Resolution No. 36424 AS AMENDED

Direct the Office of the City Attorney to contract for an independent audit of the Portland Development Commission project record and any other information necessary to review the acquisition, valuation and proposed disposal of property at 209 SW Oak Street (Resolution)

WHEREAS, the Portland Development Commission acquired the property located at 209 SW Oak Street in 2002 at a cost of $1,200,000; and

WHEREAS, the property’s appraised value at that time was $850,000; and

WHEREAS, the property was appraised in 2006 at a value of negative $2,700,000 by the same firm who in 2002 appraised the property at $850,000; and

WHEREAS, the Portland Development Commission voted in 2006 to give the property to a developer to develop a condominium project with approximately 160 units; and

WHEREAS, the proposed condominium project will initially be required to have 15% of its approximately 160 units affordable to home buyers with an income level at or below 120% of median family income; and

WHEREAS, the affordability requirements for the proposed project end after only 9 months, allowing units to be sold to home buyers at any income level after that time; and

WHEREAS, the Portland Development Commission has expressed the view that this property transaction and resulting project is not publicly subsidized due to the negative value of the property, and therefore is not subject to prevailing wage requirements imposed on publicly subsidized projects; and

WHEREAS, a gift of real property constitutes a government subsidy; and

WHEREAS, the Portland City Council’s stated policy goal is to provide family wage jobs with health benefits on publicly subsidized projects; and

WHEREAS, the Portland Development Commission has agreed to halt any further action with regard to this property until an audit can be completed;

NOW, THEREFORE, BE IT RESOLVED that the Office of the City Attorney shall contract for an independent audit of the Portland Development Commission’s project record and any other information necessary to review the acquisition, valuation, and proposed disposal of property situated at 209 SW Oak Street; and

BE IT FURTHER RESOLVED, that the Portland Development Commission shall disburse funds to the City Attorney’s Office in an amount equal to the costs of this audit; and

BE IT FURTHER RESOLVED, that the Office of the City Attorney shall present the findings of this audit to the City Council no later than September 1, 2006.

Adopted by the Council, July 05, 2006

             GARY BLACKMER

Commissioner Randy Leonard      Auditor of the City of Portland

Ty Kovatch            By /S/ Susan Parsons

June 28, 2006                Deputy

BACKING SHEET INFORMATION

AGENDA NO. 925-2006

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36424 AS AMENDED