The long-vacant lot at 5605 S.E. Division St., where a Dairy Queen once churned out Blizzards to the neighborhood, is suddenly back in play. A shift in city permitting has cracked the door open for a rebuilt restaurant with a drive-thru, and a long-running tug-of-war between the franchisee and nearby residents is headed for a decisive hearing.
In late December, Portland Permitting & Development signed off on a nonconforming-use review that would allow a drive-thru at the new restaurant, reversing an earlier request that the lane be removed, according to OregonLive. The ruling treats the drive-thru as an existing use at the property, a crucial distinction under Portland’s stricter rules on auto-oriented development.
Owner, Permit History and Investments
Franchisee Mohan Grewal, through his Akum Investment Group, bought the Division Street property in 2017, then demolished the original restaurant in 2019 as part of a rebuild plan, neighborhood filings show, according to Bridgetown Bites. Grewal has repeatedly told city staff and neighbors that he has sunk hundreds of thousands of dollars into the project and that without a drive-thru, the new Dairy Queen would not pencil out financially at this location.
Drive-Thru Fight, Public Comments and City Staff
Not everyone is eager to see a steady stream of cars circling the block again. Neighbors have argued that the previous drive-thru rights expired after the site sat idle for years, and that allowing a fresh drive-thru would chip away at recent zoning goals aimed at curbing auto-focused development. The dispute triggered a flood of feedback: the city logged more than 200 public comments and assembled a hefty administrative record.
City staff told reporters the case file runs to hundreds of pages, and they noted that the building permit will expire on April 12 if no inspection activity occurs before then, Daily Journal of Commerce reported.
Next Steps and Timetable
The fight now heads into a formal arena. A virtual land-use hearing is set for 9 a.m. on Feb. 25, 2026, where a city hearings officer will weigh the appeal of the drive-thru approval, according to OregonLive. The city expects a decision within a few weeks of that hearing.
The franchisee has said that once the land-use questions are cleared, construction will still take several months. He has floated a potential reopening timeline of fall 2026, if the project is allowed to move forward with the drive-thru intact, according to OregonLive.
How an Appeal Would Work
If neighbors or other opponents lose at the hearings-officer stage, they still have another card to play. They can appeal the decision to the Oregon Land Use Board of Appeals, but the clock starts ticking quickly.
LUBA rules typically require a Notice of Intent to Appeal within 21 days after the local decision is finalized. The board’s FAQ notes that appeals are highly time-sensitive, and that asking for a stay of construction while an appeal is pending requires posting a bond and can carry legal risk for challengers, according to the Oregon Land Use Board of Appeals.
