Remember the Heritage Building deal on MLK Boulevard in Portland? We blogged about that one back in October 2005. The Portland Development Commission gave the property away for a buck after buying it for $400,000. It also made a $2.45 million sweetheart loan to the developers to whom it was handing the place. There was a senior construction loan with Albina Bank, too.
Well, the project's a flop, and now both loans are in default. They're rearranging the deck chairs with a new senior lender this week at the PDC. If the new private loan doesn't get finalized pretty soon, a foreclosure sale is scheduled for less than a month from now.
Meanwhile, taxpayers, you may want to pucker up and kiss a good chunk of that $2.45 million goodbye.
Comments (15)
Just another "business plan" that planners funded in which neither the plan or the planners had any business sense.
How perfect are the tenants they did find. A government agency, PCC, and the Community Cycling?
What next the PDC itself will move into the building?
Good thing PDC head Bruce Warner got his big raise. His resulting higher level of performance will no doubt fix stuff like this.
Excuse me but is there a bigger ass or
more incompetent agency in sight?
You said it, Hal!
This new bunch is just getting started. It takes the new crooks a bit of time to figure out the system, but never fear, Sam the Tram will have a new bunch in soon and they won't take nearly as long to figure out the system!
The PDC should just go away!
Did you all check out council agenda today, it expands multiple loan and bonding capacity for these folks for even more millions in debt. Jack will have to update his debt clock.
"Build it and they will come" is better left for the movie industry. They should have had the ink dry on the leases needed to cover the mortgage before this was built to begin with. All this does in the end is undermine investor confidence in the neighborhood.
I drive by this place all the time, it's looked forelorn since they built it.
Don't forget Vanport Square to the North and the building at Fremont and MLK, where Terrior restuarant was (I'm pretty sure it has no tenants now).
One genius move is that the city encourages (or requires) drastically insufficient parking for these projects. In fact, sufficient parking is a big plus for the retail or office tenants they're trying to attract - a lack of parking is a big negative. I'm surprised that Terrior (sp?) made it as long as they did for that reason alone.
Its called "Transit Oriented Development". The Metro catch phrase that translates to fleecing the taxpayers. They build condo towers the same way. Very little street parking, and about 1/2 as many private parking spaces on the property as there are condos.
They even built a whole neighborhood in Hillsboro around this premise. It failed too..
Belly is supposed to open in July. The other half of the ground floor of the "Terroir" building (officially known as King's Crossing, unofficially known as the Fremont Building) haws been leased to a fitness center, Portland Team Fitness.
Charamba, Douro 2008
Horse Heaven Hills, Cabernet 2010
Lorelle, Horse Heaven Hills Pinot Grigio 2011
Avignonesi, Montepulciano 2004
Lorelle, Willamette Valley Pinot Noir 2011
Villa Antinori, Toscana 2007
Mercedes Eguren, Cabernet Sauvignon 2009
Lorelle, Columbia Valley Cabernet 2011
Purple Moon, Merlot 2011
Purple Moon, Chardonnnay 2011
Abacela, Vintner's Blend No. 12
Opula Red Blend 2010
Liberte, Pinot Noir 2010
Chateau Ste. Michelle, Indian Wells Red Blend 2010
Woodbridge, Chardonnay 2011
King Estate, Pinot Noir 2011
Famille Perrin, Cotes du Rhone Villages 2010
Columbia Crest, Les Chevaux Red 2010
14 Hands, Hot to Trot White Blend
Familia Bianchi, Malbec 2009
Terrapin Cellars, Pinot Gris 2011
Columbia Crest, Walter Clore Private Reserve 2009
Campo Viejo, Rioja, Termpranillo 2010
Ravenswood, Cabernet Sauvignon 2009
Quinta das Amoras, Vinho Tinto 2010
Waterbrook, Reserve Merlot 2009
Lorelle, Horse Heaven Hills, Pinot Grigio 2011
Tarantas, Rose
Chateau Lajarre, Bordeaux 2009
La Vielle Ferme, Rose 2011
Benvolio, Pinot Grigio 2011
Nobilo Icon, Pinot Noir 2009
Lello, Douro Tinto 2009
Quinson Fils, Cotes de Provence Rose 2011
Anindor, Pinot Gris 2010
Buenas Ondas, Syrah Rose 2010
Les Fiefs d'Anglars, Malbec 2009
14 Hands, Pinot Gris 2011
Conundrum 2012
Condes de Albarei, Albariño 2011
Columbia Crest, Walter Clore Private Reserve 2007
Penelope Sanchez, Garnacha Syrah 2010
Canoe Ridge, Merlot 2007
Atalaya do Mar, Godello 2010
Vega Montan, Mencia
Benvolio, Pinot Grigio
Nobilo Icon, Pinot Noir, Marlborough 2009
Portuga, Rose 2011
Revelation, Chardonnay, Pays d'Oc 2010
Beaulieu, Cabernet, Rutherford 2005
Monte Alto, Tinto Reserva 2005
Chateau Ste. Michelle, Cabernet, Indian Wells 2009
Espiral, Vinho Rose
Vin-Koru, Pinot Gris 2011
14 Hands, Hot to Trot Red 2009
Rodney Strong, Cabernet, Sonoma 2009
Abacela, Vintner's Blend #11
Portuga, White 2010
La Bourgeoisie, Red 2009
Januik, Red 2009
Three Rivers, River's Red 2008
Kirkland, Alexander Valley Merlot 2008
Muga, Rioja Rose 2010
Quinta das Amoras, Vinho Tinto 2009
Mauro Molino, Barbera d'Alba 2009
Garda Chiaretto Rose
Columbia Crest, Two Vines Vineyard 10 White
Chateau Ste. Michelle, Pinot Gris, Columbia Valley 2009
L'Hortus, Rose de Saignee 2010
Maculan, Pino & Toi 2008
McKinley Springs, Bombing Range Red 2008
Trader Joe's Pinot Gris 2009
Montes Alpha, Cabernet 2007
Gran Sasso, Sangiovese, Terre di Chieti 2009
Garda, Classico Chiaretto Rose
Beaulieu, Cabernet, Rutherford 1999
Picos del Montgo, Tempranillo 2008
Chateau de Montmirail, Vacqueyras 2008
La Granja 360, Syrah 2009
Montgras, Carmenere Reserva 2009
Lange, Pinot Gris 2009
Columbia Crest, Horse Heaven Hills Cabernet 2008
Kirkland, Pinot Grigio 2010
Trader Joe's Coastal Syrah 2009
Columbia Crest, Horse Heaven Hills Merlot 2008
Trader Joe's Coastal Chardonnay 2009
Vieux Papes Red
Domaine de l'Aujardiere, Chardonnay 2009
Santa Rita, Cabernet, Medalla Real 2007
Penfold's, Koonunga Hill Shiraz Cabernet 2008
Guild, Red, Lot #02 2008
Dievole, Dievolino Sangiovese 2008
Laforet, Burgogne Chardonnay 2009
Columbia Winery, Merlot 2007
Bonterra, Cabernet 2008
Elk Cove, Pinot Gris 2009
Maquis Lien 2006
Scott Paul, Pinot Noir, Le Paulee 2007
The Occasional Book
Neil Young - Waging Heavy Peace
Mark Bego - Aretha Franklin, the Queen of Soul (2012 ed.)
Jenny Lawson - Let's Pretend This Never Happened
J.D. Salinger - Franny and Zooey
Charles Dickens - A Christmas Carol
Timothy Egan - The Big Burn
Deborah Eisenberg - Transactions in a Foreign Currency
Kurt Vonnegut Jr. - Slaughterhouse Five
Kathryn Lance - Pandora's Genes
Cheryl Strayed - Wild
Fyodor Dostoyevsky - The Brothers Karamazov
Jack London - The House of Pride, and Other Tales of Hawaii
Jack Walker - The Extraordinary Rendition of Vincent Dellamaria
Colum McCann - Let the Great World Spin
Niccolò Machiavelli - The Prince
Harper Lee - To Kill a Mockingbird
Emma McLaughlin & Nicola Kraus - The Nanny Diaries
Brian Selznick - The Invention of Hugo Cabret
Sharon Creech - Walk Two Moons
Keith Richards - Life
F. Sionil Jose - Dusk
Natalie Babbitt - Tuck Everlasting
Justin Halpern - S#*t My Dad Says
Mark Herrmann - The Curmudgeon's Guide to Practicing Law
Barry Glassner - The Gospel of Food
Phil Stanford - The Peyton-Allan Files
Jesse Katz - The Opposite Field
Evelyn Waugh - Brideshead Revisited
J.K. Rowling - Harry Potter and the Sorcerer's Stone
David Sedaris - Holidays on Ice
Donald Miller - A Million Miles in a Thousand Years
Mitch Albom - Have a Little Faith
C.S. Lewis - The Magician's Nephew
F. Scott Fitzgerald - The Great Gatsby
William Shakespeare - A Midsummer Night's Dream
Ivan Doig - Bucking the Sun
Penda Diakité - I Lost My Tooth in Africa
Grace Lin - The Year of the Rat
Oscar Hijuelos - Mr. Ives' Christmas
Madeline L'Engle - A Wrinkle in Time
Steven Hart - The Last Three Miles
David Sedaris - Me Talk Pretty One Day
Karen Armstrong - The Spiral Staircase
Charles Larson - The Portland Murders
Adrian Wojnarowski - The Miracle of St. Anthony
William H. Colby - Long Goodbye
Steven D. Stark - Meet the Beatles
Phil Stanford - Portland Confidential
Rick Moody - Garden State
Jonathan Schwartz - All in Good Time
David Sedaris - Dress Your Family in Corduroy and Denim
Anthony Holden - Big Deal
Robert J. Spitzer - The Spirit of Leadership
James McManus - Positively Fifth Street
Jeff Noon - Vurt
Road Work
Miles run year to date: 21
At this date last year: 52
Total run in 2012: 129
In 2011: 113
In 2010: 125
In 2009: 67
In 2008: 28
In 2007: 113
In 2006: 100
In 2005: 149
In 2004: 204
In 2003: 269
Comments (15)
Just another "business plan" that planners funded in which neither the plan or the planners had any business sense.
How perfect are the tenants they did find. A government agency, PCC, and the Community Cycling?
What next the PDC itself will move into the building?
Good thing PDC head Bruce Warner got his big raise. His resulting higher level of performance will no doubt fix stuff like this.
Excuse me but is there a bigger ass or
more incompetent agency in sight?
Posted by Hal | June 24, 2008 6:45 AM
You said it, Hal!
This new bunch is just getting started. It takes the new crooks a bit of time to figure out the system, but never fear, Sam the Tram will have a new bunch in soon and they won't take nearly as long to figure out the system!
The PDC should just go away!
Posted by portland native | June 24, 2008 6:54 AM
Did you all check out council agenda today, it expands multiple loan and bonding capacity for these folks for even more millions in debt. Jack will have to update his debt clock.
Posted by swimmer | June 24, 2008 8:46 AM
Plenty of businesses are doing fine along MLK. I don't think it's the location, just crappy management.
Posted by Gil Johnson | June 24, 2008 10:06 AM
"Build it and they will come" is better left for the movie industry. They should have had the ink dry on the leases needed to cover the mortgage before this was built to begin with. All this does in the end is undermine investor confidence in the neighborhood.
Posted by Usual Kevin | June 24, 2008 11:42 AM
I drive by this place all the time, it's looked forelorn since they built it.
Don't forget Vanport Square to the North and the building at Fremont and MLK, where Terrior restuarant was (I'm pretty sure it has no tenants now).
One genius move is that the city encourages (or requires) drastically insufficient parking for these projects. In fact, sufficient parking is a big plus for the retail or office tenants they're trying to attract - a lack of parking is a big negative. I'm surprised that Terrior (sp?) made it as long as they did for that reason alone.
Posted by Deeds | June 24, 2008 12:03 PM
Thanks for sharing Gil...
Posted by squeezed | June 24, 2008 12:28 PM
Don't forget Vanport Square to the North and the building at Fremont and MLK, where Terrior restuarant was (I'm pretty sure it has no tenants now).
A new restaurant, "Belly," has moved into the Terroir space. I don't know if it's open, or soon to open, though.
Posted by Dave J. | June 24, 2008 1:28 PM
drastically insufficient parking for these projects
Why, you're supposed to go back and forth to and from your five-star dinner on the no. 6, of course.
Posted by Jack Bog | June 24, 2008 1:31 PM
drastically insufficient parking
Its called "Transit Oriented Development". The Metro catch phrase that translates to fleecing the taxpayers. They build condo towers the same way. Very little street parking, and about 1/2 as many private parking spaces on the property as there are condos.
They even built a whole neighborhood in Hillsboro around this premise. It failed too..
Posted by Jon | June 24, 2008 6:48 PM
Why would Bank of the West be interested in taking out Albina bank? If Albina is ready to foreclose, how does BOTW expect to get paid?
Posted by Just asking... | June 24, 2008 8:25 PM
It is not a done deal yet. But the PDC is showing that it's willing to bend over backward to try to keep the deal afloat.
Posted by Jack Bog | June 24, 2008 8:33 PM
Hey, can't they move Hannah Bea's into it with $0 rent and solve two problems at once?
Posted by Steve | June 24, 2008 10:49 PM
"A new restaurant, "Belly," has moved into the Terroir space."
I'm glad to hear it. That's a prominent corner to be sitting empty.
Posted by Deeds | June 25, 2008 10:23 AM
Belly is supposed to open in July. The other half of the ground floor of the "Terroir" building (officially known as King's Crossing, unofficially known as the Fremont Building) haws been leased to a fitness center, Portland Team Fitness.
Posted by hedda | July 2, 2008 11:50 AM