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Portland council approves hotel inclusionary zoning amendment after split recommendation from planning board
Summary
City staff proposed raising the hotel fee‑in‑lieu from $4,831 to $9,520 per room and tightening the unit contribution ratio; the planning board split 3–3, Hospitality Maine urged more stakeholder work, and the council approved the amendment unanimously after debate.
City Council approved an amendment to Portland’s hotel inclusionary zoning ordinance that raises the fee‑in‑lieu and tightens how hotel room counts convert to affordable‑unit obligations. Planning Board Chair Brandon Mazur and city staff presented the update, noting a suite of studies and outreach that informed the recommendation.
Brandon Mazur, chair of the Planning Board, summarized the board’s November 23 public hearing and said the board split 3–3 on a motion to recommend the amendment. "Since the implementation of the moratorium, staff has undertaken a comprehensive review," Mazur said, describing updated nexus work and outreach to hotel operators and stakeholders.
City staff said the amendment would increase the fee in lieu from $4,831 to $9,520 per room and change the alternative unit contribution from one affordable unit per 28 rooms to one per 19 rooms. Kevin Craft and Matt Grooms described methodology updates, Colliers International feasibility testing, and interviews with hotel operators used to assess market impacts.
A Hospitality Maine representative, Nate Cloutier, urged caution. "Given the time frame from when this came to the planning board to this council, it feels a bit rushed," he said, and questioned the use of an 80% year‑round occupancy assumption in the Colliers analysis, calling that figure "really high" compared with a state average of about 60 percent.
Councilors who spoke praised the process and emphasized the policy goal of increasing resources for Portland’s Housing Trust Fund. "We tapped the brakes, we decided to go through a committee process," Councilor Sykes said, adding that the change "will help to capitalize the housing trust fund." Several members noted the ordinance is prospective and does not affect already approved projects.
The council voted on the amendment by roll call and the motion passed unanimously.
What’s next: The amended ordinance will apply prospectively to new hotel projects and is intended to increase contributions to the city’s housing trust fund, per staff analysis and the updated nexus study. The council packet contains the full Colliers feasibility assessment and the updated GPCOG nexus study for members and the public.
