X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PORTLAND-Due to rising costs and other issues, the Housing Authority of Portland is backing away form an opportunity to develop a low-income housing projects designed by renowned architect Frank Gehry. Recent works by Gehry include the Guggenheim Museum in Spain and the Experience Music Project in Seattle.

Homer Williams is the land owner and developer now trying to keep the River District project moving forward despite HAP’s reticence about architectural fees and construction costs for the estimated $33 million project — about $6 million more than the public-funding process can handle. Williams is said to be actively seeking new partners to fill the gap in support that now exists with HAP’s change of heart.

The 180-unit project is Williams’ way of fulfilling with style part of his commitment to build 1,000 low-income housing units as part of his redevelopment of the River District land. HAP chairman Howard Shapiro was quite excited about the project when it was first discussed, and at one time is said to have committed personal time to help raise funds for the project.

In addition to costs, HAP apparently needed to have the property subdivided into traditional city blocks in order for it to borrow money for pre-development costs. For Williams, however, subdividing the property meant more property taxes, and he balked at that. HAP and Williams reportedly began discussing a way around the sticking points in early October, but could not come to an agreement.

Margaret Van Vliet, deputy executive director of HAP, tells GlobeSt.com “we’re disappointed, (we) thought it was a good opportunity to test some new ways of designing affordable housing, and also make an important statement about low-income people being able to live in a Gehry building, but (we) just felt like the funding gap was problematic.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.