Oregon Public Broadcasting

Portland is moving forward with a plan that would funnel downtown development cash to build a school on the other side of town. April Baer reports the deal had its first hearing Wednesday.

Portland's Pearl District and surrounding neighborhoods boomed over recent years.

Former City Commissioner Erik Sten came up with a plan to harness cash from the area's Urban Renewal District revenues. Now the Council plans to send that money miles away to David Douglas Schools, a cash-poor, east side school district that desperately needs new buildings.

But the Portland School Board has reservations.

Board member David Wynde told commissioners that the district is worried about its own fiscal status, and whether the arrangement with David Douglas would be legal.

David Wynde: "We recognize that there is a real problem there. Our concern is that the solution being proposed in not the appropriate one."

Another group of downtown stakeholders, including some Pearl District landowners, may sue the city if the plan moves forward.

The Council votes on it next week.