Portland may finally have a buyer for the rundown Centennial Mills property in close-in Northwest Portland.

Prosper Portland, the city economic development agency, plans to begin "exclusive" sale negotiations for the 4.4 acre riverfront property with San Antonio-based luxury condo developer Lynd Corporate, according to a city report.

A deal is far from certain. Centennial Mills is perhaps Portland's most cursed redevelopment site.

Prosper Portland, then known as the Portland Development Commission, bought the site in 2000 and spent more than $20 million, in part on demolishing crumbling buildings at the former feed and flour mill site. The city marketed the land, but pulled out from redevelopment plans – twice – and was later forced to pay $200,000 to a California developer to settle a lawsuit. Developer Jordan Schnitzer proposed a redevelopment, but that plan fell apart.

Later, the city fielded bids as low as $1,000 for the snake-bitten Pearl District property. It didn't sell, and Centennial Mills, located at Northwest Naito Parkway and Ninth Avenue, still sits undeveloped.

Prosper Portland spokeswoman Anne Mangan said the start to negotiations with Lynd is "good news," though she noted the city is far from a "firm decision" on a sale. Any sale would have to be approved by the Prosper Portland board, Mangan said.

As part of its proposal, Lynd offered to construct two buildings with 400 units of housing and to make 40 to 80 of them affordable, in line with the city's new inclusionary housing rules. Lynd also agreed to renovate and preserve Centennial Mills' existing "iconic" flour mill building, according to the city report.

-- Gordon R. Friedman

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