Should Portland declare City property as surplus and authorize a property trade between the Portland Bureau of Transportation and the Oregon Department of Transportation?

The City of Portland ordains.Section 1. The Council finds:The City, through the Portland Bureau of Transportation (“PBOT”), desires to acquire property from the State of Oregon, by and through its Department of Transportation (“ODOT”), along the west side of SW Naito Pkwy, tax lot R713535 (the “ODOT Parcel”), and combine it with the City owned property at 2185 SW Naito Pkwy, tax lot R699858, in order to create one larger contiguous parcel. To accomplish this, the City needs to declare as surplus its interest in a portion of tax lot R699857 and convey that interest to ODOT. The City possesses a 60% undivided interest in portions of Lots 3, 5 and 6, Block C, and portions of Lots 5, 6, 7 and 8, Block D, Caruthers Addition to City of Portland, which is 23,810 square feet more or less (the “City Parcel”). ODOT jointly owns the remaining 40% undivided interest in this property. The City proposes selling its 60% undivided interest in the City Parcel to ODOT. A legal description of the City Parcel is attached as Exhibit 1, and a site map is attached as Exhibit 2, and by this reference incorporated herein. ODOT owns a 100% fee interest in the 15,030 square foot ODOT Parcel, being portions of Lots 1, 2 and 3, Block 4, Caruthers Addition to the City of Portland. ODOT proposes selling its full-fee interest in the ODOT Parcel to the City. A legal description of the ODOT Parcel is attached as Exhibit 3, and a site map is attached as Exhibit 4, and by this reference incorporated herein. In April 2024, PBOT worked with the Office of Management and Finance’s City Real Property Coordinator to move the City Parcel through the City’s Category 1 surplus property process. Under the Category 1 process, PBOT solicited comments from the bureau and declared it to be excess to its needs. The City Real Property Coordinator then notified other City bureaus of the intent to dispose of the City Parcel to ODOT. The Portland Water Bureau (“PWB”) maintains two water facilities across a portion of the City Parcel. As a condition of sale, PWB will require a reservation of a water facility easement to protect this infrastructure. Having received no further interest or objections from other City bureaus, the City Parcel is now presented to Council to be declared as surplus property for disposition. In accordance with ADM 13.02, II.A.2, Disposition of City Real Property, PBOT determined the City Parcel is eligible for direct disposition to ODOT due to their undivided ownership in the land. In June 2025, the City and ODOT commissioned an appraisal of both parcels of land. These appraisals resulted in a value differential of $129,000 in ODOT’s favor. NOW, THEREFORE, the Council directs:That the City Parcel is hereby declared to be surplus and that PBOT is authorized to transfer the City’s 60% undivided interest to ODOT in exchange for ODOT’s 100% fee interest in the ODOT Parcel. The City will resolve the $129,000 value differential through cash payment or other offsets. Funds will be sourced from prior surplus land sales.The City, through its City Administrator in consultation with the Mayor, is authorized to execute on behalf of the City, any and all documents required for disposition and conveyance of title to the City Parcel and acceptance of the ODOT Parcel. All documents shall be subject to approval as to form by the City Attorney or Deputy City Attorney. Section 2. The Council declares that an emergency exists because it is necessary to complete the land exchange as soon as possible to secure the long-term viability of the shelter operations at the property; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.