Portland’s Division Street DQ Drive-Through Saga Continues Amidst Permit Purgatory

Portland, OR – The long-awaited rebuild of the Division Street DQ remains in limbo. Years after its demolition, the Division Street DQ project faces significant hurdles, with the fate of its drive-through being the central issue. A critical land use review is now underway as of December 18, 2025, to determine if the drive-through can be rebuilt at the Division Street DQ.

A Beloved Neighborhood Staple of the Division Street DQ

The Division Street Dairy Queen held a special place in Portland. It served the community for over 60 years. The original establishment was a classic walk-up style. Many locals recall fond memories of visits to the Division Street DQ. It was a popular gathering spot for families. Students from nearby Franklin High School and Atkinson Elementary were frequent patrons. This location was among the first Dairy Queens opened in Oregon. The building was demolished in 2019. Plans for a new, modern Dairy Queen, including the Division Street DQ, began around 2017.

The Drive-Through Dilemma for Division Street DQ

Reconstructing the drive-through presents a major challenge for the Division Street DQ. Portland’s zoning code prohibits new drive-throughs in this specific zone. However, existing drive-throughs are generally allowed to be rebuilt. This privilege is maintained if the use has not been discontinued for more than three continuous years. The original DQ was torn down in 2019. The current applicant must prove their rights to the drive-through were maintained for the Division Street DQ. A land use review application was submitted to confirm these rights. This process examines the legality of the drive-through’s reconstruction for the Division Street DQ.

Community Voices Divided on the Division Street DQ

Neighbors express a range of opinions regarding the Division Street DQ. Some residents voice significant concerns. They worry about increased noise and pollution. Pedestrian safety is another key issue. Traffic congestion is also a major point of contention. The drive-through could impact the FX2-Division bus line. Conversely, many others strongly support the DQ’s return, specifically the Division Street DQ. They cherish nostalgic memories of the establishment. Some view it as an important local business. It promises to create jobs and generate tax revenue. The property owner also defends the drive-through for the Division Street DQ. He believes it enhances usability.

The Permitting Maze in Portland for Division Street DQ

Portland’s permitting process is notoriously complex. It has led to extensive Division Street development delays for this project. Many permits for developments in the city take years to finalize. The Division Street DQ rebuild exemplifies this issue. Initial hopes for construction in January 2025 did not materialize. The site has remained vacant, becoming a weed garden. Past issues included asbestos removal and architectural changes. The city requested clarifications on plan modifications for the Division Street DQ. This added further delays. As of December 18, 2025, many permits remain under review, impacting the Dairy Queen Portland rebuild.

Developer’s Stance and Investment in Division Street DQ

The property owner has made substantial financial commitments to the Division Street DQ. More than $650,000 has been invested. This sum covers permit fees, traffic studies, and testing. Without a drive-through, the business’s revenue would be drastically lower for the Division Street DQ. Drive-throughs are essential for fast-food restaurants. They represent a significant portion of sales. This is particularly true during Oregon’s frequent rainy winters. The owner believes the new DQ will improve the neighborhood’s appearance and positively impact the Division Street DQ. It will also provide much-needed employment.

What’s Next for the Division Street DQ?

A public notice was issued on December 1, 2025. It invited comments on the drive-through’s legality, a key component of the Division Street DQ permit process. The outcome of the Portland land use review is now pending. This review will determine if the applicant retains the right to reconstruct the drive-through for the Division Street DQ. The future of this long-awaited restaurant hinges on this decision. It is a key step in potentially ending years of waiting for Portland residents and impacts drive-through zoning Portland regulations. The situation highlights ongoing discussions about development and urban planning in Oregon. It also touches on the viability of traditional fast-food restaurants and their services, like drive-throughs, in a trending market. The project’s progress impacts local businesses and restaurants, particularly the potential Dairy Queen Portland rebuild.

Author

  • Eddie Guanterro

    Hello, I'm Eddie Guanterro, an Oregon native and proud to be a third-generation Mexican-American. I hold a Bachelor's degree in Journalism from the University of Oregon. My work focuses on bringing essential stories to light, ranging from community issues to captivating profiles of Portland's diverse residents. Outside of writing, I enjoy exploring Portland's thriving food cart scene, hiking in the beautiful Pacific Northwest, and attending local soccer matches. Thank you for engaging with my work and supporting the stories that reflect the heart of our community.

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