passed ordinance 2025-225

*Authorize City Attorney to settle lawsuit related to the historic Central Albina displacement and pay settlement of named plaintiffs’ claims in the sum of $7,500,000 from the City and $1,000,000 from Prosper Portland

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  • budget finance
  • equity
  • claim settlement
Department
Risk Management
Introduced by
Mayor Keith Wilson
Status
Passed

Impact statement

Purpose & background

This Ordinance settles a lawsuit brought by Emanuel Displaced Persons Association 2 and 26 individuals who are survivors and descendants of the families who were displaced from Central Albina during the Legacy Emanuel Hospital expansion.

Financial impacts

This legislation will have no impact on City revenue. Total cost to the City to settle the lawsuit is $7,500,000 from the City and $1,000,000 from Prosper Portland. The source of funding is the City’s Insurance and Claims Fund. All cost of the settlement is in the current fiscal year. This Ordinance does not amend the budget.

Economic impacts

Not applicable.

Community impacts

This Ordinance settles a civil rights lawsuit alleging a conspiracy between the City, Prosper Portland (fka the Portland Development Commission), and Legacy Emanuel, as well as unjust enrichment and public nuisance. No public involvement or input was sought regarding this Ordinance. The City Attorney’s Office and Risk Management have concluded that it is not appropriate to have public involvement in settlement negotiations regarding tort claims or lawsuits against the City. No future public involvement is anticipated or necessary. Approval by City Council of this Ordinance will fully settle the lawsuit against the City of Portland.

Full text (the legislation as adopted)

The City of Portland ordains. Section 1. The Council finds: Emanuel Displaced Persons Association 2 (“EDPA2”) is a community organization made up of survivors and descendants of those whose homes were taken and demolished in Central Albina. The named Plaintiffs are 26 individuals who are survivors and descendants of the families who were displaced from Central Albina during the Legacy Emanuel Hospital expansion. EDPA2 and the individual plaintiffs, through their attorneys, filed a civil rights lawsuit against the City, Prosper Portland (fka the Portland Development Commission), and Legacy Emanuel Hospital for damages arising from the systemic displacement of Black households beginning in the 1950s and continuing through the 1970s. EDPA2 and the individual plaintiffs alleged conspiracy claims pursuant to 42 U.S.C. § 1985 and state law claims for unjust enrichment and public nuisance. The City has concluded that after extensive analysis of the facts and applicable law, and taking into account the risks and uncertainties associated with litigation including substantial attorneys’ fees, the Settlement Agreement is desirable to avoid the time, risk, and expense of defending protracted litigation. As described in detail in Exhibit A, the settlement requires the City provide preference to survivors or descendants of any families displaced by the Legacy Emanual Hospital expansion for certain roles associated with any Keller Auditorium renovation. These preferences apply exclusively to the City and do not apply to any private parties associated with the Keller renovation. The settlement requires the City proclaim an annual Descendants’ Day beginning in 2025 and lasting for no less than five (5) years. The settlement requires the City provide a letter of support to any plaintiff who applies for grant-funding related to a documentary about the Central Albina displacement. The settlement requires the City pay plaintiffs the total sum of $7,500,000 from the City and $1,000,000 from Prosper Portland. The City Attorney, Risk Management Service, and the Mayor’s office recommend approval of the Settlement Agreement. NOW, THEREFORE, the Council directs: The Settlement Agreement attached here to as Exhibit A is hereby approved and the Mayor or Mayor’s designee is authorized to execute the Settlement Agreement on behalf of the City. The City Administrator is authorized to settle the lawsuit in the amount of $7,500,000 from the City and $1,000,000 from Prosper Portland made payable to Albies and Stark Trust Account. Risk Management Services will execute a payment authorization in the amount set forth in sub-paragraph (B) above. Section 2. The Council declares that an emergency exists in order to avoid undue and costly delay in settling this lawsuit; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

Tally

12 yea 0 nay

Roll call (12)