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The Portland Development Commission is set to sell 2 acres underneath the Broadway Bridge.

(Portland Development Commission)

Portland's urban renewal agency is poised to sell nearly 2 acres of property underneath the west end of the Broadway Bridge to an Arizona-based company hoping to develop 340 apartments.

The developer, The Wolff Company, plans to hold down rents on 68 units to qualify for a 10-year tax abatement - and 55 of those would remain affordable for a total of 30 years.

The Portland Development Commission would receive $9 million for its property, but the city could net up to $1.4 million less based on the amount of environmental cleanup needed.

Portland's urban renewal agency has owned the property since 1987 and once had big dreams of seeing it transformed as part of a major office project proposed by developers Jim Winkler and Bob Naito. But that vision never materialized and city officials all but pulled the plug in 2011.

That didn't stop Winkler, who also owns adjacent property, from trying to secure Portland's land. Last year, officials listed the Pearl District property with a broker and received two offers: $2 million from a Winkler company and $9 million from Wolff.

A May appraisal pegs the land's value at nearly $8.8 million.

On Wednesday, the development commission's board is set to authorize the sale. Wolff would have 13 months to close on the property.

If the project moves forward as envisioned, it would extend a row of apartments along the narrow island of property north of railroad tracks serving Union Station but south of Naito Parkway.

Portland previously sold off nearby property that became The Yards at Union Station, a phased collection of several hundred apartments that also includes some affordable units.

The newest deal would ensure affordable units for individuals earning up to 60 percent of the region's median, or $30,840, according to the city. Rent and utilities for a one bedroom could run up to $825.

But the developer could seek higher rents because of where hot real estate market. Under such a scenario, units would be available to individuals earning up to 80 percent of the region's median, or $41,100. Corresponding rent and utilities for a one bedroom could hit $1,100 and still be considered affordable.

The Portland Housing Bureau isn't contributing any money to the project.

-- Brad Schmidt

bschmidt@oregonian.com

503-294-7628

@cityhallwatch