Over the next 30 years, more property tax dollars collected in parts of East Portland could go directly towards projects in that geography. If evaluators recommend new Tax Increment Financing (TIF) expansion to Portland City Council later this year, Portland could gain new TIF Districts along 82nd Avenue, East of Interstate 205, and in the Parkrose-Columbia Corridor. In 2023, Portland City Commissioner Carmen Rubio’s office convened an East Portland TIF Exploration Steering Committee to identify three possible TIF locations. That work progressed to the next phase of investigation in November 2023 with the formation of working groups charged with creating TIF boundaries, guiding principles, and permissible project lists. Those groups of community members, organization leaders, and business people must also communicate with the people in the affected area to determine if a TIF District is the right project funding tool for each proposed District. Community members can learn more about TIF and voice their opinions at TIF Open Houses this May.

Tax Increment Financing (TIF) is a funding tool for physical improvements to a specific geographic area. Although funding comes from people’s property tax payments in that District, it does not raise tax rates on its own. Instead, it freezes the portion of the taxes sent to the County and City at its current level and then diverts any increases to a special fund that TIF Districts can use for projects in the area where those funds were collected. Because of Ballot Measure 50 passed by voters in 1996, property tax increases are mostly capped at three percent annually. The City can issue bonds based on that expected three percent TIF District income, providing capital for projects in the District years ahead of collection. TIF has the benefit of reserving a segment of tax dollars for use in the community where it’s collected instead of spreading all tax funds across all areas of the City. Portland also dedicates 45 percent of funds collected towards affordable housing, a policy that has led to TIF districts now supporting 47 percent of Portland’s affordable housing units. Even with those upsides, forming a TIF District has the potential to cause harm to communities and has displaced people for decades under another name, Urban Renewal.

Past Urban Renewal projects used TIF District funds to fuel the destruction of communities across the country by demolishing “blighted” neighborhoods. The municipalities created new infrastructure and other public works in those areas, causing displacement and gentrification. The Albina neighborhood stands as a prime example from Portland’s past, where Urban Renewal displaced hundreds of Black families and businesses by creating Interstate 5 and other public projects where people once lived. However, even the relatively recent Interstate TIF District caused substantial displacement in the corridor surrounding the MAX Yellow line. Consequently, Prosper Portland adopted a new approach to implementing TIF Districts that relies on community guidance and early anti-displacement work. Portland’s newest TIF District in the Cully neighborhood spent nearly four years shaping a plan to fund projects meant to strengthen the existing residents while improving conditions. Approved in November 2022, the Cully TIF District is too young to prove this new model, and it will take years to see if it can meet all its goals. However, the three new TIF Districts under consideration will leverage the Cully work in an effort to create an equitable tool for funding improvements and provide community stabilization during a transformation already underway.

The issues around TIF District formation are complex. Past projects have shown that an improvement for some can cause injury to others, and it often disproportionately harms people from communities of color. It is essential that a variety of residents participate in conversations, learning about the positive impacts and helping shape risk mitigations that will prevent harm. Montavilla Residents can attend the May 6th meeting in The Orchards on 82nd building at 8118 Southeast Division Street from 6 to 8 p.m. or the May 9th meetings held in the African Youth & Community Organization (AYCO) building at 2110 SE 82nd Avenue. All three sessions are presented in English with translators available for Cantonese at 6:15 p.m., Vietnamese at 6:50 p.m., and Somali at 7:20 p.m. Attendees are asked to pre-register online for the Orchards meeting and the AYCO meeting. For people looking to attend on another day or are more invested in the East of I-205 TIF, there is an event on Saturday, May 11th, from 11 a.m. to 1 p.m. in the Gethsemane Lutheran Church at 11560 SE Market Street. People can request translation services when registering online.

Update: Added additional meeting information for May 6th event.

Article by

Jacob Loeb

Disclosure: The author of this article serves on the 82nd Ave TIF Working Group. It is a unpaid volunteer position. However, participants can receive honorariums for attending each meeting that have a cash value. Montavilla News does not endorse candidates, ballot measures, or government initiatives. The Authors participation in this Working Group and votes should not be considered the opinion of this publication.