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In 2027, Portland’s CityFleet will relocate from the century-old Kerby Garage to Cutter Garage on Swan Island—a modern, energy-efficient facility designed to support the City’s electric fleet, improve safety, and boost efficiency for more than 2,400 vehicles.
Why Move
Kerby Garage, built in 1922, can no longer safely or efficiently support CityFleet operations. The facility faces structural, seismic and capacity issues, including:
- Weight restrictions and sloped floors
- Outdated electrical and exhaust systems
- Poor energy performance
- Insufficient space for current operations
Renovating Kerby would cost more than $43 million and still fail to meet seismic, safety and electric vehicle needs.
The New Facility: Cutter Garage
Timeline
In 2024, Portland City Council authorized the relocation of CityFleet headquarters to a leased facility as a cost-effective alternative to constructing or purchasing a new building. The Council ordinance authorizes the City to issue revenue bonds—the final phase of the project's financing plan—and clears the way for construction to begin in 2026, with move-in in 2027.
- April 8, 2026 - Permits are issued
- April 17, 2026 - Final set of approved IFC drawings and documents are due
- May 2026 - Team is onsite preparing for demolition
- June 25, 2026 - Demolition begins
- July 26, 2026 - Construction begins
- July 6, 2027 - All construction is complete and ready for the next steps including fixing outstanding construction related items and move-in
- October 4, 2027 - The project is fully finished and staff have moved into the new facility
Location
Cutter Garage is located at 6800 N Cutter Circle, Portland, OR 97217. Once the facility opens in 2027, we'll provide instructions here for scheduling vehicle maintenance services for your bureau.
Funding and Cost
CityFleet's relocation is funded through a combination of grants, incentives, existing cash resources, and external financing. The project represents the most cost-effective path forward when compared with renovating Kerby Garage or purchasing a new property—both previously evaluated and deemed financially prohibitive. Leasing and renovating Cutter Garage is the most cost-effective option compared with rebuilding or purchasing new property.
| Funding Source | Amount |
|---|---|
| PCEF (Collaborating for Climate Action grant) | $14,567,899 |
| Energy Trust of Oregon incentives | $23,000 |
| Reimbursements & allowances | $511,632 |
| Fleet cash resources | $1,912,329 |
| External financing (20-year taxable bonds) | $40,253,187 |
| Total project budget | $57,268,047 |
Lease Structure
The City will lease Cutter Garage under a 23-year base term, with two optional 10-year extensions—providing up to 43 years of operational flexibility while avoiding the high upfront cost of new construction.
Why This Matters
CityFleet's move from Kerby to Cutter Garage represents an investment in safety, sustainability and operational reliability for Portland's future. Relocating ensures:
- Safe, modern working conditions
- Support for fleet electrification
- More efficient maintenance and faster turnaround times
- Reduced long-term operating costs
- Continued support for essential City services and emergency response
Council briefings and actions
| Description | Link |
|---|---|
| City Council Presentation February 7, 2024 | Fleet and Facilities Director presentation at Budget Work Session |
| Ordinance 191754, June 12, 2024 | Authorize the Office of Management and Finance to negotiate and execute one or more lease agreements to facilitate the relocation of CityFleet's Kerby Garage Operations |
| Ordinance 191795, June 26, 2024 | Approve findings to authorize an exemption to the competitive bidding requirements and use of the alternative contracting method Construction Manager/Contractor for fleet maintenance and headquarters repair for an estimated amount of $42,016,303 |
Recent media coverage
| Description | Link |
|---|---|
| Willamette Week March 30, 2022 | The Kerby Garage Is Where 140 City Workers Repair the City's 4,000 Vehicles — but the Bureau That Owns It Says It's Unsafe |
| Willamette Week April 10, 2024 | The Garage That Portland Forgot |
| Willamette Week April 20, 2024 | Readers Respond to City Hall's Neglect of Blue-Collar Employees |
| Willamette Week May 6, 2024 | In Proposed Budget, Mayor Wheeler Recommends Relocation of Kerby Garage |
| Willamette Week July 7, 2024 | City Mechanics to Move to Swan Island |