Tribe to sell former Multnomah Greyhound Park site in Wood Village

By Dean Rhodes and Danielle Frost

Smoke Signals staff members

WOOD VILLAGE -- The Confederated Tribes of Grand Ronde announced on Tuesday, Aug. 28, that it will not develop the 31 acres that were home to Multnomah Greyhound Park after two and a half years of Tribal ownership, and that the Tribe will put the property on the market in the hopes of making a profit.

The decision, which was made a couple of weeks ago, was announced publicly when Tribal Council Vice Chair Chris Mercier, Secretary Jon A. George and Tribal Council member Denise Harvey met with the Wood Village City Council in the early afternoon before a scheduled evening meeting in Grand Ronde to brief the membership.

“After careful consideration, the Tribe has decided to sell the property,” Tribal Council Chief of Staff Stacia Hernandez said. “We obviously have it primed for development and right now the real estate market is still looking up, so we’re really hoping to take advantage of that.”

“The opportunities for this site are truly remarkable,” Mercier said in a press release prepared by the city and Tribe. “However, they are not the best fit for the Grand Ronde Tribe at this time. We’re excited to work with the city of Wood Village to find a new buyer that will make this vision a reality.”

The Tribe purchased the property in December 2015. The dilapidated site, which had not been used for dog racing since 2004, was listed for sale at $11.2 million. The Tribe purchased the property at less than listed value and will attempt to sell it for $17.9 million.

In addition to the purchase price, the Tribe signed an almost $900,000 contract with Konell Construction & Demolition Corp. of Sandy in April 2016 to demolish and clear structures on the site.

Engineering & Public Works Manager Jesse White said the Tribe added “substantial value” to the property in clearing the site and making it development ready, as well as working with the city to create a development master plan.

At the time of purchase, Tribal Council representatives led by then-Chairman Reyn Leno said the site would be developed to diversify the Tribe’s economy.

In June 2016, the Tribe held a well-attended event that featured the initial tearing down of the iconic glass-enclosed grandstand and the announcement of Spirit Mountain at Wood Village, a development that would be a mixture of lodging, entertainment and housing that would complement the Tribe’s casino in Grand Ronde.

Hernandez said one factor that convinced current Tribal Council members to sell the site was that the Tribe wants any investment to generate more than is currently being made in the Tribal portfolio.

“They looked a lot at the return on investment and the overall time frame for the recouping of any development costs, and they thought overall that it would be in the best interest to take advantage of the booming market to hopefully realize a profit,” Hernandez said.

“I think it’s a good move because I know what we hope to get and the amount of money we put in, and I think if we can get near to what we want it will end up being a pretty profitable investment,” Mercier said before meeting with the Wood Village City Council. “We’ve met with developers and looked a schematics for an entertainment center, a brew pub, retail and all that, and it could be profitable, but it would just take a while before it became profitable. It would just take too long for our tastes. This is an opportunity perhaps best in the hands of someone else.”

Grand Ronde Tribal members became keenly aware of the moribund property east of Portland when two Lake Oswego businessmen identified it as the possible location for Oregon’s first privately operated casino. Oregon Tribes successfully rebuffed two attempts to change the state Constitution in 2010 and ’12 that would have allowed a private casino at the former racetrack.

For the city’s part, Mayor Timothy Clark said in the prepared press release that it “appreciates the relationship that we have developed with the Grand Ronde Tribe over the past three years and look forward to continuing that partnership through cultural celebration and recognition of the Tribe’s history in the area.”

To maximize profit, the Tribe will market the property itself with Tribal Lands Manager Jan Looking Wolf Reibach heading the effort. He can be contacted at 503-879-2394 or Lands@grandronde.org.

Reibach said selling the property is a “good strategic move” for the Tribe.

Tribal briefing

A briefing for the Tribal membership held at 6 p.m. in the Employment Services Building on the Tribal campus attracted 31 Tribal members and spouses.

Tribal Council members Brenda Tuomi, Michael Langley and Kathleen George attended, as did Hernandez and Deputy Press Secretary Sara Thompson.

The meeting ran almost 90 minutes and at times a few audience members became so rancorous that Tribal police were called and children were ushered from the room.

“One of the options always on the table was to dispose of the property,” Hernandez said. “Timing is a big factor here and we want to maximize the profit.”

Some Tribal members questioned why the meeting was being held when it had already been announced earlier in the day that the property was for sale.

Hernandez said that state public meeting laws required Wood Village to notify its local media, which sent a reporter to attend the meeting held earlier between the Tribe and City Council.

“We had hoped to inform the membership first, but unfortunately it didn’t work out that way,” Hernandez said.

Shawn Hostler-Jones said selling the property puts the Tribe into an asset management position instead of economic development.

“An opportunity is getting sold for a pot of money,” she said.

Tiny Gibbons said she was glad an informational meeting was being held.

“You’re definitely trying to get the membership’s input,” she said. “I appreciate this.”

Leno voted to approve the Greyhound Park property purchase when he was chairman. At the time, Tribal Council hoped to develop a business plan for the property that would help diversify the Tribe’s economic base, he said.

“I think you could almost treat this (sale) as a settlement and a part could be dispensed to the membership,” he said.

Frank Hostler II said council’s plan to change course and sell the property seemed like last a last-second decision.

“This is about accountability,” he said. “We have no forum to hold our Tribal Council accountable.”

Hernandez said the original intention in purchasing the property was to take it off the market so private gaming interests wouldn’t develop a casino on the site, but after a thorough financial analysis was conducted it was determined that profitability would be at least seven to 10 years away.

“We are hoping to realize financial gains much sooner than that,” she said.

Langley, who was elected to council in September 2017, emphasized that the land had not been sold yet.

“We should have a plan before we buy a property and we didn’t have that,” he said. “I know we talked about it being Spirit Mountain at Wood Village, but if there was a scenario with a joint casino, the (potential) impacts would be a 50-percent hit to our current area.”

George said the purchase and subsequent decision to sell was a “long process.”

“At the time, the thinking was to get that property off the market,” she said. “We explored development to the best of our ability, but it would be a severe hit to the casino here. … We don’t want to leave you with the impression that we have left any stone unturned. If we can take advantage of the (current) real estate market that is a great thing.”

Leno added that when the purchase was made, there wasn’t time to put together a thorough plan and the primary objective was to protect Spirit Mountain Casino from other interests.

“I want to make sure people understand the purchase and its intent,” he said.