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Authorize agreement with Historic Parkrose for management services of the Parkrose Forward Enhanced Services District for an estimated amount of $3,876,970 over five years

Label: Ordinance

The City of Portland ordains.

Section 1. The Council finds:

  1. Pursuant to Chapter 6.06 of the City Code and the amendments proposed in the establishing Ordinance, the City has established a property management license fee within the Parkrose Forward Enhanced Services District, also called "Parkrose Forward" or the "District." The purpose of the license fee is to provide revenues to fund sidewalk cleaning, ambassador program, industrial and commercial district connection programs, business engagement and communication, advocacy and public agency coordination, or any services that benefit the properties in the District.
  2. Historic Parkrose is a non-profit organization representing a large number of property owners and managers in the District. Historic Parkrose initiated the establishment of the license fee. Historic Parkrose also represents the property managers who will be responsible for paying most of the license fee revenues, and it is uniquely qualified to manage the provision of District services. Historic Parkrose is a "qualified contractor" as that term is defined in PCC 6.06.020.N.
  3. The services provided by the District, throughout the term of the agreement, are part of a unique and coordinated personal services program that Historic Parkrose has developed and provided, and there is no other potential provider of the services with the experience, expertise, and capability of Historic Parkrose. It is therefore appropriate for the City to enter into an agreement with Historic Parkrose for such services, and Parkrose is willing to contract to provide the services.
  4. The City will experience substantial cost savings if the contract is awarded to Historic Parkrose. First, because Historic Parkrose is a nonprofit organization, the City is very likely receiving a lower price for its services than from a comparable vendor in the private sector. Second, because Historic Parkrose is comprised of the District's fee payers, it is dedicated to serving the District and thus has a heightened motivation to provide quality service at an affordable price.
  5. The Historic Parkrose Board has agreed to provide management services to the District and has approved the Management Services agreement attached as Exhibit A from July 1, 2027 through June 30, 2032 .
  6. In accordance with City Code 5.33.120.C, a Sole Source Procurement Notice was published on June 4, 2026, and remained posted for a minimum of seven business days. No comments or protests were received. Disbursements to Historic Parkrose are always equal to the net of license fees revenue collected within the District less the cost of administration.

NOW, THEREFORE, the Council directs:

  1. The City Administrator or designee is authorized and directed to execute a management services agreement with Historic Parkrose to manage and provide certain services to the Parkrose Forward Enhanced Services District, in substantially the form attached to this Ordinance as Exhibit A.

Exhibits and attachments

FileExhibit A373.59 KB

Impact Statement

Purpose of proposed legislation and background information

This ordinance approves the new five-year agreement with Historic Parkrose for Enhanced Services District (ESD) management services. A companion ordinance is also before the City Council, to meet previsions in City Code 6.06, establishing the new Parkrose Forward ESD property management license fees, district boundaries, and establish the Parkrose Forward ESD. 

Historic Parkrose, a non-profit that has served the Parkrose neighborhood since 2012, has petitioned the City to create a new Enhanced Services District (ESD). Historic Parkrose is uniquely qualified to manage the provision of District services. Historic Parkrose is a "qualified contractor" as defined in PCC 6.06.020.N. 

In absence of any other qualified non-profit who could fulfill the work within the Parkrose Forward ESD, in accordance with City Code 5.33.120.c, a Sole Source Procurement Notice was published on June 4, 2026, and remained posted for a minimum of seven business days. The City may award a sole source contract in accordance with City Code Chapter 5.33.

Financial and budgetary impacts

This five-year contract will be a new agreement between the City and Historic Parkrose. The City's costs to administer the program include 2-3% of collections that fund the Revenue Division's cost to collect and distribute the license fee, and 2% to pay for a portion of the ESD Coordinator's position costs. This arrangement continues in the proposed contract.

Economic and real estate development impacts

The expected economic impacts experienced due to the authorization of a new five-year Historic Parkrose contract includes new ratepayers being assessed the property management license fee for five years, beginning July 1, 2027, with the option to extend for another five years starting July 1, 2032. The property management license fees support the ESD programs and services that would be conducted by Historic Parkrose, benefiting the entire district. This work includes sidewalk cleaning, ambassador program, industrial and commercial district connection programs, business engagement and communication, advocacy and public agency coordination. These supplemental services would be above and beyond what the City can provide and are meant to enhance the Parkrose Forward ESD. 

These added services are meant to make Parkrose a more desirable neighborhood for real estate development and investments. Furthermore, they should lead to a more inviting, activated, and economically resilient neighborhood for businesses, residents, and visitors.

Community impacts and community involvement

Historic Parkrose has identified the programs and services desired by the Parkrose community following robust outreach and engagement within the proposed ESD boundaries since July 2025. This outreach and engagement involved input from a range of potential ratepayers including non-profits, industrial property owners, and small business owners.

The desired enhanced services include sidewalk cleaning, ambassador program, industrial and commercial district connection programs, business engagement and communication, advocacy and public agency coordination, all benefiting the entire district. These enhanced services are outlined in the five-year contract and will be funded by property management license fees.

100% renewable goal

Not applicable.

Economic and real estate development analysis

Analysis provided by Prosper Portland

Prosper Portland staff has reviewed the Economic and Real Estate Development Impact Analysis submitted for this action and finds that it satisfies the requirements set forth in City Council Resolution 37664. The analysis is sufficiently detailed and complete to be considered a final statement for purposes of this action.

Document history

Document number: 2026-235

President's referral: City Life Committee

Agenda Council action
Regular agenda
City Life Committee
Continued
View written testimony

Document number

2026-235

Introduced by

Contact

Devin Reynolds

Enhanced Services District Coordinator

Agenda type

Regular
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