The Burnside Blog

Posted By Mike Thelin on 07/21/2008

Everyone likes shiny objects, and there are few shinier than Portland’s space-aged tram, a marvelous Swiss-designed aerial people mover built to connect a first-rate research institution and Portland’s largest employer (OHSU) with the last remaining acres of close-in undeveloped waterfront land in Portland. Few cities are presented with such a redevelopment opportunity, and Portland was right to seize it.

In little more than four years since the first South Waterfront towers broke ground, the new neighborhood is home to more than 1,000 residents, a quarter of a million square feet of medical space, a popular gym, several restaurants and a bank. With four residential towers completed and three more under construction, the district seems to be coming into its own in little more than two years since its first residents took roost.

For these reasons, and probably because I bike or walk to an increasingly busy South Waterfront nearly every week, I was surprised to see how Oregonian Reporter Ryan Frank described the hood in an especially gloomy piece in this Sunday’s Oregonian. With all due respect to Frank, who’s a talented reporter whose work I enjoy, I don’t believe his article painted a realistic portrait of what is likely to become Portland’s next great neighborhood.

Frank is right to point out that facets of the housing market have certainly changed, and that elements such as tight credit, lower demand for all housing (including South Waterfront condos), and a general economic downtown could affect the short-term performance of this neighborhood and any other in Portland. However, we shouldn’t forget that real estate is a long-term investment, and neighborhoods are not judged by a handful of slow months. In my opinion, South Waterfront’s story has been pretty incredible.

This is why I’d like a moment to mention what’s positive about South Waterfront. South Waterfront is the only neighborhood in Portland that connects directly to the river. On any given evening, its adjacent stretch of river is full of kayaks and canoes. The district would be the perfect spot for a boat rental company to take roost. Imagine spending a sunny Saturday afternoon paddling from The John Ross to the St. Johns Bridge. Plus, the tram connects South Waterfront better to the miles of hiking trails that traverse the hills of Southwest Portland than any neighborhood in the city. Like to bike and run? South Waterfront’s proximity is second to none.

Sandwiched between Portland’s most affluent suburbs (Lake Oswego, Dunthorpe, West Linn) and its central business district, South Waterfront’s location is also prime for job growth. Just look at Kruse Way. Since the 1990s, the Lake Oswego business district has boasted one of Portland’s most prolific office and commercial districts for the very same reason. While the highest and best use of the area rightly called for condos during the housing boom, the elasticity of the real estate market could call for a different mix of buildings in the future. This is why I think it’s shortsided to judge the neighborhood on one use alone.

The article also lumps the estimated $230 million needed for essential transportation and parks projects with funds for planned low-income housing, a Oregon University System’s request for $125 million in lottery bonds for a new South Waterfront campus and $235 million for a light rail bridge over the Willamette River.

For several reasons, I don’t believe this is accurate.

First, the city has already committed to building this district and I believe it’s essential that we demand the city fulfill its obligations before moving on to the next project. The proposed South Waterfront Greenway is critical to connect the district to both the river and downtown. Second, low-income housing is going to be built in Portland whether it’s in South Waterfront or not. That the city would divert funds to create needed economic diversity in the district should be lauded. Third, investing in higher education should also be a goal. Compared with cities like Minneapolis, Austin, and Seattle, Portland’s higher education institutions aren’t as competitive. Investing in science as has been proposed could not only improve the reputation of Oregon universities, it will also translate to job growth in the urban core. Lastly, the light rail line to Milwaukee, which includes the aforementioned bridge, will be eligible for state and federal funds.

I’m not alone in the belief that high fuel prices could also drive growth in the urban core once commuters realize the economic advantages of not driving. High fuel prices have not only increased constructions costs, they’ve also increased the cost of getting around by car. This alone could spell great success for all urban neighborhoods, including South Waterfront.

Slower economies can rob momentum from our greatest ideas, but in the case of South Waterfront, we can’t allow this to happen. South Waterfront was a good idea when the plan was adopted five years ago, and it’s still a good idea today. It was our city’s bold decision to take part in a global urban dialog. Let’s not let short term factors blur our long-term vision.

Condos, like Hummers, hybrids, and hominy, are not immune to the business cycle. Plus, some economists have predicted that Portland’s glut of condominiums could turn into a shortage in a matter of months.

What do you think?