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The Portland City Council on Wednesday heard testimony from Central Eastside Industrial Council members and tentatively denied their appeal of the Portland Design Commission‘s conditional approval of the 鈥�goat blocks鈥� mixed-use development planned in Southeast Portland.

Debbie Kitchin, president of the CEIC, in September filed an appeal of the design commission’s decision in August to conditionally approve plans for more than 111,000 square feet of retail space, 247 apartments and 339 parking spaces on the superblock at 1004-1036 S.E. Belmont St. CEIC members are concerned that adding apartments and businesses on the vacant lot would adversely affect industrial activities within the adjacent industrial sanctuary.

At a CEIC event Wednesday evening, Kitchin explained that current development plans call for narrowing Southeast Taylor Street and 10th Avenue. She said that narrowing those streets could affect businesses, such as Gatto & Sons Fruit, that rely on freight traffic to conduct business.

鈥淚t’s important to maintain the viability of the industries that are here, and we’re concerned how narrowing the streets would affect freight movement,鈥� she said.

The appeal requests the city engineer to resolve right-of-way issues to the satisfaction of all abutting property owners on the affected street. It also asks the design commission to make specific findings about how the addition of apartments fits with the city’s Comprehensive Plan goal stating 鈥渞esidential uses are allowed but should be compatible with the surrounding industrial development.鈥�

Noel Johnson, vice president of Killian Pacific, the Vancouver, Wash.-based developer of the project, said it wouldn’t narrow the right-of-way for cars and trucks and that he thinks the CEIC’s appeal was based on a 鈥渃onfusion of facts鈥� regarding street width.

鈥淚 think they thought there was an atypical variance in street width,鈥� he said. 鈥淭he codes have a 鈥榮tandard’ width that all streets must meet, and a 鈥榩referred’ width. The end result will have the streets in excess of the preferred level.鈥�

Portland code requires streets to be at least 11 feet wide, according to Peter Finley Fry, vice chairman of the CEIC’s Land Use and Development Committee. He said the preferred width is 12 feet. He said the CEIC chose to appeal the design commission’s approval to bring to the city’s attention that business owners don’t believe the 12-foot width is enough for freight traffic; they would prefer it be 14 feet.

鈥淓ven though our appeal was denied, the council instructed the city engineer to go out and talk to businesses one on one to find out what they need,鈥� he said.

Fry said his group sought to raise the underlying issue that current standards are inadequate.

鈥淔reight mobility is hugely important to us and to this project,鈥� he said. 鈥淲e explained, but that seemed to not be able to be heard by everyone.鈥�

The Portland City Council is set to prepare its findings and on Oct. 22 issue a final ruling denying the CEIC’s appeal and upholding the design commission’s decision.

Johnson said construction will begin next month and require 21 months to complete.