TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
title
Purchase and Sale Agreement for two adjacent properties. An unimproved 0.25 acre real property located adjacent to 1797-1809 Evergreen Avenue NE and the real property located at 1797-1809 Evergreen Avenue NE.
Ward(s): Ward 6
Councilor(s): Vang
Neighborhood(s): North Lancaster Neighborhood Association (NOLA)
Result Area(s): Strong and Diverse Economy; Welcoming and Livable Community.
end
SUMMARY:
summary
As authorized by Council’s January 26, 2026, executive session, the Community Planning and Development Department has completed the environmental review and negotiated the acquisition of two adjacent properties owned by Northwest Human Services Inc. A Purchase and Sale Agreement has been developed for the real properties, which have a combined land area of approximately 0.95 acres (0.25 acres and 0.7 acres respectively). The properties are adjacent to the parcel acquired by the City at 2445 Market Street NE in April 2025, and together, all three sites will support the development of future affordable housing. The purchase utilizes Community Development Block Grant (CDBG) funds from the Department of Housing and Urban Development (HUD).
end
ISSUE:
Shall City Council authorize the City Manager to execute the attached Purchase and Sale Agreement with Northwest Human Services, Inc. for the real property located at 1797-1809 Evergreen Avenue NE (Marion County tax parcel 073W24BD03400) and the adjacent unimproved real property (Marion County tax parcel 073W24BD03800)?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached Purchase and Sale Agreement with Northwest Human Services, Inc. for the real property located at 1797-1809 Evergreen Avenue NE (Marion County tax parcel 073W24BD03400) and the adjacent unimproved real property (Marion County tax parcel 073W24BD03800).
body
FACTS AND FINDINGS:
Key terms of the agreement are as follows:
Contract Amount: $1,050,000. consisting of:
• $825,000 due to the seller at closing
• $150,000 placed into escrow for Uniform Relocation Act (URA) compliance and relocation expenses for current tenants.
• $75,000 placed into escrow for environmental remediation related to an underground storage tank (UST).
Acreage: 0.95 acres (0.25 acres parcel ID 572543; 0.7 acres parcel ID 572545)
Earnest Money: $25,000
Seller Obligations: Seller is responsible for all actions and costs needed to comply with the Uniform Relocation Act (URA).
Remediation: Buyer is responsible for completing the UST remediation work. A bid has been received by Creekside Environmental Consulting in the amount of $58,300 to complete the full remediation scope and obtain the Oregon Department of Environmental Quality (DEQ) “No Further Action” (NFA) letter.
Buyer’s Conditions: Title Review, Oregon DEQ NFA letter, Appraisal, HUD Environmental Review.
Closing: Within 30-days of the review deadline target date
BACKGROUND:
In accordance with the Council-approved 2023 CDBG Annual Action Plan, the City seeks to acquire the property to facilitate the construction of affordable housing units that will serve low-income individuals and families in need of stable, accessible, and affordable living conditions. The acquisition and subsequent development align with the City’s broader housing goals, which include expanding affordable housing options, addressing housing shortages, and promoting equitable community growth.
Securing these sites will enable the City to leverage federal CDGB funds efficiently, ensuring that the project meets both HUD requirements and local housing priorities. The development will contribute to community revitalization efforts, improve neighborhood stability, and provide long-term housing solutions for residents facing financial hardship.
Once acquisition is complete, the next step in the process is to advertise Requests for Proposals for the development of housing.
Brian Summers
Real Estate Services Manager
Attachments:
1. Purchase and Sale Agreement
2. Assessor’s Map 1
3. Assessor’s Map 2
4. Creekside Environmental Bid