In defense of the PDC

By Pat Mobley of Portland, Oregon who is a political organizer, a student in the Portland State MPA program, and has been a student employee of PDC for eight months conducting the Central City Housing Inventory. [Editor's note: Presumably, Pat doesn't speak for PDC - and his remarks are his own.]

The Portland Development Commission. Nothing stirs up as good conversation around the bbq pit.

How soon we forget that the PDC has help provide more affordable rental units in the past 5 years than at any time in its history. More businesses have received grants and loans. More low-income home owners live in dignity with the home repair program administered by NHP. More first-time home buyers have created wealth with assistance from PDC administered loan programs.

When will the ever-diligent, public servants get the good nod from the press, City Council, and Portland at large? There are over 180 employees at PDC. The bad press seems to be coming out of alleged missteps from the "top," the "executive" level of the organization.

Why not get rid of the titles, or the executive level at the top? Don't get rid of the PDC.

All you're saying is that the overwhelming majority of the dedicated public servants who actually do the heavy lifting are not worth keeping, are not doing the public good. Will we ever get over our belligerent need for pyramids of power and authority?

  • jim karlock (unverified)
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    Pat Mobley: How soon we forget that the PDC has help provide more affordable rental units in the past 5 years than at any time in its history.

    JK: OK, but how many did they tear down by spearheading redevelopment? How many low income people are being driven out of the Interstate avenue area due to PDC and the urban renewal district causing rising housing costs? Shouldn’t we be promoting home ownership instead of rentals?

    Pat Mobley: More businesses have received grants and loans. More low-income home owners live in dignity with the home repair program administered by NHP. More first-time home buyers have created wealth with assistance from PDC administered loan programs.

    JK: Peanuts to the masses while well connected developers gets millions for grandiose schemes in the Pearl and N. Macadam. PDC has set up a scheme to keep $57 million in collected tax money, every year, in special districts to pay off brand new infrastructure while the rest of us have to pay for their basic services. This is the wonder of Urban Renewal Districts.

    Pat Mobley: When will the ever-diligent, public servants get the good nod from the press, City Council, and Portland at large? There are over 180 employees at PDC.

    JK: All of whom are contributing to the demise of Portland by taking money out of basic services such as police and fire to put into special districts (urban renewal districts).

    Pat Mobley: The bad press seems to be coming out of alleged missteps from the "top," the "executive" level of the organization.

    JK: A good start would to be to fire all of the top management. Then we should kill off the leaderless organization.

    Pat Mobley: Why not get rid of the titles, or the executive level at the top?

    JK: A good start.

    Pat Mobley: Don't get rid of the PDC.

    JK: Why not? It would be a good start, 100 planners could be next. Then we could go after the $20 (or so) million that Metro spends on planning every year.

    Pat Mobley: All you're saying is that the overwhelming majority of the dedicated public servants who actually do the heavy lifting are not worth keeping, are not doing the public good.

    JK: What public good? Diverting $57 million in property tax money into their special districts while the rest of the city suffers the lack of basic services?

    Pat Mobley: Will we ever get over our belligerent need for pyramids of power and authority?

    JK: Shut down the primary source of pyramids of power and authority - the PDC.

    Thanks JK

  • waste more (unverified)
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    This is classic. All this guy is doing is offering up the phony shroud the PDC hides behind. Here we have a PDC employee, very likely spending work time with other PDC employees, using all the PDC rhetoric to spew out publicly funded self promotion. And status quo loving BlueOregon is only too happy to accommodate them. What a joke.
    The PDC is a cancer, using BS to promote a Tram, high rises, fat cat developers, Biotech (which is not not coming), Urban renewal as free money, schemes beyond belief and all with no consequences for any of their employees. Even their less offensive activities and total efforts get no genuine assessment of the bottom line, net outcome. What an absolute con job.
    If anyone thinks the trouble at the PDC is limited to a few employees and that PDC missions and activities are sound then you are either asleep or a beneficiary of the scandalous agency. The PDC lie machine used to push South Waterfront alone has been monumentally corrupted and will ultimately cost the public hundreds of million of dollars with a relatively paltry, (if noticeable at all) return in public benefit.

    Shame on BlueOregon for propping this mess up.

  • Don Erickson (unverified)
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    Wow! It sounds like JK and Waste More are not real fans of PDC nor do they seem to have a very informed understanding about how this unique public agency funds their work. 75% of their resources come from Tax Increment Financing bonds. "As property values increase with the new investment, the rise in property tax revenues-or "tax increment "-goes to pay off the bonds." Only about .6% of the PDC budget comes from the City of Portland General Fund.I got the above information off the PDC wedpage at http://www.pdc.us/

    One of the other resources that I found on the PDC webpage is a 10 week class given through PSU for community activists about Urban Renewal in general and PDC activities specifically. There are even scholorships available for person that are not pursuing a degree at PSU. One of the most important tenants of warfare is to know your enemy so I would suggest that JK and Waste More attend this class. Even they could not or would not attend the class it would be helpful to at least read PDC's webpage.

    By the way am not now nor have I ever been an employee, consultant, or in any way connected by family or friends with PDC. I fully support Pat's comments concerning the dedicated professionals at PDC and the many benifits this agency has contributed to the increased quality of life in Portland.

  • Chris McMullen (unverified)
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    The City Club has done an extensive report on the effectiveness of the PDC. They found that although the PDC has made positive contributions in the way of redevelopement of dilapidated areas, there was no evidence that PDC projects increase tax revenues or add to the city's economy. Moreover, Urban Renewal Area property values did not increase at a faster rate than non-URAs.

    And judging by the sorry state of Portland's economy and high unemployment, it looks like the PDC has contributed to our lagging economy (other than providing short-term contruction jobs and lining Homer William's pocket).

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    They found that although the PDC has made positive contributions in the way of redevelopement of dilapidated areas, there was no evidence that PDC projects increase tax revenues or add to the city's economy. Moreover, Urban Renewal Area property values did not increase at a faster rate than non-URAs.

    This doesn't offer quite a complete picture. First, one can't simply compare URAs to non-URAs, because in theory URAs are supposed to be designated in areas which would not develop on their own, or at least not as quickly as other areas. The only way to try to judge their effectiveness is to determine whether or not a URA would have developed without the designation as a URA, not to compare a URA to a non-URA part of town.

    That's not to say I know the ultimate answer to that question. Just to say that the comparison of URA to non-URA is next t useless as a guide, since it's possible that the URA would never have developed without the designation, while the non-URA to which it's being compared didn't need a URA designation to develop. There's a great potential for comparing apples and oranges here.

    Judging an increase of tax revenues is also tricky, because so many URAs are unexpired and therefore of course are not returning any increases in value in the form of taxes, since the increase goes to pay off the urban renewal bonds. Again here, the only way to judge is to determine whether or not that development in a URA (or, rather, the same or greater value of development) would have happened in that area without a designation as a URA.

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    "...status quo loving BlueOregon is only too happy to accommodate them. ... Shame on BlueOregon for propping this mess up."

    A brief comment on the above: BlueOregon doesn't take a position on the PDC. BlueOregon doesn't take any positions at all. As I've said before, BlueOregon doesn't even go out for donuts.

    Reasonable people can disagree about the methods and mechanisms of urban development. As others are doing in this forum, I'd prefer to see the discussion happen on the merits.

  • waste more (unverified)
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    Don,

    Thanks for the kindergarten lesson on TIF.

    Unfortunately it is you who has very little understanding of PDC funding and TIF. Or you are just another shill for the agency and are just repeating some of their favorite and deliberate misrepresentations.

    Urban Renewal and TIF in Portland encompasses many hundreds acres of primarily built out section of the city most of which pay property taxes which automatically rise at least 3% every year. Additional increases come from new construction, redevelopment and renovation.

    This is important to grasp so pay attention.

    Every property in the city, unless exempted or publicly owned, pays property taxes which go to general fund budgets such as police, fire, schools, parks and libraries. Those same property taxes rise every year so the revenue for those basic services rises as well.

    In the 10 urban renewal districts, along comes TIF and those yearly increases, destined for general fund budgets, get diverted into the Urban Renewal for the PDC to spend.

    That's general fund money, diverted just prior to getting into the general fund budgets, being devoured by the PDC. No ifs ands or buts.

    As you stated "75% of their resources come from Tax Increment Financing bonds"

    The PDC would have everyone believe no property value increase happen without PDC "investment". Balderdash. The county assessors office increases most properties values 3% per year. Again, those increases would mean more for basic services if not for TIF.

    Here you really drink the cool-aid -------- "Only about .6% of the PDC budget comes from the City of Portland General Fund.I got the above information off the PDC wedpage at http://www.pdc.us/ "

    No, you drank the cool-aid. The PDC is ripping off every basic service most people want more funding for.

    I'm shocked! The PDC web page? Imagine that. The PDC telling the public they use very little general fund money. They avoid blatant lying only by taking the money before it gets to any general fund. The PDC is a center for dishonesty and unethical behavior.

    The fact that PSU has a "10 week class" trying to indoctrinate people with their BS says only that PSU is equally unethical and dishonest. But then because I do homework I know PSU is also entirely conflicted in interests. Entangled with the PDC, PSU has and is currently siphoning away millions in TIF money for their ventures. The "activists" are drinking the cool-aid and learning to BS.

    The problem you obviously have Don is you do no homework. You have "read the PDC web site" but did no homework.

    Don't be so afraid of knowing what the PDC has been and is really doing behind that lovely curtain you see. Think in net terms and discover the costs and harm is far greater than the pitiful yet wildly embellished benefits.

    Mr.Chisholm, you certainly know the PDC game. Why would you facilitate more of their charade?

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    In the 10 urban renewal districts, along comes TIF and those yearly increases, destined for general fund budgets, get diverted into the Urban Renewal for the PDC to spend.

    ...

    The PDC would have everyone believe no property value increase happen without PDC "investment".

    Actually, I don't know anyone who says that no increase would happen. What's argued -- and what's the premise of urban renewal -- is that more increased value can be created in certain areas by making them URAs than would have occurred otherwise.

    Which is why I said that unless it can be determined whether or not that premise is true for any given URA, there's no way to legitimately claim that the growth and development would have happened otherwise.

    Again, that's not me arguing that every URA was or is necessary. It's just me arguing that people keep mis-communicating how TIF works. The question is: Does it "divert" money that could go to the various taxing jurisdictions? And the answer is: It depends on knowing whether the growth which created the value would have happened without the URA.

    Does property essentially get a 3% increase anyway? Sure, ok. But if in Year Z there's more property in an area than there was in Year X, there's more taxes coming from that area as well -- so, again, the question is whether that new property would have appeared absent a URA designation.

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    Also, for whatever it's worth, some versions of URAs actually do return a portion of the increased value -- the tax increment -- back to the taxing jurisdictions, rather than funneling all into paying the renewal bonds.

  • jim karlock (unverified)
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    Don Erickson: Wow! It sounds like JK and Waste More are not real fans of PDC nor do they seem to have a very informed understanding about how this unique public agency funds their work. 75% of their resources come from Tax Increment Financing bonds. "As property values increase with the new investment, the rise in property tax revenues-or "tax increment "-goes to pay off the bonds." Only about .6% of the PDC budget comes from the City of Portland General Fund.I got the above information off the PDC wedpage at http://www.pdc.us/

    JK: That is a lie by omission. What they left out is the $62 million taxes that property owners in urban renewal districts paid, but was grabbed by the PDC instead of going to pay basic city services such as police and fire.

    JK: See an independent report generated by an agency of Multnomah County. Download the 2004-05 Annual Report from the Multnomah County web site: http://www.co.multnomah.or.us/orgs/tscc/financialinfo.html On page 104 you will find that 51% of their revenues come from Tax Increment Proceeds. That is money that could have gone to local government. (All page numbers are the PDF page, not the document page#)

    JK: Pages 37-41 cover Portland’s UR districts. On page 41 you will find that all UR areas collected $47.6+$14.4 =$ 62 million from Portland property owners. That is the money that otherwise could have been available for basic government services like police, fire, welfare, jails (we are still ticketing car thieves) and maybe some school expenses (I get unclear answers as to whether school money is exempt)

    JK: Also look at the map at the top of page 104. It shows 10 UR areas including MOST OF DOWNTOWN Portland, Interstate avenue (which was formed to raid $30 million to build Vera’s toy train), Airport Way which was used to turn some of the best farmland in the state into an industrial area (so much for saving our farmland) and N.Macadam which was formed to redevelop the area with $260 million in TIF money after the original owners proposed a development plan, WITHOUT tax money, which the city planners didn’t like even though it met all of the existing criteria. Had the owners been allowed to implement their plan, they would now be paying property tax to basic services, instead of this area being a drain for the next 40 years.

    Don Erickson: One of the other resources that I found on the PDC webpage is a 10 week class given through PSU for community activists about Urban Renewal in general and PDC activities specifically. There are even scholorships available for person that are not pursuing a degree at PSU. One of the most important tenants of warfare is to know your enemy so I would suggest that JK and Waste More attend this class. Even they could not or would not attend the class it would be helpful to at least read PDC's webpage.

    JK: That class sounds like a hoot, I think I’ll look into it.

    Don Erickson: By the way am not now nor have I ever been an employee, consultant, or in any way connected by family or friends with PDC. I fully support Pat's comments concerning the dedicated professionals at PDC and the many benifits this agency has contributed to the increased quality of life in Portland.

    JK: by “increased quality of life in Portland”, do you mean strangling basic services? Or do you mean the ability to hop on a toy train at public expense to the tune of 80% of the cost? (See page 94 pie chart) Also on page 94 you will find another deception. The number reported as “ridership”(312,542) is actually boardings which is any person boarding a trimet transit vehicle, so people who transfer are counted once for each time they board. This can be stepping on a bus then a toy train then another bus before one trip is completed for a count of three. Also rider ship counts you as you go to work and again when you go home, so the real number of complete trips is 156 thousand if there were no transfers. The real number of people served every day is probably around 100,000. That is of course a SINGLE digit percentage of area population. A single digit % of region trips for only about $1/2 BILLION (page 95 ). Just think: we could serve all of Portland’s trips for, probably, only $10 BILLION. (That is why mass transit is unaffordable and thus unsustainable.)

    Another fun thing is on page 164: Portland School District has 4,897 employees and 44,138 students. Do the math: 9.01 students per employee. (So why is class size a problem?). You can find that the total outlay is $577,609,062 (page 165) and do the math: $13,086 per student.

    Do you suppose some parts of local government has a spending problem???

    JK

  • waste more (unverified)
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    Mr. b!x, What are you smoking? It's amazing how bone headed supposedly informed people can be on subjects like this. It's almost as if you in particular are deliberate.

    You state, "The question is: Does it "divert" money that could go to the various taxing jurisdictions? "

    In what wild and bazaar convolution do you think this question is anything but ridiculous? It's like asking, does the sun rise in the East? Of course the money is diverted and it is for 20 years or more in all of the many districts. The reason people have difficulty understanding UR is because the PDC et al. on the misunderstanding. You are helping them.

    Why can't you and others be honest and have the discussion with the correct framework?

    The fact is there are (vast majority) thousands of current, existing tax paying properties in Portland UR districts which have nothing to do with any PDC activities, projects, investments or anything. ALL of those properties are ALSO having ALL of their annual value increases, over those same 20 years, diverted away from basic services. ANY and ALL increased value from ALL new & renovation work having nothing to do with PDC and UR is also diverted from basic services.

    Now if you are incapable of understanding this then seek professional help of get some ethics.

    I read recently that South Waterfront alone has over 400 acres. Now try and consider that all of the existing property values within that 400 acres. All of them are will have their increased values diverted away from basic services for 20 years or more. Now you tell me. How in the hell is the PDC or anyone planning to cover that tremendous loss to basic services? Answer, they aren't. They also are not making it clear to the public that are diverting the money in the first place. They are also scamming the public with the perpetual tax funded deception campaign to create the misperception they are helping to actually increase revenue. In reality the NET effect is a mounting fiscal disaster.

    You (answering your ?) state, "And the answer is: It depends on knowing whether the growth which created the value would have happened without the URA."

    No, that is not the answer. That only applies to properties PDC either participates in or can be shown to be effected by same. Further scabbing the public, the PDC perpetual deception campaign casts out falsehoods about every development they participate in not happening without the public "investment". No matter how prime the property, how non blighted, how viable private development may be.

    Then on top of that the PDC NEVER NEVER NEVER fully assesses the complete public investment. Short term, long term or any term. NEVER. I have yet to see a report on a single PDC venture with the total public costs assembled with clarity. Land, cost of money over time, direct UR money spent, all associated infrastructure costs, tax exemptions, property taxes over time etc. In usual PDC fashion the collection is never complete and so muddled the only thing clear is the obscurity. All the while it's, "Look at all wonderful things we are doing". Or "our staff is dedicated". I don't fault most of the PDC 200 employees trying to do their job. But having talked to PDC employees unwilling to come I know for certain that many of them know exactly what is going on and it aint pretty or honest.

  • waste more (unverified)
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    unwilling to come "out"

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    ALL of those properties are ALSO having ALL of their annual value increases, over those same 20 years, diverted away from basic services. ANY and ALL increased value from ALL new & renovation work having nothing to do with PDC and UR is also diverted from basic services.

    Of course. Because that's above the capped value at the time the URA was created. Your problem isn't with PDC, but with state law regarding how urban renewal functions. People can't complain about PDC doing what the law charters it to do unless they want to be viewed as cranks.

    If you dislike state urban renewal law, thats entirely fine by me. But then rant against that, not against PDC operating based upon what the law chartered it to do.

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    Also conveniently left out of this by the cranks is any discussion of how it was crank-induced changes to state laws regarding property taxes which helped screw up how URAs function. Talk about a lie by omission.

  • jim karlock (unverified)
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    b!X Also conveniently left out of this by the cranks is any discussion of how it was crank-induced changes to state laws regarding property taxes which helped screw up how URAs function.

    JK Be aware that measure 5 shut down urban renewal. A later, Sizemore measure opened the door for the legislature to rivive it. allegidly with the help of Katz, Leonard etal.

    Thanks JK

  • more waste (unverified)
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    one false b!x,

    Get over yourself and try and grasp the magnitude of PDC's abuse of Urban Renewal through their perpetual public deception about it.

    The posts here are perfect example of their handy work.

    Yours in particular when your ---"The question is: Does it "divert" money that could go to the various taxing jurisdictions?

    Saying it "It depends" is untruthful and serves only to echo the deception coming from the PDC posted in this thread.

    ---"Only about .6% of the PDC budget comes from the City of Portland General Fund.I got the above information off the PDC wedpage at http://www.pdc.us/ "----

    That is a crock and you know it. The bulk of PDC money comes directing from money heading to basic services.

    Quit BSing people with your crap on top of the PDC's.

    It isn't the legislature abusing urban renewal and lying every step of the way. It's the PDC, city planners and City Hall. Calling everything blight, diverting excessive and damaging amounts from basic services and spending like crazy on crazy ideas. Urban Renewal is about to help pay for the ultimate illegitimate nonsense, the Tram. I'm not sure what is in the mix with the ignorance and dishonesty propping up the PDC and Urban Renwal abuse but it is BS.

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    First, I would like to answer the charge that I unethically used the 'people of portland's' bandwidth. I did not post from inside the walls of PDC.

    You can find the State enabling statutues of urban renewal in ORS 457. Section 15 of Portland's charter picks up from there to establish the PDC. An even better read is Shilo Inn Portland/205 v. Multnomah County, SC S46816 , SUPREME COURT OF OREGON , 333 Ore. 101; 36 P.3d 954; 2001 Ore. LEXIS 998, May 15, 2000, Argued and Submitted, December 20, 2001, Filed.

    The main premise of both JK and more waste, as I understand it, is that property taxes are diverted from other government services like police and fire. I agree, and would like to further argue that my tax dollars are being diverted from affordable housing, healthcare, and roads and into the cofers of education, police, and fire. O.K. I got a little reductio ad absurdum there. You are both correct. Tax policy in this City and this State is in serious need of review. I look forward to Mayor Potter's City Charter Commission.

    Finally, there are different ways the tax increment financing is structured. For example, there are urban renewal areas where a certain percentage of the increment is returned to other taxing jurisdictions along the way.

  • waste more (unverified)
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    Pat,

    That's it?

    Do you fully understand that the PDC/Urban Renewal is siphoning away many millions in property taxes from ALL existing properties in UR districts? And that they are spending it on Tram like ventures.

    You don't seem to grasp and engage the realities JK and I have presented.

    What's the problem?

    As far as when or where you are "defending" the PDC they have full timers working full time to spread the same propoganda.

    <h2>The tax systemis not the problem. Run away dishonesty is.</h2>
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