Those seeking adult entertainment in Portland will soon have one less destination in the city known nationally for its many strip clubs.

The city of Portland will buy the property occupied by the Safari Showclub, tear down the club and build 200 to 300 affordable apartments.

The City Council on Wednesday unanimously approved spending $3.7 million on the 50,000-square foot property on Southeast Powell Boulevard at Southeast 30th Avenue. Commissioner Nick Fish was absent.

The city will close the deal September 30, when the strip club will have to cease operations.

"Ultimately to address our affordability crisis, we have to use all the tools available," Mayor Ted Wheeler said. "This is one example of how we can move forward."

The mayor has faced a growing chorus of critics concerned with his slow approach to spending the largest pool of money available to address affordable housing.

"There is a narrative out there in the community that we're blowing off affordable housing," Wheeler said. "I want this to be out in the public."

Down the street from Cleveland High School, the property is the first big site the city has bought in the area, Housing Bureau Director Kurt Creager said.

The purchase allows the city to get ahead of a property value increase expected as the city develops the Powell-Division transit corridor, he said. The land is owned by Bob Rice, a prominent Portland restaurant operator who has served as president of the Oregon Restaurant Association and serves on the Oregon Liquor Control Commission, public records show.

Creager said he promised the council two years ago that he would build 300 affordable housing units as the city carries out the transit project.

At the time, Creager pledged to make up to 30 units affordable to very low-income individuals and families who make 30 percent or less of median family income. Now, he says it's more likely that only 20 units will be affordable to that group. That's because the city might develop only part of the space into 200 apartments to create an opportunity for others to build affordable condos that families could buy on the remainder of the land.

"We have multiple missions here," Creager said. "Home ownership is part of it."

The city currently plans to use money from transient lodging taxes to buy and develop the property. But using money from the voter-approved $258 million housing bond is not out of the question, Wheeler said.

"We're using all the tools available to help us move on addressing housing affordability," Wheeler said.

Wheeler asked a group of more than 20 developers, advocates and minority representatives to create a framework for housing bond spending. The group has met six times since April and is on track to propose a spending strategy for the city council to vote on in October.

Wheeler said the city could use housing bond proceeds to develop the property if it meets the criteria the council approves.

Redeveloping the site will take years, Creager said. It will take two years just to get permits to develop it, he said.

In the meantime, the city hopes to renovate the former strip club to use as a shelter for women and children. The location near the high school makes the location good for families, Creager said.

Once permits are approved, the city will also have to remove methane gas from the underlying soil that officials discovered during a months-long inspection process.

The mayor demonstrated evident pride the project is moving forward, given the urgency of the city's housing crisis. "I will make sure everyone is invited to the groundbreaking," Wheeler said.

--Jessica Floum

503-221-8306