Developers feel left out of talks

PDC, Mercy Corps discuss Old Town building’s future

By Jim Redden

The Portland Tribune, Oct 10, 2006, Updated Oct 30, 2009

L.E. Baskow / PORTLAND TRIBUNE FILE PHOTO

The international relief agency Mercy Corps is considering the Skidmore Fountain Building for a potential headquarters. Some developers have had their eye on the building, too.

Two developers are crying foul over the Portland Development Commission’s decision to help Mercy Corps acquire the Skidmore Fountain Building.

Mercy Corps, the Portland-based international relief agency, has chosen the historic building in Old Town as the preferred site of its new headquarters.

The agency’s communication director, Susan Laarman, said Mercy Corps is negotiating a memorandum of understanding to redevelop the building with the Portland Development Commission, the city’s urban renewal agency, which is working on a master plan for the blocks around the building.

PDC spokeswoman Elissa Gertler confirmed such talks are under way, saying the development team working on the plan believes Mercy Corps is a good fit for the area, which already is home to many social service agencies.

But two developers who also have expressed interest in the Southwest First Avenue building say the PDC is freezing them out of the selection process.

The developers, J.B. Equities and Little Italy Development LLC, both met with PDC officials about the building in the past and were disappointed to learn about the negotiations with Mercy Corps.

“We’re very surprised,” said Peter Finley Fry, a land-use consultant working with J.B. Equities, which had hoped to turn the building into condominiums.

“We were told we would have an opportunity to make a formal offer before a final decision was made.”

“I’d have to say, we’re disappointed,” said Gianna Lupo, president of Little Italy, which had hoped to market the building as a center for Italian-themed businesses, including restaurants.

Gertler said her agency had not intended to shortchange the developers.

According to Gertler, the PDC had always intended to accommodate Mercy Corps, but was willing to listen to other proposals until the organization made its decision.

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