PDC pursues PSU properties
Three city blocks near the Portland State University campus are scheduled to be redeveloped by the Portland Development Commission, a project that has the potential to create additional space for PSU, as well as up to $97 million in development for the University District.
The project calls for the acquisition of the Jasmine Tree restaurant, the Harrison Court apartments and the Value Inn motel, which currently have the market value of $3.19 million, and are located between Harrison, Montgomery and Mill Streets on Fourth and Fifth Avenues.
Vice President for Finance and Administration Jay Kenton estimates that PSU’s financial contribution to the project to be roughly $12 million. Though the cost is high, he did note that as the university grows, “we need more space.”
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Most of the plans are still in the conceptual stage at this point, Kenton explained, though “we [PSU] haven’t spent any money yet.”
Planners estimate that a public investment of between $7 million and $12 million per block would help to create new tower constructions, providing additional space for offices, housing and businesses, as well as an extension of the Portland streetcar.
The streetcar extension includes current plans to extend the track to the South Waterfront District, as well as continuing the diagonal track that currently runs through the Urban Center through the block located between Montgomery and Harrison on Fourth and Fifth Avenues.
PDC staff will bring the proposed project to the commission board today, asking to begin negotiations to obtain the property. The means of doing so could involve condemning buildings on the properties in question, though before any such negotiations can begin the City Council must first give its approval.
While the PDC has not yet approached the properties’ owners, only one has expressed interest in selling thus far.
The board will also consider the possibility of building a new nine-story building between Fifth and Sixth Avenues on Harrison Street to replace the Portland Center for Advanced Technology (PCAT). The property, which is jointly owned by PSU and the commission, could possibly provide 60,000 square feet for each institution.
The planned building would be the new home of the PDC offices, as well as the possible new site of the PSU School of Social Work, which is currently spread across campus.
Other possibilities for the new space include a ground floor grocery store, other retail outlets and additional parking options.
The three blocks scheduled for redevelopment are located within the South Park Blocks Urban Renewal District, and face the possibility of experiencing an increase in value upwards of nearly $50 million.
Despite the possibility of prosperity, PDC Executive Director Don Mazziotti explained that there will be obstacles when it comes to attracting private investment for the project. Both financial feasibility and possible risks remain deterrents.
Kenton is hopeful that the additions to the campus and the University District will help PSU to grow as an urban college community and as a part of the city.
