0 CITY OF PORTLAND,OREGON OFFICE OF THE CITY ATTORNEY Harry Auerbach, Acting City Attorney 1221 S.W.4th Avenue, Suite 430 Portland, Oregon 97204 Telephone:(503)823-4047 Fax No.:(503)823-3089 January 16, 2014 Kristian S. Roggendorf Roggendorf Law LLC Suite 150 5200 Meadows Road Lake Oswego OR 97035 David J. Petersen Tonkon Torp LLP 1600 Pioneer Tower 888 SW Fifth Avenue Portland OR 97204 Dear Messrs. Roggendorf and Peterson: Commissioner Nick Fish has asked me to reach out to you both to propose a path forward on the question of the Freeman tank site. As you know, Commissioner Fish was assigned the Portland Water Bureau(PWB)in June 2013. As part ofthis new assignment, he inherited the sale contract for the Freeman tank site, which was signed in late 2012. PWB first identified this 0.7-acre site as potentially surplus — no longer needed for the water system — in 2006. In June 2010,the City Council voted to declare this parcel surplus and authorized PWB to proceed with disposition of the site. The bureau was initially approached by a neighbor with an interest in purchasing the site, but that deal fell through. Subsequently, Renaissance Homes approached PWB and asked about the availability ofthe parcel. Renaissance agreed to the same terms and conditions discussed with the previous potential buyer, and a contract for sale of the parcel was signed in the fall of 2012. The closing date is January 31, 2014. Commissioner Fish first learned ofthis contract and of the neighborhood's concerns in the fall of 2013. The Commissioner now finds himself caught between two potential lawsuits — one from the neighborhood, which asserts that the contract is illegal; and one from Renaissance, which expects the City to honor the contract. 13-01443-274255.doc Kristian S. Roggendorf David J. Petersen January 16, 2014 Page 2 of2 Commissioner Fish understands the neighbors' desire to see this parcel remain undeveloped and in public ownership. He also agrees with concerns raised about the City's surplus property policy — including the inadequate public notice provisions. Shortly after this matter came to light, Commissioner Fish directed his team to develop new public notice protocols. Those protocols will guide all future property dispositions from Commissioner Fish's two bureaus, the Bureau of Environmental Services and the Portland Water Bureau. Commissioner Fish is also operating under a Council directive to dispose of the surplus property. He believes that it is appropriate for PWB to dispose of property it does not need for the water system and to use the proceeds from those sales to offset future rate increases. At this point, faced with two possible lawsuits, Commissioner Fish's preference is to find a mutually agreeable compromise and to resolve this issue outside of the courthouse and without the necessity of the parties incurring substantial legal fees and costs. To that end, he proposes that the parties mediate this dispute, subject to mutually agreeable terms. To help accomplish this, we ask that Renaissance agree to delay the sale closing date and that the neighbors agree to postpone any legal action challenging the sale until we have given mediation a chance to work. We hope your clients will respond favorably to this proposal. If so, please contact me so we can work together to set up a mediation process expeditiously. Thank you in advance for your consideration. Very truly yours, Terence L. Thatcher Deputy City Attorney TLT/lgm Commissioner Nick Fish c.