CUB Calls for Fair Market Rent for Terminal 1
Posted on August 12, 2016 by Janice Thompson
Tags, Water/Wastewater
On Wednesday August 10, 2016, by a 3 to 2 vote, the Portland City Council approved a lease to use the Terminal 1 site as a homeless shelter for up to 18 months and took steps to develop a longer term plan to use that site for the shelter based on an Oregon Trail to Hope concept. Terminal 1 is owned by the Bureau of Environmental Services (BES) which used it during construction of the Big Pipe project. That property was up for sale since it is no longer needed by BES but that process has been halted by Wednesday’s Council decision.
Commissioner Nick Fish was a vigorous opponent because Terminal 1 is valuable property zoned for heavy industrial with a new tenant likely being the source of good jobs. He also had reservations about the suitability of this site for a homeless shelter, especially since essentially no details about the Oregon Trail to Hope concept have been developed. As Commissioner-in-Charge of BES, Fish was also concerned about sewer and stormwater ratepayers losing out on the financial benefit of selling a valuable parcel in a strong real estate market.
The proposal’s failure to set a fair market rental rate in the lease between BES and the Portland Housing Bureau was particularly concerning. Fish introduced an amendment addressing that problem as well as other amendments to protect the financial interests of BES and its ratepayers. All of these amendments failed.
CUB’s testimony, which I presented, focused on BES needing to get a fair market rental rate and supported Commissioner Fish’s amendments to protect ratepayer interests. CUB did not comment on the pros and cons of Terminal 1 for a homeless shelter, though we did point out the lack of due diligence in evaluation of the Oregon Trail to Hope concept even though the decision upended many previous City Council decisions on zoning, preservation of industrial land, and approval for BES to sell Terminal 1 as surplus property.
The “yes” votes were cast by Mayor Charlie Hales, Commissioner Dan Saltzman, and Commissioner Steve Novick. Commissioner Amanda Fritz joined Commissioner Fish in casting a “no” vote.
Addressing the needs of Portlanders who cannot afford housing is critically important, But CUB thinks that asking BES ratepayers to provide a subsidy by not getting a fair market rental rate violates legal restrictions on use of ratepayer dollars. CUB is disappointed by this aspect of the City Council decision and will continue to advocate for rectification of this issue.
To keep up with CUB, like us on Facebook and follow us on Twitter! You can also keep up to date with breaking news by joining our email list today!
12/27/16 | 0 Comments | CUB Calls for Fair Market Rent for Terminal 1