Defunct Mill Sells for 2.2M: Commercial Development Diamond in the Rough or Toxic Abyss?

In the turbulent runout of North America’s second highest-volume waterfall, a defunct papermill in transition may prove to be a developer’s goldmine, or a contaminated disaster. The 38- acre riverfront property is in a prime commercial location and is now slated for mixed development with historical exhibits, shops, restaurants, offices, housing and public access to Willamette Falls via a riverwalk trail.

The mills here in Oregon City began operations in 1866, and continued under various companies until Blue Heron Mill ceased operations in 2011. The 38-acre riverfront parcel sold in 2014 for what many considered a paltry $2.2M. The site is a currently closed off section of Main St., which received the Great American Main Street Award last year and has seen robust economic growth the past decade.

However, after 145 years of toxic paper production and immense swaths of abandoned infrastructure, the costs for remediating and developing the site are magnitudes greater than the property purchase price. Since 2014, local officials have reported issues with delinquent tax payments from the buyers, and even unsuccessfully attempted to buy the site back for an undisclosed price.

The local community anxiously awaits the development for both economic and recreation motivations. But will developers find the financial capitol and get motivated to pay their taxes and develop this potential waterfront mecca on the Willamette River?

Comment below if you think the site looks like a diamond in the rough, or a toxic money sludge?