Tax Abatement Recommended for Brewery Block #5

PORTLAND-Gerding/Edlen Development Co. will likely be enjoying a $4-million-plus property tax abatement for the final piece of its five-block redevelopment of the former Blitz-Weinhard Brewery on the Northwest edge of Downtown Portland.

Known as Block #5, the final piece of the puzzle will be a $60-million apartment project that is scheduled to get underway in the next several weeks. The building will have 245 units on 15 floors and just less than 28,000 sf of ground floor retail space. The project designer is GBD Architects.

According to Gerding/Edlen, the project’s internal rate of return with the 10-year property tax abatement is 8.99% during the abatement. Without the abatement, Gerding/Edlen figures the IRR at 5.43%. “The project is not feasible without the abatement,” states PDC Executive Director Don Mazziotti in recommending the commission approve the abatement.