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Starting in July, following the of a resolution in August 2023, multiple bureaus鈥� permitting functions will be combined into a single entity within the Bureau of Development Services (BDS).

BDS鈥� interim director, David Kuhnhausen, is focused on helping staffers navigate the transition with as minimal impact to customer service as possible. He became interim director after director Rebecca Essau retired in December. The permanent director of the consolidated permitting authority, not yet named, has not yet been determined.

Kuhnhausen said he fully supports the transition and believes the new structure is going to greatly improve the customer experience.

鈥淎ll of the employees being brought together as the single permitting authority bring their own experience and their own knowledge; all of that is extremely valuable,鈥� he said.

BDS is set up primarily for development, while other bureaus in the development review process 鈥� the Portland Bureau of Environmental Services, the Portland Bureau of Transportation, the Portland Water Bureau, and the Urban Forestry arm of Portland Parks & Recreation 鈥� have many other services, Kuhnhausen said.

As part of the consolidation of services, the single permitting authority will prioritize decision-making and accountability, Kuhnhausen said. Coordination between teams and communication to address customer service issues will be easier because they will be within one bureau, he said. The development review teams in each of those four bureaus will move to the single permitting authority organization beginning July 1.

Kuhnhausen, previously a BDS permitting manager, is also seeking ways to advocate for alternative funding, both in the short term and long term, as well as maintain appropriate staffing levels.

There are no plans to reduce the number of staff as part of consolidation, Kuhnhausen said. Following BDS layoffs in November 2023, the bureau鈥檚 staffers are stretched thin, he said, but able to meet the current workload.

鈥淥ur funding model is set up so that 97 percent of our revenues are based on permit fees, so fees related to development review,鈥� he said.

When there is a downturn in the construction industry and the number of permit application submissions, there is a direct impact on BDS鈥� revenues. And those revenues pay for expenditures, primarily personnel. When the industry is operating at its peak, the bureau can build up its reserves, Kuhnhausen said. In the past year or so, the bureau has been seeing compounding issues that impact the number of permits coming in and their valuations. As a result, the bureau eventually burned through those reserves, he said, and had to lay off staff.

Then when the volume of permits and their valuations increase, BDS struggles to add personnel to meet that demand. The bureau is always 18 months to two years behind those peaks and valleys in the industry, Kuhnhausen said.

鈥淲e鈥檙e also competing with the private sector, who can hire quicker than us and ship their business models a lot quicker than the city of Portland can,鈥� he said.

Kuhnhausen said he has brought up to the city council and the mayor the possibility of reviewing the funding model associated with development review.