Chuck Slothower//June 27, 2017//

Doug Peterson is fighting to save his convenience store on the ground floor of a parking garage in downtown Portland at 10th Avenue and Morrison Street.
Peterson opened the store in December 1984. It serves 900 customers a day and supports 28 employees, Peterson said. The store is popular with MAX light-rail riders, college students, construction workers, police officers and tourists.
“You name it, they all come to Peterson’s because we’re open all of the hours they need something,” he said.
Prosper Portland, which manages the retail spaces, plans to evict Peterson’s on Morrison and other businesses that occupy nearly 30,000 square feet of retail space in the parking garage. Officials for the agency, formerly known as the Portland Development Commission, have said the spaces are outdated and have rented below market value for many years.
The parking garage was first identified for redevelopment in a 2009 downtown retail strategy report. The existing retail spaces are “oversized and challenging to merchandise,” Prosper Portland project manager Amy Nagy said. Prosper Portland plans to renovate the spaces and divide them into smaller leasable areas.
That effort is part of a broader $25 million project in partnership with the Portland Bureau of Transportation to modernize and improve seismic resiliency of the SmartPark garage that provides 796 parking spaces in the heart of downtown. PBOT owns the property and will manage the construction project. Prosper Portland is overseeing the retail transformation.
Peterson and the other retailers face a Jan. 14, 2018, eviction date. Construction will begin shortly thereafter and is scheduled to wrap up by mid-November for the holiday shopping season.
“We’re looking at a pretty tight construction timeline,” Nagy said.
Peterson, who owns four Peterson’s convenience stores, is waging a campaign against the project. He testified before Prosper Portland’s board June 14, and then again at City Council on June 21. He has distributed a press release saying Prosper Portland is “out to gentrify Portland with taxpayer dollars,” and is gathering petition signatures.
“To say, ‘Hey, you’re out of there,’ is just not fair,” Peterson told Prosper Portland commissioners. “A small business that’s been successful for 32 years should get some credit.”
Prosper Portland officials said they first met with the SmartPark garage tenants in February 2016 to let them know of the renovations and eventual evictions. They also shared information on urban renewal dollars that may be available if the businesses moved into an urban renewal area.
The revamped retail spaces will be offered at highest priority to businesses owned by women or minorities, Prosper Portland officials said.
“The configuration of the spaces is going to change; they’re going to become smaller and much more focused on entrepreneurs, emerging small businesses and folks who have made that leap to their first brick-and-mortar store,” said Shawn Uhlman, Prosper Portland spokesman.
Leasing provisions for the renovated spaces prohibit alcohol-to-go businesses and businesses with three or more locations. Peterson has four convenience stores, which sell alcohol to go.
“It’s written in a way to weed us out,” Peterson said. “There are segments somewhere that think we’re not the right kind of business, and our customers are not the right kind customers.”
Peterson said he’s optimistic the City Council heard his pleas.
“I think we got a good hearing,” he said. “They very much were listening, and I appreciated that.”