PDC Proposes Mortgaging Parcels to Pay for Streetcar Extension

PORTLAND-The Portland Development Commission next week will consider a proposal to mortgage the last two parcels in RiverPlace to generate $5.25 million that would help pay for the extension of the city’s streetcar line into the district.

Larry Brown, development manager for the city’s urban renewal agency, tells globest.com that the move could more than double the value of the parcels, which will eventually be sold off to developers for apartments, office space and community retail. Now, because of a lack of good road access and mass transit, the parcels, which total 3.3 acres, are worth about $30 per sf. With the streetcar running close by and other roadway improvements that will be forthcoming, Brown says the value of the property could rise by at least $10 per sf and as much as $40 per sf, more than offsetting the mortgage interest.