Metro, the elected regional government, is suddenly facing the complicated financial decisions in three of its program areas – affordable housing, visitor and spectator facilities, and the performing arts.
Up soonest will be whether to ask voters to approve spending funds to keep people housed to increase the supply of affordable housing. The Metro Council is consider the choice at a Tuesday, July 9, work session. Chief Operating Officer Marissa Madrigal will make a recommendation, which has not yet been released.
There are two reasons why the council will be asked to make the decision. First, all $652.8 million approved by Metro voters for affordable housing projects has been committed. And second, the 10-year Supportive Housing Services measure approved by voters in 2020 is bringing in far more money than can be efficiently spent by Metro’s and its partners, which include Multnomah, Washington, and Clackamas counties.
According to a recent report by the ECOnorthwest economic consulting firm, the measure was originally expected to raise $250 million a year. But, the report found, the tax on higher-earning individuals and couples is bringing in much more. The three counties had reserves of $328.4 million in 2023, the report said, additional funds were continuing to be pour in.
Metro voters would need to approve spending such funds to acquire or build more affordable housing, however, even though the goal of helping low-income people become or remain housed.
Magrigal first proposed spending the funds to build more affordable housing in January. At the time, she said Metro’s bond-funded project would not be enough to ease the affordable housing crisis.
“More funding is critical to mitigate the current housing crisis,” Madrigal said.
Metro convened a work group to study the options on March 1. The council could refer such a measure to the Nov. 5 general election ballot, at the soonest.
Metro also manages regional visitor and spectator facilities, including the Portland Expo Center, the Oregon Convention Center, and the Oregon Zoo. The expo center in North Portland host trade shows, consumer events, and other large one-time gatherings. It is breaking even but not generating enough revenue to maintain its five large exhibition halls.
On June 25, the Metro Council received the results of a study it commission that recommended adding athletic and sports events to the mix. Hunden Partners presented four proposals for redeveloping the center to also include a museum documenting its history. The consulting company estimated the cost of the proposals at $225 million to $446 million.
Funding options in the study included a property tax measure that must be approved by Metro voters and an increase in the regional hotel/motel gas tax that the council could approve. A combination would likely be required, the study said, along with an ongoing public subsidy.
“Any redevelopment of Expo should support the community and make sense economically and financially. It will be difficult for a facility with public access to be profitable and will likely require significant public subsidy. Hosting larger tournaments will be key, with private management the best route to take, due to their experience, network and ability to manage and market sports content.”
The majority of the council expressed support for the conversion. No vote was taken on which of the four proposals to pursue, however, and no schedule for making a final decision was announced.
Metro also helps manage the five performing arts center owned by the city of Portland. They are the Keller Auditorium, the Arlene Schnitzer Concert Hall, and the Winningstad, Newmark, and Burnish theaters. Together they are called the Portland’5 Centers for the Arts.
The Portland City Council is currently considering whether to rebuild or replace the Keller, which does not meet current earthquake standards. If the council decides to rebuild the Keller, it could be closed for up to 24 months, displacing the resident tenants that include the Portland Opera, Oregon Ballet Theater, and popular Broadway Across America touring shows. Together, they generate a large amount of the revenue used to operate all of the facilities.
A recent Metro report said such a closure would have multiple adverse economic impacts. The Broadway shows alone have an estimated $30 million economic impact each season. There is no other venue in the region suitable for them. Canceling them for two years would also cause serious financial problems for all of the city-owned theaters, the report said. The Keller generates half the revenue for the Portland’5 theaters and helps make smaller, local productions feasible, affordable and accessible.
The council is also considering building a new performing arts center to replace the Keller at Portland State University or in the Lloyd District. Either choice would allow the Keller to remain open until its replacement is completed, avoiding the economic and financial problems.
The council is expected to decide the Keller’s future in August. Metro would sidestep difficult financial decision about the Portland’5 Centers for the Arts if either the PSU or Lloyd District option is chosen.
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