Is the property safe to use?
Yes, the property is safe for people, animals and plants to be on and use. The cleanup project was completed in 2005, and DEQ and EPA continue long-term monitoring to ensure the cleanup remedy remains protective of human health and the environment as designed.
How will DEQ ensure that the property will remain safe to use?
DEQ will continue long-term operations and maintenance of the sediment cap and groundwater monitoring. Any new property owner must follow all site restrictions, meet monitoring requirements and submit development plans to DEQ for review before construction. If construction activities damage the remedy, the property owner will be responsible for repairing it with DEQ oversight.
The draft Prospective Purchaser Agreement requires Portland Botanical Gardens to take over a portion of the onsite operations and maintenance including maintenance of the riparian area vegetation, site security and ensuring that the upland cap is not disturbed.
What is a Prospective Purchaser Agreement?
A Prospective Purchaser Agreement is a legally binding agreement between DEQ and a prospective purchaser or lessee of real property. It is a tool that expedites the cleanup of contaminated property and encourages property transactions that would otherwise not likely occur because of the liabilities associated with purchasing a contaminated site.
A PPA limits the purchaser's or lessee's liability to DEQ for environmental cleanup of the property. In return for this liability release, a PPA must provide the state with a substantial public benefit. A DEQ-issued PPA does not provide protection from liability a purchaser or lessee may have under federal law or from liability for any new contamination that may occur after the purchaser or lessee acquires the property.
What is a “substantial public benefit" and how does the proposed Prospective Purchaser Agreement with Portland Botanical Gardens provide that?
The law provides the framework for DEQ's evaluations by listing examples of substantial public benefits, including:
- Generation of substantial funding or other resources for environmental cleanup at the property.
- Commitment to perform substantial environmental cleanup at the property.
- Productive reuse of an abandoned or vacant industrial or commercial facility.
- Development of the property by a governmental entity or non-profit to address an important public purpose.
DEQ evaluates each proposed agreement individually, and there's a wide range of potential substantial public benefits. DEQ encourages prospective purchasers to be creative.
Portland Botanical Gardens proposes to provide a substantial public benefit by developing research and education focused botanical gardens on a portion of the property, a public greenspace along the waterfront which will include a new segment of the Willamette River greenway, interpretive native plant gardens and an open gathering space. The proposed PPA will also require Portland Botanical Gardens to take on site security and day-to-day operations and maintenance activities, which represents a significant portion of state resources spent on the site.
Why has the property been vacant since the cleanup project was finished?
DEQ has been responsible for site security and operations and maintenance since the property became an “orphan site." McCormick & Baxter Creosoting Co.'s bankruptcy did not relinquish its ownership of the property. A purchase and sale agreement between the property owner and a prospective new owner – Portland Botanical Gardens in this case – was not signed until 2024. DEQ subsequently received a Prospective Purchaser Agreement application from Portland Botanical Gardens to facilitate the transfer of the property.
How come a new property owner needs to get a Prospective Purchaser Agreement?
A condition of McCormick & Baxter Creosoting Co.'s bankruptcy provided DEQ the authority to approve or deny a property transaction. DEQ is using its authority to require a potential new owner to obtain a Prospective Purchaser Agreement to ensure the cleanup remedy remains protective as designed and to provide a substantial public benefit.
DEQ is requiring a Prospective Purchaser Agreement because of the significant public resources that were used to clean up the property after McCormick & Baxter Creosoting Co. declared bankruptcy and ceased operations. This resulted in there being no viable responsible party to pay for the necessary cleanup, so public resources were used to carry the project forward and maintain the cleanup remedy and overall property.
Will the state receive compensation to recoup the cleanup costs?
Yes. DEQ and EPA have agreed that total compensation will not exceed fair market value of the property, which was last appraised at $2.39 million. DEQ reached an agreement with Portland Botanical Gardens to recover 50% of the fair market value – which is $1.195 million – as partial reimbursement for past cleanup costs. EPA is separately negotiating with Portland Botanical Gardens to potentially recover an equivalent amount.
The draft PPA requires Portland Botanical Gardens to make a $1.195 million payment to DEQ upon taking ownership of the property. DEQ will release its lien on the property after receiving the payment.
Will the current property owner, who ran the McCormick & Baxter Creosoting Co., receive any compensation from the property transaction?
No. The current property owner will not receive compensation from the property transaction. The FAQ above has details about compensation to recover a portion of past cleanup costs.
Will the property transaction occur once a Prospective Purchaser Agreement is approved?
No. If DEQ approves the Prospective Purchaser Agreement, Portland Botanical Gardens will have one year to raise enough funds to demonstrate financial ability to follow through on development plans. DEQ determined this figure is $3 million. If DEQ approves the property transaction, Portland Botanical Gardens must pay DEQ $1.195 million upon taking ownership to compensate for a portion of the cleanup costs.
Has DEQ been in conversation with Tribes about future reuse of the property?
Yes, DEQ is participating in discussions with representatives of Tribes interested in the future of the site. This includes formal consultation and informal discussions. DEQ's outreach since receiving Portland Botanical Gardens' PPA application also includes exclusive meetings with Tribal representatives to share updates, answer questions and take their input for consideration.
Why are there concrete blocks along the beach? Will they stay?
The in-water sediment cap is covered with an armoring layer made of large rocks and articulated concrete blocks to protect the cap from erosion. DEQ is exploring short-term and long-term options, especially potential solutions that could be more people and habitat friendly.
DEQ is currently conducting a pilot study that will examine if placing cobble-sized river rock – about 4-10 inches in diameter – on top of the articulated concrete blocks is a feasible solution. Cleanup staff are observing the river rock to see if it will stay in place and not wash away. This is focused in Willamette Cove adjacent to the McCormick and Baxter property, and we should have these results in late 2026. The sediment cap continues to be effective at isolating subsurface contamination.