TROUTDALE, OR-Chelsea Property Group's outlet mall here is standing in the way of the City of Troutdale's efforts to jumpstart the urban renewal of its riverfront district. Negotiations between the city and Chelsea stalled recently, prompting the city council to unanimously approve using its power of eminent domain to condemn the Columbia Gorge Premium Outlets, if necessary.

Oregon law allows cities and counties to appropriate property for streets and other public purposes, such as parks, or utility work. The city council wants to extend 257th Way through the middle of the site and into its former sewage treatment plant property located north of the Historic Columbia River Highway and east of the outlet mall.

In May 2006, Troutdale voters approved a $7-million urban renewal district to redevelop the former treatment plant. City administrator John Anderson tells GlobeSt.com that Chelsea and the city have had good negotiations but have been unable to agree on a price. "This was the next logical step for the city to take," he says. "We will still be talking to Chelsea Corp. with hope that we will agree on the price."

Columbia Gorge Premium Outlets is a 164,000-sf center with 45 tenants. Anchor tenants include Adidas, Carter's, Gap, Samsonite and Van Heusen. Chelsea developed the property in 1991 and has invested about $18 million in the asset, according to its latest annual report.