The Portland City Auditor on Wednesday reversed its October determination that Rene Gonzalez’s city council campaign violated campaign finance limits by accepting a subsidized $250 monthly rent for over 3,000 square feet of office space and two designated parking spots in downtown Portland owned by campaign supporter and real estate mogul Jordan Schnitzer.

Susan Mottet, director of Portland’s Small Donor Elections program, wrote in an Oct. 10 letter to Gonzalez that the city, under administrative rules, can withhold public funds in cases of “high outstanding penalty amounts” or “egregious violations.”

The boost in Gonzalez donors cuts into one of Hardesty's touted political strengths throughout much of the race.

Portland City Council candidate Rene Gonzalez on Tuesday formally asked elections officials to waive a whopping $77,000 fine, arguing that a deeply discounted downtown office space he received from a wealthy supporter does not run afoul of the city’s campaign finance rules.

Nearly two-thirds of likely Portland voters say they’ll back a contested ballot measure this fall to radically reshape the city’s form of government and election system, according to a new poll commissioned by the metro area’s most influential business organization and several industry groups.

Since May, Gonzalez’s campaign has paid a mere $250 a month to rent more than 3,000 square feet in a Southwest 11th Avenue office building owned by Jordan Schnitzer, a real estate mogul and philanthropist who also donated the most money allowed by law, $250, to the candidate, according to city elections officials and campaign finance reports.

The last time Portland saw a contested race for city auditor, which was 1986, Bud Clark’s “Whoop-whoop!” ricocheted regularly through City Hall, First Thursday art walks were in their infancy and Kiki VanDeWeghe led the Trail Blazers in scoring, averaging 24.8 points per game.