County approves $550,000 transfer to Hansen deconstruction project amid debate over cost and priorities

The Multnomah County Board of Commissioners on March 15 approved a $550,000 transfer from general fund contingency to the Department of County Assets’ capital improvement fund to continue planning, surveys and hazardous-materials investigations related to deconstruction of buildings at the Hansen property (R4). The motion passed 3–1, with Commissioner Moyer voting no.

DCA project staff told the board the FY25 work with consultant HBX Studios, property surveying and a Phase I environmental assessment are near-term needs to inform deconstruction. Brett Toddy, DCA project manager, said approximately $95,000 of the $550,000 would be spent in FY25 and the remaining $455,000 carried into FY26 as working capital for the project.

Dan Zalco, division director for facilities and property management, said the county has no current, finalized redevelopment plan for the site. “We do not have any current plans for the site. It's been vacant for about 10 years,” Zalco said, while describing past studies that examined several development and mixed-use scenarios.

During debate, commissioners split on whether to proceed now. Commissioner Moyer questioned why the county would spend for deconstruction without a current development plan and noted other outstanding county obligations. She asked whether human remains were present; county counsel replied she was not aware of any. Commissioner Moyer also raised concerns that the county would be incurring demolition and remediation costs that could reduce the site's market value.

Commissioner Broom Edwards urged action to remove a longstanding blighted structure in East Portland and described the parcel as an opportunity for future economic activity around transit. He said the county had committed previously to start remediation work. Chair Vega Peterson and Commissioner Singleton supported the transfer, emphasizing neighborhood safety and the site’s negative impact on Hazelwood.

DCA staff offered cost estimates: Toddy said the county’s present estimate for hazardous-material remediation was roughly $1.5 million; the total project estimate, including demolition and related work, was approximately $6.6 million. A brokerage “opinion of value” provided to the county estimated that if the site were remediated and cleared, its market value could be roughly $5.3 million to $6.4 million; staff cautioned that selling the property as-is would introduce more uncertainty and risk because remediation costs would be deducted from market value.

Several commissioners also raised a separate funding question: a proposed memorial for Chinese Lot 14 (a historic cemetery matter) has outstanding funding needs. Commissioner Moyer said she could not support the Hansen appropriation while the county had an unmet commitment to the Chinese community. Chair Vega Peterson and other commissioners said the Hansen transfer was a previously appropriated one-time allocation being moved to a capital fund and not part of the current budget trade-offs.

The board approved R4 on a roll-call vote: Commissioner Moyer — No; Commissioner Singleton — Yes; Commissioner Broom Edwards — Yes; Chair Vega Peterson — Yes.

DCA said staff will return with a fact-finding resolution in the fall or winter seeking approval to proceed with deconstruction.