For the estimated $31.6-million project to be successful, however, Venerable principal Art DeMuro tells GlobeSt.com he will need public assistance. To that end, the developer is requesting a reservation of a Portland New Markets Fund I LLC New Markets Tax Credit allocation of up to $19 million, which would result in approximately $4 million of funds to the project.
The request is in addition to applications for a $2.5-million seismic loan and $125,000 in façade improvement grants from the Portland Development Commission. Venerable's preliminary pro forma also shows the project would attract another $5 million in additional funds through the sale of historic and business energy tax credits.
"The bottom line is it will take a couple of more weeks to have a good sense of whether it will actually happen," says Art DeMuro. "The university desires to do this but there are still some major questions we have to answer for them and they do have an alternate site."Venerable is in negotiation to purchase the buildings--bounded by Burnside, Couch, Naito and 1st Avenue and known generally as the White Stage Block--from the Bill Naito Co. If all goes as planned, the project could get under way in August 2006, with the UofO occupying some 75,000 sf by September of 2007.
The U of O's satellite campus is looking to relocate because it has outgrown its current home in the Willamette Block at SW 2nd and Yamhill. The move to the White Stag Block would bring approximately 50 jobs to the Old Town area along with more than 250 students.
Initially, the U of O would occupy the entire ground floor and some of the upper floors of two buildings, but floor plans are still to be determined. The remaining floors would be leased to other office tenants. Looking forward a decade or two, the University says it may eventually take over the entire building.
As a condition of reserving the New Markets Tax Credit, Venerable Properties would be required to make a non-refundable deposit to purchase the property and the University of Oregon would be required to sign a lease, and both would have to occur before April 30, 2006. If UofO doesn't sign the lease, the purchase and sale agreement could and would be negated, says DeMuro.
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