The need for the proposal has been expected since Dec. 20. That's when the Oregon Supreme Court decided a 1998 brought against the PDC, the city and the county by Shilo Inns, which owns property in the Airport Way Urban Renewal District. In reversing a ruling by the Oregon Tax Court, the Oregon Supreme Court decided that the PDC did, in fact, collect its funds from Shilo in violation of Measure 5, a property tax limitation measure passed in 1990.

The public agencies plan to ask the court to reconsider the decision. If it stands, the issue will return to the Oregon Tax Court, which then must decide to broaden the case based on the Oregon Supreme Court's decision. If the case is broadened to look at more than just Shilo, the PDC could be forced to refund tens of millions of dollars to taxpayers.

Nearly half of the 70 projects proposed for indefinite suspension are in the Lents Urban Renewal District in North Portland. Also seriously affected would be the Interstate Urban Renewal District, also in North Portland, though work on the Interstate light rail line would continue.