Old Town Manufacturing Project Records Subpoenaed by State
The Oregon Attorney General seeks oversight of a failed $9 million project in Old Town.
Updated on Sept. 27, 2026 in Philanthropy
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The Oregon Attorney General has subpoenaed financial records from the Old Town Community Association regarding the collapsed Made in Old Town project. This follows the organization defaulting on a city-backed loan and surrendering two buildings to Prosper Portland.
Why it matters
The project collapse raises questions about the oversight of public funds allocated for local revitalization efforts. The investigation aims to determine the fiscal management behind the project that ultimately failed to launch despite significant public backing.
The state provided a $2 million grant in 2024, followed by a $7 million loan from Prosper Portland in early 2025. Of that loan, $6.1 million was spent on buildings, leaving $860,000 undistributed before the organization defaulted.
The players
Oregon Attorney General
The state official responsible for enforcing laws and overseeing charitable activities.
Old Town Community Association
The neighborhood group that provided fiscal sponsorship for the Made in Old Town project.
Made in Old Town
The organization that received public funding for a manufacturing project that subsequently defaulted.
Prosper Portland
The city's economic development agency that issued the loan and later reclaimed the properties.
The details
The state's Charitable Activities Section issued the subpoena to the Old Town Community Association, which served as the fiscal sponsor for Made in Old Town. Following the default, Prosper Portland secured a settlement in May 2026 to take ownership of the two buildings near Northwest Fifth Avenue and Everett Street. The agreement formally forgave the remaining loan debt as part of the asset transfer.
Timeline
2024: The state awarded a $2 million grant to the project.
February 2025: Prosper Portland approved a $7 million loan.
March 2026: The project board cited economic uncertainty for the collapse.
May 2026: Prosper Portland settled and took control of the buildings.
September 2026: The Attorney General issued a subpoena for project records.
Beyond the Bridges
This investigation follows the standard protocols for the Oregon Attorney General's oversight of charitable trusts, marking a formal review of a non-profit fiscal sponsor. It highlights the state's role in verifying the use of public grants and loans after a major development project fails.
Property owners and neighbors near Northwest Fifth Avenue and Everett Street will see the site under the control of Prosper Portland following the recent settlement. Residents can watch for future city announcements regarding the long-term disposition of these two reclaimed buildings.
The takeaway
The project failure underscores the risks associated with public-private funding models for neighborhood developments. Residents should monitor future Prosper Portland board meetings for updates on how the reclaimed property on Fifth and Everett will be repurposed.
Further reading
Learn more about local non-profit accountability and oversight efforts in Portland Philanthropy.
Source note: This article includes information reported by Oregon Live.
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