In 2017, Portland is poised to be the city that works on parking garages.

The city is preparing to spend tens of millions of dollars on parking even as it pursues goals to fight climate change and promote dense, walkable neighborhoods.

The moves by the Portland Development Commission and the Portland Bureau of Transportation are prompting new criticism from a coalition of activists and armchair urban planners who are pushing a future for central Portland that is less reliant on cars.

The PDC is working with Mortenson Development to build a $20 million, 425-stall parking garage adjacent to the Hyatt Regency hotel, which crews are expected to start building near the Oregon Convention Center in June. Meanwhile, in a previously unreported move, the PDC is in discussions with Guardian Real Estate Services to buy the parking portion of the proposed Block 33 mixed-use building in Old Town Chinatown for an as-yet-undisclosed sum, and then lease it back to the developer.

Also, the Portland Bureau of Transportation and the PDC are moving forward on plans to renovate the city’s towering parking garage between Southwest Ninth and 10th avenues and Morrison and Yamhill streets.

Taken together, the plans indicate the city wants to grow central Portland’s parking stock alongside the extensive parking construction planned by private developers.

The public parking garage spending comes as the city promotes other initiatives, from the streetcar to Biketown to the $135 million vehicle-free Tilikum Crossing, to get residents and visitors out of their cars and on their feet or into public transit vehicles or onto bikes.

The largest parking project on the boards is Mortenson’s $25.9 million deal with the PDC to build the parking garage at the Hyatt Regency hotel near the Oregon Convention Center. Critics of new parking say it’s a risky long-term deal.

PDC documents show the hotel would use 375 stalls, with the other 50 stalls to eventually be sold to TriMet. The garage would bring in approximately $1.8 million in annual net operating income, according to the agency.

Tony Jordan, a Portland activist who founded the anti-parking group PDX Shoupistas, said he’s skeptical that the garage will meet projections given the rise of ride-share platforms such as Uber and the proliferation of do-it-yourself lodging like Airbnb.

“If this garage next to the Hyatt is such a good deal, why isn’t Hyatt doing it?” said Jordan, whose group is named for Donald Shoup, an influential urban planner.

“You have a building that’s going to be around for a long time, that PDC is going to pay for for a long time, that’s going to exist in a very different transportation environment,” he said. “All of these factors conspire to say that this garage is not going to be full in 2025.”

A PDC spokesman said that without the garage, the Hyatt Regency hotel – a long-planned anchor for the Lloyd District – would not be built.

“The project doesn’t move forward without the garage,” PDC spokesman Shawn Uhlman said. “Fundamentally, this is part and parcel to that.”

The garage is to be constructed with further development of the site in mind. A 100,000-square-foot office building on top of the garage would help increase density and activity, including along the MAX light-rail line, and increase property tax revenues, according to the agency.

The Hyatt Regency is expected to bring in $600 million in tourism spending each year and millions of dollars more in tax revenue. The hotel could also give Portland enough capacity to host big events such as an NBA All-Star game.

“It’s a 600-room hotel,” Uhlman said. “That’s a really big number of guests. It’s pretty difficult to imagine a hotel of that size without a parking operation.”

The PDC has already given Mortenson $1.2 million to design and plan for the parking garage, all of which has been spent, according to a report from the agency.

Ground is anticipated to be broken in June, and the PDC is holding ongoing meetings for interested subcontractors.

The PDC has taken note of the criticism regarding its focus on parking garage construction. The agency even posted a lengthy explanation on the frequently asked questions section of its website.

Ethan Seltzer, a Portland State University professor of urban studies and planning, said it makes sense for the city to incorporate motor vehicle parking into its plans.

“As long as there are cars in the road, there’s going to be a need to have somewhere to put them,” he said.

Yet there’s a risk that driver behavior could change so quickly in coming years that large parking garages will become relics. Urban residents are driving less, and the advent of driverless cars could dramatically change demand for parking.

“What seemed like total science fiction a few years ago is seeming like an inevitability in the next five,” Seltzer said. “If you have driverless cars, you don’t need parking structures. You don’t need parking.”

Developers are broadly supportive of more parking in Portland’s urban center.

“Parking is not a highly profitable component,” said Tom Brenneke, president of Guardian Real Estate Services. “It drives many deals forward or not. “The idea of having more parking rather than less, if the city would partner it’s just going to increase the development potential in the city.

“You need people in the core to have a successful development.”

Guardian’s development plans for Block 33 include two levels of underground parking with 200-plus spots. The site has the potential for more, Brenneke said.

“We have potential to do a third (level) and are considering that,” he said. “We would probably need a PDC-type partner if we were going to do that.”

Guardian sent a letter of intent to sell the parking to the PDC, according to the Feb. 8 document. Jordan obtained the letter via a public records request.

The deal has not been finalized, Brenneke said.

“We have no deal with PDC, but we’ve had some dialogue,” he said.

The full-block project also has to clear the Historic Landmarks Commission, which questioned the proposed height in an initial hearing.

“We’re trying to get our height issue figured out,” Brenneke said. “Our deal works at 125 feet; it doesn’t work at anything less.”

Additional parking would increase the project’s cost.

The city is also working to extend the life of existing parking garages. In February, the city submitted a design advice request to make improvements to the seven-story Smart Park garage at Southwest 10th Avenue and Yamhill Street.

The city wants to remove stairs and elevators from two corners in favor of additional retail space. Existing retail tenants have received 18 months’ eviction notice, but will be welcome to reapply for space in the building later, according to the agency.

The plan also calls for mechanical upgrades, access improvements and new canopies and solar panels. The number of parking stalls will not change.