91视频

Despite a bullish outlook earlier this year, The Shopoff Group has passed on its plans to purchase and redevelop the former Blue Heron mill site in Oregon City. But just as the company takes its leave, another is entering the scene.

Peter McKittrick, the court-appointed bankruptcy trustee for the 23-acre industrial property at the foot of Willamette Falls, said Tacoma, Wash.-based developer George Heidgerken has offered $2.2 million to purchase the site. That compares to the $2.8 million offer The Shopoff Group made in February, and a $4.9 million offer Langley Investment Properties made last Dec.

Langley, in a previous interview with the 91视频, said it dropped its plans because it lacked the necessary time to conduct due diligence on the site.

Bill Shopoff, The Shopoff Group’s president and CEO, said his company’s initial review of the site came with some unfortunate surprises. Particularly, the city’s own vision for the property, which Shopoff said envisions a smaller development footprint than his company had hoped.

Shopoff referred to a master-planning effort led by Walker Macy that aims to identify new commercial and pedestrian-oriented uses for the site. Shopoff said the plan as he understood it currently envisions just six acres of developable land, and he questioned whether income from such a small area could justify the cost of redevelopment. He said he had no doubt the city of Oregon City would eventually get there, but he just couldn’t justify it in the limited time available to him.

As such, Shopoff opted not to make a second, $50,000 nonrefundable payment on March 27. Meanwhile, Heidgerken’s group (Megarock LLC) has already made a $100,000, nonrefundable earnest money payment. Heidgerken could not be reached for comment, but Shopoff said he hopes the developer is successful.

鈥淭he right guy, with the right relationships could do something really spectacular with that site, and I hope that happens,鈥� Shopoff said. 鈥淲e were hoping it was us. We’re disappointed it isn’t but the risk for return curve was out of skew for us. (Heidgerken’s group is) betting twice as much as I bet, so I hope they’re twice as right 鈥� I’m guessing they are.鈥�

Additional bids from competing buyers are due by April 28, at 5 p.m. A court hearing on whether or not to approve the sale is scheduled for May 1. If it is approved, the deal would need to close within three business days.

Heidergerken’s role as a developer is well-known in Washington state. Last year, Heidgerken (via various partnerships) acquired the former Olympia Brewing Co. brewhouse in Tumwater, Wash., as well as a post office building in downtown Tacoma, Wash., for mixed-use development, the Seattle Times reports.