Economic
Development
Strategy
Adopted
February 14, 2001
Portland Development Commission
Economic Development Strategy
Table of Contents
I. Introduction ..............................................1
II. Primary Jobs ..............................................2
III. Workforce Training And Development......10
IV. Real Estate Product ..................................11
V. Retail and Services ...................................12
VI. Livability ..................................................13
VII. Marketing and Education .........................14
VIII. Conclusions/Recommendations ...............14
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 1
I.  Introduction
This Economic Development Strategy is an integration of various
reports, studies and factors which together represent a strategy and work
plan for the Portland Development Commission to undertake in meeting
goals of the Lents Town Center Urban Renewal Plan. Preparation of this
Strategy was coordinated by the staff of the PDC Economic Development
Department with the assistance of independent consultants. The public
has been involved in developing this Strategy through participation on
the Workforce and Economic Development Project Advisory Committee
(PAC) and the Urban Renewal Advisory Committee (URAC). Other
community stakeholders and partners have also provided feedback at an
open house and other community meetings.
As adopted by the City Council on Sept. 9, 1998, the Lents Town Center
Urban Renewal Plan contains as a primary Goal:
Help businesses create family-wage jobs within the
Area and help make these jobs available to residents
of the Area.
The research and analysis undertaken and described in this Strategy is
the basis for the conclusions and recommendations being made herein to
address employment opportunities, wage levels, workforce development
and training, entrepreneurial activities, and marketing and education.
The goals and objectives of this Strategy also fit within a larger policy
overlay which includes the City of Portland’s Comprehensive Plan, the
Outer Southeast Community Plan, and other community planning
efforts.
The recommendations in this Strategy are influenced by a number of
factors, including: the relatively limited amount of industrially zoned
land and its proximity to the environmentally sensitive Johnson Creek
Basin; the existing demographic and educational characteristics of the
Area’s residents; and the limitation on use of tax increment funds to
“bricks and mortar” capital projects, as distinguished from programmatic
support for organizations or institutions.
Successful implementation of this Strategy will also be influenced by a
number of factors, including:
¨ the general health of the regional, state and national economy;
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 2
¨ the cooperation and participation of private property and business
owners;
¨ the cooperation and participation of community partners and
organizations involved in workforce development and training;
¨ commitment by the URA’s PACs to integrate strategies and goals;
¨ a balance of community objectives regarding the environment and the
economy;
¨ a successful marketing campaign to raise the visibility of the URA as a
good place to live, work, and operate a business.
II.  Primary Jobs
In 2000, PDC contracted with Pat Scruggs & Associates to undertake a
major study and analysis of various characteristics and opportunities
within the Lents Town Center Urban Renewal Area related to strategies
for creating family wage jobs. The work was conducted under contract
with PDC.  The following are exerpts (shown within a text box) from the
full report, Strengthening Lents’ Economy Through Family Wage Job
Creation. [Complete document can be downloaded from the
LentsTownCenter.com website.]
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 3
Executive Summary
This report constitutes a primary jobs strategy for the Lents Town
Center Urban Renewal Plan. The purpose of this study is to strengthen
Lents’ economy by identifying industries that offer Lents the highest
likelihood of increasing the number of family-wage jobs, and to
understand the real estate issues required to expand or attract targeted
industry clusters.
The job strategy is intended to serve as a framework for a PDC
work plan in meeting the goals and objectives of Lents Town Center
Urban Renewal Plan. Members of the Urban Renewal Advisory Council,
business groups, and the public have been involved in shaping this
strategy through review meetings and an open house.
Lents is an area within Portland that experiences lower than
average residential incomes and business wages.  This is driven, to a
large extent, by lower than average skills and education of residents, as
well as a higher than average mix of retail and personal service jobs.
Therefore, a primary job strategy for an area like Lents will need to focus
on both workforce development for residents, as well as job and business
development for the industry base.  Such an approach requires
information on the types of jobs appropriate to residents and businesses,
along with the real estate product and community infrastructure requires
to support family wage jobs.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 4
Lents Demographic Profile
Note: Statistics are derived from a variety of sources and generally
pertain to a geographic area larger than the LTCURA.
· With 18,545 residents as of 1999, the population of the Lents area
has increased by 13% since 1980 – a rate of growth somewhat
below that of Multnomah County.
· Educational attainment of the Lents workforce has improved
during the 1990s, but remains below county and regionwide levels;
the low education rate is directly related to the low per capita
income.
· Compared to Multnomah County, Lents has a high proportion of
youth below 21 years of age (34% for Lents and 24% for
Multnomah County).
· Non-white residents represent less than 12% of the population as
of 1996. This is an increase from 1990 but still indicates less
diversity than the entire county. However, increased racial and
ethnic diversity can be expected based on interviews with
community members and businesses.
· Overall, Lents per capita income in 1996 ($11,657) was only 63%
of the Multnomah County average of $18,564.
· While the occupational profile of area residents is shifting to more
closely resemble the countywide workforce, there is still a large
portion of residents in unskilled retail, clerical and general labor
jobs.
· Lents continues to have a relatively high proportion of its
workforce employed in precision production, craft and repair,
machine operation, and service occupations, which indicates
strong skills in and connection to manufacturing industries along
I-205.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 5
Industrial Markets
· Despite the attention given to high-tech in Washington County,
Portland’s north and eastside industrial market constitutes a
major share of the industrial leasing activity in the metro area. The
southeast submarket has comprised 20% of regional industrial
demand through the first half of 2000. Vacancies are extremely low
and virtually no new product is being built – in large part due to
lack of suitable sites.
· Industrial real estate data suggests a clear opportunity for Lents
area industrial development, provided that suitable sites can be
secured – of competitive size, appropriately zoned, free of
environmental constraints and with readily available
transportation/utility infrastructure.
· Portland’s eastside office market is extremely limited – accounting
for only 4% of regional office absorption since 1996. However,
major new developments are planned at both ends of the I-205
corridor – in Clackamas and more significantly at Cascade Station
adjacent to Portland International Airport.
· Major sources of office and related flex space demand include
technology-related firms. While significant new development is not
expected in the Lents area, residents should have access to added
I-205 corridor job opportunities – particularly if labor force skills
can be supplemented with job training targeted to the needs of
office employers experiencing strong employment growth.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 6
Lents/I-205 Industry Analysis
· Business and industry clusters have been analyzed from the three
perspectives of: (1) existing strengths of Lents; (2) connections to
the I-205 corridor; and (3) linkages to the Portland metro economy.
· Over 60% of jobs actually located in the Lents area (97266 zip
code) in 1999 were in the retail trade – a major reason why Lents
wages averaging just over $20,000 per year are less than 60% of
the Multnomah County average wage. Diversification to higher
paying industrial, business and professional employment
represents a key strategy to boost payrolls in the Lents community.
· Along the I-205 corridor, industries with the greatest employment
include health services, wholesale trade, air transportation,
business services, specialty contracting, fabricated and primary
metals, trucking and warehousing, auto repair and services,
machinery, and printing and publication. Today, these relatively
high paying industries represent a much smaller share of
employment in Lents than throughout the rest of the I-205
corridor.
· Sectors paying the highest wages in the I-205 corridor include
communications, primary metals, insurance firms and utilities.
The communications, insurance and utility functions all have
significant information technology and back office components that
may be suitable for future office/flex space development in the
Lents area.
· Portland metro area industry clusters include electronics/high
tech, metals and machinery, creative services, environmental
services, wood products and nursery products. Currently,
strengths of the I-205 corridor most closely match those of the
region in metals and machinery.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 7
Market Potential for Industry Development
· Prospectively, there is potential to diversify the Lents industrial
base with family-wage jobs found elsewhere in the I-205 corridor
and metropolitan region.  Traditional industries such as
manufacturing and assembly, as well as wholesale trade, capture
high concentration of jobs and the real estate advantages found in
Portland’s Eastside.  Certain segments of information technology
and professional services could support the development of
commercial office and flex space buildings in the area.
· Brokers and developers note a lack of real estate product on
Portland’s Eastside.  The potential for Lents to successfully provide
product appears to be in developments that provide a mix of flex,
light manufacturing, and limited warehousing.  While high cube
warehouse has demand on the Eastside, its low employment
density and lower wages make it less appealing than providing
product for light manufacturing, information technology or
commercial trade.
· Lents appears to have greatest market potential for light
manufacturing and assembly firms with fewer than 50 employees.
Important location factors are likely to include freeway and airport
access, in-place infrastructure, and access to labor force.
· Information technology (IT) firms favorably view Portland’s eastside
(potentially including Lents) as an under-tapped market for entry-
level IT jobs. Those familiar with Lents express concern about the
area's reputation for safety and overall attractiveness of the district
– both negatives for attracting IT companies.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 8
Proposed Business and Industry Clusters for Lents
· Criteria for business niches recommended for Lents are: (1)
diversifying the industrial base (connections to I-205 and metro
cluster, and long-term growth potential), (2) industries with
appropriate uses (redevelopment potential, market feasibility and
job density), (3) connections to the Lents community (livable wages
with benefits, and building on existing skills).
· Proposed business niches and industry clusters focus on (A)
manufacturing and trade (light manufacturing and assembly,
wholesale trade); and (B) professional and business service clusters
(information technology, small professional and business service
firms).
Connections to Workforce Development Efforts
· The lack of immediate real estate product in Lents limits the short-
term potential for increasing the number and diversifying the types
of jobs in the Lents Urban Renewal Area itself.  Therefore, the
greatest opportunity to link Lents residents with employment is to
focus on growing industry clusters in the I-205 corridor, and to a
lesser extent, emerging industries within the broader metropolitan
region.
· Increasing the opportunity for Lents residents to obtain family
wage jobs will require a coordinated effort among training
providers in assisting residents to upgrade their skills and
education, especially in key manufacturing and information
technology jobs.
Workforce development efforts should focus on four issues:
1) Raising the awareness among Lents residents about the types of
family-wage jobs available in the I-205 corridor and the skills
required to obtain these jobs.
2) Developing strong working relationships with I-205 business in
targeted industry clusters.
3) Developing integrated training programs that offer immediate
employment opportunities linked to ongoing training for career
advancement.
4) Developing mechanisms that allow people to upgrade skills or
education with minimum impact to existing job security.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 9
Real Estate Development Recommendations
· Lents is in a very good position to capture the unmet demand for
new development along the I-205 corridor.  The greatest potential
for primary job creation will be with industrial sites east of the
freeway, with additional potential in commercial areas of downtown
Lents.
· Public investments in infrastructure, street improvements, high-
speed telecommunication capacity and the transportation system
would increase the functionality and attractiveness of downtown
Lents and its potential to attract information technology and
business service jobs.
· In general, employment densities of 50 employees per net acre and
average wages of at least $28,000 could be achievable in Lents.
This would promote industries such as light manufacturing and
assembly, wholesale and information technology.  It is not
recommended that public funds be used to develop product for low
density and/or low wage industries.
· The area east of I-205 should focus on the creation of primary,
family wage jobs.  PDC should consider the use of low-interest
loans, performance-based loans, development agreements, grants,
technical assistance and other investment methods to help guide
development toward real estate products that would support
targeted industries with desired job densities and wages.
· Lents has a unique opportunity to turn environmental challenges
in to community assets by using sustainable development
practices on environmentally challenging sites.  Partnering with
private landowners and other city bureaus, PDC could provide
assistance to a development project that would seek to create
quality jobs while providing a model for environmentally sensitive
development.  Sources for public investments expand beyond tax
increment and include federal funds from EPA, HUD and EDA.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 10
Building upon on the findings and recommendations of the consultant’s
report, the following sections describe additional objectives and
recommendations, which support the overall primary jobs goal of the
Urban Renewal Plan.
III.  Workforce Training And Development
Employers looking for locations to build office or manufacturing facilities
with large numbers of family wage jobs to offer, are drawn to areas
where, among other factors, there exists an adequate pool of qualified
workers.
Family wage jobs generally require a higher level of education or training
than do typical retail jobs, and in some cases very specific technical
training.
In order to most successfully market the Lents area as a location for new
family wage jobs, there needs to be an adequately trained, or trainable,
workforce to offer potential employers.
With a disproportionate number of Lents area residents currently
working at lower paying jobs, the attraction of higher paying jobs –
located in their own neighborhood – should provide an abundant labor
pool to offer prospective employers.
In order to provide these Lents residents with the opportunity to seek
and qualify for new higher paying jobs, there needs to be an adequate
and responsive workforce training system in place for them to obtain the
necessary job skills.  This could be either in formal education systems
such as high schools and community colleges, or specialized training
programs offered by employers or community-based workforce training
organizations.
Key to successfully meeting both primary goals of this Strategy – new
jobs in the area, and getting Lents Residents into those jobs – will be
coordinating efforts to recruit new jobs with the systems necessary to
train the workers.
In that regard, legal limitations on the use of urban renewal tax
increment funds preclude actual ‘programmatic’ support for workforce
training programs.  Urban renewal can, however support ‘capital’
improvements, and it is in this area that PDC should focus its strategy
and financial support for workforce development and training.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 11
PDC should provide financial assistance for the construction,
rehabilitate, or modernization of facilities which provide a place for
conducting ongoing education or training programs for Lents Town
Center Urban Renewal Area residents that directly link them to new or
existing family wage jobs, preferably located in the Lents Area.
Projects should be chosen based on the sponsor’s ongoing availability of
program operating costs, ability to establish training-hiring
arrangements with employers, and ability to develop and provide
customized education and training programs in a timely manner.
IV.  Real Estate Product
Real estate product was an additional issue that was considered in the
Scruggs & Associates work.  The appropriate excerpt of that report is
included here.
Real Estate Development Recommendations (from Scruggs report)
Lents is in a very good position to capture the unmet demand for
new development along the I-205 corridor.  The greatest potential for
primary job creation will be with industrial sites east of the freeway, with
additional potential in commercial areas of downtown Lents.
Public investments in infrastructure, street improvements, high-speed
telecommunication capacity and the transportation system would
increase the functionality and attractiveness of downtown Lents and its
potential to attract information technology and business service jobs.
In general, employment densities of 50 employees per net acre and
average wages of at least $28,000 could be achievable in Lents.  This
would promote industries such as light manufacturing and assembly,
wholesale and information technology.  It is not recommended that
public funds be used to develop product for low density and/or low wage
industries.
The area east of I-205 should focus on the creation of primary,
family wage jobs.  PDC should consider the use of low-interest loans,
performance-based loans, development agreements, grants, technical
assistance and other investment methods to help guide development
toward real estate products that would support targeted industries with
desired job densities and wages.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 12
Lents has a unique opportunity to turn environmental challenges
in to community assets by using sustainable development practices on
environmentally challenging sites.  Partnering with private landowners
and other city bureaus, PDC could provide assistance to a development
project that would seek to create quality jobs while providing a model for
environmentally sensitive development.  Sources for public investments
expand beyond tax increment and include federal funds from EPA, HUD
and EDA.
PDC is currently engaged in efforts to stimulate and support
revitalization of the Lents Town Center Business District which will offer
a variety of retail and office products in a mixed use, 'Main Street'
commercial environment.
Additionally, PDC is undertaking the "Lents 2040 Planning Project"
which will provide greater vision and clarity to the future development
potential of commercial and industrial property located generally East of
I-205 and within/adjacent to the Johnson Creek Floodplain.
V.  Retail and Services
As revealed in the Scruggs report, the Lents Area has an abundance of
retail, or ‘secondary’ jobs.  The importance and focus of PDC attention to
this sector of the local economy, will be for one of three reasons:
1. The provision of goods and services in an attractive and
convenient location ¾ such as the Town Center Business
District ¾ not only is a positive livability factor for
neighborhood residents, but also enhances the appeal of the
area to new employers and primary job providers.
2. Retail and services can also provide entrepreneurial
opportunities for LTCURA residents, thus enhancing the ability
of local residents to participate in the growing economic wealth
occurring in the community.
3. “Capture” dollars from commuters who travel through Lents on
a daily basis.
PDC activities in support of these objectives are more thoroughly being
addressed in the Lents Town Center Business District Strategy.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 13
VI  Livability
Improving the livability of the Lents Town Center Urban Renewal Area is
an overarching goal of the Urban Renewal Plan. There are many factors
commonly associated with assessing and appreciating a neighborhood’s
livability, including for example:
· Streets and transportation
· Attractive and affordable housing stock
· Parks, open spaces, and recreational opportunities
· Quality schools and educational programs
· Existence and involvement of community service associations, and
organizations in community activities.
Overall neighborhood livability will also be an important factor in
successfully realizing economic development objectives because of its
significance to the perceptions of prospective developers, employers and
customers that are necessary to drive many of the objectives of this
Strategy.
PDC is engaged in many projects and programs within the urban renewal
project which, together, are designed to address these livability issues.
As of this date, PDC has adopted specific Strategies and Programs to be
carried out in support of the Lents Town Center Urban Renewal Plan,
including:
¨ Lents Town Center Business District Transportation Plan
¨ Residential Street Paving Program
¨ Housing Strategy
Work is currently under way to develop others:
¨ Traffic Safety Program
¨ Lents Town Center Business District Strategy
¨ Parks, Recreation and Open Space Capital Project Strategy
The completion and implementation of each of these elements is an
important and essential element in supporting a whole-scale effort to
improve the livability of the urban renewal area, and poise the Lents area
to create and take advantage of an improved economic development
environment.
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 14
VII Marketing and Education
The attractiveness and viability of the LTCURA must be communicated to
a variety of target audiences:
Businesses must be made aware of Lents as a viable location for their
operations
Property Owners/Developers need to learn of
development/redevelopment opportunities for their property
Community members should view Lents as a vibrant area where positive
change is occurring
Significant constraints/challenges should be recognized and try to be
addressed
VIII  Conclusions And Recommendations
Conclusions and recommendations come from various sections of
the report
¨ The nature of urban renewal funding, and the restrictions placed on
expenditures of tax increment monies, requires many economic
development and workforce development objectives to be funded as a
part of development or redevelopment projects.  Funding must
primarily be directed at “bricks and mortar” projects, rather than as
programmatic support for organizations or agencies.
¨ Proposed business niches and industry clusters [for primary job
development] focus on (A) manufacturing and trade (light
manufacturing and assembly, wholesale trade); and (B) professional
and business service clusters (information technology, environmental
services, and small professional and business service firms).
Economic Development Strategy  ¨   Lents Town Center Urban Renewal Project
Adopted: February 14, 2001 Page 15
¨ Workforce development efforts should focus on four issues:
1. Raising the awareness among Lents residents about the types of
family-wage jobs available in the I-205 corridor and the skills
required to obtain these jobs.
2. Developing strong working relationships with I-205 business in
targeted industry clusters.
3. Developing integrated training programs that offer immediate
employment opportunities linked to ongoing training for career
advancement.
4. Developing mechanisms that allow people to upgrade skills or
education with minimum impact to existing job security.
¨ The greatest potential for primary job creation will be with industrial
sites east of the freeway, possibly accompanied by supporting
retail/services.  Additional potential for job creation exists in
commercial areas of downtown Lents.
¨ The area east of I-205 should focus on the creation of primary, family
wage jobs.
¨ Partnering with private landowners and other city bureaus, PDC could
provide assistance to a development project that would seek to create
quality jobs while providing a model for environmentally sensitive
development.
¨ Key to successfully meeting both primary [workforce] goals of this
Strategy – new jobs in the area, and getting Lents Residents into those
jobs – will be coordinating efforts to recruit new jobs with the systems
necessary to train the workers.
¨ Overall neighborhood livability will also be an important factor in
successfully realizing economic development objectives because of its
significance to the perceptions of prospective developers, employers
and customers that are necessary to drive many of the objectives of
this Strategy.
¨ A multi-disciplinary, multi-agency approach to resolving issues
related to the environment and ecology of the Johnson Creek basin,
including addressing flood control/flood management, is seen as
critical to successful job creation activities east of I-205.