It's back to square one for Centennial Mills, the city of Portland's most troubled redevelopment project.

The Portland Development Commission recently received offers of $1,000, $100,000 and $3.45 million for a portion of its nearly 5-acre property in the Pearl District.

But officials balked at all three and now say they're evaluating next steps - including the possibility of knocking down more buildings to create a blank slate overlooking the Willamette River.

Based on those purchase offers, it appears Portland's urban renewal agency stands to lose tens of millions of dollars on the mill property, purchased in 2000 but still undeveloped despite the thriving real estate market.

Officials already have spent an estimated $22 million on the site. Knocking down two remaining buildings -- a feed and flour mill that officials hope to preserve -- could cost $2.4 million more.

Portland began marketing a portion of the property this year after controversially pulling the plug -- twice -- on proposed projects from a private developers. In each case, the agency also faced a lawsuit or threat of a lawsuit.

The first effort spanned from 2008 to 2011 and ended with a $200,000 settlement paid to a California developer. The second proposal, from developer Jordan Schnitzer, fell apart after officials decided to keep the Police Bureau's mounted patrol unit on site, dramatically reducing the redevelopment potential. Schnitzer demanded $1.3 million from Portland for wasting his time.

In the aftermath, officials hoped a new project would emerge.

But, in response to a public records request from The Oregonian/OregonLive, they said all three proposals received this summer had been rejected.

"We've decided not to move forward with any of the offers, and the companies have been notified," the project manager, Bruce Wood, wrote in an emailed statement.

But the agency quickly walked that back.

"While we may decide not to proceed with any of the responses, we are pursuing additional internal analysis with these market responses in hand," Anne Mangan, a spokeswoman, wrote in an emailed statement.

Officials will consider what's next for the feed and flour mills, the demolition permitting window "and how/whether to reengage the market," she added.

Clearing the site - at 1362 NW Naito Parkway - would likely make it more appealing to developers, and could help the city fetch a higher price for coveted waterfront property.

As it stands, Portland received a $1,000 offer from a venture led by Michael Tevis' Intrinsic Capital, which owns the eclectic Ford Building along Southeast Division Street. Tevis also wanted an exclusive option buy the on-site 100,000-square-foot mounted patrol building for $1,000, even though the city didn't put it on the table.

Portland developer Marty Kehoe, meanwhile, offered $100,000. He pitched an apartment building with ground-floor office or retail.

Texas-based Patrinely Group offered nearly $3.5 million - but wanted only half an acre of vacant land on the northern portion of the site, showing no interest in the feed or flour mills. The company proposed a top-tier office building with a mix of apartments and retail spaces.

The development commission's board hasn't been publicly briefed on the offers. At the earliest, a decision about next steps is several weeks away, Mangan said.

-- Brad Schmidt

503-294-7628

@cityhallwatch