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The City of Portland’s auditor on Wednesday released a report alleging that Urban Alchemy, a California-based nonprofit, violated lobbying disclosure rules in 2022 as it sought a contract to run homeless pod villages.
Simone Rede, the city’s auditor, wrote that Urban Alchemy met with City Hall officials multiple times in 2022 in an attempt to win a contract with the city to run what was then a plan to set up a 150-tiny pod encampment but failed to disclose those activities as lobbying. Urban Alchemy would end up winning the nearly $6 million contract in January 2023, and is slated to receive additional money from the city to expand operations soon.
“The Elections Office’s investigation showed that in the 4th quarter of 2022, Urban Alchemy spent over $1,000 lobbying City officials, exceeding the threshold for registering and reporting,” the Auditor’s Office wrote in a statement. “During this time, Urban Alchemy employees traveled to Portland and engaged in several meetings with City officials with the primary purpose of convincing the City it was the best choice to be the alternative shelter contractor. It did not register or report the lobbying expenses.”
Those seeking to influence city officials on policy are required to disclose such efforts in quarterly reports should they exceed $1,000 or eight hours. Rede’s report found that on a two-day visit to Portland in December 2022, Urban Alchemy spent more than triple the limit on flights, hotel rooms and a rental car.
Perhaps the most interesting detail in the auditor’s determination letter is that Urban Alchemy officials suggested that Mayor Ted Wheeler’s staff not publicize meetings with the nonprofit, because “all you’ll get from that is every bad press item about us and that’ll make things harder for everyone.” Those negative headlines, the auditor’s office notes, would have included allegations of sexual misconduct by Urban Alchemy employees.
In response to the auditor’s preliminary findings earlier this year, an attorney representing Urban Alchemy argued that the organization didn’t lobby city officials.
“Urban Alchemy does not engage in attempts to influence policy, and does not employ or otherwise authorize lobbyists to lobby on its behalf,” wrote Danny Newman, an attorney with Tonkon Torp. “Simply put, Urban Alchemy is a direct services provider, not an advocacy organization.”
The auditor’s office said that explanation was based on a misreading of lobbying rules, but since it was Urban Alchemy’s first violation, the nonprofit wasn’t fined.
Willamette Week examined the efficacy of the Clinton Triangle, the city’s first mass encampment that Urban Alchemy runs, in a February cover story. In that story, WW revealed that Urban Alchemy transferred a staffer facing serious sexual harassment allegations from California to the Southeast Portland pod village.