Why was a renovated former factory rejected as a Portland drug treatment center?

PORTLAND, Ore. (KOIN) — Leaders in Portland rejected a plan to turn an old factory building into a drug treatment center despite the owner's offer to cover half the costs. But why?

For over a decade, the Premier Gear Building in Northwest Portland has lingered in emptiness. It was once a hub of bridge manufacturing.

Recently, TMT Development's Vanessa Sturgeon poured millions into transforming the industrial building into an in-patient drug treatment center.

"I love Portland," Sturgeon said. "We have a huge crisis here that’s tied to both mental health, drugs, housing crisis, it’s a multifaceted issue."

Her proposal called for a 16-bed crisis center and 80 housing units to tackle homelessness and addiction.

Despite the urgent need, the Portland Housing Bureau turned down the project.

"We were delivering something to the city at half the cost at what it would cost for them to do it on their own," Sturgeon said.

In a statement, PHB said the project wasn't a good fit for the intended population and wouldn't be a wise use of taxpayer money. It went on to say PHB is open to working with TMT Development on future projects.

"There’s a general disagreement about the ways we should be approaching solutions," Sturgeon said.

According to Sturgeon, the housing bureau also said the county didn't want to pursue the project either.

In her own statement, Multnomah County Commissioner Sharon Meieran apologized for how the county handled the offer.

"The County's narrow-minded leadership has built an ideological wall that blocks us from finding practical solutions," Meieran's statement said in part.

For now, the deal is dead and there's no clear plan on the renovated building.

Even if it's not her plan, Sturgeon said she's hopeful the city can create a clear path to getting help for those who need it.

"The gravity of the issue is so huge in Portland," she said.

PHB said it brought in experts to vet the project. But ultimately, Sturgeon said they expressed concerns with the company she chose to run the drug and mental health program.

Below is the entire statement PHB sent to KOIN 6 News:

"PHB was very excited to hear about TMT Development’s innovative proposal for the Premier Gear building. We made a substantial effort to help them achieve their vision for the project, convening two separate panels to review the proposal, each made up of local affordable housing and homelessness experts. After attempting unsuccessfully to help the developer partner with local agencies who could help ensure the project’s efficacy, we determined that the TMT proposal would not be a good use of taxpayer dollars, and was unlikely to successfully serve the target population of chronically homeless individuals with substance use and behavioral health disorders. PHB is deeply supportive of transitional and permanent supportive housing for those in need, and has funded the development of over 2,300 supportive housing units in Portland since 2017. We look forward to opportunities to collaborate with TMT on such projects in the future."

Below is Multnomah County Commissioner Sharon Meieran's statement to KOIN 6 News:

"What happened with this idea is a perfect example of the real problem behind our problems. Too often Multnomah County leads with "No" and ends up getting nowhere.

"When we can't engage with resourceful and dedicated people in the community who want to help, we're not just failing to find solutions, we're failing at basic governing.

"We should be wholeheartedly embracing opportunities to bring people to the table who want to help in exactly the way this proposal wants to help. We must engage the community proactively to find solutions, not look for reasons to walk away.

"The County's narrow-minded leadership has built an ideological wall that blocks us from finding practical solutions.

"On behalf of all the County employees who go to work every day to help people, I sincerely apologize to Ms. Sturgeon for the failed response to her heartfelt offer. We end more people like her, but it's hard to keep the community engaged without more constructive partnership from the County."