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The quest to build the first mass-timber high-rise in the U.S. has been placed on hold indefinitely.

Citing skyrocketing labor costs, inflation and fluctuations in the tax credit market, Portland developer project^ on Monday announced the postponement of Framework, a proposed 12-story mixed-use tower for the Pearl District. Plans had called for 60 units of affordable housing and approximately 90,000 square feet of floor space in a cross-laminated timber structure. But the project team encountered financial challenges that proved too much to overcome, at least for now.

鈥淥ver the last four years, the Framework team has worked with private entities and public agencies that have understood the nature of this project and have supported our efforts to bring this pioneering model to fruition,鈥� Anyeley Hallova, developer with the Portland-based project^, said in a statement released Monday on frameworkportland.com. 鈥淎lthough beset with market challenges beyond our control, we are very proud of Framework’s achievements and the new standards we’ve established for the use of CLT in the U.S.鈥�

The statement was released on behalf of the project team and notes that 鈥渢he postponement is a result of changing market conditions over the past two years, including inflation, escalating construction costs and fluctuations in the tax credit market. All have impacted the project’s bottom line.鈥�

The estimated price tag of Framework was $29 million.

As recently as March, at the International Mass Timber Conference at the Oregon Convention Center, Portland Mayor Ted Wheeler was promoting Framework in glowing terms after the city allocated $6 million for the project through the Portland Housing Bureau‘s Fast Starts program.

鈥淭his isn’t just another building material,鈥� Wheeler said at the conference. 鈥淭his has the opportunity to help us solve our community’s key challenges around development, around sustainability, around climate change and around employments in rural parts of America. That’s what’s at stake here.鈥�

Now that $6 million will go elsewhere, according to Wheeler.

鈥淲e’re disappointed to miss out on an opportunity to create 60 units of affordable housing for only $6 million in city resources,鈥� he told the 91视频 in a text message exchange. 鈥淭he housing bureau will repurpose the funds to other projects.鈥�

Last year, Framework, designed by LEVER Architecture, won the $1.5 million U.S. Tall Wood Building Prize from the U.S. Department of Agriculture, the Softwood Lumber Board and the Binational Softwood Lumber Council. Other members of the project team included D.R. Johnson Lumber Co. of Riddle, the supplier of CLT components, as well as KPFF Engineering and general contractor Walsh Construction.

LEVER Architecture did not respond promptly to requests for comment.

Financially, the project team was banking on a mix of public and private monies. In addition to $6 million from Fast Starts, it received grants from the U.S. Forest Service, Metro, the Hewlett Foundation, the Harbourton Foundation, the Edwards Mother Earth Foundation and the Oregon Community Foundation.

But with a $2 million funding gap remaining, according to several recent media reports, it became clear why a March 1 ground-breaking event was canceled and never rescheduled.

The project team’s statement specifically focuses on labor costs in the booming Portland construction market. It mirrors the national situation, where contractors are increasingly unable to find sufficient skilled workers.

鈥淪ince the inception of Framework,鈥� the statement reads, 鈥淧ortland has witnessed an increasingly tight construction market with increasing building costs, which have significantly impacted progress for Framework and other construction projects.鈥�

Despite the postponement, parties involved with the project, including the property owner, remain hopeful it can be revived.

鈥淔ramework has been steadfast in its commitment to social equity and economic opportunity and in its mission to promote rural Oregon economies and deliver affordable housing,鈥� Beneficial State Bank CEO Kat Taylor said in the project team’s statement. 鈥淲e look forward to the opportunity to advance a 2.0 version of the project.鈥�