The Port of Portland has withdrawn its consent for City of Portland annexation of 800 acres that the Port owns on West Hayden Island. The Port had hoped to use at least 300 acres of that property for auto and bulk-product marine-terminal development, with the remaining 500 acres retained as recreation and wildlife habitat. According to the Oregonian, the move was prompted by City of Portland mitigation requirements attached to development of the 300 acres that would make development of that acreage financially infeasible. According to the Port, the City’s requirements would have made the price of the industrial land double the price of other industrial land in the region. The Port found City officials unwilling to negotiate the terms of the annexation to make development of the industrial portion of the property feasible. Although the withdrawal of the annexation application is a blow to the Port, the City will also suffer significant adverse consequences from the withdrawal. The City has a shortage of more than 600 acres of industrial land within its 20-year urban growth boundary, and the loss of the Port’s 300 industrial acres will only make that shortfall more acute. In its comprehensive plan update planning effort, the City has been counting on the Port’s 300 acres to whittle down that shortfall. This significant blow to the City’s planning assumptions—with no realistic replacement property in sight—may help bring the City back to the negotiating table with the Port.
