March 25 , 2008

MEDIA RELEASE

CONTACT:

Shawn Uhlman, PDC 503-823-7994

Board Expected To Put PDC One Step Closer To Acquiring USPS Site

At the Wednesday, March 26 Portland Development Commission (PDC) meeting PDC Executive Director Bruce Warner will ask the board to approve the terms of a Letter of Intent between PDC and the United States Postal Service (USPS). If approved, the Letter of Intent will allow PDC and USPS to enter into exclusive negotiations regarding the USPS Processing and Distribution Center at 715 NW Hoyt. The goal of the negotiations is to reach a binding purchase and sale agreement for the 13.4 acre site in northwest Portland.

"I'm pleased to see this process moving forward,” said Congressman Earl Blumenauer. “This is a huge opportunity for the city to redevelop this prime location and for the Postal Service to pursue a location that more efficiently meets their needs."

One of the key deal points of the Letter of Intent is the deposit of $2 million into an escrow account as earnest money. These funds will be transferred to the USPS in three phases when the negotiations reach specific milestones. If a purchase agreement between the PDC and USPS is reached by Dec. 31, 2008 the $2 million will apply to the agreed upon purchase price. If no agreement can be reached by Dec. 31, the Letter of Intent will expire.

“Getting to this point represents, literally, years of hard work by our legislative delegation, Post Office personnel, the Port of Portland and, of course, PDC staff,” said Executive Director Warner. “This site presents a major potential opportunity for new jobs, housing and public spaces to further strengthen Portland's vibrant and growing central city. This is a quintessential urban renewal project and exactly the type of project PDC should be involved in.”

Next Steps
If the PDC Board approves the Letter of Intent and authorizes Executive Director Warner to enter into negotiations with the USPS, next steps include:

• PDC and USPS executing the Letter of Intent by March 31, 2008
• Within 30 days of the execution of the Letter of Intent, both PDC and USPS will engage separate appraisal firms to determine value of the property and the purchase price
• PDC and USPS will then work to reach a Purchase and Sale Agreement by the Dec. 31, 2008 deadline
• Throughout this process, PDC and Port of Portland officials will work with USPS on potential locations for the Processing and Distribution Center

“The potential redevelopment of this USPS site has been discussed since 1988,” said PDC Development Manager Steven Shain. “If everything progresses as planned, we have a real opportunity to bring the community together to create a project that will help define Portland for decades to come.”

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