*Declare City property located at 1436 SE Spokane St, known as the Sellwood Community Center, as surplus property and authorize City Administrator to dispose of the property by sale to Friends of Sellwood Community House
The City of Portland ordains.
Section 1. The Council finds:
- The Sellwood Community Center, also known as the Sellwood Community House, is located at 1436 SE Spokane Street. The lot is approximately 10,000 sq/ft (0.23 acres) and contains a two-story structure comprising approximately 10,397 square feet of interior space, as well as an outdoor playground area.
- Portland Parks & Recreation (PP&R) has owned the Sellwood Community Center since 1920, when it was acquired from the local YMCA chapter who used it as housing for workers at the Sellwood Log Mill. Since its acquisition, PP&R has used the property as a community center. The building was placed on the National Historic Register in 2006.
- In 2019, due to budget cuts and the large amount of deferred maintenance the building had accrued, PP&R closed the Sellwood Community Center. Shortly thereafter, the Friends of Sellwood Community House (FSCH) entered into a lease agreement with the intention of acquiring the site and to operate the building and property as a community center providing educational and recreational programs, including classes, camps, drop-in activities, rental spaces, and community events in perpetuity. The lease explicitly lays out conditions for FSCH and the City to enter exclusive good faith negotiations if the City declares the property surplus, subject to City Council approval. This language has been found to conflict with the City's Disposition Policy, which requires properties in this category to be sold on the open market.
- FSCH currently operates the site as a community center, providing recreational and educational programming to the public. As FSCH has operated the site as community center for 6 years, it is unlikely that another entity would have the unique combination of specific community knowledge, relationships, programming capacity, and a proven track record of providing comparable services. The proposed sale protects the continued use of this site as a community center by encumbering the property with a deed restriction that requires the site to be used for public benefit in perpetuity.
- PP&R is seeking the Sellwood Community center to be declared surplus as an exception to the City Real Property Disposition process, but to be treated substantially similar to a Category 1 disposition (ADM-13.02). This would require the property be offered to other City Bureaus before it can be sold to FSCH. The proposed sale is structured so that the purchase by FSCH for $1 is contingent on completion of the disposition process, including no other City bureau expressing interest in the property.
NOW, THEREFORE, the Council directs:
- The Property at 1436 SE Spokane St., tax lot number R267265, is declared to be surplus real property.
- The City Administrator, or designee, is authorized to execute a Purchase and Sale Agreement in a form similar to attached Exhibit A and to take all steps necessary to facilitate the sale and transfer of the property to the Friends of Sellwood Community House for $1, with a deed restriction requiring the property to be used for public benefit in perpetuity.
Section 2. The Council declares an emergency exists to prevent a disruption of the services provided by Friends of Sellwood Community House to community members; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.
Official Record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
The ordinance declares the Sellwood Community Center property as surplus property and authorizes the City Administrator and assignees to take all actions necessary to dispose of the property by sale to Friends of Sellwood Community House for $1 with a deed restriction requiring it to be used for public benefit in perpetuity. The ordinance provides for a one-time exception to the City Real Property Disposition process (ADM-13.02) due to contractual lease obligations, original intentions expressed by the City, and the value of public benefit received by the community in return.
Financial and Budgetary Impacts
The City will receive $1 in consideration for the transfer of the Property, a deed restriction for public benefit, and a reduction in future capital maintenance if the lease terminated for any reason. There are no current ongoing O&M costs associated with the Property.
Economic and Real Estate Development Impacts
Not applicable.
Community Impacts and Community Involvement
The community was not directly involved in the proposed transaction, however the City's intent was clearly identified in the budget discussions, public leasing process, and resulting agreement. Friends of Sellwood Community House, as the operator of the property for the last 6 years, has provided consistent services as a community center, and considering the unique combination of specific community knowledge, relationships, programming capacity, and a proven track record of providing comparable services, is expected to further increase services to community members in the Sellwood-Moreland neighborhood, southeast Portland, and the rest of the City.
100% Renewable Goal
Not applicable.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.
Financial and Budget Analysis
Analysis provided by City Budget Office
The immediate fiscal impact of this ordinance is negligible, as the sale of the property is for $1. The disposition of the property includes at least two other financial impacts, though indirectly. First, the property was originally closed by the Parks bureau due to maintenance issues and disposing of the property reduces the burden on the City to make major maintenance improvements to the facility and grounds. Funding is not budgeted for that scope of work; therefore, the impact is indirect. In 2023 data compiled by KGW, the Sellwood Community Center had an estimated scope of work for structural, HVAC, and window upgrades totaling over $5 million. Second, the choice to provide a one-time exception to the City Real Property Disposition process represents a plausible loss in potential one-time revenue to the City. For example, while the continuation of the site for public benefit meets one City goal, another goal during continued fiscal stress could be to sell the property at market rate to earn revenue. The resources from any potential market-sale of the property are not budgeted; therefore, the impact is indirect. In 2022 assessment data for the real market value of the address, public on PortlandMaps.com, shows the value at over $800,000.
Document History
Document number: 2025-430
President's referral: Transportation and Infrastructure Committee