In 1965 the entire North Portland peninsula, encompassing 8,100 acres, became part of the Rivergate development plan. However, Willamette University was forbidden to sell 1,970 acres located at the tip of the northern peninsula. The land, acquired by the university from the Leadbetter family in 1949 was held in trust until 1998. But the Port condemned the land, forcing a sale 35 years early. By 1991 the area had a property value of $75,000 to $105,000 per acre.
When Willamette University in 1949 inherited 1,970 acres of lowland at the confluence of the Willamette and Columbia rivers, it was on condition the property be held in trust for at least 50 years. The will of the late Frederick W. Leadbetter forbade the sale or option of any of the acreage before 1998, reflecting the belief of the giver that the university would benefit most from the legacy after the passage of time brought industrial and population growth to the area, and an increase in property values.
After only 15 years, the accuracy of Mr. Leadbetter’s view already is being shown. In 1949, the entire Leadbetter tract was appraised at $190,000. But recently [1965] the Port of Portland has been paying as much as $750 an acre for land to add to its Rivergate industrial part next door to the Willamette University holdings.
But even though the will prohibits voluntary sale of Leadbetter lands, it can’t prevent a forced sale through condemnation by a public agency. And this is the method about to be employed by the Port to acquire a 565-acre chunk of university property bordering on the Willamette River between the north boundary of the Rivergate tract and the south bank of the Columbia Slough.
The Port Commission has authorized payment of $378,833 for the acreage. So after completion of the “friendly” court proceedings the university will receive in cash just twice as much as the market value of its entire holding in 1949, and still have three-quarters of its property left.
Of course, the portion being taken by the Port is currently the most valuable part of the Leadbetter estate, having three-quarters of a mile of deep-water front age on the Willamette, which is about to be linked to the sea by the new 40-foot channel. But the remaining Leadbetter property also should increase in value more swiftly as new industries arise on adjoining Port lands. It is likely the condemnation procedure will be utilized again and again before 1998, as the community’s industrial land needs grow and the prohibition in the will continues to prevent Willamette University from making private deals.
In theory, the university would be better off could it hand on to the entire tract and dispose of it 35 years from now. But as a practical matter the land cannot reach its highest potential value until it is filled above flood level, and only the Port of Portland with its big pipeline dredge is in a position to do this at a reasonable cost. Port condemnation at the moment appears to be the most equitable way to obtain orderly development of the industrial potential of the tract, and at the same time give Willamette University the maximum dollar benefit from its legacy.
