Portland committee hears inclusionary zoning panel, advances Nordic spa land sale

The Housing and Economic Development Committee heard from a four-person panel on the city's inclusionary zoning policy, with panelists arguing the current 25% affordable requirement at 80% AMI is not producing housing and needs recalibration. The committee also reviewed a permit office update, voted to recommend a purchase and sale agreement for two city-owned lots at the Portland Technology Park for a Nordic spa, and advanced a resolution on data center regulations.

Key points

• The committee approved the September 15 meeting minutes by roll call vote, with Councilors Phillips, Sykes, and Michniewicz and Chair Ali voting yes.
• A panel of Laura Mitchell, Todd Morse, Erin Cooper-Ryder, and Patrick Hess told the committee the current inclusionary zoning policy (25% of units at 80% AMI) functions as an unfunded mandate and is stalling projects; they cited Portland, Oregon and other cities that pair requirements with density bonuses, fee reductions, or subsidies.
• Chair Pious Ali apologized that some stakeholders, including the Maine Democratic Socialists of America, were not invited to the panel, and said two more meetings on inclusionary zoning will follow, including public comment, before any vote.
• Jessica (permit director) reported permit turnaround times have been cut roughly in half since 2021, to 31 business days for residential and 45 for commercial, with 39 positive and two negative survey responses; Mayor Dion urged a stronger customer service plan.
• The committee voted by roll call to recommend council approval of a purchase and sale agreement with Nordic Maine for lots 3 and 5 at the Portland Technology Park; Councilor Sykes praised a clause requiring payment in lieu of taxes if the property becomes tax-exempt.
• Resident George Rowe spoke against the Nordic spa sale, arguing the roughly three acres should be housing, and later commented on data centers, saying a blanket ban is not the right approach and that the city should define what types of data centers it wants to regulate.
• The committee voted by roll call to advance a resolution requesting the planning director apply to the Planning Board for a land use code text amendment on data center regulations; Councilor Sykes noted the resolution as drafted does not actually ban data centers, and Councilor Pelletier said he wanted stronger language.

Next steps

• Two additional committee meetings on inclusionary zoning will be scheduled, including one with public comment and invited stakeholders not on tonight's panel.
• The purchase and sale agreement with Nordic Maine for Portland Technology Park lots 3 and 5 moves to the full City Council for approval.
• The data center resolution moves to the City Council, where it can be amended before a vote.
• Planning staff are already researching potential land use code regulations for data centers.

Read the full transcript