Cully TIF District
Contact: Kathryn Hartinger – email
In 2018, a coalition of community-based partners in the Cully neighborhood approached Prosper Portland to explore a community-centered Tax Increment Finance (TIF) district creation process that could lead to a new TIF model that centers historically underserved, marginalized and underrepresented community voices in the TIF district creation process. To that end, we participated in a co-creation model that centered those most vulnerable to displacement with an explicit goal of stabilization. As growth comes, we want to ensure all Cully’s residents can stay and benefit from the prosperity that growth can bring, rather than be pushed out and replaced by it.
An exploration committee made up of community-based organizations and Cully residents, Prosper Portland, and the Portland Housing Bureau co-created a Cully Tax Increment Financing (TIF) District proposal for Prosper Portland Board of Commissioners and Portland City Council consideration. The proposal was recommended by the Prosper Portland Board and the Planning & Sustainability Commission, and adopted unanimously by City Council in November 2022, establishing the new district.
Jump to:
Engagement Opportunities
The Community Leadership Committee (CLC) provides guidance and oversight on development of TIF Action Plans and implementation of the Cully TIF District Plan.
CLC meetings are open to the public and will include a period for public comment. Committee meeting dates, as well as notice of additional engagement opportunities, are posted here when available.
Community Leadership Committee
Jorge Sanchez Bautista
Andre Broadous
Elizabeth De Jesus Lopez
Gary Hollands
Cecelia Lente
Bella Mata
Sharon Maxwell
Towanda Perry
Ginger Rogers
Julia Tienson
Karen Torres-Olguin
Sky Waters
Meetings
Frequently Asked Questions
Tax Increment Financing (TIF) is a state-authorized redevelopment and finance program used by the City of Portland to improve neighborhoods through strategic investments in housing and economic development within a designated area. It leverages public resources (through property tax revenue growth) for re-investment in the community to benefit residents and businesses.
Each TIF District has a plan that is approved by the Portland City Council. The plan outlines specific goals, priorities, and projects that match the needs of the people who live and work in that area.
No, TIF is not a new tax or fee. TIF uses the growth of property taxes within the district that people are already paying to invest in the community.
TIF is a way to use some of the property taxes you already pay to improve the community. When a TIF district is created, the City and County “freeze” the amount of taxes they collect from the area within the district boundary. Over time, as the tax base increases from new development and rising property values, that increase may be used to fund improvements in housing and urban and economic development, within that boundary, for the next 20-30 years.
When a TIF district is set up, the property taxes from that area are split into two parts: the “frozen base” and the “increment.”
- Frozen Base: This money keeps going to local government agencies, like the City of Portland, Multnomah County, and school districts (such as Portland Public Schools, David Douglas, and Parkrose).
- Increment: As property values go up, the extra property tax money (called the “increment”) goes to Prosper Portland and the Portland Housing Bureau to invest in improvements to the district.
Once the TIF district ends, the property tax increment is given back to the local agencies.
Based on Oregon State law, TIF is limited to permanent, physical improvements and related investments within the district. This means it can help pay for things like loans or grants to businesses for building upgrades, or to property owners who want to fix or redevelop buildings. It can also fund things like buying and selling property for housing or business projects, building affordable housing, creating space for small businesses, and improving infrastructure (like parks, streets, sidewalks, and transit). TIF can also cover some project-related costs for managing these projects.
TIF cannot be used for things that aren’t physical improvements. For example, it can’t fund job training programs, business startup costs, non-physical services for renters or homeowners, or safety and cleanliness programs.
The City Council-approved set aside policy requires at least 45% of TIF resources across all TIF districts go to the Portland Housing Bureau to support affordable housing activities. The remaining 55% goes to Prosper Portland for economic and urban development.
Prosper Portland, the Portland Housing Bureau, and community work together to set a series of 5-year Action Plans throughout the life of each TIF district to determine priorities and investments based on what funds are available, what eligible projects are outlined in the TIF District Plan, and the needs of the community at that time. TIF funds can only be used for projects that match the TIF District Plan and 5-year Action Plan and can only be spent within the district.
All of the East Portland TIF districts adopted in 2024 and the Cully TIF district adopted in 2022 include a Governance Charter that requires a standing community committee to work with the City and make decisions about how to use the funds. The charter also describes the roles and responsibilities for collaboration between community members and City bureaus over the life of the district. In the Central City TIF districts adopted in 2024, the forthcoming Action Plans for each district will also establish the roles and process for community oversight of the investment of TIF.
Each year, the Prosper Portland Board of Commissioners and the Portland City Council approve the budget for each TIF district. The way funds are distributed is consistent with the TIF district budget and follows the priorities set in each district’s plan. Funding awards may include a competitive public process or in the case of loans or grants, will rely on program guidelines adopted by the Prosper Portland Board and reported on to the public.
Prosper Portland and the Portland Housing Bureau must make sure that investments match the community’s priorities in the Five-Year Action Plan and follow the goals of the TIF district plan.
The Prosper Portland Board is in charge of managing and authorizing TIF district expenditures and related development projects. Prosper Portland’s annual budget, including TIF districts, is reviewed by the agency’s Community Budget Committee, approved by City Council and the Tax Supervising and Conservation Commission (TSCC), and adopted by the Prosper Portland Board of Commissioners.
The Portland Housing Bureau manages the affordable housing TIF funds which are authorized by the City of Portland’s Executive branch.
Any new TIF district or major changes to existing ones must be approved by the City Council.
Prosper Portland has played a critical role, through its projects and programs, in the city’s coveted reputation for smart urban development, including delivery of affordable housing and improving the quality of life for all Portlanders. Investments in nationally recognized, partnership-driven projects like the Pearl District, Eastbank Esplanade, the Portland Mercado, Pioneer Courthouse Square, and the Leach Botanical Garden put Portland on the urban planning map and draw talent and attention to the city.
However, in the City of Portland and Prosper Portland’s history there are projects and investments that also caused harm with impacts that reverberate today. Some of the agency’s historic development work deemed thriving communities of color “blighted,” and vibrant, diverse neighborhoods like South Auditorium and Albina were destroyed in the name of progress.
In the early 2000s, Prosper Portland leadership recognized the need for change and started to review its approach and policies. Some of the key actions indicative of Prosper Portland’s move toward more equitable and inclusive practices include:
2005- 2009
Prosper Portland enters into the South Waterfront Central District Apprenticeship Agreement (2005), adopts a Business & Workforce Equity Policy across major investments and projects (2007), and adopts a Five-Year Economic Development Strategy (2009). These policy changes were a clear acknowledgement that achieving prosperity for all residents requires explicit investments in retaining and growing businesses and workforce, funding innovation, and continuing to invest in key transit, infrastructure, housing, and urban development projects.
2010-2014
Prosper Portland adopted the Neighborhood Economic Development Strategy (2011) and the Equity Policy (2013) to incorporate an equity lens as an essential tool in every project. This strategy also incorporated a different approach to partnership, employing the community-led, community-driven model demonstrated by the formation of the Neighborhood Prosperity Initiative districts (2011).
2015-2019
Prosper Portland adopted another Five-Year Strategic Plan (2015) and an Engagement and Communications Strategy (2016) to provide new models for building an equitable economy and a framework for a more clear and consistent way to talk about its work.
In 2018, a coalition of community-based partners in the Cully neighborhood approached Prosper Portland to explore a community-centered TIF district creation process that centers historically underserved, marginalized, and underrepresented community voices in that process. Prosper Portland participated in a co-creation model that centered those most vulnerable to displacement with an explicit goal of stabilization.
2020-2024
The Cully TIF District was adopted unanimously by City Council (2022). Responding to the impacts of the COVID-19 pandemic, City Council directed Prosper Portland and the Portland Housing Bureau to build off the co-creation model developed by the Cully TIF district process and conduct TIF Exploration work in both the Central City and East Portland (2023). These efforts involved extensive engagement with community and local government partners, which informed the development of a proposal for six new TIF districts, three within Central City and three within East Portland. The six new districts were unanimously approved by City Council (2024).
The East Portland districts (82nd Avenue Area, East 205, and Sumner-Parkrose-Argay-Columbia Corridor) will help address the urgent need to stabilize existing businesses and residents while supporting inclusive economic growth for current and future generations. The Central City districts (Westside, Central Eastside Corridor, and Lloyd-Holladay) aim to bolster opportunities for targeted public investments to move catalytic projects forward and create new, mixed-income neighborhoods on both sides of the Willamette River.
The Cully, 82nd Avenue Area, East of 205 and Sumner-Parkrose-Argay-Columbia Corridor (SPACC) TIF Plans take a targeted universalism approach. Targeted universalism means setting universal goals for a community and then developing strategies to achieve those goals, based upon how different groups are situated within society. By focusing energy on those farthest from the goal, the entire community moves closer to the goal.
Each of these plans aims to stabilize residents and ensure each neighborhood provides a sense of belonging for everyone. To move the community toward this goal, energy must be spent on those historically marginalized, made invisible, or most at risk of displacement. The definition of “Priority Communities” varies slightly for each district, and each was developed in collaboration with partners representing those communities and explicitly states who is intended to most benefit from each district’s TIF resources.
In Cully, “Priority Communities” refers to the intended beneficiaries of the Cully TIF District: African American and Black persons; Indigenous and Native American persons; persons of color; immigrants and refugees of any legal status; renters; mobile home residents; persons with disabilities; low-income people; houseless people; and other population groups that are systemically vulnerable to exclusion from Cully due to gentrification and displacement.
Prosper Portland’s use of TIF resources has been progressive. TIF has supported Action Plans in Old Town, North/Northeast, Gateway & Lents with goals like affordable commercial tenanting and investments that align with the agency’s strategic goals for healthy neighborhoods and widely shared prosperity.
In 2011, the creation of the Neighborhood Prosperity Network employed a community-city partnership to build capacity for community-specific economic development. The shift in TIF usage also redirected focus toward low-income populations and communities of color. However, these NPN districts are small and limited in duration, generating very modest tax increment finance revenue over a decade. The Cully TIF District area contains two NPNs, Our 42nd Avenue and Cully Boulevard Alliance.
The Cully TIF District proposal could bring new resources to help stabilize Cully residents and businesses vulnerable to displacement. It’s important to ensure community members can stay and benefit from the prosperity that inevitable growth can bring, rather than be pushed out and replaced by it. The proposal was created using a co-creation model and the process was community-led. If adopted, a new Community Leadership Committee will guide decision-making related to the use of TIF funds for the life of the district.
- The development of Gateway Discovery Park and the adjacent The Nick Fish mixed-use housing project were collaborative, multi-partner, community-driven efforts involving considerable engagement with neighborhood businesses and community members.
- The North/Northeast Action Plan Leadership Committee works in partnership with Prosper Portland to implement the Action Plan for the N/NE Community Development Initiative for economic development in the N/NE Interstate Corridor. The Initiative has focused on TIF-eligible, “bricks & mortar” development projects and prioritizes non-TIF investments that support Initiative goals, such as business technical assistance. The committee leads with a focus on engagement with communities of color; supports partnerships with community-based organizations and leaders; provides recommendations on Action Plan direction and investment priorities; identifies service providers to advise on Action Plan implementation; assesses progress; and makes recommendations to improve impact.
No. We are intentionally not using TIF in the traditional way but rather to stabilize Cully residents most vulnerable to displacement as continued growth and increasing property values inevitably come to Cully. A stabilization-focused TIF District won’t stop growth and density from coming. Instead, as growth comes, we want to ensure folks can stay and benefit from the prosperity that growth can bring, rather than be pushed out and replaced by it.
Milestones
The Cully TIF district was established by City Council in November 2022.
The CLC will inform and provide oversight of five-year Action Plans that advance the goals in the Cully TIF District Plan.
The Community Leadership Committee will identify specific priorities, projects and investments for the first five years of the Cully TIF District.