At last night's Downtown Taskforce meeting Dan Rosenfeld of Urban Partners gave an update on the Kenmore Village project.  Highlights:

• They will likely ask for yet another extension allowing them to postpone settling on the property sale for another six months. The current extension expires this coming December.
  
  
• An anchor tenant has not yet been found. The plan is to lease space to an upscale specialty grocer but Urban Partners will not disclose the likely tenants until negotiations are further along.
  
  
• Investors are still interested in the commercial part of the project but are hesitant to commit until the national/global financial crisis settles.
  
  
• The housing portion of the project is currently not viable due to a collapse of the condo market. Dan is hopeful the market will improve next year.

The situation could certainly be better but it's not unusual for a project like this to be experiencing difficulties in this economic climate.

I would like to throw out a comment based on an issue that has been weighing on my mind. It has to do with the plan to bring in a specialty grocer.  From one perspective this is a good thing. An article in the Portland Tribune (posted separately) says that these grocers cause property values to increase substantially.

On the other hand, the Kenmore Village project has a requirement to include 25% affordable housing. The residents are by qualification lower income folks who may not use an upscale specialty grocer. The existing Grocery Outlet services this segment of our community and is apparently quite successful. In fact, Dan mentioned that they would like to remain a tenant in the new development but he was clear that they do not fit the marketing model.

I ask this question. Are we doing the right thing by instituting a 25% affordable housing mandate then eliminating one of the primary cost-effective sources for basic needs? It makes me a bit uncomfortable that we go out of our way to lure folks living on the margin to a development that is intended to service a higher income segment of the community.

Providing for the needy goes far beyond simply providing cheap housing. I believe that if we as a community are truly serious about helping this group then we should consider the entire life equation that includes not just housing but also food, transportation, jobs, schools, health care, and a modicum of recreation. By making a substantial effort to ensure these folks have choices to extend the food portion of their limited budgets demonstrates a true commitment to their needs.

I would like the city to work with Grocery Outlet to explore opportunities to remain in the community. It will be difficult but it may just be the right thing to do.

~Dennis
Co-moderator