Oregon daily emerald., April 26, 2005, Page 5A, Image 5

I Oregon update I
Portland-PGE buy
issue in imminent
race for governor
BY BRAD CAIN
THE ASSOCIATED PRESS
SALEM — The dispute over
whether the city of Portland or the
state should acquire Portland General
Electric is becoming an early issue in
the 2006 Oregon governor’s race.
On Monday, Republican Kevin Man
nix criticized Democratic Gov. Ted Ku
longoski’s decision to endorse Port
land’s bid to purchase Oregon’s largest
utility from bankrupt Enron Corp.
Mannix, who plans to run for gov
ernor next year, noted that PGE serves
hundreds of thousands of customers in
51 cities and unincorporated areas
outside of Portland.
Having the city of Portland take over
PGE, which Kulongoski endorsed last
week, would be a “terrible decision”
for ratepayers in those areas, said Man
nix, who is chairman of the Oregon
Republican Party.
“Does the governor really believe
that the city of Portland should be set
ting utility rates for people in Washing
ton, Clackamas, Columbia, Yamhill
and Marion counties?” he said.
Kulongoski’s spokeswoman, Holly
Armstrong, accused Mannix of “play
ing politics” with the PGE takeover
simply to promote a 2006 rematch
with Kulongoski. Mannix was
defeated by Kulongoski in the 2002
governor’s race.
Kulongoski endorsed Portland’s bid
for PGE because the city is well under
way with plans for a purchase,
Armstrong said, adding that the
governor also supports setting up a
statewide board to govern PGE.
“For the governor, this isn’t about
politics; it’s about doing what’s best for
all PGE ratepayers,” she said.
Mannix, meanwhile, said Monday
that he did some initial legal work ear
lier this year for a third group of
potential suitors for PGE known as the
Oregon Mutual Development Co.
Mannix said he has severed ties
with the group, which is made up of
former employees of the PacifiCorp
power company as well as experts in
finance and utility law.
“The only financial interest I have in
the PGE takeover issue is that I buy
electricity from PGE like everybody
else,” the Salem attorney said, “and I
don’t want the city of Portland setting
my power rates.”
He said he has strong doubts about
the city’s ability to effectively run PGE.
“Remember Portland’s water billing
fiasco?” he said, referring to problems
with a computer system in 2000 that
led to thousands of delayed water bills
for city water customers.
Portland City Commissioner Erik
Sten, who has led a three-year effort
for a city purchase of PGE, said
Mannix is using the PGE issue to gain
publicity for his 2006 election race.
“Gov. Kulongoski based his decision
on a careful review of what we’re do
ing,” Sten said. “Mannix
is just throwing out political
sound bites.”
Senate passes bill
to invest leftover
sift card balances
BY NIKI SULLIVAN
THE ASSOCIATED PRESS
SALEM — School districts would
get extra money under a bill passed
by the Senate on Monday that
would let the state invest the bal
ances and keep the interest from gift
cards that have not been used in
three years.
Purchasers of unused cards would
be able to take back a leftover balance
at any time, but in the meantime,
Oregon would invest it and spend the
interest on schools.
With a school budget of more than
$5 billion per biennium, the money
may represent a drop in the bucket,
but supporters of the bill said it’s a
matter of fairness that benefits schools,
regardless of the amount.
“It’s a common sense approach,”
said Senate Majority Leader Kate
Brown, D-Portland, who introduced
the bill to the chamber. “It provides
fairness to the system.”
She said it will help bring Oregon
in line with 27 other states with
similar laws.
Opponents said the bill is a desper
ate cash grab that amounts to an
unfair tax on businesses.
“This is a back-door attempt to get
someone else’s money,” said
Sen. Roger Beyer, R-Molalla.
The legislation passed on a mostly
party-line vote, with 18 supporting the
bill and 12 opposed.
Brown said only about 40 percent
of the value of gift cards is ever used
before the company goes out of
business or the card is lost or
expires, so this bill would allow gift
card recipients to reclaim their
money at any time.
Brown said the cards would be list
ed on a government Web site for own
ers to reclaim.
Paper gift certificates are not includ
ed, and the state would never use the
actual gift card balance. Instead, the in
terest from investing the balances
would be used for education.
Beyer said the Department of
State Lands, which would manage
the unclaimed gift cards, is sup
posed to try to connect people with
their unclaimed property, but that
there would be too many gift cards
and too many uncertainties to make
that possible.
Senate Minority Leader Ted Ferrioli,
R-John Day, said the bill “amounts to a
hidden tax on merchants.”
It effectively takes money paid to
stores and moves it into a state ac
count, meaning the bill will result in a
loss of sales to merchants, Ferrioli said.
A tax watchdog group also lobbied
against the bill.
“The state has no business taking
advantage of private business transac
tions and methods of advertising,”
said Jason Williams, executive director
of Taxpayers Association of Oregon.
Williams said the bill “further
perpetuates Oregon’s business
hostile environment.”
But the bill’s sponsor, Sen. Ryan
Deckert, D-Beaverton, said it was
a way to join the majority of
other states and benefit schools in
the meantime.
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GET PUBLISHED
\ petition contestingthe
>roposed Riverfront Urban
Renewal District may pass
he issue to voters this fall
By Your Name Here
News Reporter
Voters may need to approve the
it/s plan to fund projects in the
tiverfroM Urban Renewal District af
er opponents of die plan submitted
i petition chailenf**^ &nnUt,
during the hi ov. 2 general election.
Eugene resident Ruth Duemler or
ganized the petition effort coordi
nating about a dozen signature gath
erers. Duemler said the petition met
with public support, and she be
lieved enough signatures were col
lected to place the referendum on
the ballot.
“People were eager to sign, * Duem
ler said.
had solicited enough input from resi
dents about urban renewal plans.
"What i would like to see is the city
having a real dialogue with people on
urban renewal," he said. Tm pes
simistic about the city's decision and
timetable on this thing."
Ward 3 City Councilor David Kel
ly, who voted in favor of creating the
district, said he supports the plan as
a tool to help improve the down
town area.
"1 think that central city re.vitaliza
... .....“lit. for Eugene's
Eugene v.uy
he new district 01
The urban ren
i.reus east of dowt
iugene Water a
leadcjuarters an<
earch Park. The •
onUroversial pr
headway to run i
ederal courthouse
[ now hiring freelance writers ]
ily said.
vili reshape tire
n and increase
Write a freelance story for the upcoming Moving Guides, published
May 6 through June 3. Contact Freelance Editor Ashley Griffin with
your story ideas at ashleygriffin@dailyemerald.com or at 346-5511.
illamette River
aren’t familiar
ike the plan to
re specific" in
it allows. Kelly
said he pushed for a clause in the
Petitioners collected 4,235 signa
tures but only needed 3,722 valid
ignatures of registered voters to put
he referendum on the ballot. If ap
>roved, tire referendum would give
voters the opportunity to approve or
eject the urban renewal district .
The city has forwarded 4,166 signa
ures to lane" County for final ap~
>roval and county officials have until
Vpril 26 to verify the signatures.
Differences between tire present and
uture assessed value of property within
he urban renewal district would create
axes to be used for public improve
Duemler said urban renewal is not
;he city's best use of tax revenues.
"I think (people) are fearful of
spending so much money (on urban
renewal) when we have other priori
iies, "die said.
Duemler said petitioners were not
apposed to developing the area,
however.
"We've seen some very fine build
ings go up without urban renewal
funding," Duemler said. "We are not
against development — we want the
plan that refers any projects of
$250,000 or more to the council for
approval. Citizens would be able to
have a say in such projects through
the council, he said.
If voters reject the Riverfront plan,
Kelly said that "significantly less" de
velopment would occur in the area,
"We're going to see less activity and
less success of the area," Kelly said.
Kelly said some opponents are
concerned about rerouting Broad
way because it would be too dose to
die river. However, lie said the road
wouk^rrtuall^^oust^nh^aib
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