Portland redevelopment officials touted an overly optimistic schedule when promoting a new city-subsidized commercial project -- prominently featuring Natural Grocers -- that they said would be built by January 2017.

As it turns out, the California developer in charge of the project doesn't even have to take control of the city-owned land until April 2017. Under such a scenario, construction wouldn't be complete until February 2018, a year later than anticipated.

Confusion about the timing of the project stems from conflicting dates included in public documents from last year, when the Portland Development Commission voted to approve its deal with Majestic Realty Co.

City officials wrote that closing was targeted for May 2016 and construction should be complete by January 2017.

But the actual development agreement includes far more conservative dates.

This week, Shawn Uhlman, a spokesman for the development commission, said city staff relied on Majestic's anticipated timeline when publicly discussing the project during an Aug. 2015 meeting.

But the schedule has moved back because Majestic has yet to receive all of its land-use approvals, Uhlman said in an email. Officials still expect the project to be completed under the more conservative timeframe of 2018 outlined in the deal.

The project, at the corner of Northeast Martin Luther King Jr. Boulevard and Alberta Street, has been a lightning rod for controversy.

When first proposed in November 2013, the project included a Trader Joe's. Some neighbors rallied against the project and blasted the city's efforts to deal with gentrification and displacement in the traditionally African American neighborhood. Trader Joe's pulled out.

In August 2014, officials announced that the project would move forward with Natural Grocers as the anchor tenant, with the hope of signing a deal with Majestic in January 2015 and breaking ground that spring.

Instead, the development commission didn't approve its deal until August 2015. And now, with the latest delays, it appears the project may not be ready until 2018.

The development commission has agreed to sell the property to Majestic for about $500,000, some $2.4 million below its market value. Officials will also provide a $122,705 grant.

When the building opens, the development commission will lease 5,125 square feet at a cost of at least $29 per square foot. The lease will run at least 10 years.

-- Brad Schmidt

503-294-7628

@cityhallwatch