In a move that establishes a southern anchor for future development for our resurging Downtown, City Council approved the purchase of the Cash Spot property located at the corner of McLoughlin Boulevard and Washington Street at the July 18th Council meeting. The City and the state had been in negotiations with the property owner for a sliver of the property to make way for the McLoughlin Boulevard Improvement Project, but when prices escalated, talks broke down. With the condemnation trial approaching, the City inquired about purchasing the entire property and for the first time, the property owner, GRS Properties, indicated it would entertain an offer. 

After several offers and counters, the parties agreed to a purchase price of $850,000, a value that was agreed upon as fair market value by both the City’s and property owner’s appraisers. 

Kenny Asher, the City’s Community Development Director, explains purchasing the entire property was the most fiscally prudent course of action. "We were fairly confident that we would prevail in the condemnation proceedings, but the downside prospect of losing, even if that was a small risk, was pretty severe,” 

Kenny said. The site is a 35,410 square foot retail property on four commercially zoned tax lots. Kenny explains the site’s location makes the property a crucial piece of the Downtown redevelopment puzzle. 

“Not only is this site a bookend to the Texaco site on the Main Street blocks, it has terrific access to Main and McLoughlin and sits in the middle of three future improvement areas -- Kellogg Creek, Milwaukie Riverfront Park and the Kellogg Creek Sewage Treatment Plant site,” Kenny said. 

The City will acquire the property through an internal loan from the Wastewater Capital and Reserve Fund to the General Fund, with the General Fund repaying the full loan amount to the Wastewater Reserve and Capital Fund within five years. Because the City’s General Fund will be relieved of a number of obligations beginning the next fiscal year, City Manager Mike Swanson assured Council money would be available to cover the payments and City programs and services would not be impacted.

Last updated: 09/26/2008

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