The property brothers are facing a $40 million lawsuit after they say they paid for an eight-year lease on a building they owned and used to host the Portland State University basketball team, according to court documents.
According to court filings, the brothers, who are brothers David and Andrew Farrar, purchased the five-story building at 603 West Morrison Street in 2013 and used the building for offices, conference rooms and a gymnasium.
The brothers are trying to block the sale of the property.
Portland city officials have not said whether the city would be paying for the renovations, which could take years.
Farras lawyer, Brian Legg, did not immediately respond to a request for comment.
The property brothers sued the city in October 2017, claiming the city violated the Portland Housing Ordinance by refusing to lease the building to them, which they said was illegal.
The lawsuit claims the city’s failure to rent the property to the brothers violated the city charter and is part of a pattern of actions by the city to restrict their ability to exercise their franchise rights.
The city’s leasing process is one of the citys main ways of securing tenants, which is why it is so important to enforce the city code.
The city says that if a landlord wants to keep a tenant, it must comply with the rules.
A spokesperson for the city told Business Insider that city ordinances prohibit the city from taking actions to deny or terminate a lease, and they are “not able to comment on pending litigation.”
The city says it is reviewing the suit, but did not say if the city had any plans to pursue the suit.
The Farrars said in a statement they are disappointed the lawsuit is still ongoing, but said they were confident they would prevail.
The statement also said the brothers have already begun the process of seeking a permanent tenant in the building.