The financing of Portland's massive redevelopment south of downtown, detailed in Willamette Week here, is an example of how to partner government and private industry on large-scale development.
The South Waterfront project is turning a huge swath of formerly industrial land along the Willamette River into condos and offices. Public investment in the project totals $195 million, including $74 million that is supposed to be paid back by future property taxes. Much of the cost is to extend the city's streetcar, build a tram up the hill to a university, and add parks and affordable housing. Private developers have also committed $70 million, according to the article.
For similar projects to happen in Washington, the same funding mechanism, called tax-increment financing, needs to be authorized. Business groups have pushed the issue and are likely to raise it again in the legislature.
Portland's project faces criticism because so far there's less demand for all the planned condos and offices than when the plan started. Still it makes sense for government to lead private investment in this sort of development. The result could be well-designed communities with open space, adequate transit infrastructure and future costs already built into the plan.