Image provided by: University of Oregon Libraries; Eugene, OR
About The Bulletin. (Bend, OR) 1963-current | View Entire Issue (March 13, 2022)
The BulleTin • Sunday, March 13, 2022 A3 LOCAL, STATE & REGION CONCORDIA PORTLAND Legal issues could snag UO’s purchase of campus The University of Oregon board of trustees will meet Monday to consider the Concordia property purchase. Oregon has offered $60.5 million. BY JEFF MANNING The Oregonian The University of Oregon’s pur- chase of the former Concordia Uni- versity campus in Portland to host an ambitious youth behavioral health in- stitute seems the proverbial win-win. The deal solidifies UO’s relationship with a pair of mega-wealthy support- ers — Connie and Steve Ballmer, who have contributed $425 million toward the center — and establishes a new Portland campus. The city of Port- land gets a big economic development win. Even the site’s northeast Portland neighbors are thrilled the land will remain part of a university after Con- cordia shut down in 2020. More broadly, if the Ballmer Insti- tute for Children’s Behavioral Health accomplishes its far-reaching goals, troubled young people all over the planet could benefit. The most surprising winner of all may well be Concordia’s parent orga- nization — the Lutheran Church-Mis- souri Synod. The conservative church that threatened to withhold financial support for Concordia Portland in part because it was too supportive of gay, lesbian, trans, queer and nonbi- nary students could enjoy an unex- pected $70 million windfall. The University of Oregon board of trustees will meet Monday to consider the Concordia property purchase. Or- egon has offered $60.5 million. Matthew Harrison, president of the St. Louis-based synod, said publicly in 2018 that shutting down Concordia in Portland could blow a “$400 million crater” in the church’s finances. So far, it hasn’t turned out that way. If the UO purchase goes through as planned, the proceeds from the real estate sales will cover the $37 million the Lutheran Church Extension Fund had loaned to Concordia and put many millions more into the into the extension fund’s treasury. But there are two wildcards compli- cating the purchase. Concordia’s long-time technology In this Oct. 10, 2016, photo, students study on the former campus of Concor- dia University in Portland. The Uni- versity of Oregon’s plans to buy the campus and turn it into a youth behav- ioral health institute needs to clear sev- eral legal hurdles. Oregonian file photo partner — a Bay Area firm called HotChalk Inc. — has sued the college and its parent church in an attempt to collect $300 million it claims it is owed. On Feb. 7, 2020, two days before Concordia publicly announced it was shutting down, the school transferred ownership of the campus to the exten- sion fund. HotChalk protested that it was an insider deal that amounted to a “fraudulent transfer.” In hopes of pro- tecting its claim against Concordia, HotChalk has filed what’s known as a lis pendens on the campus property. A lis pendens is a legal notice filed with the county recorder’s office es- sentially warning prospective buyers that the property has become em- broiled in a legal dispute. The result- ing “encumbrance” on the property is generally sufficient to scare off poten- tial buyers. There is another impediment to closing the sale from a most unlikely player in the drama — the Lutheran Church Missouri Synod. The synod has its own publicly re- corded legal right that allows it, in the words of UO officials, “to take title to the (campus) property should the property be used for a purpose other than as a religious or educational in- stitution affiliated with the Lutheran Church.” The UO’s tentative purchase agree- ment requires the extension fund to “reach agreement with the Missouri Synod to extinguish that right of reen- try. Should for any reason LCEF fail in doing so, the University will not pur- chase the property.” Many players in the Concordia drama consider the extension fund as subordinate to the synod and believed that the two entities were on the same page. In its own mission statement, the fund states its primary purpose “is to support the Lutheran Church-Mis- souri Synod.” But the current situation challenges that view. David Foraker, a Portland attor- ney representing the extension fund, said there is no deal currently for the synod to give up its right of reentry. “They’re reluctant to engage with us,” Foraker said. “There have been no ne- gotiations.” The extension fund is a significant operation. It has $2.1 billion in assets and invests money on behalf of the synod and its members. It also loans money to individual church work- ers and affiliated colleges and other schools. “There’s this myth that the synod is the parent and puppet master,” For- aker said. “That’s not true. They don’t have the same management, and they have different boards of directors.” Over $11,000,000 Worth of inventory 5 DAYS ONLY BARGAIN! FABULOUS! ASTONISHING! ULTRA COMFORT LIFT CHAIRS! STRESSLESS CHAIRS! MURPHY CABINET BEDS! Starting at Starting at Starting at 1299 $ 1499 $ 1499 $ YOU’LL LOVE THIS! MAGNIFICENT! UNBELIEVABLE! AAMERICA QUEEN STORAGE BED! 6-PIECE “CHEERS” SECTIONAL! MAN WAH 6 PEICE POWER SECTIONAL! Starting at Starting at Starting at 1999 $ 2499 $ 2999 $ SEE STORE FOR DETAILS! TEMPURPEDIC MATTRESSES! Starting at 32/MO $ 5 SPECIAL DAYS! (40 AMAZING HOURS!) DOORS OPEN: FRIDAY — TUESDAY 10 AM to 6 PM 2994 NE O.B. Riley Rd. Bend, OR 97701 541-382-5900 www.mjacobsfurniture.com FREE STATEWIDE DELIVERY ON PURCHASES OF $999 OR MORE!
