← Nov-Dec 2015 Newsletter

Mayor's Teardown Tax Riles Developers and *The Oregonian*, Energizes United Neighborhoods for Reform

On the subject of destroying older, viable homes to make way for spendy new ones that dwarf surrounding residences, no Portland politician has been more outspoken in opposition and resolute in doing something about it than Mayor Charlie Hales. Undaunted by building industry pushback in an election year, the Mayor floated the idea of levying a $25,000 tax on every demolished home, with a rebate if one house is replaced by two. Not surprisingly, the proposal was lambasted by developers as “irresponsible” and “overreaching” and by the editorial board of The Oregonian as “half-baked” and “cavalier in its conception.” But Hales stands firm in his conviction that most of these homes are “worth keeping” and forewarned that “tearing down a house that has value…is going to sting a little, maybe more than a little.” At stake is the landscape and character of neighborhoods.

Instrumental in planting the demolition/development reform seed at City Hall has been United Neighborhoods for Reform (UNR), the grass roots lobbying organization launched by Beaumont-Wilshire, whose resolution to save viable, affordable houses has garnered support from close to half of the city’s neighborhood associations. UNR was instrumental in shoring up the demolition-delay process, requiring hazardous materials inspections at demolition sites (albeit via “self-certification”), and—with a big assist from Mayor Hales— launching a 26-member Residential Infill Project Stakeholder Advisory Committee (RIP SAC) charged with advising the Bureau of Planning and Sustainability on: code revision that could limit mass, footprint, and height of homes commensurate with the surrounding houses. It’s definitely progress for the UNR agenda, but of little comfort to distressed residents who sit by helplessly as relatively affordable homes continue to be leveled.

The idea of a tax on demolitions is seen by UNR as having the potential to curb demolitions. A rebate for additional houses is opposed by UNR. This rebate could greatly increase demolitions because underlying significant numbers of inner eastside neighborhoods are historical lot lines that make it easy to divide lots into much less than 5000 square feet. An advantage of the demolition tax idea is its immediacy. This issue is too urgent to wait for the RIP SAC to finish its work.

At City Council on October 14, several members of the UNR steering committee argued for a higher tax, $35,000, as a disincentive more likely to be big enough to slow demolitions. A very useful discussion by all at City Council resulted in many ideas to consider that may strengthen the tax, such as giving a rebate based on the size of the new house—the smaller the house the bigger the rebate. All commissioners seemed to agree that this is an important topic that needs serious consideration. Discussion at City Council will continue as ideas are considered, modified and vetted for operational efficiency.

UNR is very supportive of the Mayor’s initiative with this tax. It is with great interest that UNR looks forward to substantive and meaningful discussions about this idea to slow down the rate of demolitions.

This article appeared in the Nov-Dec 2015 issue of the BWNA Newsletter.

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