Even giveaways aren't enough on MLK
View Larger Map
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.
| Posted at 12:28 AM | Permalink |
|
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