PORTLAND, Ore. — For more than two decades, the city’s economic development agency has poured tens of millions into the Gateway neighborhood, promising renewal and prosperity. Instead, Gateway faces shuttered storefronts, crime, and the looming closure of its longtime anchor, Fred Meyer.
At the heart of the debate is whether Prosper Portland’s $88 million investment has delivered anything close to its promise.
A Community in Crisis
Gateway has long been considered Portland’s “eastern front door.” Stretching east of I-205, it was once a shopping hub dotted with plazas and big-box retailers. But today, the neighborhood feels neglected.
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Tents and tarps line sidewalks.
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The Gateway MAX station is synonymous with drug use and homelessness.
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Vacant shopping centers overshadow struggling small businesses.
And in September, the 181,000-square-foot Fred Meyer store, operating since 1954, will shut its doors. For many residents, this is the final blow.
“This is the biggest failure of Prosper Portland,” says District 1 City Councilor Jamie Dunphy, who represents Gateway. “The economic improvements are simply nonexistent.”
Prosper’s Playbook: Tax Increment Financing
Prosper Portland—once the Portland Development Commission—built its reputation revitalizing the Pearl District and North Williams Avenue through tax increment financing (TIF).
Here’s how it works: property tax revenues inside a defined district are reinvested locally, funding infrastructure and development. Prosper then borrows against expected future tax growth to bankroll projects.
In Gateway, the TIF district was created in 2001 with promises to spur housing, retail, and community improvements—while avoiding the gentrification that displaced residents elsewhere.
But the numbers tell a different story:
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Gateway collected $96 million in property taxes since 2001.
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Lents collected $262 million.
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North Macadam collected $311 million.
In 2022, Prosper extended Gateway’s TIF district and pledged another $65 million by 2027, hoping to hit a $164 million borrowing ceiling.
What Residents See Instead
Despite millions spent, Gateway remains stagnant. Poverty rates in the district hover at 19% compared to 13% citywide. Prosper claims this means displacement was avoided. But critics argue the agency failed to raise economic opportunity or living standards.
“You walk down 102nd, and you don’t see revitalization—you see blight,” says local business owner Tom Mahoney, who co-owns Colour Authority Salon. “The city talks big, but nothing sticks.”
Case Study 1: The Vacant Lot
Across from Fred Meyer sits a 5-acre fenced field—empty for nearly 30 years.
Former owner Ted Gilbert spent decades pitching proposals, from retail centers to schools. None moved forward. Private investors balked: “That’s East Portland,” they said.
Prosper eventually purchased the land in 2023, but no concrete plans exist. Residents see it as a symbol of promises unfulfilled.
Case Study 2: Violence at the 76 Station
A few blocks away, Muhammad Bhatti manages a 76 gas station scarred by crime. In 2023, employee Amado “Nacho” Santos was shot and killed there.
“You call the police, they don’t come,” Bhatti says.
Hazelwood, which makes up much of Gateway, recorded 135 shootings between 2023 and 2025—the highest of any Portland neighborhood.
For Bhatti, Fred Meyer’s closure may mean more foot traffic at his store—but also the risk of another vacant property fueling crime.
Case Study 3: Struggling Small Businesses
Gateway once had hundreds of small shops. Today, their numbers have declined: from 376 in 2003 to 324 in 2019, according to ECOnorthwest. It’s the only TIF district to lose businesses during that time.
While Prosper touts its $8 million in grants and loans for Gateway entrepreneurs, owners say the bigger picture is bleak.
“When stores go vacant, crime and camping follow,” says Mahoney. “We patch things ourselves—Prosper hasn’t delivered.”
Case Study 4: Marketplace 205 and 99 Ranch
Marketplace 205, once a thriving mall, has lost most tenants and shuttered indoor corridors. But its adjacent property, Plaza 205, recently welcomed a bright spot: 99 Ranch Market, a popular Asian grocery chain.
The store has already drawn crowds for its seafood and produce. Residents say it’s proof that investment in culturally relevant retail can succeed—if given the chance.
Case Study 5: Housing Hopes Dashed
The Rose Apartments, built in 2015 with a 10-year tax abatement, were meant to model mixed-income housing. Instead, they sit beside encampments, abandoned cars, and trash.
Developer Gordon Jones once pitched a 2,000-unit “Livable Gateway” plan alongside partners. They sought $120 million in city support but were rejected.
“Tax increment financing fails when projects don’t generate taxable revenue,” Jones says. Disillusioned, he left Portland for Sisters in 2023.
Case Study 6: Gateway Green
One of Gateway’s few success stories—Gateway Green, a 25-acre bike park—wasn’t funded by Prosper at all. Volunteers and regional partners built it in 2017. Today it’s a destination for BMX riders.
“The best thing in Gateway was made without TIF dollars,” says pro biker KC Badger.
Case Study 7: Fred Meyer’s Closing
For decades, the Gateway Fred Meyer was a hub for working-class families and immigrants. Refugee services brought clients there to buy essentials.
But rising crime, safety concerns, and declining sales drove customers away. Shootings in the parking lot—including the 2023 murder of Jonathan Trent—cemented its decline.
“It feels like shopping in a police state,” says resident Ambrose Austin, citing receipt checks and security barriers.
Now, with closure looming, residents are split between grief and opportunity.
“This could be our chance to rethink Gateway,” says Councilor Candace Avalos. But her comments that residents already prefer Winco drew backlash.
Community leader Bob Earnest is skeptical. “Prosper has been telling us the same thing for 25 years,” he says. “We’ve been ignored for so long.”
What Comes Next
The Gateway Shopping Center, which includes Fred Meyer, Ross, and a vacant Kohl’s, is on the market for $50.8 million. Prosper says buying the property isn’t feasible.
Mayor Keith Wilson’s office is meeting with property owners, TriMet, and Prosper to explore options, but no concrete plans exist.
The Bigger Question
After 25 years and $88 million, Gateway still struggles with poverty, crime, and disinvestment. Prosper says it slowed displacement. Residents counter it failed to create opportunity.
“It’s stagnant,” says Tim Zollbrecht of Portland Adventist Community Services. “We’re just kind of here.”
Whether the closure of Fred Meyer marks the beginning of renewal or the latest symbol of failure remains to be seen.
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