.639', 'text': 'living in the city, building their'}, {'start': '320.880', 'end': '325.120', 'text': 'careers, raising their families. This'}, {'start': '322.639', 'end': '329.360', 'text': 'effort can be a win for labor, a win for'}, {'start': '325.120', 'end': '330.960', 'text': 'families, and a win for our city.'}, {'start': '329.360', 'end': '333.120', 'text': 'Okay, so talk to us. What are your'}, {'start': '330.960', 'end': '335.199', 'text': 'thoughts about this strategy? I know we'}, {'start': '333.120', 'end': '337.280', 'text': 'have some developers who watch the show.'}, {'start': '335.199', 'end': '339.360', 'text': "So, what's going through your mind? And"}, {'start': '337.280', 'end': '341.560', 'text': 'for the rest of us, are you feeling any'}, {'start': '339.360', 'end': '343.919', 'text': 'deja vu of housing production'}, {'start': '341.560', 'end': '346.400', 'text': 'announcements wondering if there will'}, {'start': '343.919', 'end': '348.120', 'text': 'actually be any real change? Let us'}, {'start': '346.400', 'end': '350.240', 'text': 'know. Email the'}, {'start': '348.120', 'end': '354.120', 'text': 'story@kw.com or call and leave us a'}, {'start': '350.240', 'end': '354.120', 'text': 'voicemail 503-226509.'}]