Portland's Detention Facility Impact Fee

Overview

Detention facilities impose unique costs on City of Portland's infrastructure and services that are not generated by other land uses. These costs include:

• Extra demand on police and emergency responders
• Police overtime
• Environmental contamination from chemical munitions
• Impact on community health from chemical munitions
• Support for nearby homes and businesses

Without a dedicated revenue stream, these expenses fall on the City's general fund, which means that these substantial costs are borne by residents and small businesses.

The Detention Facility Impact Fee establishes a framework for addressing these costs. The ordinance creates an annual impact fee levied on private property owners who lease or permit their property to be used as detention facilities.

The revenue generated from this fee will be dedicated to mitigating the costs that detention facilities create.

The ordinance also prohibits detention facilities from:

• Releasing chemical munitions into nearby streets or buildings.
• Contaminating nearby buildings.

The ordinance allows the City to fine property owners who violate these prohibitions.

Read the ordinance

This page will be updated with news and progress reports.

Approval

The ordinance was approved by City Council on Dec. 3, 2025.

Administrative rules

Teams across the City are currently considering and developing procedures and rules to guide the implementation of this ordinance. Rulemaking follows an established procedure set out by City Code and requires public notice and public comment. 

Temporary rules

On Feb. 27, 2026, City Administrator Raymond C. Lee III approved a temporary administrative rule that allows the city to take action while a long-term rule is developed.

This temporary rule is specific to regulating chemical munitions at detention facilities. It is the first step to operationalize enforcement of Council's nuisance ordinance and does not take action on the impact fee authorized under the same ordinance. This work remains ongoing and will proceed through the rulemaking process.

The temporary administrative rule establishes an enforcement framework, including a citation process, fine schedule, service requirements, and appeal procedures. Fines begin at $5,000 for a first offense and may increase to the maximum amount allowed for repeated violations. Each day of non‑compliance may be treated as a separate violation. Enforcement and fines only apply to incidents after the effective date of the temporary rule. 

Learn more about the temporary rule