Two Portland City Councilors are seeking to put a 180-day prohibition on the approval of new hotel projects in the city in order to prevent what they call the “serious public harm” posed by continued hotel development.
The proposed order, sponsored by Councilors Kate Sykes and Pious Ali, would place a 180-day moratorium on new hotel projects and expansions in Portland.
[RELATED: Maine’s Unprecedented Housing Crisis Is Worse Than You Think…]
In an Oct. 28 memo to Portland Mayor Mark Dion and the rest of the City Council, Sykes and Ali wrote that the pause in hotel development would give the city time to address its affordable housing needs by redirecting resources toward residential development, during which the city would also revise its “inclusionary zoning” (IZ) policies.
“A moratorium is warranted under subsection (B) of 30-A MRS 4356, as Portland’s existing comprehensive plan, land use ordinances, and regulations are inadequate to prevent the serious public harm posed by continued hotel development,” Sykes and Ali wrote in the memo.
According to the two Councilors, since 2019, 801 new hotel rooms have been approved or are under review in Portland, leading to a projected 489 additional hospitality jobs in the city.
Many of those hotel workers have incomes that fall below the the 60 percent Area Median Income (AMI) threshold, which qualifies them for affordable housing programs.
[RELATED: Maine Homes Nearly 9% More Expensive Than in 2023: Maine Association of Realtors…]
“This new demand, layered onto Portland’s existing housing shortage, highlights the need for more affordable housing options to support the workforce and mitigate commuting challenges for workers who are forced to seek housing outside the city,” the Councilors wrote.
While the city’s current IZ regulations require that hotel projects provide one unit of low-income housing for rent in the City of Portland for every 28 hotel rooms, or to pay a fee-in-lieu to support affordable housing production in the city, to date, no affordable housing units have been built by hotel projects, according to Sykes and Ali.
Skyes and Ali claim in the memo that the current fee-in-lieu of $4,692 per hotel room falls short of covering the cost of building affordable housing for low-income residents, and that allowing additional hotel development without adjusting the fee could “exacerbate serious public harm during a housing crisis.”
[RELATED: Mills Admin Outlines Recommendations for Meeting State Housing Production Goals by 2030…]
During the proposed 180-day moratorium, the City Council’s Housing and Economic Development Committee would be directed to conduct a comprehensive study of the IZ policies, potentially eliminating the fee-in-lieu option or implementing another method to ensure all hotels “contribute fairly to affordable housing.”
The proposal is slated for a first reading before the City Council during their Monday, Nov. 4 meeting.
one cheep motel room?
Portland just proves their stupidity over and over!! You just lost restaurant jobs and now you want to lose hotel jobs!! People of Portland if this is what you want then enjoy, but don’t expect the rest of Maine to bail out your idiotic behavior with our money. Just keep raising your property taxes!!!
I wouldn’t be surprised if these two came up with a proposal to either make the building being renovated as a hotel either taxpayer subsidized housing or a shelter.
Liberals love poverty. That way they can make promises and stay in power.
I may be wrong in the success of this proposal but wasn’t it just a year ago Portland demanded and received State taxpayer money from Janet and the “it’s my money and not you greedy taxpayers money” legislature to pay for all the illegals they took in. What makes anybody think the states cesspool city won’t get more money from the elderly on fixed incomes to fixed their idiotic policies. A fee-in-lieu is a tax. Call it what it is please.
There big tax breaks in those hotels
Hotels are built because they provide the best Return On Investment. Portland’s wacko city councilors seem determined to put an end to that concept.
The rent control laws enacted by the city are creating more harm than hotel construction. Big Government makes us all poorer and less free.
But where, pray tell, will those “New Americans” be able to make reservations before boarding their plane for Maine?
Reminder for the uninformed: choices have consequences.
The Portland council would rather turn down a tax revenue stream from hotels, tourists that stay in those hotels and hundreds of employees who work at those hotels for affordable (welfare) housing that will cost the city $$ in the long run.
Makes sense for a socialist, I guess.
I think Portland is stalling to see if I succeed in getting approval for my cruise ship which will have up to 4600 living units, Cost per sq.ft. is less than $30. Compare that to new construction at $250 – 350 psf.
Lets not build nice places. Unless I get greased by someone my stand will be we like it dumpy. Said Portland city council.