191987

The City of Portland ordains.

Section 1. The Council finds:

1. Portland Parks and Recreation (“PP&R”) manages the Washington Park complex which is located adjacent to the Oregon Zoo that is operated by Metro. 
2. PP&R owns approximately 107 acres of real property at Washington Park, with the common address of 4033 SW Canyon Road in the City of Portland, (Property ID R326842, tax lot 800) (the “Larger Parks Property”) including an approximately 3.4 acres lot with a building (the “Children’s Museum Building”) and other improvements (collectively “Surplus Property”).
3. The Children’s Museum Building was operated as the Portland Children’s Museum since 2001. From 2010 onwards, Opal Charter School also operated in the Children’s Museum Building. 
4. The Portland Children’s Museum and Opal Charter School closed permanently in June 2020 during the pandemic, and the Children’s Museum Building has remained vacant except for minimal use for the final months of a Verizon lease for a cellular antenna on the roof that has been terminated and a portion of office space designated for a PP&R staff member who oversees the Surplus Property for security. 
5. The Children’s Museum Building has been deemed unsuitable to host city employees, tenants or the community and was identified for demolition as part of the 2018 Washington Park Master Plan.
6. Metro is the owner of tax lot 1400 adjacent to the Larger Parks Property upon which Metro operates the Oregon Zoo (“Zoo Campus”). 
7. PP&R and Metro mutually desire to expand their partnership and collaboration in this part of Washington Park. The City recognizes Metro’s needs to expand its Zoo Campus for Metro’s long-term resiliency.
8. Metro desires to purchase from the City, and the City desires to sell and convey to Metro for three million dollars ($3,000,000), all right, title and interest in the Surplus Property for Metro to construct one or more buildings in support of the operations of the Oregon Zoo. As part of the transaction, Metro agrees to provide to the City an option to lease for up to a twenty-five year term of up to 1800 SF of space in Metro’s future site redevelopment or building and at least six vehicle parking stalls.  The lease option will provide PP&R future space for collaborating with Washington park partners. 
9. Due to the fact that the Surplus Property is within the Larger Parks Property, the City and Metro intend to accomplish the sale via Purchase and Sale Agreement which requires a property line adjustment between the Larger Parks Property and the Zoo Campus, expanding the Zoo Campus across SW Canyon Road to encompass the Property as depicted in Exhibit A. Metro will be tasked with the property line adjustment.
10. The City and Metro both recognize the need for SW Canyon Road to serve in a right-of-way capacity for public access, utilities, infrastructure or similar; and agree for the City to reserve itself a transit easement for access and egress, and all rights over a portion of SW Canyon Road (also known as Zoo Road) to be preserved for future right-of-way dedication.
11. Pursuant to ADM 13.02 Disposition of City Real Property, PP&R determined the Surplus Property as excess and notified other City bureaus for their potential use.  No interest in the Surplus Property has been expressed by another City bureau. PP&R is now requesting City Council declare the Surplus Property surplus and authorize the City Administrator or designee to sell the Surplus Property to Metro as an exception to the City’s Disposition Policy. As noted above, Metro expressed desire to acquire the Surplus Property for expansion of the Zoo Complex.

NOW, THEREFORE, the Council directs:

1. The portion of Washington Park as identified above as the 3.4 acres and shown on Attachment B of Exhibit A that had previously been used by the Portland Children’s Museum is declared surplus and subject to disposition through sale.
2. The City Administrator, or designee, is authorized to execute a Purchase and Sale Agreement with Metro to sell the Property for a fair market value of $3,000,000, in a form similar to attached Exhibit A, provided Metro undertakes property line adjustment and reserve a transit easement and a lease option as generally described.  All agreement documents are subject to City Attorney’s approval as to form.

Section 2. The Council declares that an emergency exists in order to avoid further delay in transferring liability associated with a closed and vacant building; therefore, this Ordinance shall be in force and effect from and after its passage by Council.