Centennial Mills Renovation | x | x | Unknown

[urbanlife]

Originally Posted by 2oh1

Urbanlife, I'm actually a big fan of yours on this board. You're one of my favorite contributors here, but I think, for whatever reason, you're taking this discussion too personally. You're assuming things are being said that simply aren't. Yes, projecting.

Actually, I am not really taking this personally, I actually dont have that much interest invested in the Centennial Mills other than it is a unique project that I would like to see happen.

In this discussion, there seems to be a factor in this that is being forgotten, this project will not be completed for a minimum of 5 years from now...who is to say this will be done in 10 years even...with that in mind, where was our economy 5 years ago, 10 years ago, 15 years ago...each of those points we were at a different type of economy. 5 years ago it was great to be an architect, today, it is harder to find work, but those who have the love for it find new ways to express their talents within architecture and outward into the world of design. If nothing else, down times like this force those within the architecture field to think outside of their bubble and learn new ways to survive. (but I will address more about this later in the post.)

Originally Posted by 2oh1

Surely you aren't suggesting that Portland has a plan with the magnitude and scope (locally of course) of the New Deal that would make a project like Centennial Mills worth building whether the market succeeds or fails simply for the sake of putting people back to work. This is no Tennessee Valley Authority we're talking about.

If a market is built at Centennial Mills before the surrounding neighborhood is ready (or even exists! Hello train tracks, vacant lots, future construction that may or may not happen and of course the vacant Encore!)... If the market is built before the surrounding neighborhood is ready, the project will fail. And then what will become of Centennial Mills?

Not at all, but if we are going to reference the Centennial Mills to such places like the Galleria that has a current situation that is in no way related to the challenges the Centennial Mills faces, then I saw that to be a good point to relate it to something like the New Deal because that would be considered in no way the same thing. Basically it is best to keep our references to projects with their similarities rather than just because to prove a point.

But you raise a valuable question, what is the Centennial Mills market? Is it the same as the Brewery Blocks when it was constructed? Or the Burnside Bridgehead project? Or the Jumptown project? Or the redevelopment of the Central Eastside development (without harming the current industrial areas?) The point that I am getting at is that Portland is at that point again where major changes in our urban fabric is coming...not this year...and probably not next year, but all of these projects will happen, therefore it makes no sense to say that we shouldnt do them just because present economy is a bad time to build...even though none of this is going to even begin for another 5 years.

Originally Posted by 2oh1

I know you're referring to bvpcvm, but that's an example of projecting.

Like I said, I'm a big fan of yours here, but I think you're being too hopeful and not realistic enough about the location and the timing of this project. And, for whatever reason, you're taking the discussion personally.

Again, we come back to timing, I am hopeful about 5 to 10 years from now for Portland...with looking back on the past in 5 year increments, it is safe to say that it is a realistic assumption. Also, as I have pointed out, the Pearl District isnt even a square mile big, there is not much land there to work with and in 10 years from now I think it is safe to say the district will begin to run out of land to develop.

But most importantly, none of this is happening this year...so nothing we say is really beyond just speculation, therefore do we really need the "doom and gloom" and "this bad economy is going to last forever" talk? Should we be looking at Jumptown and the Bridgehead as failures waiting to happen? Should we expect there always to be land to develop in the Pearl? There is nothing wrong with being hopeful for a project that wont even happen for years to come.

[urbanlife]

Originally Posted by awg

A couple of observations:



SERA has done a great job staying busy in this economy. But they were not immune and the stark reality is that the past 18 months have been brutal for architects. I think responsible design is tremendously important, but being "green" isn't going to save architects here. Having a strong background in publicly funded projects is what is keeping firms going during this stretch. Period. There is very little demand for any kind of new office space or new housing--so the for profit privately funded projects don't exist right now. Its a simple equation. We have too much housing, so we don't build any. Same with office space. Doesn't matter if its green housing or green office space. I don't have actual stats, but I would bet the unemployment rate for local architects is in the 20%-25%. The sky is not falling, the US will not go bankrupt, but it is serious for a great many local architects/designers. It will get better (this happens periodically in history), but most firms are not talking openly about hiring for at least another 9 months.

Actually I have a joke that there is no such thing as an unemployed architect, there are only architects working for firms or architects working for themselves (or on their own projects and ideas.)

Oh no, we wont see any new buildings in the housing market here for a while (except for maybe smaller ones here and there.) But that wont last forever and eventually the housing market will pick back up here (and hopefully not over inflate itself like last time.) I remember hearing the office market isnt that bad, it isnt really growing, but it isnt overbuilt.

Also, most companies arent talking about hiring for another 9 months in general...we were told at my company that we will not have the chance to hire anyone else until July at the earliest.

Originally Posted by awg

Can you expand on your question? Or perhaps, more accurately, do you believe Portland is much different than anywhere else? South Waterfront was a huge risk. Many of those buildings down there were $50+ million. OHSU was $140 million. The tram was a big risk. I think that was $50+ million. That kind of development doesn't happen in many other cities. Likewise, a building like the Sustainability Center isn't even discussed in any other city in the country--let alone a funded feasibility study.

The Federal Building is happening not because of Portland so much as because of the Federal Government footing the bill.

Maybe you are referring more to risk taking in design aesthetic...?

I do mean that in the design aesthetics, we are seeing that change on the smaller level here and it is true that it isnt so much the architecture here that makes this city amazing as it is the culture and the streetcar neighborhoods that we have intact and growing. But I am really hoping the Sustainability Center and the Federal Building renovation go well and are top notch because Portland deserves to have cutting edge architecture that reflects the true nature of our city.

[Eco_jt]

After reading the back and forth on this thread it's easy to see both sides. As a long term investment to the area, I do believe the project will succeed. Personally, I am cautiously optimistic about the project. I am still one of the hopeful ones though...and I think the project will be able to attract people to Centennial Mills once it's all finished up.

I live right in front of Tanners Springs Park and during good weather, their are always people out and about. With all the projects scheduled and finishing up in the north Pearl (Pearl Family Housing, ENSO, The Overton, and The Freedom Center, + ?) it seems that the potential for a new vibrant North Pearl is possible by the time Centennial Mills is completed.

Pettygrove St. is also being designed as a "green street". A concept that will be sure to attract active, athletic, eco-minded, curious, citizens to it. As the North Pearl grows (albeit at a slower pace), elements of the neighborhood that don't feel connected right now...potentially could fit quite well in 5 years time.

The Fields park (a thread I can't seem to find) will also attract families and dog owners alike...bringing even more people to a greener, well designed park. All of these things are attractors.

Plus, their is a possibility that the USS Ranger (not a sure thing), a possibility not known by many, might park just near the Fremont Bridge and serve as a Museum. Their is a national non-profit called the USS Ranger Foundation that is trying to save the Aircraft carrier from being sunk into the ocean forever by bringing it to Portland. The USS Midway in San Diego is a huge attractor of people which could happen in the North Pearl if the USS Ranger is indeed brought to Portland.

The planning committee for the Pearl District Neighborhood Association seems to think that if all these things pan out (in the next five years) that the city will most likely look into putting in streetcar lines along Naito parkway.

The way the PDNA sees it, that if the synergy of a possible Jumptown or other Memorial Colosseum idea comes to fruition, then a ferry service could be created to connect Jumptown, to a marina near Centennial Mills / (possible Aircraft carrier Museum), and also connect over to Southwest Water front.

The vision is their, how likely it will all happen is totally up in the air as we all know...nothing is for sure in this current recession.

Oh and here is an update on the Fields Park progress, posted to the PearlDistrict.org website earlier today

-------------------------------------------------------

Update | The Fields Neighborhood Park

After a two-year hiatus, Portland Parks & Recreation (PP&R), the Project Advisory Committee, and design consultant the Office of Cheryl Barton are back at work on The Fields Neighborhood Park, refining the original concept plan and moving into schematic design.

Recent developments continue to move the long-awaited park, located at NW Overton and NW 11th Avenues, forward towards construction. Last fall, PP&R furthered the public involvement process and recruited two focus groups to provide much needed insight into two key park spaces: the Children’s Play Area and the Dog Area. The results: parents and child advocates clearly indicated the need for active, engaging, and kinetic activities; dog owners and advocates expressed concern over the size of the proposed dog area.

Currently, the design consultant is taking that feedback back to the drawing board – literally – to refine and further develop each of those two spaces. Ultimately, the final design will be the result of the available space, the public’s priorities, the need to balance needs to serve an entire community, and the limitations of the budget.

Refinements of the plan will be available for viewing from March 1st through March 6th at Umpqua Bank, NW 12th and Lovejoy. PP&R staff and Advisory Committee members will be on hand to discuss the design and answer questions at the following times:

Monday, March 1st, 9:00 a.m. – 11:00 a.m.
Wednesday, March 3rd, 12:00 noon – 2:00 p.m.
Friday, March 5th, 4:00 p.m. – 6:00 p.m.
Saturday, March 6th, 10:00 a.m. – 2:00 p.m.

Comment forms will be onsite all hours – so stop by, take a look, and tell us what you think of the designs for The Fields.

Background

The Fields Neighborhood Park is the third park outlined in the 2001 Portland River District Park System Urban Design Framework Study. Two parks in the study have already been completed and opened, including Jamison Square (completed 2002) and Tanner Springs Park (completed 2005).

The Fields project was initiated in January 2007 with the Project Advisory Committee, including representatives from local Pearl District organizations as well as a cross-section of neighborhood residents, to guide the design process. Community priorities for the new park were established through questionnaires, a workshop, and an open house. The overwhelming consensus was for green open space in what was once the industrial and transportation hub of Portland.

[Okstate]

There, their, they're. Sorry, Tantrum Tuesday!

[pdxtraveler]

Originally Posted by Eco_jt

Plus, their is a possibility that the USS Ranger (not a sure thing), a possibility not known by many, might park just near the Fremont Bridge and serve as a Museum. Their is a national non-profit called the USS Ranger Foundation that is trying to save the Aircraft carrier from being sunk into the ocean forever by bringing it to Portland. The USS Midway in San Diego is a huge attractor of people which could happen in the North Pearl if the USS Ranger is indeed brought to Portland.

I have been following the USS Ranger thing. I didn't realize they were thinking along the bank of the river. Is the river wide enough to anchor an aircraft carrier (even a WWII carrier) and still have a navigatable channel. I thought it was going up off Swan Island. It would be really cool to anchor off the Pearl, just didn't know it would be possible.

[pdxhome]

Plus, their is a possibility that the USS Ranger (not a sure thing), a possibility not known by many, might park just near the Fremont Bridge and serve as a Museum. Their is a national non-profit called the USS Ranger Foundation that is trying to save the Aircraft carrier from being sunk into the ocean forever by bringing it to Portland. The USS Midway in San Diego is a huge attractor of people which could happen in the North Pearl if the USS Ranger is indeed brought to Portland.

This is interesting, and would be cool for the City. How much of a possibility is this? I can't imagine that ship fitting in the Willamette...

[Eco_jt]

I'm pretty sure it's not actually in Pearl District boundaries but right to the North side of the Fremont Bridge (is all I remember from the meeting)....so close...their is a particular spot that was being sought, but I can't remember the exact river parking dock # they referenced, I'll find out though...

the ED came to a board meeting requesting neighborhood support for the proposal back in December...which we were all in favor of. =)

[CouvScott]

http://www.pdc.us/pdf/about/commissi...nial-Mills.PDF

[bvpcvm]

According to the NW Examiner (p.10), this project is on the verge of falling through, due to PDC changing the rules mid-stream.

[tworivers]

I wasn't even sold on the viability of the SEED idea, but this just seems like reprehensible and stupid behavior on the part of the PDC. Why even work with them if, four years down the project pipeline, a new director can come in and simply flip the script on you?

Disagreement between developer, PDC jeopardizes Centennial Mills project
POSTED: Monday, June 27, 2011 at 03:21 PM PT
BY: Nick Bjork
link to original


Trouble could be brewing for the Portland Development Commission’s long-awaited redevelopment of a former flour mill into a foodie’s mecca on the west bank of Portland’s Willamette River.

The company selected more than four years ago to lead the redevelopment project, the Costa Mesa, Calif.-based Lab Holding, is concerned that a philosophical shift at the PDC under the direction of new Executive Director Patrick Quinton is at odds with the project the company has set out to complete. And unless the differences can be worked out, it could be difficult to go forward with the project.

“Our team got involved in this project because of our expertise in creating unique public spaces,” Lab Holding President Shaheen Sadeghi said in a letter about the current state of the project. “Centennial Mills is a beautiful complex with potential to become a landmark for Portland. We are afraid that PDC’s new direction will severely limit this potential.”

Sadeghi is concerned with a recent directive from the PDC that requires 50 percent of the overall project – approximately 75,000 square feet – to be leased to businesses that sell globally. And preferably, these businesses will be in the five cluster industries the PDC is working to develop. These industries include software, activewear and outdoor gear, clean tech and sustainable industries, advanced manufacturing, and research and commercialization. The move, according to Quinton, is to align the project more completely with PDC’s current job creation strategy.

Since hiring Quinton in March, the PDC has focused strictly on job creation. In addition to the adoption of the cluster industries report, job creation was emphasized by the recent completion of the Neighborhood Economic Development Strategy, which will be reference by the PDC when making decisions from now on.

“The focus hasn’t necessarily shifted, but we have underscored the direction we are heading,” said PDC spokesman Shawn Uhlman.

LAB holdings won the right to redevelop the PDC owned Centennial Mills site in 2006. The firm’s pitch – titled SEED – was to repurpose the area into a vibrant public space that promoted Portland’s existing culinary culture and connected the waterfront to the Pearl District. This would include several small, vendor-like spaces that offered local, artisan food, as well as ample public space and some office space on the higher floors.

“Our inspiration for the SEED at Centennial Mills project comes from the great food halls of the world,” Sadeghi said.

In 2008, a memorandum of understanding was signed between the firm and PDC that laid out how the project should move forward. The next step was the development of the disposition and development agreement, which specifically laid out the public and private investments on the project and the timeline the project would occur. That was expected in late 2010, but no DDA has been presented to the PDC Board of Commissioners yet.

The preliminary idea was that the firm would invest about $40 million into the project and the PDC would use $8.6 million in urban renewal dollars to help with the completion of it.

“The revised proposal for Centennial Mills is a radical departure from the initial (Request for Proposal) offering, and we believe a destructive approach to retooling a historic structure, and counterproductive to the community base of the SEED project,” Sadeghi said. “If the original RFP required conventional office space, our company, which specializes in community based, historic and site-specific products, would never have submitted a proposal.”

Sadeghi projected that the SEED proposal would create nearly 900 jobs, but he said shifting the project to more of an office focus would not only go against his research, but would also be an unsuitable use for the specific historic complex.

“The new limited focus on five industries not only precludes other viable economic drivers, but also ignores those variances that a particular location, building or neighborhood may present, as is the case of Centennial Mills,” he said. “There are numerous existing opportunities for PDC to create new large office buildings suitable to attract these users.”

Lab Holding would like to move forward with the original vision for the project and has asked the PDC to commit to it. But PDC officials have yet to respond.

[cab]

The PDC is a joke of late. They have been systematically making the wrong choices for the last few years. What exactly have they done of late? I think its becoming more and more obvious that local Portland gov. is hitting an era of incompetence. It was a good run for the area, but look at Metro, PDC, PDX all right now are pretty bad. Its such a shame. It was interesting living through a pretty enlightened time in local governance. I think David Bragdon nailed it when he left. Its really sad. I really don't see any progressive, smart, logical people in any position of power in any local governments.

[2oh1]

...a recent directive from the PDC that requires 50 percent of the overall project – approximately 75,000 square feet – to be leased to businesses that sell globally.

What The #&#%? That doesn't even make sense for this project. I can't even imagine someone who lives in Portland suggesting such a thing for this project. Did the PDC just hire someone from out of state? Because it seems inconceivable that a Portlander would even have a thought like that for a new local market, let alone a food market! It doesn't even make sense.

I understand the desire to attract global business TO Portland, but NOT at the expense of local businesses or local projects. For the record, I don't even think I'm in favor of this particular project. At least, not in this location. But this demand from the PDC makes no sense unless the PDC DOESN'T want development of this site.

Wow. This is really nuts.

[tworivers]

Blame game emerges in costly, failed effort to bring foodie hub to Portland waterfront's Centennial Mills
Published: Thursday, June 30, 2011, 8:12 PM Updated: Thursday, June 30, 2011, 9:38 PM
Brad Schmidt, The Oregonian

The tab arrived Thursday for a failed 3-year-old concept to convert a closed Pearl District waterfront warehouse into a nationally recognized foodie hub.

Portland taxpayers, that'll cost you almost $500,000.

The city's urban renewal agency and a California-based developer officially terminated efforts to convert Centennial Mills into a high-end food court, leaving the historic building no closer to new life than when the Portland Development Commission bought it 11 years ago.

And that tab is just for the latest concept. The total investment has proved to be one of the biggest in the River District urban renewal area, with at least $13 million sunk into a project now headed back to the proverbial drawing board.

At issue Thursday, the deadline for negotiations to conclude, was whom to blame. The president of LAB Holding, which won a competition in 2008 for the right to broker a deal, said the city changed requirements late in the process.

"Our firm was interested in this site based on our programming of developing the Portland world-class culinary culture," Shaheen Sadeghi told The Oregonian in an e-mail. "For PDC to now ask us to redirect this project to an office product is absolutely unreasonable."

PDC officials, however, countered that the company never lined up tenants or financing -- for restaurants or offices. And, they said, the world has changed since 2008; now it makes little sense to spend millions more on a project that won't capitalize on jobs the city wants to target, such as athletic clothing and solar or turbine technologies.

GS.61MILL101.jpgView full size
"He had three years to present a viable project. And he never presented, as I said, any real interest by any real entities after being asked more than once," Scott Andrews, PDC board chairman, said of Sadeghi. "And had he done that, even at this stage of the game, I think there's a good chance we would have extended the arrangement."

Three years ago, the two sides crafted a nonbinding agreement for a concept featuring local businesses, healthy restaurants, outdoor recreation retailers, wine tasting and an organic produce market. They hoped it would be a premier destination, representing Portland's anti-chain values in the city's trendiest upstart neighborhood.

But there was never a development deal -- only negotiations and extended deadlines. By late 2010, estimated construction costs to remake the five-acre site reached almost $46 million. Yet that wasn't enough for the project to pencil out, and didn't include $8 million to move the city's police Mounted Patrol Unit or build a pedestrian bridge to the site over Northwest Naito Parkway.

Even so, a November staff report didn't recommend changing course because Centennial Mills' building configuration "does not readily lend itself to use by large employers" and "seeking another development opportunity ... would significantly delay development and raise questions regarding PDC's commitment to its development partners."

LAB and PDC negotiated through March 21, and PDC set aside an additional $11.5 million for the project in its five-year budget. But March 28, the PDC project manager emailed Sadeghi to tell him support for the proposal "as envisioned has evaporated," according to documents obtained Thursday under the state's public records law.

PDC planned to review "the direction, financial feasibility and other critical elements," the email said, and LAB was cautioned to "minimize time and funding" until agency leadership had more clarity. LAB representatives met with PDC officials April 12.

On April 20, the PDC's new executive director, Patrick Quinton, wrote to Sadeghi to tell him he needed secure tenant commitments for at least half the site's 150,000 square foot from companies given priority in the city's economic-development strategy.

Sadeghi countered in a May 9 letter that the city strategy had existed for 18 months with no indication that the PDC wanted a new direction. He asked the PDC to forgive more than $480,000 in grants and loans, and to reimburse his company for expenses -- a number that's unknown because the PDC redacted it from the records provided to The Oregonian.

Quinton responded June 9 saying LAB wouldn't have to pay back "the benefit of nearly half a million dollars in public funding" so long as PDC received all documents and analysis regarding the project. But PDC wouldn't pick up the company's expenses, he wrote, concluding that "it makes the most sense to us to let the (agreement) expire on June 30."

That now leaves the agency -- which had already invested at least $12.5 million in the property before LAB got involved -- with a decrepit building, no developer and no plan.

Andrews said the PDC probably made a good decision to buy the property in the first place -- if a venture ultimately emerges.

"Success is an economically viable project," he said. "And in today's world, that means you have to have real tenants and you have to have real interest from a financing institution. Because we're not going to be financing all of it."

Real estate investor Al Solheim has some sympathy for the PDC. But Solheim, who sat on the evaluation committee that picked LAB, wasn't willing to offer criticism or advice. Only this:

"I've never been a proponent of the renovation of Centennial Mills," he said. "I'm not surprised that it's reached an impasse."

-- Brad Schmidt

[MarkDaMan]

Three companies express interest in Centennial Mills: Portland City Hall roundup
Published: Wednesday, September 07, 2011, 9:24 AM
By Brad Schmidt, The Oregonian

About three months after Portland's urban renewal agency abruptly changed course on its long-stalled Centennial Mills redevelopment project, officials now have three informal offers to consider.

Art DeMuro's Portland-based Venerable Development, partnering with the Schnitzer family's Harsh Investment Properties, would like to turn the former warehouse and mill site into a mix of office space, retail, restaurants and apartments or condominiums.

California-based Intrinsic Ventures, which renovated the Ford Building at Southeast 11th and Division Street, also expressed interest but didn't provide details. Company officials tentatively were scheduled to visit Centennial Mills on Thursday.

Another California company, Humboldt Bay Energy, is apparently interested in moving its "global corporate headquarters" to the World Trade Center in downtown Portland. That company -- which has a bare-bones website and can be contacted via a yahoo.com email address -- is interested in "potentially using the Centennial Mills site as a mass production, assembly and distribution center."

Top leaders for the Portland Development Commission will review the letters of interest this week and eventually determine how to proceed, spokesman Shawn Uhlman said.

The agency in June ended three years of negotiations with California-based Lab Holding, which hoped to turn Centennial Mills into a foodie hub. A blame game emerged, as the company's president said PDC at the last minute wanted to turn the project into office space. City officials said Lab never put together a viable project with financing or tenants.

Looking to move forward, Portland Mayor Sam Adams and PDC Chairman Scott Andrews in July asked "public-service minded investors" to contact them about redeveloping Centennial Mills, which is in Portland's River District urban renewal area.

PDC already has invested at least $13 million into the site, which it bought in 2000.

Venerable was one of the companies that competed against Lab in 2008 to redevelop Centennial Mills.

http://blog.oregonlive.com/portlandc...ss_intere.html

[2oh1]

Humboldt Bay Energy -- which has a bare-bones website and can be contacted via a yahoo.com email address

AHAHAHAHAHAHAAAAAA!!!!!!! That's comedy!

[Eco_jt]

just gotta say if this project was derailed because of a conflict of interest that would be extremely lame

PDC Mishandles Centennial Mills, Conflict of Interest Emerges
By Ben Waldron
Neighborhood Notes
September 26th, 2011

"The much-publicized Centennial Mills redevelopment project is in the midst of a new, controversial chapter. Since June, the relationship between the Portland Development Commission (PDC), which owns Centennial Mills, and LAB Holding, the California-based firm chosen to develop the site, has slid into disarray and finger-pointing. Moreover, PDC’s handling of the situation has been marked by a lack of transparency, erratic behavior, and unrealistic expectations. And at the heart of this mess may be a good old-fashioned conflict of interest story.

Key to the kerfuffle is Scott Andrews, chair of the PDC’s board of commissioners. Andrews also serves as president of Melvin Mark Properties, part of Melvin Mark Companies, whose food market and office development project gained momentum at the same time that developer LAB Holding’s culinary-themed Centennial Mills project was derailed...."

rest of the story here

[zilfondel]

C-o-r-r-u-p-t-i-o-n

[MarkDaMan]

What has happened to the PDC? During the Katz years, that was THE economic and development powerhouse in Portland. Now it's weak, and not getting anything done.

[pdxtraveler]

Originally Posted by MarkDaMan

What has happened to the PDC? During the Katz years, that was THE economic and development powerhouse in Portland. Now it's weak, and not getting anything done.

They hadn't been gutted politically at that time. They were let to do what they wanted and got things done. Now they are analyzed and fought at every turn.

[MarkDaMan]

Portland Development Commission sued for $1.7 million over Centennial Mills
Published: Friday, November 18, 2011, 3:39 PM
Brad Schmidt, The Oregonian

A disgruntled California developer is suing Portland's urban renewal agency for more than $1.7 million after a proposal to remake Centennial Mills abruptly fell apart this year.

A costly blame-game emerged in June when the Portland Development Commission and Lab Holding ended negotiations that began in 2008.

Lab President Shaheen Sadeghi argued the city changed requirements at the last minute, away from a food-centric focus and toward office space. PDC officials claimed the company never lined up tenants or financing for the project, aimed at rehabbing a derelict set of buildings overlooking the Willamette River in Northwest Portland.

Now Sadeghi, through his company Project Seed LLC, is attempting to recoup expenses of more than $1.7 million he says he spent for planning, development and consultant fees. The lawsuit, filed Wednesday in Multnomah County Circuit Court, claims Project Seed relied on false representations by PDC and the agency breached its contract.

Neither officials for the PDC nor the developer immediately returned calls Friday seeking comment. The lawsuit also names the city of Portland.

Three years ago, the two sides crafted a non-binding agreement -- called a memorandum of understanding -- for a concept featuring local businesses, healthy restaurants and an organic produce market. They hoped it would be a premier destination, representing Portland's anti-chain values in the city's trendiest upstart neighborhood.

Although no development deal had emerged by November 2010, a PDC staff report did not recommend changing course. Centennial Mills' building configuration "does not readily lend itself to use by large employers," the report stated, and "seeking another development opportunity ... would significantly delay development and raise questions regarding PDC's commitment to its development partners."

Both sides continued negotiating through March 28, when a PDC official e-mailed Sadeghi to tell him support for the proposal "as envisioned has evaporated." In April, PDC Executive Director Patrick Quinton told Sadeghi that at least half of the 150,000 square foot site needed tenant commitments from companies prioritized in the city's economic-development strategy.

Sadeghi countered in May that the strategy had existed for 18 months with no push for a new direction. He asked the PDC to forgive more than $480,000 in grants and loans, and to reimburse his company for expenses.

Quinton responded in June by saying LAB would not have to pay back "the benefit of nearly half a million dollars in public funding" but the PDC was unwilling to cover expenses.

Taxpayers have invested more than $12.5 million into the Centennial Mills site, which is no closer to development today than when the PDC bought it in 2000.

-- Brad Schmidt

http://www.oregonlive.com/portland/i...mmissio_9.html