Development Assistance

Commercial Property Redevelopment Loan Program

Creating healthy vibrant neighborhoods and business districts throughout the City

The Portland Development Commission (PDC) makes loans to assist private partners with redevelopment, new development and tenant improvements that encourage property revitalization and wealth creation within urban renewal areas (URAs). The Commercial Property Redevelopment Loan will provide incentives for commercial or mixed use development.

A PDC Redevelopment Loan provides financial assistance for property development or rehabilitation with the goal of eliminating blighted property within URAs. Because funds are limited and insufficient for all projects, PDC may focus its scarce resources in certain areas of a URA.

The property redevelopment project must demonstrate a significant public purpose, which can include:

• redevelopment of blighted sites or buildings (vacant, abandoned or under-utilized)
• preservation of historic buildings,
• implementation of transit-oriented development

Generally, PDC provides loans with flexible terms to fill financial gaps and make a project financially feasible.

Eligible Uses of Funds

PDC provides loans at different stages of the real estate development process for a variety of project costs. Most costs related to the development are eligible for PDC’s assistance, including:

• development feasibility analysis,
• property acquisition associated with a redevelopment project,
• environmental analysis and remediation,
• seismic and tenant improvements and other construction costs, and
• public infrastructure improvements related to a development project.

Funding for this program is through tax increment financing (TIF) and, therefore, is tied to the infrastructure and physical improvements (including tenant improvements) of real estate projects within URAs. Loans types available include predevelopment, construction, and permanent financing.

Eligible Borrowers
Property owners (fee simple or long term ground lease with term remaining that exceeds the loan term by at least five years) are eligible. Parties in negotiation for acquisition of City-owned property are also eligible. For a Predevelopment Loan, eligible borrowers include parties with an option to purchase the property.

Service Area
All URAs, as funding is available.

To Apply
Applicants must complete a PDC Business Loan Application and provide the additional documents detailed on the application form.

This program is one of many financial assistance products offered by PDC, and staff is available to help you find the business tool that best fits your need. Those interested in the program should contact Becki Marsh by e-mail or at 503-823-0308

Related Links:

Oregon Convention Center URA Redevelopment Loan Program