The 16,200-sf site is located near the intersection of MLK Boulevard and Fremont Avenue and is seen as a key commercial redevelopment "node." The property holds a 19,000-sf building that had been used by the previous owner as a metallurgical laboratory to recover precious metals from waste received from other facilities.

In late 1998 and early 1999, an Environmental Protection Agency investigation found more than 10,000 containers in the building, including 55-gallon drums of industrial wastes. After tests demonstrated high concentrations of heavy metals in deteriorating containers, the EPA determined there was imminent threat to human health and the environment and began emergency abatement action.

After completing the emergency removal activities, the EPA began an effort to recoup more than $1.2 million in cleanup costs. The EPA eventually filed a lien on the property to prevent its sale and in December 1999 began foreclosure proceedings on the property. Since the EPA specifically deals with remediation of contaminants and not the ownership of property, the PDC expressed interest in purchasing the property to further neighborhood goals. For three years, the PDC participated in settlement negotiations with the EPA and the property owner to acquire the property.

As part of a court-approved settlement, the Portland Development Commission acquired the property for the appraised fair market value of $177,000, which former owner Erwin Grant must split with the EPA as partial reimbursement for the emergency abatement. The EPA is attempting no further actions against Grant because he has been determined to be mentally unfit to stand trial.

In anticipation of the acquisition, the PDC in October 2003 expanded the boundaries of the Oregon Convention Center Urban Renewal Area to include the Grant Warehouse and adjoining blocks. The move allowed URA tax increment funds to be used for acquisition of the site as well as its eventual redevelopment.

PDC spokeswoman Julie Rawls tells GlobeSt.com there is still some cleanup to be done to prepare the site for redevelopment. The PDC estimates the planning and cleanup costs, and building demolition will total approximately $468,000, which will be paid for in part by an EPA Brownfields Cleanup Grant for $200,000; an EPA Brownfields Planning Grant for $18,830, and $100,000 from the Bureau of Housing and Community Development.

The PDC's environmental staff and consultants will prepare an environmental cleanup plan over the next few months. Environmental cleanup activities are expected to commence in late spring/summer 2004 with demolition of buildings to follow. When the property is ready for redevelopment, the PDC will put out a request for proposals en route to a disposition and development agreement for a five-story residential-over-retail building.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.