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ners that it could not have any surface parking

All of these diversions have raised the ire

at the site because "it's a light-rail station."

of the public employees' unions and others

There is no light-rail line anywhere nearby,

who work for or rely on the services that are

and voters had turned down funds to build

being cut. These groups are engaged in "a

such a line, but the city hoped to eventually

huge battle for the control of the Rose City,"

build the line anyway, so it declared the park-

observes writer Phil Stanford, author of

ing rule to be "nonnegotiable."108 The compa-

Portland Confidential, a book about corrup-

tion in the 1950s and `60s. "What's left of the

ny moved to suburban Washington County

old Neil Goldschmidt machine," says

instead, and its CEO blasted the city for its

anti-business climate.109

Stanford, is "struggling to maintain the hold

it's had on the city's purse strings."104

Homer Williams may find Portland to be

a business-friendly environment. But for

One of the leading opponents of the

those who cannot hire a Neil Goldschmidt to

Goldschmidt program, City Commissioner

smooth their way to riches, the cost of doing

Randy Leonard, represented firefighter unions

business in the Portland area is high. That

before being elected. Since Portland firefight-

cost includes

ers get more than 90 percent of their funds

from property taxes, they are understandably

· The high cost of land for office, indus-

concerned about tax-increment financing.105

trial, or retail operations;

Another opponent, Amanda Fritz--who chal-

· The cost of overcoming Oregon's

lenged an incumbent Goldschmidt supporter

for city council in 2006--has represented nurs-

lengthy and onerous land-use planning

es unions. Although Fritz did not win, Leonard

process when siting such operations;

· The cost of congestion, especially for

survived a strong challenge from a Goldschmidt

supporter in the same election.

businesses that make daily deliveries of

Most recently, groups ranging from the

goods and materials;

· The cost of paying workers enough so

League of Women Voters to the chair of the

Though there was

Multnomah County Commission are oppos-

that they can afford housing and other

no light rail near

ing an extension of the Portland streetcar that

consumer costs; and

· The high tax rates needed to support rail

would require more TIF money. The League

Columbia

worries that TIF saps spending on schools and

transit and other expensive programs.

Sportswear's

social services. Multnomah County says that

urban renewal costs it $14 million per year.106

Portland seemed to have a business-friend-

proposed office

ly environment in the early 1990s. Housing

In any case, says Stanford, "it looks like the

building and

was still very affordable, especially when com-

political machine that's called the shots in

Portland for almost 50 years is crumbling."107

voters turned

pared to housing in California. In 1993, the

state legislature was prompted by Intel to pass

down funds to

a law allowing cities and counties to tax only

build it, Portland

Problem #4: Business-

the first $200 million of the value of chip-mak-

Unfriendly Environment

ing plants, which were often worth $1 billion

planners wanted

or more. This seemed reasonable to many

to build it anyway

because such factories did not consume any

Columbia Sportswear, one of Oregon's

so they told the

more public services than, say, sawmills or

largest companies, was headquartered in

other pre-silicon plants.

North Portland but wanted to relocate to a

company it could

As a result, at least 10 chip factories located

larger space. In 2000 it found a location in

not provide

in the Portland area, each employing thousands

the Central Eastside urban-renewal district,

surface parking

of people. Between 1992 and 1998, the region

and the city of Portland was pleased to wel-

gained nearly 200,000 new jobs, a 26-percent

come the company there.

because "it's a

increase. Then job growth slowed as high prices

After making plans for the new office, how-

light-rail station."

for land and housing led employers to look to

ever, the company was told by Portland plan-

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