The joyful bronze mouse sculpture called “Boys Night Out” was installed in November 2023 by the Newberg Public Art Council.

The quarter-acre parcel of land situated across from city hall on First Street in Newberg, commonly known as the Butler Property, may soon see a change in ownership on the road toward development.

Since declaring the land surplus in May 2024 and putting it up for sale, the city has received a pair of offers, City Manager Will Worthey said in an email. Recently, Portland developer Keystone LLC, working through Newberg’s Willcuts Company Realtors, submitted a letter of intent to purchase the property for $350,000. The property was appraised for $257,500 in 2024.

Should the sale go through, the city would net approximately $341,250, which would go toward a debt reduction policy adopted by the council in 2024, while also bringing “much needed development to the downtown corridor on First Street,” the council’s March 17 meeting agenda stated.

The letter of intent from Keystone is non-binding, Worthey said, noting that “up to the signature of a contract there could be new offers and others have approached the agent seeking information.”

Worthey said that Keystone, owned by Lake Oswego-based developer Andre Koshuba, indicated plans to construct a building with retail spaces on the ground floor and short-term rental units on the second floor. The land is zoned for commercial development, which would accommodate a mix of retail and short-term residential uses.

Worthey added that he doesn’t have a preference for development of the property, other than “the general hope that it’s an aesthetically pleasing final design in keeping with the general character of the downtown area.”

What’s next?

Worthey said the next step in the process would be a final council vote “once a contract is agreed (on) with a bidder for this property and presented.”

“The process to sell public land has two steps: first the acceptance of a LOI – a letter of intent — and that has occurred,” he said. “The last and binding step will be a contract executed by both parties and that is under consideration and negotiation right now.

“The LOI step is for public transparency. Therefore, other offers could still be entertained right up to the point where a contract is signed by both parties. The standard for review is higher for the sale of surplus land for public entities than private ones.”

What is to become of the happy mouse sculpture on the Butler Property?

The property’s only resident — and other than a sidewalk, the only development on the parcel since it was acquired more than two decades ago — is a joyful bronze mouse sculpture called “Boys Night Out,” installed in November 2023 by the Newberg Public Art Council.

“It will either stay with the property or be transferred to another high visibility location. Local kids love it,” Worthey concluded.

“The process to sell public land has two steps: first the acceptance of a LOI – a letter of intent — and that has occurred. The last and binding step will be a contract executed by both parties and that is under consideration and negotiation right now.”

Will Worthey,

city manager