Developing dilemma
Project sparks debate over future of 'gritty' Old Town neighborhood
Portland Business Journal - by Andy Giegerich Business Journal staff writer
Cathy Cheney | Portland Business Journal
Ryan Buchanan can't imagine a better place to do business in Portland.
Buchanan, CEO of interactive marketing company Eroi Inc., and several investors acquired four contiguous buildings in Portland's Chinatown neighborhood last year. He loves the neighborhood for its ample eatery options, its proximity to downtown and its grit.
"We know there's a lot of transitional stuff the area's working on, but from a creative standpoint, it's great," said Buchanan, who has moved his fast-growing company there.
Yet as fledgling businesses like Eroi enter the hard scrabble Chinatown and Old Town areas, worlds have collided, leading some to wonder whether the area can enhance Portland's commercial climate.
As a proposed $15 million-plus homeless services center espoused by Portland City Commissioner Erik Sten gains more attention, some say the neighborhood's emerging issues smack of gentrification that pits developers against the homeless.
They also believe the impending City Council decision over the center's proposed Northwest Glisan Street site will indicate whether the area will remain an epicenter for human and social services or become, like the abutting Pearl District, an economic powerhouse.
The access center would try to help homeless persons attain housing. It would also provide health-related services and job-training programs. The 18,000-square-foot facility could include three floors of low-income and work force housing, including one floor dedicated to housing homeless women.
Neighborhood business owners are haltingly backing the notion partly because they fear that Sten could politically thwart more development in the area. Sten heads a committee that's considering whether to annex Old Town and Chinatown into the River District urban renewal area.
Nonetheless, opponents say the center could actually deter growth because it would sit on the so-called Block 25, considered a prime real estate location. David Gold, one of Buchanan's co-investors and a developer who owns several neighborhood properties, said he'll back the plan if neighbors eventually do so, but he sees better options for what's effectively Chinatown's north entrance.
"I just think that other locations that aren't on the tipping point of development would be more appropriate," said Gold.
Sten doesn't buy the argument because the center would look like a glossy condominium building designed to contain the sprawl of people now on the streets.
"For decades, this gateway has been this decrepit block, and the idea is to build something nice and architecturally significant," he said. "I think people are confusing form and function."
Does it fit?
Old Town and Chinatown have long provided a haven for social services. Transition Projects Inc., which would provide services in the new center, is there, as are Sisters of the Road and Central City Concern.
Yet it's also home to such splashy new developments that will house the University of Oregon and Mercy Corps International. As a result, some say the access center may not be a perfect fit with the changing neighborhood.
"We were blindsided by this," said Carol McCreary, a neighborhood activist. "This is a neighborhood that meets all the time and does extensive research on complex issues."
While Sten's Jan. 9 appearance before the neighborhood's top planning group mollified matters a bit, opponents say he failed to consult the neighborhood's long-term planning edicts before siting the project there. It could tilt the balance of services and affordable housing allowed under their "Visions" plan.
Some neighbors preferred several other neighborhood blocks for the proposal. Others argue that the center's services menu would attract too much foot traffic. The center would include a cyber cafe, a Laundromat and pet day care spaces.
Buchanan said many business owners support the area's social services cadre but believe the city could spread some programs more evenly across downtown.
"There's a lot of great high-paying jobs" moving into the area, he said. "It would be a shame to slow that momentum down with something that kind of takes it in the opposite direction."
Yet supporters say businesses will benefit simply because the center, which would offer services from the homeless advocacy group Transition Projects Inc., would eliminate groups from forming on the sidewalks. The move would ostensibly make the area more palatable for retailers.
Howard Weiner, owner of Cal Skate Skateboards, said the center will help the neighborhood retain its current balance.
"I want to see a neighborhood that is supportive of business but at the same time supports social services," he said. "We have that, plus we have a thriving nightlife district."
Different sites
The area also has several empty sites that, detractors say, might be better for a new homeless center. Along with Block 25, Sten had considered siting the center on the A & N Block at Northwest Third Avenue and Glisan and the Block P site, the northeast corner of Northwest Fourth and Glisan.
But the A & N site was judged too difficult for residents to reach. The city also couldn't reach a deal to purchase the Block P site, owned by the Goodman family.
"I think [opponents] believed it would go on one of the other blocks, but they were going on a wish and a prayer," said Doreen Binder, executive director for Transition Projects Inc. "There are so many variables here that we have to be more open-minded and more conscious about what this means."
Binder is keeping a close eye on the possible urban renewal designation.
The Old Town/Chinatown area would benefit from an urban renewal annexation because it would fold into the River District area. The River District includes the Pearl District, which, because of its myriad projects, could generate a steady stream of tax-increment revenue that could help better develop Old Town/Chinatown.
However some feel Sten "horse-traded" the center's construction for the potential urban renewal bounty. Sten disputes the characterization, saying that the City Council would never approve expanding the boundaries without providing improved homeless services.
In the meantime, neighbors are making one last push to promote other potential access center sites, including one next to Portland's Union Station.
Plus, Commissioner Randy Leonard wants to relocate a women's center to Northwest Fifth Avenue.
agiegerich@bizjournals.com | 503-219-3419
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