Urban Asset Advisors is studying the feasibility of two mixed-use projects that could test Portland’s inclusionary zoning rules.

The development firm is proposing a four-story apartment building with ground-floor retail space and parking at 7661 Southwest Capitol Highway in Multnomah Village. The structure of a retired gas station sits on the property.

The building could include 40 to 50 apartments. It would meet community design standards.

Urban Asset Advisors is also considering a second project at Southeast 33rd Avenue and Division Street, where the company is building the 30-unit Division 33 Flats. The developer has not yet closed on the property for the second project.

Whether the proposed projects get built depends on the city’s interpretation of inclusionary zoning rules, said Tim O’Brien, president of Urban Asset Advisors.

“We’re going to see how the city’s interpreting that,” he said.

Both proposed projects are in early development stages, O’Brien said.

“We’re doing much earlier than normal assistance meetings,” he said. “We’re really right now in the feasibility stage on the Division one and the Multnomah one depending on how the city responds in the early assistance meetings.”

City rules require developers of buildings with 20 or more units in mixed-use zones to include affordable units. Developers may designate 15 percent of the units affordable at 80 percent of median family income, or 8 percent of units affordable at 60 percent of median family income. They may also pay a fee in lieu of providing affordable units.

If Urban Asset Advisors’ projects go forward, they would be among the first under the city’s inclusionary zoning mandate, which took effect for new applications beginning Feb. 1.

New development applications for multifamily projects have all but halted in Portland since inclusionary zoning took effect. Some developers have complained the affordability requirements make it difficult to finance or profit from multifamily construction.

The Multnomah Village project is likely to elicit opposition from the neighborhood association. The group raised objections to Urban Asset Advisors’ current project in the neighborhood, the 70-unit Multnomah Village Apartments.

“We don’t want to stop development,” said Martie Sucec, chairwoman of the Multnomah Neighborhood Association. “We certainly don’t want to stop housing. But they’re allowed – in fact, encouraged – not to have enough parking.”

Sucec said she doesn’t want Multnomah Village to go the route of Portland’s Division Street and Alberta Street corridors.

“They kind of destroyed the neighborhoods,” she said.

O’Brien grew up in Multnomah Village.

“I’m very connected to the neighborhood there,” he said. “It’s a great location. It’s got a great vibe and there’s just not a lot of apartments over there.”

Multnomah Village Apartments is on track to be complete by Thanksgiving, O’Brien said. Urban Asset Advisors has signed deals for tenants Little Big Burger, Spielman Bagels and a credit union to occupy the ground-floor space.

The project was designed by SERA Architects. Bremik Construction is serving as general contractor.

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