PORTLAND, Ore. (KATU) — A controversy is brewing in Portland’s Pearl District, where the city is cracking down on some outdoor dining structures.

Businesses along Northwest 13th Avenue shared fine notices with KATU outlining weekly fines of $500 until they take down their outdoor dining structures. The fine notice said the city will make the fines daily if they’re not down by June 1.

The city previously allowed them, and the council even approved permanent rules for outdoor structures in 2023 that outlined permit fees and costs for closing parking spots. All the businesses, including Papi Chulo’s, Star Pizza, River Pig, and Andina, are in a car-free zone on Northwest 13th Avenue.

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The owners told KATU the city told them the structures can no longer have walls or a roof and can only come 10 feet into the right of way, with a two-foot buffer for plants. The business owners said the first $500 fine came this week.

Ramzy Hattar, the owner of River Pig Saloon, said the structures have become a huge part of their business and cost each of them tens of thousands of dollars.

“Everyone’s frustrated, and everyone’s worried. I mean, those fines will end businesses. Those fines will shut the doors on several businesses. And not having the outdoor structures will also end businesses. So, it’s a lose-lose for small businesses right now and for restaurants and bars in this neighborhood, in the city,” Hattar said.

Hattar said the businesses on the block are joining together to work with the Portland Bureau of Transportation (PBOT) for a different conclusion.

However, a city spokesperson said PBOT has no intention of changing the requirements and said the city has worked with these businesses since last year. A PBOT spokesperson said the structures were allowed and permitted, but due to feedback from businesses and other residents, PBOT decided to restrict their size and make them smaller.

“PBOT moved quickly in the pandemic to allow more than 1,000 restaurants across Portland to use street and sidewalk space in a way that saved their businesses,” the spokesperson said. “On Northwest 13th Avenue, however, we have heard many complaints from residents, business owners, and landowners that the large, walled-off spaces a few restaurants and bars established there have created a nuisance. The walls and 20-foot wide structures intrude and cut off what might have been a welcoming plaza.”

Al Solheim, a developer and property owner along Northwest 13th Avenue, said he “absolutely supports” enforcement from the city due to the size and scope of the structures.

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