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Urban Alchemy’s Road to Portland is Paved with Bad Intentions

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Urban Alchemy’s Road to Portland is Paved with Bad Intentions

Stop the Sweeps PDX
Apr 18, 2023
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Urban Alchemy’s Road to Portland is Paved with Bad Intentions

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In Portland, Oregon, homeless people are being told they must go to a shelter, sanctioned encampment, or face jail. 

On October 21st, 2022, Mayor Ted Wheeler and Commissioner Dan Ryan held a press conference announcing a citywide camping ban. In order to enforce this policy, the City is creating three massive sanctioned encampments of up to 250 people each.

When asked who would run the camps, Mayor Wheeler said he was speaking with Urban Alchemy, a nonprofit based in California. He announced there would be a group of City and County officials visiting Los Angeles in the following days to tour the Urban Alchemy camps.

Who is Urban Alchemy?

Urban Alchemy is on their way to becoming one of the most powerful profiteers in the homelessness industry; creating a dangerous precedent for cities in the U.S.

A nonprofit based in San Francisco, Urban Alchemy receives nearly $61 million through contracts managing shelters, sanctioned encampments, and hygiene stations. 

Increasingly, and a cause for major concern, they are tasked to patrol public streets, parks, and transit stations despite not being a licensed private security company.

Urban Alchemy has come under increased scrutiny and controversy, including several lawsuits regarding civil rights and labor violations. 

Urban Alchemy's logo which consists of a triangle with a eye in the middle. On the right of the logo is a picture of a window of Urban Alchemy's offices. The window says "Once you see us, you can't unsee us"

Shady dealings between Urban Alchemy and the City of Portland

Prior to the press conference in October, there was no indication the City of Portland was in conversation with Urban Alchemy. In fact, to our knowledge, no local service provider was contacted about the proposed policy. 

Public records obtained two months later revealed emails between the Mayor’s Office and Urban Alchemy extended as far back as April 2022. Much of what was discussed in these emails became core components of the new policy, which the Mayor’s Office has dubbed ‘Temporary Alternative Shelters’.

In February, the Mayor’s Office visited San Francisco to learn more about the Healthy Streets Operation Center (HSOC), the program tasked with enforcing sweeps. According to the Mayor’s policy advisor, Skyler Brocker-Knapp, during this visit HSOC staff said Urban Alchemy was “a big key to their success”.

This piqued the interest of the Mayor’s Office and they decided to follow up. The majority of their early communications was with Jeff Kositsky, Urban Alchemy’s ‘Chief Growth Officer’. Prior to joining Urban Alchemy, Jeff Kositsky was the former head of HSOC. 

Jeff Kositsky scheduled a visit to Portland in June 2022. He was joined by their CEO Lena Miller and their Chief of Government and Community Affairs, Kirkpatrick Tyler. During this visit, they visited one of Portland’s current sanctioned encampments and had a sit down meeting with the Mayor’s Office. 

Email from Jeff Kositsky to Skyler Brocker-Knapp on May 24 2022: Hey Skye A few UA staff will be in Portland in June as we discussed. Do you still want to meet? We can do Monday 6/13 afternoon (as late in the day as possible) and the morning of June 14 (as early as possible). Let us know what you think. Jeff

Urban Alchemy also requested to meet with the downtown Business Improvement District (BID). 

email exchange between Jeff Kositsky and Skyler Brocker-Knapp from May 27 to May 31. Jeff: I do not think we will have cars. We would love an intro to your downtown BID as well as someone at Central City Concern if possible. Best, jeff. Skyler: By BID do you mean the business improvement district? Did you want me to connect you to any reintegration (post incarceration) folks? Jeff: Yes and yes. Thanks

In Portland, BIDs are called Enhanced Services Districts (ESDs). Clean & Safe is Portland’s downtown ESD, managed by Portland Business Alliance, the City’s most powerful lobbying organization. It is unclear if they met during this initial visit, however, we do know Clean & Safe eventually made a trip to Los Angeles, saying they are “optimistic about Urban Alchemy's success” in Portland. 

This should come as no surprise since BIDs have a long history of advocating for and enforcing policies intended to exclude homeless people from public space. Urban Alchemy partners with and works in tandem with BIDs in San Francisco and Los Angeles.

Urban Alchemy visited Portland a second time on August 29th, 2022. This time they sent Bayron Wilson and Ian Clark Johnson. During this visit Urban Alchemy met with the Mayor’s Office at City Hall. The meeting was followed by a tour of one of Portland’s sanctioned encampments. They were joined by Nate Takara, Incident Commander for the Street Services Coordination Center, and Mike Myers, Portland’s Community Safety Transition Director.

Email from Jeff Kositsky to Skyler Brocker-Knapp on July 8th, 2022: Hey SkyeA few UA staff will be coming to Portland to look at the site on 8/29. They will then join the rest of the group who will be in Seattle. Will that work for you? Also, do you think they could meet with the joint office during the trip, or too soon? Our COO, Bayron Wilson will be coming along with one other staff person. I have copied him on this email. While I am not joining Bayron on this trip, please copy me on all emails so I can help coordinate. -- Jeff Kositsky Chief Growth Officer Urban Alchemy www.urban-alchemy.us
Email from Heather Cardenas from Urban Alchemy to Skyler Brocker-Knapp on August 8, 2022. Bayron Wilson, Michael Henry, and Ian Clark-Johnson are included on the email: Good morning Skyler, I would like to set up a site visit for Bayron Wilson and Ian Clark-Johnson to visit a safe sleeping site while they are in Portland on 8/29/2022. Do you have time available around 12pm? Thank you, Heather
Email from Skyler Brocker-Knapp to Heather at Urban Alchemy on August 8 2022: Hello Heather, Thank you for reaching out! We are really excited for the visit. I have blocked off 10am-1pm that day, so please let me know what time is best. I have also included Nate Takara, the Incident Commander for the Street Services Coordination Center, and Mike Myers, Portland’s Community Safety Transition Director, who will both be joining our tour. Thank you, Skye Brocker-Knapp

After their visits to Portland, Urban Alchemy refined the details of their proposed contract and emailed a new draft to the mayor’s office on September 15, 2022.

In the new, detailed proposal, the camps would consist of 225 people living in 150 tents. They would start with 75 for the first six months and then add an additional 75 in the following six months. Urban Alchemy would have 1 ‘practitioner’ per 15 residents. Two people doing outreach to ‘invite people camping nearby’ into the sanctioned encampment. Care coordinators would be assigned to each person in the encampment and two meals and one snack would be provided daily. Startup costs were estimated to be $100,000.

Email from Jeff Kositsky to Skyler Brocker-Knapp on September 15 2022: SkyeI am attaching the budget for a safe sleeping village (sanctioned tent encampment) in Portland. This budget represents our best thinking on how to meet the needs of 225 people living in 150 tents on the site. We would start with 75 tents during the first 6 months and then add 75 more the second six months. The project we budgeted for is designed to both help people heal from the trauma of homelessness and provide them tools to find housing. Some features include: 1. Full staffing for the safety, security and health of the guests, having roughly 1 Practitioner for every 15 guests (providing safety, custodial, intake, and general support services) 2. A team of two people working 16 hours per day doing outreach around the site to invite people camping nearby to come into the village and to respect the surrounding area. 3. Care Coordinators (1 for every 20 guests) to help connect people to services, meet immediate needs and find exits from homelessness. Care Coordinators will have the resources to provide direct financial assistance to meet both immediate needs and to help folks exit homelessness. 4. Two meals and 1 snack a day to ensure that guests are properly nourished. 5. Operational expenses to ensure the site is safe, clean, and pest free, and that guests' hygiene and other needs are met. Note that the budget includes all operational costs other than utilities, which we assume will be covered by the city directly. We estimate that guests will stay 3-6 months at the site but there will be no time limit. We will want to get everyone into coordinated entry with the hopes that some % of the guests will get access to permanent housing. We will directly help 40-60 guests exit homelessness with one-time assistance (security deposit, bus ticket home, etc). Finally, we want over 90% of the guests to report they are happier being at this site compared to the last place they were sleeping. Urban Alchemy would like input into the design, but we did not include start-up or capital costs as we assume the city will develop the site. This will include infrastructure and site improvements as well as the rent or purchase of office trailers, showers, restrooms, etc. The city would need to purchase computers, furniture and other items at the start up. Urban Alchemy would also need about $100k for start up expenses and a 2-3 month advance on the contract to get started. Sorry if this was TMI, but wanted to provide as much detail as we could to help put this in context. We look forward to talking with you about this soon. Bayron, Ian, Jeff, and Mike

After the Mayor’s Office received this proposal they suggested visiting Los Angeles to tour the Lincoln sanctioned encampment. Jeff Kositsky also recommended they visit with CIRCLE, LA’s version of Portland Street Response, which is overseen by Urban Alchemy.

Email from Jeff Kositsky to Skyler Brocker-Knapp and Kirkpatrick Tyler on September 28, 2022: Hey KP, Skye and team want to visit you in LA to see Lincoln and perhaps a tiny home site and we should show off CIRCLE as well. LMK when you all find a date and I will try to come down with some other UA staff. Jeff

Urban Alchemy also shared the Lincoln sanctioned encampment resident agreement, which included strict and invasive rules for those staying in the encampment. Some rules included disallowing residents from leaving the encampment for more than 48 hours, no food or drink inside tents, restrictions on how many belongings people can have in their tents, and regular inspections of their tents by Urban Alchemy staff.

Urban Alchemy Lincoln Safe Sleep Contract/Agreement Dated: __________________________ Contract Agreement to Participate in Lincoln Safe Sleep Village. I, ____________________________, hereby agree and understand to the following terms and conditions: 1. I will maintain the inside and outside of my suite/tent by keeping it clean and organized; 2. I will only be allowed two bags with my personal belongings to transfer with me, no furniture of any kind is allowed; 3. I will limit my property inside the suite/tent to what fits under my cot and my side of the suite. Excess property will be stored in a storage bin. 4. I will not be allowed food or beverages inside suite/tent, I will only be allowed to eat and/or drink in the designated area; 5. I cannot have any cups or containers inside my suite/tent; 6. I will not smoke tobacco or illicit drugs in my suite/tent. I will only smoke at the designated area; 7. I will be required to shower everyday while participating inside The Village; 8. I will be required to clean all my laundry on my assigned day for laundry; 9. I will be required to participate in programs that will benefit me towards obtaining my permanent housing; 10. I will not have urine or feces inside my suite/tent, I will be required to go to the restrooms inside the facility; 11. I will not go inside another resident’s suite/tent, even invited to do so, and I will not allow another resident to enter my tiny home; 12. I will allow staff to inspect my living quarters for cleanliness and compliance with these rules and regulations; 13. I will not bring contraband inside The Village (alcohol, drugs, knives, guns, drug paraphernalia). All weapons will be checked in the front gate and checked out upon leaving the village; 14. I will not display aggressive behavior such as arguing, fighting or threats to do so towards staff or other guests; 15. I will be required to check in with my Care Coordinator each week to up-date my paperwork and check on my progress towards getting permanent housing; 16. I will not leave The Village for more than 48 hours without notifying my Care Coordinator in writing of my leave of absence. I understand that if I do violate this rule, my property will be packed and stored for (7) seven days then disposed of on the 8th day and exited out of the program; 17. Weekly Covid-19 Testing strongly encouraged. I hereby agree and understand that if I violate any of the above rules and regulations, I can be removed from the program. ______________________________ _________ _______________________________ Resident’s Name Dated Signature of Resident ______________________________ _________ _______________________________ Print Care Coordinator’s Name Dated Signature of Care Coordinator

The Mayor’s Office visit to Los Angeles happened on October 24, 2022, only a few days after Ted Wheeler’s press conference announcing the citywide ban on camping and forthcoming sanctioned encampments. After the visit, Sam Adams, former mayor and mayoral staffer, told media Urban Alchemy was a ‘strong contender’ to run the encampments.

Email from Kirkpatrick Tyler of Urban Alchemy to Skyler Brocker-Knapp regarding the Mayor's Office visit to LA. Email is dated October 18, 2022. Hey Skylar! Please see the Itinerary for Monday August 24, 2022 9:30AM Meet at Lincoln Safe Sleep Village. 11:00AM: Metro CIRCLE Decompression Center 12:30PM Lunch with the Interim Housing Team 1:00PM Westlake Tiny Home Village Site Visit 2:30PM Venice CIRCLE Team Site Visit 3:30pm Head to LAX for Departure

Following the visit to Los Angeles, Urban Alchemy and the Mayor’s Office agreed to weekly meetings to further discuss the details of a potential contract.

Email from Sara Morrissey to Skyler Brocker-Knapp, Jeff Kositsky, Kirkpatrick Tyler, Bayron Wilson, and Taylor Morrison on October 28, 2022: Sounds great to me! Ccing @Morrison, Taylor – can you please set up 30 min. weekly reoccurring meetings with Urban Alchemy team (KP, Jeff and Bayron) and Skye and myself weekly? We can cancel if we don’t need them. I hope you all have a wonderful weekend. Best, Sara

City Council paves the road for Urban Alchemy

By the time of the announcement, it was practically a done deal; however, City Council still had to pass legislation allowing for the creation of the new camps. City Council did this in the form of five ordinances. 

The first ordinance established ‘key actions to increase affordable housing construction’, a lackluster proposal directing council to identify potential sites for affordable housing construction. Commissioner Jo Ann Hardesty attempted to give this ordinance more teeth, introducing an amendment to explore the use of eminent domain to create housing. The amendment was unanimously voted down by the rest of council.

The second ordinance established a partnership with Worksystems Inc to increase ‘non-standard work’ opportunities. 

The third ordinance is what actually established creation of the new sanctioned encampments. 

The fourth ordinance was a vague proclamation regarding ‘City Budget Priorities’. This basically stated the City would prioritize City Budget funds towards the new encampments, as well as focusing their advocacy towards the County, Metro, State, and Federal government to help fund the encampments. The City did not have any funding secured at this point.

The fifth and final ordinance established the creation of a diversion program specifically for homeless people. However, this ordinance would require a partnership with the Multnomah County District Attorney’s Office who did not confirm they would support this project.

Over 200 people signed up to testify. Suspiciously, despite the overall majority of people testifying in opposition to the new policy, the first hour was almost entirely filled with people testifying in support. This included 16 people who randomly appeared on the testimony sheet near the beginning, despite many of them not signing up to testify prior to the meeting. 

Public records later revealed Dan Ryan personally requested these testifiers be moved up on the roster. The prioritized testifiers included Andrew Hoan, CEO of Portland Business Alliance, as well as a cadre of business and real estate lobbyists.

invited testimony got mixed in with reg testimony and it's a mess
Snippet from a public records request obtained by journalist Alex Zielinski

After nearly six hours of testimony, City Council had a week to deliberate before the final vote on November 3rd, 2022. 

Given the lack of engagement with homeless people, a town hall was organized by Street Roots which was attended by Ted Wheeler and Dan Ryan. The listening session was an opportunity for homeless people to share their concerns. Overwhelmingly, those who participated in the town hall were opposed to the mass camps and emphasized the importance of street outreach. Despite all of the impassioned testimony, it did little to change the minds of City Council.

After all was said and done, City Council approved the new policy. The only commissioner who voted in opposition to the coercive sanctioned encampments policy was Jo Ann Hardesty.

The passage of the new sanctioned encampments policy was quickly followed by the Fall Budget Monitoring Process (BMP), allowing City Council to almost immediately secure funding for the new sanctioned encampments. 

During the Fall BMP, Mayor Wheeler proposed an allocation of $27 million towards the new sanctioned encampments policy, with $12 million allocated towards contracting with a service provider to run the camps. They also allocated $500,000 towards private security contracts. The rest of the $27 million proposal included allocations towards the construction of the encampments, funding for the Homelessness and Urban Camping Impact Reduction Team (the City program in charge of sweeps), among other things.

City Council ultimately approved Mayor Wheeler’s $27 million budget proposal with Jo Ann Hardesty, once again, being the lone vote in opposition.

Drawing of a bunch of cops with literal pig faces driving a bulldozer over a large piece of paper that says "poverty laws". A group of people are pushing back against the bulldozer, symbolizing the fight against criminalization

The ‘competitive’ bidding process

With legislation in place and funding secured to move forward, the City wasted no time marching forward with a competitive bidding process. 

A Request for Proposals (RFP) opened on January 17th, 2023. Only two organizations submitted bids, Urban Alchemy and a group from Vancouver, Washington called Simply Human Project. No local organizations submitted a bid for the contract.

Despite repeated claims by the Mayor’s Office saying Urban Alchemy was just one organization they were looking to potentially contract with, emails suggested otherwise. This included emails from Skyler Brocker-Knapp saying “we are so excited to bring them to Portland” and Jeff Kositsky saying “it’s very exciting things are moving forward”. Both of these emails were sent well before the City of Portland had put out an RFP.

Email from Skyler Brocker-Knapp on October 17. Hi all, I wanted to connect you all, so you could start a conversation and hopefully a relationship moving forward as we partner together. Andy is the new head of Central City Concern, is an addictionologist and a fantastic human. Andy, this is the incredible leadership crew of Urban Alchemy. They are incredible people doing incredible work and we are so excited to bring them to Portland. Before announcing anything publicly, I wanted to make the connection between UA and CC. Happy to set up a meeting! Thanks, Skye B-K
Email from Jeff Kositsky to Skyler Brocker-Knapp, Kirkpatrick Tyler, and Bayron Wilson on October 27th. Hi everyone: It is very exciting that things seem to be moving forward! KP will be managing our government and community affairs in Portland and I will be responsible for managing our possible move to Portland. Bayron is the decision maker on all programmatic and community issues. It might make sense for us to set up regular meetings (every other week?) to keep things moving forward. What do you think? Jeff Kositsky Chief Growth Officer Urban Alchemy

Further, much of the details of the proposed encampments as presented by the Mayor’s Office appeared eerily similar to details included in early proposals Urban Alchemy shared via email. This included the 15:1 staffing ratio, the two meals and one snack, and the desire to have a service provider who also operates as a workforce development program (one of Urban Alchemy’s key modus operandi). 

powerpoint slide from mayor's office: What is being proposed? Elements of designated camping sites. Six professionally managed camping sites. Initially, each site will have 100 tents (for up to 150 people). City Council must approve an additional 100 people (for up to 250 people), after this first phase, at each site. Site Features: Better access to available physical, mental, and behavioral health services. Improved navigation to housing and shelter resources. Residents provided two meals and a hefty snack. One entrance/exit. 24-hour on-site and 1,000 ft. perimeter security.
Camp Management. Service Provider Model. Service provider will manage 24/7 with approximately 15/1 staff/client ratio.​ Using a Built For Zero client-centered public health approach to guide clients through the continuum of care. Weapons must be checked at the entrance (zero tolerance policy)​. Alcohol and drugs cannot be consumed in common areas/public spaces​. No cooking or fires are allowed​. Referral-based system, no walk-ins allowed. Develop sustainable and untapped workforce development pipeline. Hire staff with a passion for the work. Use a rigorous and proven training program for all staff.

Although Urban Alchemy did participate in a competitive bidding process, versus receiving a no-bid contract much like the majority of their contracts in San Francisco, the RFP was very obviously designed with Urban Alchemy in mind; paving the way for their inevitable awarding of the contract by the City of Portland.

The RFP process was quick and Urban Alchemy received a notice of intent to award from the City of Portland on January 27th, 2023.

January 27, 2023 Notice of intent to negotiate and award contract  RFP No. 00002028 Description: Temporary Alternative Shelter Operators On January 17, 2023, proposal responses to Request for Proposals (RFP) No. 00002028 were received and the Evaluation Committee reviewed and evaluated the information provided. The City has made a determination that the following proposer received the highest score and pursuant to the RFP process, the City will begin negotiations with the contractor that could lead to contract award. If negotiations fail to result in an acceptable agreement with this vendor, the City reserves the right to begin negotiations with the second highest scoring proposer in an effort to reach a contract. • Urban Alchemy Any protest to this decision must be submitted in written form to the Chief Procurement Officer within seven (7) calendar days from date of issuance of this Notice of Intent to Negotiate and Award Contract. Any written protest shall specify the grounds upon which the protest is based. Forward written protests to: Jeff Blade Procurement Supervisor Buyer Email: jeff.blade@portlandoregon.gov Complete rules regarding protests may be found in City Code 5.33 as found on www.portlandonline.com. If you have any questions about this Notice of Intent to Negotiate and Award Contract, please contact Jeff Blade at (503) 823-6858 or jeff.blade@portlandoregon.gov. Sincerely, Biko Taylor Chief Procurement Officer bt:jab

In the bid submitted by Urban Alchemy they proposed a budget of $5.1 million annually for one tent site with 150 people. Their cost breakdown estimated the encampments would cost $94 per person per night or nearly $34,000 per person per year. This is in addition to roughly $400,000 in one-time start-up fees.

According to the Mayor’s Office, because Urban Alchemy was awarded this contract for the first mass sanctioned encampment they can be awarded future contracts without an RFP. Should Urban Alchemy run all six of the proposed mass encampments, annual operating costs would come out to be $30 million.

To reiterate, Urban Alchemy’s proposal is for a tent site of 150 people; however, the City is proposing mass camps of up to 250 people. Should Urban Alchemy expand capacity at their tent sites the budget could go above and beyond what is currently being proposed.

Both the proposals submitted by Urban Alchemy and Simply Human are below:

00002028 Proposal Urban Alchemy
827KB ∙ PDF file
Download
Download
00002028 Proposal Simply Human
416KB ∙ PDF file
Download
Download

First site identified

Before Urban Alchemy could set up shop in Portland, the City had to find a spot for the first mass encampment. The City succeeded in securing a location, officially announcing the site during a press conference on March 9, 2023.

Although the City ultimately closed in on a deal for the site located in the Central Eastside, the Mayor’s Office encountered a few obstacles attempting to negotiate leases for the mass encampments elsewhere, with one property owner pulling out of negotiations unless the City of Portland capped the encampment to 40 people.

After the announcement of the first site, the Brooklyn Neighborhood Association co-hosted a listening session with the Mayor’s Office and Urban Alchemy. Many neighbors expressed concern regarding the lack of outreach from the City before the announcement. 

Support has been expressed by the Central Eastside Industrial Council, who manages the Central Eastside Together Enhanced Services District. The Mayor’s Office has repeatedly said partnerships with the ESDs will be integral to the mass encampments, including the potential of having ESDs oversee private security contracts surrounding the encampments.

Artwork from Western Regional Advocacy Project and Poster syndicate. Drawing of six tents surrounded by a barb-wired fence with two armed guards shown as shadow figures. Two vultures (also shadow figures) are perched on the fence looking down at the tents with a police hat and surveillance camera on their heads. In the background there is a guard watch tower that has the seal for the Department of Housing and Urban Development (HUD). The poster reads "Shelters and sanctioned encampments are not housing. Homelessness ends with a home"

What’s next?

This Wednesday, April 19th, City Council will officially vote to approve a price agreement with Urban Alchemy for up to $50 million over the course of five years. 

This vote does not guarantee Urban Alchemy will be paid $50 million, but rather, authorizes the City to make as many payments as they want to Urban Alchemy over the next five years as long as it doesn’t exceed $50 million. Should the City of Portland decide to pay Urban Alchemy more than $50 million within the next five years, another vote would have to happen through City Council. 

Update: City Council unanimously voted in favor of the $50 million price agreement, despite almost all testimony being in opposition.

This ordinance directs all payments for this price agreement to come out of the Office of Management and Finance’s (OMF) operating budget. Currently, due to allocations made during the Fall BMP, OMF only has $12 million in one-time funds that can be used to pay Urban Alchemy. Ongoing, annual funds have not yet been allocated in OMF’s budget.

The City of Portland is currently undergoing the budget process for Fiscal Year 2023-24. OMF’s requested budget does not specify ongoing funds regarding the operating costs for the mass encampments. It is likely the Mayor’s proposed budget, which will be published in early May, will include budget allocations for the contract (and potential future contracts) with Urban Alchemy.

Beyond the City’s ongoing contract negotiations, Multnomah County has also recently expressed interest in contracting with Urban Alchemy for patrols around the downtown Behavioral Health Resource Center. 

Although details are scarce, this potential contract seems to mirror the ambassador program in San Francisco, where Urban Alchemy’s ‘practitioners’ are tasked with patrolling public sidewalks in the Tenderloin and Mid-Market neighborhoods. 

This program has come under increased scrutiny because the ambassador program operates like private security, despite Urban Alchemy not being a licensed private security company; thus allowing them to skirt all accountability and oversight associated with licensure.

Urban Alchemy’s expansion in Portland is happening fast, much like what happened in California. There’s plenty of lessons to be learned. The next few months will require watchful eyes on City Council to prevent Urban Alchemy from taking over this city block by block.

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