Portland signs off on $88 million post office purchase

PORTLAND — Portland has approved a plan to purchase a 13.4-acre U.S. post office campus in the city’s Pearl District for $88 million.

The city’s urban renewal agency approved the terms of the deal Wednesday, but it hasn’t been finalized yet, reported The Oregonian.

Members of the Portland Development Commission aren’t happy about the possibility that they’d have to contribute more than $3.4 million in non-refundable deposits.

“There’s a lot of money at risk,” said Commissioner Aneshka Colas-Dickson.

The commission’s unanimous vote, however, marks the first step in Portland’s most expensive redevelopment project so far. For decades, city officials have been interested in the property but unable to make a deal for its purchase.

The post office site could help link the upstart Pearl District to the downtrodden Old Town Chinatown.

“We look forward to moving on this project,” said board chairman Tom Kelly. “It’s historic.”

The deal includes plans to build a new facility for the U.S. Postal Service near the airport. It would be funded by Portland’s $88 million plus $69 million in federal funds.

$13 million of Portland’s payment would come from the Portland Housing Bureau and the rest would be from a city urban renewal district.

Portland officials hope to close on a deal by August and lease the facility back to the U.S. Postal Service for up to 2 1/2 years at no cost.