City Council Upholds Approval of Development Plan for Live Nation Venue

MusicPortland had appealed a hearings officer’s ruling the project could go ahead.

Site of the proposed Live Nation venue. (Gilbert Terrazas)

After four hours of testimony before some 100 people, the Portland City Council unanimously upheld an August decision by a hearings officer to approve plans for Live Nation Entertainment’s controversial 3,500-capacity music venue at the east end of the Hawthorne Bridge.

MusicPortland, a trade group representing the Portland music industry, had asked the council to repeal the approval, saying that the city shouldn’t allow Live Nation, a company accused of monopolistic practices by the U.S. Department of Justice, to open a venue here.

Two local developers, Beam Construction & Management LLC and Colas Development Group LLC, plan to build the $50 million, 62,000-square-foot venue, and Live Nation is to operate it.

Before the vote, Mayor Ted Wheeler cautioned that the council was considering a narrow land use question, and that the vote wasn’t a referendum on Live Nation’s business practices.

“I have plenty of things I would like to say, but I cannot,” Wheeler said. “The question of whether we like a person [in land use questions] is not relevant.”

The vote, a tentative one that is unlikely to change, will be finalized on Oct. 2.

Live Nation The Portland City Council hears testimony on the proposed Live Nation venue. (Anthony Effinger)

Most of the people testifying opposed the project. Their concerns fell into two broad areas: Live Nation’s allegedly rapacious business practices and what they might mean for Portland’s music scene, and the safety of concertgoers crossing train tracks in Inner Southeast to get to Live Nation’s building.

“This venue is in the wrong place,” said Carrie Richter, a land use attorney who testified on behalf of MusicPortland. “There is no transit to this site. Half of the parking is on the other side of the tracks.”

Richter also challenged whether Live Nation brought an economic benefit to Portland, something that is in the scope of the City Council’s decision today, she said. “The Central Eastside needs a win, but this is not it,” Richter said.

Others described a near-apocalypse for Portland’s live music scene.

“I know this proposal looks tempting, but the costs our city will pay for selling this land cannot be ignored because we will pay them,” music fan Alex Blosser testified. “Portland will lose venues, it will lose musicians, and little by little we will lose the vibrance and joy our scrappy local music scene brought, and once it’s gone, we can’t go back to save it.”

Proponents of the venue said it would be an economic boon for a city that desperately needs one. Among its fans were Preston Greene, a vice president at OMSI, which sits just south of the site; Andrew Hoan from the Portland Metro Chamber; and Bridgid Blackburn, co-owner of Cargo, a retailer.

“We’ve experienced the highs and lows of this city, and I can’t imagine a better use for this land,” said Patrick Fleming, chef and owner at Boke Bowl on Southeast Water Avenue.

Marney Smith, co-owner of Hayden Homes Amphitheater in Bend, which is operated by Live Nation, said partnering with the Beverly Hills, California-based company has helped her book more shows, each of which brings $1.5 million into Bend’s hotels, restaurants and shops.

“Guests come early and stay late on concert nights,” Smith said. “We’ve become an economic driver for central Oregon. Live Nation has been a collaborative partner.”

The council’s action comes one day after the board of commissioners at Prosper Portland, the city’s development agency, voted to approve a sale of the property to Beam and Colas for $2.4 million. The vote was 4-0 with one abstention, by Chair Gustavo Cruz Jr.

Prosper bought the parcel, along with two others, from the Oregon Department of Transportation in 2017 using deferred tax revenue.

Prosper Commissioner Felisa Hagins proposed delaying a decision on the sale so that Prosper could examine the operating agreement among Live Nation, Beam and Colas, but her motion got no second.

“I hope we don’t come to regret this decision,” Commissioner Marcelino Alvarez said after the Prosper meeting. “It’s a tricky one.”

Andrew Colas, president of Colas Development, and Jonathan Malsin, owner of Beam Development, said they were gratified by the City Council’s decision.

“This approval affirms that we have met all land use requirements and are eager to move forward with construction,” they said in a joint statement. “Our project will create jobs, foster a positive economic impact, and energize the neighborhood. We are grateful to all who voiced their support, as well as those who expressed concerns. We genuinely care about our City and will use this valuable feedback to build an exceptional community asset that brings Portlanders together. This is a win for Portland!”

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