By Daniel Perez-Crouse
What’s standing between Mt. Tabor and SE Portland residents from Dilly Bars and Blizzards? A contested drive-through that the developer, city and neighbors are in dispute over.
If you don’t know or don’t remember, on the now-demolished grounds of SE Division St. and 55th Ave., there used to be a neighborhood Dairy Queen (DQ). It was unique for the area because it had a walk-up window, and it is a fond memory for those who frequented it. The Southeast Examiner reported back in 2019 on plans to demolish and remodel that location. The hope was to have it reopen in 2020. But six years later, it’s only been demolished.
In more recent years, Bridgetown Bites and Willamette Week provided updates on its design aspirations and that the process was slowed for permit approval and other issues with the demolition. Despite this, there was a projected opening for June 2025 at the time, but construction has still not started.
The most recent hold-up that could end the DQ rebuild entirely is that the city is currently doing a Determination of Legal Nonconforming Status Review on its drive-through rights. The problem is, the current city of Portland zoning code regulations do not allow drive-through facilities in Mixed Use Commercial 2 areas. The code allows for existing facilities to rebuild, expand or relocate a drive-through, but if it has been more than three years since a facility has been discontinued, then it is prohibited.
Alex Roy with the Mt. Tabor Neighborhood Association (MTNA), who has been following this closely, says, “The main issue at the heart of the matter is whether or not the use of the drive-through on site was maintained, and not left abandoned for more than three years. Evidence for or against this is what the city is seeking.”
A letter from the City of Portland in response to land use applications for the site didn’t see a way in which this could reasonably pass zoning codes under the current circumstances and recommended that the applicants rescind and ask for a refund.
In a lengthy document from the DQ project, the applicant’s attorney claims they do meet the city’s criteria. It said, “The nonconforming situation to be continued is one that has been on the property since 1968. There was only a lapse in the maintenance of the drive-through window from the end of October 2019 while the drive-through window had been removed under a City demolition permit, until the time of an October 11, 2022 building permit that the City determined maintained the drive through window thereafter.”
On December 1, Mt. Tabor residents were asked by the city to comment on the Land Use Review to help determine next steps. Despite many expressing a desire for the DQ to return, residents of the area have concerns about the drive-through. Back in August, on behalf of the MTNA, Break-Pike Salas opposed building a drive-through due to issues around traffic congestion and safety on that street. One of their specific objections states, “The drive-through would create new conflicts between turning vehicles, pedestrians and buses, degrading FX2 reliability and increasing risk for the students of Atkinson Elementary.”
The MTNA also notes that if approved, a precedent for property owners to maintain the right to develop a project that includes a nonconforming use that is no longer allowed under the Portland Zoning Code could be set.
As reported on the MTNA’s blog, on November 14, 2025, the DQ property owner, Mohan Grewal, attended the MTNA regular monthly meeting and shared his hopes and concerns with the MTNA. “Mohan described frustrations he had with the City about the high cost and slow progress of the permit process. Mohan asserted that the drive-through was needed for the DQ to succeed at this location and that the City had not raised the issue about the three-year time limit until late in the process after Mohan had spent a significant amount of money on the project,” the blog stated.
Most likely in response to this situation, and reportedly attributed to Mohan, residents of the Mt. Tabor area were leafletted with flyers asking them to support the building of the DQ and claiming the city is unfairly threatening to revoke the project. It alleges that, “The City of Portland is now asking to develop a Dairy Queen without a drive-thru after previously approving it on the Building Plans in April 2025,” and that without the approval of the drive-through it “would likely no longer be fit for this location.”
The current formal MTNA position opposes the inclusion of the drive-through (not the DQ project as a whole) without a formal determination by the City that it meets the requirements in the Portland Zoning Code.
The opportunity for the public to submit comments closed on December 22. The next steps from the City after taking them into consideration will be to approve the proposal, approve the proposal with conditions or deny the proposal.
The current site of the demolished DQ on SE Division St. Photo by Daniel Perez-Crouse.
Went over there many times in my years at Franklin High school class of 65.
I miss the Dairy Queen immensely.The one torn down had a drive thru.City of Portland approved the drive thru,which is the right thing to do.No changing.Covid delayed the process .WE WANT DAIRY QUEEN!!!