Panattoni originally had the option to buy the property from the Spada family, but instead transferred the option to the PDC in exchange for the exclusive right to acquire and develop the property for businesses. This meets the city's Quality Jobs Program--primarily manufacturing firms who pay an average wage of 200% of Oregon's minimum wage and develop to 800 sf per person or less.
The agreement calls for Panattoni to take down five acres every 18 months and 20 acres over the first five years of the agreement once infrastructure improvements are complete. PDC Project Manager Rachel Lewitt tells GlobeSt.com that the PDC's $1.77 million in improvements are winding up, and the clock is about to start.
Panattoni has a head start because in December, with the help of exclusive leasing agent Don Ossey, it landed a 4.72-acre, 68,000-sf build-to-suit deal with Portland Hospital Service Corp., a company owned by Legacy Health System, Kaiser Permanente and Providence Health System that employs approximately 150 and processes 20 million pounds of healthcare textiles and linens each year for 12 hospitals and 53 medical/dental clinics in the region.
Neither Ossey nor Panattoni's local partner Mike Wells were available for comment this week. Lewitt says the PDC purchased the land for $4.35 per sf and Panattoni is required to take down the land at $5.64 per sf. It's not known how much Portland Hospital Service Corp. is paying for its land, but the total price for the land and the building--which won't be paid until the building is delivered later this year--will reportedly be around $5 million.
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