The Burnside Blog
Rezoning Interstate
One of the Intentions of the MAX Yellow Line that debuted along Interstate Avenue in North Portland in 2004 was to change the use of the properties along the Interstate Corridor, from light industrial to high-density, transit supported mixed-use commercial. Is it working?
Thus far, transit backers have largely got their way, but partly due to the fact that the light rail tracks placement in the meridian of Interstate Avenue encumbered truck access to properties that had formally supported a light-industrial use. This essentially rendered them useless for industrial tenants, but created huge opportunities for investors seeking value-added properties: those with redevelopment potential. If you were a landowner along Interstate who could withstand short-term uncertainty, the changes amounted to winning the lottery.
Now with North Portland as perhaps the greatest beneficiary of the recent housing boom combined with the principle in real estate that investment follows people, Interstate Avenue is ripe for development as several developments are planned, a few are underway, and additional proposed changes in zoning will continue to morph how Interstate Avenue behaves.
Proposed changes include wider sidewalks, more amenities for bicycle commuters, increased density and more off-street and underground parking, plus an increase in ground-floor retail along Interstate. The majority of changes would occur in the areas surrounding transit stations. (See graphic)
The proposals will make their way through the various levels of community bureaucracy and seek approval by the City Council mid-summer 2008. In the meantime, the condo market has taken a huge hit but apartment vacancies remain extremely low and retail rents continue to rise. Could that combo mean more development along Interstate despite a weak economy? How will these changes affect the future look of Interstate? Should the Interstate Model be applied to other arterials, like Powell Boulevard or Foster Road? What should the city be doing to protect the inventory of close-in industrial land?
By Monforts on Thursday, February 14, 2008 at 10:41AM PST
Mike and Stuart, good point about industry being threatened by development in the city. Cities everywhere have had a hard time protecting industry since proximate residential uses will almost always complain about the noise, pollution, etc. There is an interesting solution in Chicago, where a nature non-profit teamed up with a local industrial alliance to designate land on industrial sites as pedestrian nature preserves, creating a buffer between residential and industrial uses. It worked out that industry was happy to help revitalize the ecology in exchange for staying centrally located. I have no idea how it’s going lately, but it seems like a great idea.
http://consciouschoice.com/2006/08/calumet0608.html
Strange bedfellows, but I’ve always wondered if it could work in Portland’s Central Eastside Industrial District. Wouldn’t it be great to have both industry and wetlands right in the city?
By SCG on Thursday, February 14, 2008 at 10:56AM PST
There’s nuance to protecting industrial lands—light industrial is different from heavy industrial and often correlates to the difference between local industry vs. traded-sector. There’s more pressure to find large, shovel ready industrial sites away from residential uses (or at least middle class residents). The region decided long ago that Interstate wasn’t the place for industrial uses when we built light rail. Incidentally, below is a link to a fascinating article about the history of industrial uses in North Portland and the Columbia Corridor. Troubled Waters in Ecotopia:
http://enviro.lclark.edu:8002/servlet/SBReadResourceServlet?rid=1141854451269_1726668621_752
By Mike Thelin on Thursday, February 14, 2008 at 01:28PM PST
Stuart: thanks for the props. And I agree with your analysis. In my occasional dealings with certain PDX policy types, I’m often left with the same feeling. Monfarts, thanks for the link. That’s truly fascinating. How the Central Eastside will change is going to a defining issue in Portland over the next decade. The job base there is enormous, but the redevelopment potential is immense. I personally think it ought to be protected somewhat as an industrial sanctuary, but the market will decide much of that. Perhaps wetland buffer zones would work well there.
By Stuart on Thursday, February 14, 2008 at 10:00AM PST
First of all, I love this blog. You combine a grasp of real estate, wonk and design like no one else in Portland. Nice job.
I think you’re asking the right questions here, especially your last question. Yes, Interstate should be a model for other high-traffic arterials, but building a city that’s sustainable also means preserving the stock of close-in industrial land. As a real estate professional, I find the city quite ignorant of the needs of the industrial community. These are the lifelines of commerce.