BULLETINS FROM ALOHA

The Oregon State Bar has purchased itself a brand new building for over $20 million dollars (and counting) when millions of people are facing foreclosure. Last month they signed for the $13 million dollar loan to partially fund this white elephant. Bar leadership notables Dennis Rawlinson, Albert Menasche and Karen Garst have promised this $13 million dollar debt will not result in increased bar dues which in Oregon are already $100 higher than any adjacent state. So, I searched the Oregon State Bar Bulletins for information on this purchase and wonder of financing. I found the Bar has provided its membership with virtually no information on this multimillion dollar exercise in bricks and mortar. How did we get here?

1986 -- The Oregon State Bar (OSB) moves into its then-new $2 million dollar 1.4 acre, 41,379 square foot building in Lake Oswego. The mortgage balance remaining of $585,000 on this building as of 2005 would have been paid off by 2009. The Bar had about 9,000 members and 48 staff in 1986.

1998 -- OSB's Board of Governors "...prefers not to propose to members the need to build a new building..."

2000 -- OSB's President Ed Harnden authorized the Board to explore options to purchase a building to house the Bar and the PLF. The Bar building is appraised at $5.050 million.

2001 -- The PLF moves to another building freeing up 25% of the Bar's building space.

2002 -- The Bar completes a major remodel of its first and second floor. The Bar center has 13 vacant offices due to PLF move. There are about 12,000 Bar members and 84 Bar employees.

2003 -- The Bar's Executive Director, Karen Garst by memo dated 10/31/03 states "There is certainly still space in the current building for expansion should the Board decide to add any programs." She predicts Bar staff will only be 82.3 FTE in 2004.

2004 -- Karen Garst proposes that the Bar purchase her defunct church, The Living Enrichment Center in Wilsonville near her home which is listed for $16 million and consults Macadam Forbes on behalf of the Bar to explore this purchase. Ms. Garst is a creditor of this church for $22,000. A member of the Board of Governors (me) complains of this conflict of interest and is ultimately suspended from the Board of Governors. Bar membership growth in Oregon declines. The Board of Governors projects the present Bar building is sufficient for at least ten years.

2005 -- A study by the Bar indicates that there are no new or enhanced programs that will require an increase in FTE. A Bar staff survey revealed that 81% of the Bar employees "...felt that the need for a bar center relocation did not justify the cost." (Emphasis supplied) 73% of Bar staff felt that the Bar membership should be surveyed on the need for a new building. All attorneys on the Bar center decision-making committee are from Portland. No membership survey is made. Board member Eyerman expressed shock at the $20 million dollar price tag for the new facility. The Board of Governors executes a letter of intent for a 120,000 s.f. building on six acres for $28.920 million. The Bar will only occupy half of the space. The rest of the space will be rented to others in theory. The additional cost of this building to the membership over the old building is over $620,000 per year for twelve years.

2007 -- The Bar signs an agreement for a three story 73,000 s.f. building. There is no explanation as to why the square footage is at variance with the presentation to the House of Delegates in October, 2005 when Bar leadership said it was purchasing a 120,000 s.f. building.

2008 -- The Oregon State Bar moves into its new building on January 28, 2008 and signs for the $13 million dollar long term loan. The building is located at 16037 SW Upper Boones Ferry Road, Tigard, OR. "The Board of Governors is committed to funding the new building without raising membership dues."

It is hard to find information about this new building for the lawyers of Oregon. The skimpy updates in the Oregon State Bar Bulletin provided very little information. Most of the above information is from Board minutes. Ward Greene, Board of Governor's Member, took on the responsibility for orchestrating the matter after Dennis Rawlinson and Albert Menasche passed on the baton. His telephone number is 503 295-2668 and email is ward.greene@greenemarkley.com.