Committee reviews proposed vacant‑storefront registry and fee escalation; staff to return with redraft

City staff presented a proposed commercial vacancy ordinance to the Housing & Community Development Committee that would require property owners to register long-term vacant storefronts in a targeted downtown district, create a public registry, and apply an escalating fee structure intended to incentivize activation.

What staff proposed

Planning and economic development staff described a registry for ground-floor commercial properties in a downtown overlay (aligned to the Pedestrian Activities District) and a fee schedule that increases over time for properties left vacant past a defined period. The proposal would allow waivers and alternative activation options — for example, curated artwork or temporary use — to avoid fees. Staff also described a complimentary 0%-interest loan pilot from the Portland Development Corporation for downtown property activation.

Committee feedback

Members praised the multi-pronged approach but asked staff to refine the draft. Councilor Sykes’ amendment suggestions — including steeper fee escalation, registry transparency and enforcement clarity — received broad support in principle. Staff and corporation counsel raised legal and administrative questions about tying fees to square footage and about enforcement mechanisms; counsel noted that, unlike property taxes, municipal liens for nonpayment would require a court process. Committee members asked for clear, public-facing materials and an outreach plan to engage commercial brokers and property managers.

Operational details requested

Committee members asked that staff: (1) clarify the vacancy definition and timing (staff proposed a 90-day vacancy definition with 30 days to register after that threshold), (2) publish a public-facing registry with quarterly updates, (3) include explicit notice-and-cure processes and reasonable late-payment penalties, and (4) provide a consolidated redline ordinance that shows agreed amendments. Several councilors emphasized the need to consult commercial brokers and property managers about realistic leasing timelines and to pair the ordinance with activation programs (farmers markets, pop-ups, public art) rather than rely solely on penalties.

Next steps

Staff will bring back a revised ordinance draft that incorporates the committee’s direction, a legal memo on enforceability and penalty mechanisms, and a communications plan. Committee members signaled support for a fee‑escalation approach and public registry, subject to legal refinement and clearer administrative processes.