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The Portland City Council on Wednesday voted unanimously to authorize up to $41 million in revenue bonds to pay for construction of a new CityFleet maintenance facility, plus an additional $1.9 million for estimated financing and bond issuance costs.

The project will include a garage, an office, a parts area, electric vehicle charging stations and other related infrastructure. The total cost estimate is $57 million. Other funding includes approximately $14.6 million of Portland Clean Energy Fund grant money and approximately $2 million of fleet division cash resources.

The bond issuance process typically takes about 12 weeks, with a sale anticipated in March 2026 and closing in April 2026, according to a staff report by the city’s finance committee. Repayment is planned over 20 years at 5 percent interest.

The new facility’s annual costs, including debt service and operations/maintenance, will be approximately $7 million from 2026 through 2046.聽Costs will be covered through rates included in interagency agreements, which are paid by bureaus based on their expected use of project amenities, the ordinance states.

CityFleet has the largest municipal fleet in the state. A 鈥減ath to net zero鈥� calls for the fleet’s carbon emissions to drop to zero by 2050. To support this goal, CityFleet must have a primary maintenance garage able to handle electrical needs in terms of both capacity and efficiency. CityFleet’s existing facility, Kerby Garage, at 2929 N. Kerby Ave., is unable to support an electrification transition because of its outdated electrical system, small size and inefficient physical layout. Kerby Garage has a leaking roof, inadequate electrical and fire safety protection, and no capacity for EV expansion. Plus, it isn’t compliant with modern seismic and energy codes. The city estimates that even after a renovation that could cost $43 million, the building would fail to meet modern operational and safety standards, according to the city’s Bureau of Fleet and Facilities.

The new maintenance facility 鈥� to be called the Cutter Garage 鈥� will be at property on Swan Island, at 6800 N. Cutter Circle. The Cutter Garage will be operated under a 23-year lease, with options for two 10-year lease extensions. The facility is owned by Elm Realty Partners.

The Cutter Garage will be able to serve more than 2,400 vehicles used by more than a dozen city bureaus, accommodate the city’s growing electric vehicle fleet, and provide safe working conditions for 50 vehicle and equipment mechanics. Features will include safe and modern workspaces, multiple bays per worker, and a modern electrical system and EV charging infrastructure. The project team plans to seek a Leadership in Energy and Environmental Design silver rating for the building.

The project team includes architect LRS Architects and construction manager/general contractor JE Dunn Construction.

The project is expected to enter the bidding phase in late November, with subcontractor selections and guaranteed maximum price recommendations targeted for mid-January, according to city spokesperson Alison Perkins.

The city expects permitting to take place in March 2026, and then construction to start the following month. The project is scheduled to be completed by spring 2027.