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Hales’ Demolition Tax Altered Again

Friday, October 16, 2015

 

Mayor Charlie Hales will have to go back to the drawing board and work on major changes to his proposed $25,000 demolition tax.

As GoLocal reported, Hales originally proposed a $25,000 tax on any developer who tears down a home in September. Earlier this month, he was forced to narrow the scope of that tax earlier this week and announced it would only be applicable for developers who replace one single-family home with another single unit. Developers who replaced a single home with a multi-family unit or apartment complex would be eligible for a full rebate of the tax.

After a more than two-hour hearing on the subject was held at Wednesday night’s City Council meeting, it seems as though more changes will be coming. Nearly every facet of the tax may be altered, and Hales said a new proposal is not expected for at least several more weeks.

Changes could be coming to when the tax would apply, how exemptions or rebates would work, how to curtail loopholes and even the amount of the tax.

Opponents to the tax from all sides of the demolition debate attended the meeting to give feedback on the new proposal. The Oregon Home Builders Association argued that the tax is illegal, while United Neighborhoods for Reform, a neighborhood coalition, wanted a higher tax. Others warned of unforeseen consequences and worried that the tax would lead to more infill development.

After the meeting, Hales said he was glad to see the public come out to give their thoughts on his proposal.

 

Related Slideshow: Portland restaurant insiders react to possible demolition of Veritable Quandary’s patio

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Kurt Huffman

Driving force behind ChefStable

“We’re all at the mercy of the city growing and developing,” the driving force behind ChefStable, says. 

Any agreement to lease a space carries the risk that it can at some point be repossessed, he said.

“I had one of the first drinks in my life at the VQ,” he said, noting King was a forerunner in “doing things the right way” by locally sourcing food.

He said the challenges of development are not unique to VQ, and ultimately owner Dennis King had a “sweetheart deal for one of the best patios in town.”

When Huffman was asked for guidance on the issue by VQ insiders, he advised King to “have a hissy fit.” 

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Leslie Palmer

Owner- Thirst Bistro 

Thirst Bistro owner Leslie Palmer called the board’s decision Thursday “disgusting and despicable.”

“As a fellow restaurateur, if they can do this to Denny, they can do this to me,” she said. “It feels like Multnomah County doesn’t want restaurants in downtown Portland."

Palmer called the VQ a downtown institution, her favorite restaurant aside from her own. Her favorite memory at VQ is eating lunch with her children, served by longtime waiter Dale. 

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Lisa Schroeder

Owner - Mother's Bistro and Bar

Mother’s Bistro and Bar owner Lisa Schroeder suggests the county offer VQ owner Dennis King a space on the bottom floor of the new courthouse.

“I would hate to be in the position VQ is in,” said Schroeder. “When you’ve built a business for years, to have it pulled out from under your feet.”

She said although it is public property, she is looking to the county to accommodate VQ, ensure the restaurant continues to exist, and perhaps compensate King.

“Unfortunately, restaurant owners are at the mercy of their landlords,” she said. 

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Mark Joseph

Former Veritable Quandary bartender of nine years, current bartender at El Gaucho

“It's a huge disappointment,” said former Veritable Quandary bartender of nine years Mark Joseph. “It feels like you’ve got an institution there that now has to break down half their operation.”

Joseph called the restaurant a staple on the Portland restaurant scene.

“The Quandary has stood the test of time in a non-corporate way,” he said.

Joseph said the county should have worked with VQ owner Dennis King to find a compromise. He said to have an outdoor patio is to have two restaurants, and to lose one is to lose a restaurant. 

But he said rather than the patio, the larger issue will be replacing the kitchen. 

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Micah Camden

Owner of Blue Star Donuts, Little Big Burger, Sun of a Biscuit, and others 

Portland restaurant empresario Micah Camden’s first date was at VQ. He said both the construction process and the layout of a new Multnomah County courthouse would impact the restaurant. 

“The patio is magical,” he said. “You start building and it’s going to really change.”

He said despite backlash from the restaurant community, it’s out of owner Dennis King’s hands.

“You can’t stop the government from taking it away.” 

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Leather Storrs

Co-owner - Noble Rot 

Leather Storrs, co-owner of Noble Rot wine bar, said it was ironic a bar frequented by attorneys would be the bar impacted by a courthouse development.

Storrs said King's restaurant's primary draw is being taken away. 

“I feel awful for the restaurant owner,” he said.

Storrs said Noble Rot suffered when traffic patterns changed on E. Burnside.

Aside from VQ, Storrs called the downtown waterfront district “a wasteland” with few gathering places. 

 
 

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