The story about the Portland City Council’s $8.5 million settlement for the families displaced from Albina refers to the amount as a “dramatic increase,” (“Portland City Council unanimously votes to increase settlement payment in displacement lawsuit,” June 6).
Despite the increase in the settlement’s absolute amount from $2 million to $8.5 million, the money is divided among 27 plaintiffs. This amounts to about $315,000 for each demolished home. Council member Loretta Smith noted that her relatives’ home in Northeast Portland is now valued at $850,000.
Relatively speaking, then, the city could be the beneficiary of a dramatic 63% discount on the present-day replacement value of a home in that area. And by its own admission, the city is self-insured to pay the settlement, suggesting minimal financial impact on the city budget.
Moreover, while the settlement generally acknowledges that Portland’s systemic discrimination harmed Black communities, it specifically states that municipal defendants expressly deny liability. Thus, the acknowledgment of harm in the settlement seems misleading and largely symbolic.
Additionally, while Prosper plans to transfer two properties to the plaintiffs, the land is being transferred as is. If the ground is found to be contaminated, it could potentially incur mitigation costs exceeding the property’s value.
I am concerned that I do not see any moratorium on property taxes during the lands’ development, meaning the burden of carrying the property will fall on the plaintiffs.
As such, a reconsideration of these terms is necessary to ensure a fair outcome.
Jonathan Eder, Portland
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