Amend Sidewalk Vendors Code to promote free enterprise (amend Code Chapter 17.26)

Currently it is infeasible to operate a sidewalk vending business in the City due to consent requirements from adjacent property owners, proximity restrictions to other restaurant or floral retailers, and limits to commercially zoned areas. The purpose of the legislation is to amend the code to remove regulatory barriers to allow for an increase in low barrier entrepreneurial activity and consumption opportunities for those wishing to enjoy our public spaces.

It is difficult to accurately estimate the size of the street vendor industry and therefore the potential impact of the ordinance. IBISWorld forecasts revenues specifically from food-serving street vending of about $4 billion nationally in 2025 [1]. The Census Bureau estimates $150 million in sales from mobile food services in Oregon in 2022 [2]; and in Multnomah County (2023), 154 mobile food services establishments with 653 employees and payrolls of over $22 million [3]. Statistics for street vendors not selling food are more difficult to come by.The National Hot Dog and Sausage Council estimate that the average American eats about 70 hot dogs in a year, 11 from street vendors [4]. If Portland is near the average, this would translate to around 6.7 million street vendor-purchased hot dogs per year and tens of millions of dollars in sales. Indeed, we estimate that a 10% increase in hot dog vending alone would increase economic activity by around $6 million in the Portland metropolitan area after accounting for additional indirect and induced economic activity (see Table below). ImpactEmploymentLabor IncomeValue AddedOutputDirect38$1,572,483$2,236,062$3,337,683Indirect5$499,161$693,636$1,176,043Induced8$568,140$1,045,789$1,630,088Total51$2,639,783$3,975,487$6,143,815 We also estimate an increase in state and local tax revenues of $150-200 thousand. It should however be cautioned that the 10% assumed growth is illustrative only, but also that the $3.3 million increase in output reflects a 10% growth only in hot dog selling, not the full set of street vendors affected by this ordinance. As such, the figures in the table above could be overestimates or underestimates of the true economic impact.[1] Street Vendors in the US - Market Research Report (2015-2030) | IBISWorld[2] Selected Sectors: Industry by Products for the U.S and States: 2022 | United States Census Bureau[3] All Sectors: County Business Patterns, including ZIP Code Business Patterns, by Legal Form of Organization and Employment Size Class for the U.S., States, and Selected Geographies: 2023 | United States Census Bureau[4] Hot Dog Fast Facts | National Hot Dog and Sausage Council

Economic Opportunity for Under-Served Communities: Sidewalk vending often serves as an entry point for immigrants, refugees, low-income residents, and other underrepresented entrepreneurs. Eliminating the adjacent-owner consent requirement reduces a gatekeeping mechanism that has, in some cases, excluded these groups from participating.Cultural Vibrancy: Street vending brings cultural diversity to the public realm, allowing communities to share food, crafts, and services reflective of Portland’s ethnic and cultural richness. Removing the consent barrier helps preserve and grow this cultural expression.Accessibility and Age Diversity: Sidewalk vending creates opportunities for youth entrepreneurship, seniors seeking supplemental income, and individuals with disabilities who may not be able to operate traditional storefronts.Impacts by Geographic Area and NeighborhoodsThe change will benefit neighborhoods throughout the city, with a particular boost to areas with active pedestrian corridors, transit hubs, and cultural districts.In neighborhoods that have experienced disinvestment, sidewalk vending can encourage economic activity and attract foot traffic, contributing to revitalization and safety through “eyes on the street.”Impacts on Businesses and OrganizationsSmall Businesses: Removing the consent requirement lowers startup costs and delays for micro-entrepreneurs who rely on sidewalk vending to test products and build a customer base.Constituents have expressed concern that the City creates a burdensome climate for business.Complementary Commerce: While some brick-and-mortar businesses may express concern about competition, there is potential for sidewalk vending to increase overall foot traffic and customer activity in the area.Impacts on City LivabilityThe code change supports a more prosperous, equitable, and lively Portland by:Creating more opportunities for residents to start small businesses with minimal capital.Enhancing the vibrancy, safety, and attractiveness of public spaces.Encouraging the sharing of cultural traditions, foods, and crafts that reflect Portland’s diversity.Groups Likely to TestifyStreet vendors.Small business support organizations and micro-enterprise nonprofits.Cultural and immigrant advocacy groups.Neighborhood coalitions in areas with high pedestrian traffic.

This legislation may lead to increased permitting revenue by reducing barriers to compliance for those currently operating without a permit. Reduced barriers may also allow for increased permitting revenue for new operations started in response to these changes.

Not applicable.