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Portland council approves settlement to acquire remaining Midtown parcels, ends related lawsuits
Summary
The Portland City Council approved a settlement agreement to transfer two remaining Midtown parcels to the city and resolve pending litigation in exchange for a payment of about $15 million; councilors waived the second-reading requirement and adopted the measure as amended.
The Portland City Council on Wednesday approved a settlement agreement that returns the remaining Midtown parcels to city ownership and resolves related litigation, according to city attorneys.
The council approved an agreement that calls for the transfer of the two remaining Midtown lots (identified in the agreement as Lots 13 and 7) back to the city and a payment of approximately $15,000,000 to cover land value and dismissal of pending claims. The agreement also provides for mutual releases and dismissal of three pending lawsuits tied to the Midtown property. The council voted to waive the second-reading requirement and adopted the order as amended to add appropriation language.
Corporation Counsel summarized the agreement for the council, saying the deal "involves mutual release between both parties, the dismissal of three pending lawsuits, the transfer of the Midtown... Lots 13 and 7, and then the payment of some of $15,000,000 to cover the land and the dismissal of cases." Outside counsel from the city's retained law firm described months of negotiation and court involvement leading to the settlement.
Members of the public urged caution and fuller fiscal accounting before finalizing the deal. Samuel Brown said he found the pace of the negotiations "disconcerting" and asked for a fuller accounting of indirect costs and long-term fiscal impacts beyond the headline payment. A nearby resident who spoke in favor said the transfer and settlement create an opportunity for redevelopment and housing in a long-blighted parcel.
Councilors who spoke on the item thanked city staff and outside counsel for the negotiations and noted the matter had been discussed in multiple executive sessions over several years. Council discussion included a procedural amendment adding explicit appropriation language to the order before final adoption.
The order as amended directs city staff to carry out the conveyance and implement the appropriation language added by council. City attorneys said the settlement ends protracted federal litigation and restores city control of the identified Midtown property, enabling the city to plan next steps for redevelopment.
The council did not provide a detailed public fiscal-impact breakdown at the meeting beyond the settlement payment; public commenters asked for a fuller accounting of legal costs and other related expenditures.
The measure was listed on the agenda as Order 72526; the clerk read the order number during the meeting. The council passed motions to waive a second reading and to adopt the order as amended.
