PDC discusses proposed TIF-funded downtown improvement loan program; board asks staff to revise guidelines

The Portland Development Corporation held an extended discussion of proposed downtown improvement loan guidelines that would use up to $250,000 of downtown TIF funds to offer no-interest loans (initial proposal: up to $10,000 per property) to support storefront and streetscape improvements in the Arts District, particularly along Congress Street.

Nancy, PDC staff, summarized the program’s purpose: to provide a financial incentive to encourage property owners and businesses to improve storefronts, address lighting and accessibility (including ADA) and otherwise activate vacant or underinvested commercial properties. She said staff received input from community members and from an email from Matt Bonapani and noted that the draft guidelines currently propose no-interest loans so the funds can revolve and be reused rather than be permanent grants.

Board members raised several substantive points. Members asked whether the program should allow tenant (non–owner-occupied) applicants or be limited to property owners, whether engineering or plan fees should be eligible, and whether interior lighting, security systems (cameras) or outdoor dining equipment should be included. Several board members — including Eamon and Beverly — said $10,000 may be too small to spur meaningful change and proposed raising the maximum loan amount (suggestions included $20,000 or $25,000) or adding a matching requirement to maximize impact. One board member contrasted this program with past façade programs in other cities and questioned whether a $10,000 award would justify the application effort.

Staff and city colleagues described complementary investments: Greg (city staff) said placeholder funds are being programmed into the FY26 budget for streetscape enhancements along Congress Street to tie into planned improvements for Monument Square and Congress Square Park. Staff said they are coordinating the loan program design with a proposed vacancy/extended-vacancy ordinance that would create regulatory incentives along with financial ones.

The board agreed that more refinement was needed. Members asked staff to clarify legal ineligible uses tied to TIF enabling rules, to consider allowable labor costs for installation, and to vet security-camera and outdoor dining eligibility with other departments. The board paused the item for further edits and asked staff to return the item to the PDC next month with revised guidelines; staff indicated an intention to bring the package to the City Council in time for TIF budgeting conversations in April if ready.

No formal vote on the loan-guidelines package was taken at the meeting; members indicated broad support for the program’s intent but requested changes to maximum loan size, eligible expenses, and program administration before a final vote.

Next steps: staff will revise the draft guidelines to reflect board feedback on loan size, eligible expenses and coordination with other city investments and will circulate the revised draft in advance of the next meeting.