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Tax Abatement for 22-Story Apartment Tower in Limbo

PORTLAND, OR-The city council did not vote as expected on a 10-year property tax waiver for what would be the first apartment project in the South Waterfront District. Instead, the developer was asked to increase the size of some of the affordable units in the project that make it eligible for the waiver.

By Brian K. Miller | Updated on August 18, 2005

PORTLAND, OR-Trammell Crow Residential will find out next week if it will receive a 10-year property tax abatement for what should be the first apartment tower in the South Waterfront, where two condominium towers and a medical office building already are under construction.

As required to be eligible for the tax break, 15% of the 319 units in the 22-story apartment tower will be held for moderate-income renters. The income-restricted units would average 514 sf in size and rent for an average of $870 per month plus utilities. According to the rules, the rent and utilities must not exceed 30% of a renter’s gross monthly income.

TCR says the tax break is needed to make a reasonable return on its investment in an unproven rental market. The Portland Development Commission and the city Planning Commission already have recommended approval of the abatement, which will negate the increased value of the residential but not the ground-floor retail.

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