Areas in need of progress
Housing & Economic Development
Revitalizing Portland’s Economy
A robust economic resurgence in Portland hinges on the success of its business sector. For Portland to flourish, businesses must not only survive but also feel secure in investing their resources and innovative ideas within the city. Portland's vitality depends on fostering an environment that welcomes both small enterprises and large corporations, as they are essential for job creation and funding essential city services.
However, the current climate in Portland, exacerbated by city and county leadership, has placed a disproportionate burden on the business community. The burdensome tax structure is discouraging companies from leasing office space, a critical issue in an era where remote work is increasingly prevalent. Portland cannot afford to encumber businesses with excessive bureaucracy, especially given these shifting work trends.
The interconnectedness of office occupancy, public safety, and pedestrian traffic is undeniable. Declining levels of these factors lead to falling property values and diminished tax revenues. As these revenues decrease, essential city services are inevitably impacted. To effectively recover from the economic fallout of the pandemic, elected officials must fundamentally rethink their strategy for attracting corporate investment to the downtown core. The city needs to reconsider its tax rates, either reducing them or restructuring them, to remain competitive with neighboring areas. At the very least, Portland must establish a tax system that incentivizes, rather than penalizes, the types of businesses it seeks to attract.
The Current Predicament
High Office Vacancy Rates
The growing number of unoccupied office buildings in Portland is creating a double-edged problem: it is draining city revenue and threatening the existence of downtown small businesses that depend on the office worker population.
Unwelcoming Business Environment
Portland businesses experienced a 32% rise in local taxes since 2019. High taxes are driving businesses out of Portland.
Risky Budget Assumptions
Portland's city government has adopted a risky strategy, placing undue reliance on the assumption that businesses will invariably maintain their office presence, leading to city budgets that are dangerously dependent on fluctuating tax revenues.
3 Keys to Progress
A Transformed Downtown
To create a downtown that serves all its residents, Portland should implement a revitalization plan that includes tax and permitting fee reductions, and faster approval processes for residential office conversions.
Improved Tax Structure
A revitalized business tax structure is essential for Portland, one that actively promotes business retention and attracts new investment.
Fiscally Sound Budget
Portland's financial health requires a stable city budget that is not overly dependent on a narrow range of revenue sources.