91ÊÓƵ

When longtime home remodeler Tom Kelly in January received a call from Portland Mayor Charlie Hales about potential service on the Portland Development Commission‘s board, he was surprised. Kelly was not a developer and had not been seeking a role on the board.

But the opportunity to serve underrepresented parts of the community, especially in North and Northeast Portland, where Kelly has developed deep roots, made the offer one he could not refuse.

“What (Hales) was looking for was someone who could evaluate business deals,” Kelly said. “… North and Northeast Portland has been a priority for me since the 1960s. That’s a priority for me to help PDC in its relationship with that community.”

On Wednesday, Kelly, president of Neil Kelly Inc., was elected chairman of the PDC’s board; he will replace Scott Andrews when he steps down next month. Kelly is a good choice to lead the organization as it transitions from a development facilitator to a relationship builder and job creator, said John Mohlis, executive secretary for the Oregon State Building Trades Council and a PDC commissioner.

“The big challenge for not only Tom, but also the agency is: How do we continue to be a meaningful presence in the city with a limited budget?” he said.

Since 2011-12, revenues from tax increment financing have dropped from $182 million to $109 million for the fiscal year starting July 1. The PDC’s budget has decreased from $260.6 million to $244.4 million in the same span. That is largely the result of several key urban renewal districts – Downtown Waterfront, Airport Way, Oregon Convention Center and South Park Blocks – either sunsetting or winding down, according to the PDC.

Meanwhile, the PDC is shifting its focus toward smaller “Neighborhood Prosperity Districts” in North and Northeast Portland, Kelly said. Whereas traditional urban renewal areas have relied on substantial tax increment financing to spark catalytic development, neighborhood prosperity districts will have fewer resources to perform improvements such as signage on light posts.

“It’s not the same scale or scope of what we’ve done before – it’s more community-driven,” Kelly said. “It’s really a shift toward more basic economic development and job creation.”

Kelly, whose father, Neil Kelly, served as a PDC commissioner from 1985-90, has spent significant time bolstering relationships with minority-owned businesses in the area over several decades.

“My family has done business and has lots of relationships in that area,” he said.

Kelly sees the need for improved community relations and transparency following missteps taken last year concerning a proposed development at the corner of Northeast Martin Luther King Jr. Boulevard and Alberta Street. The development, which would have included a Trader Joe’s retail store, drew criticism from the African-American community because an affordable housing component wasn’t included.

The PDC and the city have since increased their investment in affordable housing in the Interstate Urban Renewal Area – the largest in the city – by $21 million over the next five years.

Also, the PDC will continue to invest in areas where it can spur development, such as in Old Town and the Central Eastside, Kelly said.

He also envisions a successful transition for the Lents neighborhood, where the PDC is planning to invest $25.7 million over the next five years.

“That’s our main strategy,” he said. “When there’s a development that could be catalytic in areas that are underutilized – we want to fill that gap and move a project that meets the city’s goals.”