Portland seeks proposals to market lots from failed Midtown project

File photo A view of Lot 6, one of four that comprise the site of the failed Midtown project, looking toward Whole Foods.

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By Tina Fischer

Portland has issued a request for proposals to list up to four vacant properties in the city's Bayside neighborhood — between Marginal Way and Cumberland Avenue — that were part of the failed Midtown development.

The property had been held by Federated Co., a Florida developer, which bought a total of 3.25 acres in 2016 for $2.6 million.

Federated proposed an $85 million complex that would have featured 800 market-rate apartments in four 165-foot towers. The proposal was later scaled back to 450 housing units, close to 100,000 square feet of retail space, with an 800-vehicle parking garage.

Opposition by neighbors and a dispute with the city over one lot designated for parking led to legal disputes, and the development never got off the ground.

This past July, the city purchased the properties back from Federated for $15 million, using money from the city's unassigned fund balance.

The four lots, three of which are on Somerset Street near Whole Foods, have remained undeveloped. The fourth parcel is on Elm Street.

A statement from the city notes that any development proposals would offer opportunities for public participation and comment before any decisions are made.

Proposals from firms interested in providing brokerage services for the properties must be submitted electronically by Dec. 17, at 3:30 p.m., at which time they will be opened and read.