Resolution No. 36199

Negotiate with Portland Schools Real Estate Trust based on principles herein for the purchase of approximately 4.5 acres at Washington Monroe site for a future community center and open space. (Resolution)

WHEREAS, Portland Public Schools has declared the Washington High School site at SE Stark and 12^th Avenue surplus and Portland Parks and Recreation has declared an intent to acquire a portion of the Washington High School property; and

WHEREAS, this proposal supports Portland Public Schools in its desire to convert surplus lands into funds to assist in meeting the important educational needs of its students while preserving a portion of public land in public ownership; and

WHEREAS, inner southeast Portland is the area identified in Parks 2020 Vision Plan as the highest priority for development of a community center, and a center at this location would serve neighborhoods and keep families in the city; and

WHEREAS, the community has indicated to Portland Public School and Portland Parks and Recreation that the best use of the site is for housing, open space including sports field and preservation of existing mature trees, and a community center with aquatics facility; and

WHEREAS, Portland Schools Real Estate Trust has worked with Portland Parks and Recreation and the community to identify a preferred site configuration and options, along with a process to determine the final location of the property which the City of Portland will acquire, and the terms of that agreement;

WHEREAS, the property purchased by PPR will be land-banked until funds are available for open space and community center construction.

NOW, THEREFORE, BE IT RESOLVED, that Portland Parks and Recreation negotiate a sale purchase agreement with Portland Schools Real Estate Trust for approximately 4.5 acres of the Washington Monroe site by:

•  Creating a Memorandum of Understanding with Portland Schools Real Estate Trust that conveys the City’s intent to purchase the land and the conditions under which the parties will mutually progress the project;

•  Participating in discussions with the selected housing developer, Portland Schools Real Estate Trust and the community, and taking preferred Option B as outlined in the Washington – Monroe Site Phase 1 Concept Plan Report as a point of departure, to finalize a fixed site that meets PPR’s needs. Site to be approximately 4.5 acres of contiguous land and not to include the existing high school building;

•  Enacting a 90-day due diligence with reasonable access to the property and property documentation;

•  Assigning land division responsibility to Portland Schools Real Estate Trust or their selected developer, and assuming no costs to the City arising from this process;

•  Retaining the City’s right to assign its interest in the land;

•  Developing a purchase agreement based on appraised value of the property dated December 4, 2003 and estimated to be $27.50 per square foot, or approximately $5,390,500 for four and a half acres; or the appraised value at the time of the agreement whichever is lower;

•  Bringing the purchase agreement before Council for approval; and

BE IT FURTHER RESOLVED, that the funds for the purchase of the property, are to be taken from a variety of sources, namely, PPR system development charge funds up to $1,000,000, the maximum amount permissible under regulations; and the remainder from CIP, general fund, or reordering PPR priority; and

BE IT FURTHER RESOLVED, that the capital costs for the proposed community center and sports field, estimated to be $26,000,000, will be subject to the satisfactory procurement of funding in the future and subject to separate Council approval; and

BE IT FURTHER RESOLVED, that the Council acknowledges the need to fund the ongoing operating and maintenance (O&M) cost of the open space and community center. O&M costs will be presented for Council approval prior to construction of these facilitie

BACKING SHEET INFORMATION

AGENDA NO. 134-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36199