Mill Creek Property Disposition Overview
In December 2020, Governor Brown recommended the closure of Mill Creek Correctional Facility. The property was declared surplus, and efforts have been made to prepare it for disposal, including environmental assessments and appraisals. Despite receiving interest from various parties, no purchase offers were submitted. The next steps involve working with SHPO and initiating the sale/auction process with a target date of July 2022.
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MILL CREEK PROPERTY DISPOSITION PUBLIC LANDS ADVISORY COMMITTEE PRESENTATION
BACKGROUND In December 2020, Governor Brown recommended the closure of Mill Creek Correctional Facility (MCCF) by July 1, 2021. In January 2021, The Department of Corrections (DOC) declared the property as surplus per ORS 270.100. Surplus property notifications were sent to state agencies, political subdivisions of the state, and the following entities on the condition that they develop the property for affordable housing: Indian Tribes and non-profit organizations. On or before the end of February 2021, DOC received six letters of interest from the clearinghouse process.
PREPARATION FOR DISPOSAL DOC has completed the following activities to prepare the property for disposal: Provided notice of sale and request for offer to purchase to all parties submitting a letter of interest. Provided notice of sale to all nine federally recognized tribes in Oregon. Completed an environmental assessment (with no identified environmental concerns noted). Completed an archaeological survey of the property. Based on survey results, the institution has been identified as eligible for the Register of National Historic Places. DOC has signed a memorandum of agreement with the State Historic Preservation Office (SHPO) and has initiated activities associated with the agreement. Acquired fair market appraisal per ORS 270.100. Property appraised at approximately $12.5 million.
INTEREST DOC received six (6) letters of interest from the following parties: Oregon Department of Transportation Confederated Tribes of Grand Ronde Three Non-Profits Corban University Habitat for Humanity Applegate Landing, LLC City of Salem All parties submitting a letter of interest declined to submit an offer for purchase.
NEXT STEPS Continue to work with SHPO to carry out the activities to be agreed upon in the Memorandum of Agreement. Complete Request for Proposal process to retain qualified vendor to assist with sale/auction of property. Expected sale of property no later than July 2022.
