Oktoobar 28, 2026 · Ordinance · 2026-365
Authorize the acceptance of real property from the Oregon Department of Transportation and approve a Memorandum of Understanding for future property transactions
- Document number
- 2026-365
- Introduced by
- Mayor Keith Wilson
- City department
- Transportation
- Requested council date
- October 28, 2026
- Purpose and background
- In 1941, the City and the State Highway Commission, now known as Department of Transportation (ODOT), jointly acquired title to multiple parcels of land for the widening of Front Avenue and the construction of the Harbor Drive Expressway in the vicinity of what is now present-day SW Naito Parkway. In the 1970's, the decision was made to remove the expressway, with the land remaining undeveloped for more than 50 years. The City, through the Portland Bureau of Transportation (PBOT), and ODOT completed the first property exchange involving the former Harbor Freeway land in 2021, followed by a second exchange in 2025.ODOT desires to transfer a certain parcel of land to the City, which is located adjacent to the intersection of SW Naito Parkway and S Sherman Street, further identified by Multnomah County as tax lot R734782 (the ODOT Parcel). The City and ODOT also seek to separate their remaining property interests through a full acquisition by the City, an exchange of property rights, or a combination of both, that is contemplated in a Memorandum of Understanding (MOU).
- Financial and budgetary impacts
- The initial budgetary impacts of this ordinance are de minimis; however, depending on the path the City wants to pursue, as contemplated in the MOU, a straight property trade would also have a de minimis financial impact. The complete acquisition of ODOT's property interests would likely not exceed $7,000,000, while a combination of trade and purchase would fall somewhere in between the two depending on how it is structured.
- Economic and real estate impacts
- The majority of these parcels have previously been identified by the City as top candidates for affordable housing projects and their acquisition would create unique development opportunities for the City.
- Community impacts and community involvement
- PBOT has conferred with the adjacent property owner, The International School, regarding the proposed property acquisition by the City and they were supportive of the City's acquisition.
- 100% renewable goal
- Not applicable.
Qoraalka oo dhan
The City of Portland ordains.
Section 1. The Council finds:
In 1941, the City and the State Highway Commission, now known as Department of Transportation (ODOT), jointly acquired title to multiple parcels of land for the widening of Front Avenue and the construction of the Harbor Drive Expressway in the vicinity of what is now present-day SW Naito Parkway. In the 1970s, the decision was made to remove the expressway, with the land remaining undeveloped for more than 50 years. The City, through the Portland Bureau of Transportation (PBOT), and ODOT completed the first property exchange involving the former Harbor Freeway land in 2021, followed by a second exchange in 2025. The City and ODOT now seek to separate their remaining property interests through a full acquisition by the City, an exchange of property rights, or a combination of both.
ODOT desires to transfer a certain parcel of land to the City in advance of the of the larger transaction that is contemplated in the Memorandum of Understanding (MOU) attached as Exhibit 1 and by this reference incorporated herein. The parcel is located adjacent to the intersection of SW Naito Parkway and S Sherman Street, further identified by Multnomah County as tax lot R734782, (the ODOT Parcel). A property transfer deed for the ODOT Parcel is attached as Exhibit 2 and by this reference incorporated herein.
City also desires to acquire ODOT's remaining property interest in the remaining SW Naito Parkway parcels through cash, trade or some combination thereof. The parcels are further identified by Multnomah County as tax lots R699857, R699855, and R699854 (the Naito Parcels). A site map of the Naito Parcels is attached as Exhibit 3, and by this reference incorporated herein.
NOW, THEREFORE, the Council directs:
The City Administrator is authorized to approve and accept the Statutory Bargain and Sale Deed for the ODOT Parcel in substantially the same format as Exhibit 2.
PBOT is authorized to pursue the terms of the MOU, as shown in Exhibit 1, and if property trades are recommended, return to Council to seek authorization for such transactions.