The Port of Portland ceased operating Terminal 1 North as a public marine cargo facility in 1989. In 1998, the Port's Marine Division transferred management of the parcel to the Property and Development Services department. Since then, numerous short-term tenants have leased the property, including James River Corporation, Benson Industries, Multnomah County Justice Services and, most recently, to the city for staging the boring of a four-mile tunnel that will be 14 feet in diameter and 120 feet deep.

Port officials say they have considered various redevelopment options for the property, including industrial, another maritime use and even commercial or residential uses, but "none of those alternatives proved feasible within financial, regulatory or market constraints," according to the Port. So instead of continuing to lease the property to the city, a purchase and sale agreement is being drawn up.

"We believe selling this parcel to the city is the most viable and desirable option for Terminal 1 North, especially considering it is no longer used as a marine cargo facility," says Port of Portland executive director Bill Wyatt. "This transaction has the additional advantage of keeping this historic waterfront property in public ownership."