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Kotek lists potential budget vetoes, including $2 million for Made in Old Town project

Kotek's office said she hasn't made a final decision about any of the potential line-item vetoes, but wants to learn more about the viability of each project.
Credit: RG - stock.adobe.com
State Capitol building in Salem, Oregon.

SALEM, Ore. — Gov. Tina Kotek has released a list of potential line-item vetoes totaling $14 million for two bills passed during this year's legislative session. Seven items on the list are funding allocations for specific water infrastructure upgrades around the state, and the last item is an allocation for a proposed apparel design and manufacturing hub in Portland's Old Town neighborhood.

Kotek said she hasn't made a final decision on any of the items, but is constitutionally required to notify the Legislature of the possible vetoes. The water upgrades are all intended to support "shovel-ready" housing projects, she said, and her office is reviewing the details of each project and asking the respective cities to supply more information to confirm that the infrastructure investments "will result in the production of new housing within an acceptable timeline."

The seven water project allocations range from $1 million to $3 million and all fall under Senate Bill 1530, one half of a major housing package that the legislature passed with Kotek's encouragement. The $2 million Old Town project allocation is part of the separate Senate Bill 5701, which covers broader suite of tweaks to the current biennial general fund budget.

"I appreciate the intent of this project to help revitalize the Old Town neighborhood in Downtown Portland," Kotek said in a statement. "My office is awaiting more information from the development group about the viability of financing for the entire project before I make my decision."

The Made in Old Town Development Project is being spearheaded by the Old Town Community Association, and is envisioned as a shared space for apparel companies to create new products, inspired in part by footwear company Hilos, which already operates a 3D printing facility the neighborhood.

RELATED: A kick in the right direction: New sneaker store breaks ground in Portland’s Old Town

The plan calls for the association and other businesses to acquire eight vacant buildings and convert them into manufacturing spaces for local apparel and footwear companies. Association board members have said they expect the full project to cost around $120 million, but last month they described the legislature's $2 million allocation as enough for a proof-of-concept.

"We'll work on one building and show that the model can work, and then the longer session, which is in an odd number of years, will give us an opportunity to ask for more funding," said Jessie Burke, who co-owns the Society Hotel and serves on the association's board.

Kotek will make a final decision on all of the potential vetoes by April 17, according to a news release from her office. The release lists the seven water infrastructure-related items that could be vetoed:

  • $3 million to the Oak Lodge Water Services Authority for wastewater treatment facility upgrades
  • $3 million to the City of Siletz for wastewater treatment plant upgrades
  • $3 million to the Tualatin Valley Water District for upgrades to the pump station on SW 189th Avenue in Beaverton
  • $1.5 million to the City of Butte Falls for wastewater treatment plant and lift station upgrades
  • $1.5 million to the City of Shady Cove for development of the city drinking water system
  • $1 million to the City of Creswell for wastewater treatment facility upgrades and connections to a regional treatment facility
  • $1 million to the City of Gold Hill for replacement of a water distribution main line and improvements and upgrades to water treatment facilities

   

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