East Portland TIF Districts

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East Portland TIF Districts2025-02-07T14:45:11-08:00

East Portland TIF Exploration

Contact: Roger Gonzalez, or Kathryn Hartinger –  email

In October 2024, Portland City Council voted to approve the establishment of six new Tax Increment Finance (TIF) districts that will spur economic growth, create jobs, and invest in a range of affordable housing options in both Central City and East Portland over the next 30 years.

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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.

These districts will begin collecting tax increment on July 1, 2025. Initial resources will be limited in the first five years but will increase over time. The implementation of the new TIF districts will start in 2025 with the formation of Community Leadership Committees (CLC), groups of community members with lived and professional experience, as well as connection to specific district, who will guide implementation.

Each district will have a dedicated CLC and each’s first task will be to develop a 5-year Action Plan for their respective district. Action Planning is a budgeting and prioritization process done in coordination with community stakeholders to identify how to spend anticipated resources over the next 5 years, based on what types of investments are eligible as outlined in each TIF district plan.

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Process Summary

On June 28, 2023, Portland City Council through Resolution 37623 directed Prosper Portland to “pursue analysis and creation of new Tax Increment Finance districts to advance equitable development and inclusive growth in East Portland and the Central City.”

The East Portland TIF exploration was directed to consider up to 7,500 acres of available land area and up to approximately $6 billion in available assessed value for up to three new districts.
An overarching East Portland Steering Committee was convened in July 2023 and identified three areas for further exploration: East of 205, Parkrose/Columbia Corridor, and 82nd Avenue. As part of the engagement process, the steering committee was chartered to:

  • Advise on and review engagement processes;
  • Allocate available acreage (land area) and assessed value for further study;
  • Provide guidance to working groups on issues that arise with implications across districts;
  • Support community-led working groups conducting exploration processes; and,
  • Ensure any TIF plans resulting from exploration align with City Council guidance.

District-specific Working Groups were selected through an open call process, ensuring key partners and community representatives with deep knowledge of their respective geographies, and the diverse communities within those geographies, would lead the work. The three Working Groups kicked of their work in fall of 2023, charged with:

  • Understanding the TIF district creation process and leading deep dive community district exploration conversations;
  • Coordinating district-focused community engagement and advising on contracts with community-based organizations and support public events;
  • Determining whether to move forward with a TIF district plan and, if supportive, co-creating plan documents with Prosper Portland and City staff for consideration by the Prosper Portland Board of Commissioners and City Council.

The robust effort to engage the broader community in the TIF exploration process included hiring a community-based project manager to facilitate engagement opportunities and be a resource for the community throughout this process. The project manager developed a community survey, developed a short YouTube video, and worked with the Neighborhood Prosperity Network organizations to host a series of community open houses.

Prosper Portland and City staff facilitated a range of activities related to TIF exploration, including events, twice-monthly virtual office hours, regular email updates to interested parties, one-on-one conversations with community members, and briefings to community organizations. In addition, Prosper Portland contracted with a dozen community/culturally specific organizations to partner on outreach and engagement.

City Council approved the proposed districts on October 30, 2024.

Engagement Opportunities

Community Leadership Committee

A Community Leadership Committee (CLC) will provide guidance and oversight on implementation of the East Portland TIF District Plans. The groups will convene in 2025 and begin work developing district action plans, which will identify specific investments for a five-year period.

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 will be posted here when available.

Project Documents

Meetings

There are no upcoming events.

Frequently Asked Questions

What is the purpose of a TIF district?2025-02-04T10:06:53-08:00

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.

Is this a new tax or levy/fee?2025-02-04T10:08:14-08:00

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.

How does Tax Increment Financing (TIF) generate revenue?2025-02-07T15:52:52-08:00

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.

TIF infographic

What can TIF Fund?2025-02-04T09:55:40-08:00

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.

What is the process for fund distribution?2025-02-04T10:12:12-08:00

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.

What is the process for accountability?2025-02-04T10:15:10-08:00

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.

How has Prosper Portland’s use of TIF evolved?2025-02-04T09:56:24-08:00

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 and East Portland TIF Districts focus on “Priority Communities.” What does that mean?2025-02-04T09:56:44-08:00

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.

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