A plan to turn an empty lot into nearly 90 apartments in Portland’s East End has some neighbors bristling about the building’s height and its lack of parking.

But others say the project exemplifies the type of development the city hoped to usher in through its extensive revamp of local zoning rules completed in 2024.

The city’s planning board on Tuesday approved GreenMars Real Estate’s plans for 87 units — mostly studios between 225 and 280 square feet — at the corner of Congress Street and Washington Avenue. The seven-story building would have eight condominiums and commercial space on the ground floor.

The large “Clam Diggers” mural on the side of the brick building next door (completed in 2016 by Susan Bartlett Rice) will stay intact, and will be accessible via an alley between the two buildings.

The project is one of the first in the area to take advantage of the zoning overhaul, which the city calls ‘ReCode,’ and board member Austin Smith said at the public hearing there will likely be a period of transition when the building will seem out of scale.

Parking, too, will admittedly be a challenge but could help improve the city’s Metro system and boost ridership.

It’s “just part of the growth,” Smith said. “It’s hard at first but the benefits are substantial.”

‘PRICE MATTERS THE MOST’

The goal is to “transform this key intersection from an underutilized parking lot into a vibrant anchor for the neighborhood,” said Patrick Boothe, a partner at Woodhull, the architecture firm that designed the project.

Of the 87 units, 22 will be workforce housing, meaning they’re reserved for people making up to 80% of the area median income, as required by the city’s inclusionary zoning policy. That means the maximum rent allowed for those studio apartments is $1,602. 

Chris Marshall, GreenMars’ co-founder, said in an interview that he hopes the rest of the rental units will also be priced below $2,000 a month, but that it’s hard to predict where the market may be in two years. 

The units may be tiny, but Marshall is confident that there’s enough demand, especially for a sub-$2000 rent.

“What we’re noticing, especially in downtown Portland right now, is that price matters the most,” he said, adding that there are already many studios priced $2,000 or above downtown. 

GreenMars has built small units in other cities, like Sanford, and Marshall said they’ve been popular, especially among younger renters. 

“Small is a good sacrifice for a lot of people,” he said, particularly when the tradeoff is living on the peninsula.

THERE GOES THE NEIGHBORHOOD?

The lack of parking and the building’s height were sticking points for residents — both those in support of the project and those opposed.

Lynn Soucy, president of the Washington Square Homeowner’s Association, said it’s unreasonable to think that 87 new residents wouldn’t have a car and even 50 more on the street would choke what’s already a precious resource.

“I don’t believe this kind of project would promote growth,” she said. “In fact, the lack of parking (and) the difficulty of more traffic on that corner would dampen the economic activity of the businesses that are already there and any new ones.”

Stephen Davis said in a written comment that a seven-story building would “destroy the architectural integrity of the entire streetscape,” which is largely composed of three and four-story buildings.

“I recognize that our city needs greater residential density, but that needs to be done in
appropriate locations,” he said.

Hans Goudey, on the other hand, argued that the proposed location is perfect for that kind of density. It’s near multiple bus stops, grocery stores and other services. It has the opportunity to bring in tax revenue, add market pressure to reduce rent and turn what currently feels like “the end of Congress Street … into a real place.”

Charlotte Rutty said including parking in the plans would only reinforce the idea that it’s a necessity.

“If we need to reduce car dependence in Portland, which we do, this is a perfect place to be doing it,” she said.

AN UNCERTAIN FUTURE

Despite having the approvals in hand, Marshall said the project is far from a done deal. 

“We literally cannot build this project without an inclusionary zoning change,” he said. 

Developers have for years complained that the city’s inclusionary zoning policy, which requires that 25% of a building’s units be affordable for people making 80% of the area median income, is too restrictive and makes building in the city nearly impossible. 

A recent city report found that while developers are still submitting plans for buildings — in record numbers — few are actually getting built. The number of completed buildings plummeted after the city strengthened the inclusionary zoning policy from the original 10% of affordable units at 100% area median income. 

The report also noted that to simply “break even” under the current policy, known as IZ 2.0, an apartment would need to rent for $3,113 a month.

“Portland not being a market that will bear this cost … the only way to absorb the cost of the inclusionary zoning requirement is to shrink the units to the 250-350-square-foot range,” the report said. 

Marshall is hopeful that the City Council will choose to revert to the original policy or otherwise rollback the restrictions. 

In the meantime, he said, the company chose to move forward with submitting plans “in an effort to be able to jump on the creation of housing when the time comes.” 

Editor’s note: This story was updated at 10 a.m. May 14 to correct the spelling of Charlotte Rutty’s name.