On March 20, 2026, Made in Old Town quietly pulled the plug on its ambitious plan to turn a cluster of historic Old Town buildings into a footwear and apparel manufacturing campus. The nonprofit had already snapped up multiple brick buildings with a multi-million-dollar loan from Prosper Portland, and its oversized banner still hangs at NW 5th Avenue and NW Davis Street while nearby businesses wonder what, if anything, will move in next.
In a LinkedIn post, the project’s board blamed a brutal business climate, saying that “tariffs have rocked the industry” and that global market volatility created an operating environment it had not anticipated, as reported by KPTV. Nearby owners did not hide their disappointment. Everett Street Auto Works owner Jake Hammer told KPTV he had hoped the development would bring steady customers and badly needed jobs back into Old Town.
Prosper Portland stressed that the public money went out as a loan, not a gift, and that the agency holds a secure position with a lien on the property. All options are now on the table. Executive director Cornell Wesley told KPTV that “all options, including assuming ownership of the property, are available to us and will be considered.” CityTeam Portland, which had signed a memorandum of understanding to build workforce-development pathways tied to the campus, said the collapse is a setback for its training and recovery work.
Loan Terms Push Prosper Portland Past Comfort Zone
The Prosper Portland loan that underwrote the purchases totaled about $7 million and quickly drew scrutiny for terms that pushed the agency past its usual risk limits, according to Willamette Week. Documents show the project never secured roughly $5.7 million in promised private financing, putting it in what the loan documents label a material default. Critics also flagged an appraisal that valued the buildings far below what Made in Old Town paid, along with loan terms, including low interest and an extended maturity date, that some city councilors said stretched Prosper Portland’s internal guidelines.
Public Money, Private Risk
Beyond the city loan, Made in Old Town leaned on a $2 million state grant and planned to use anticipated lease payments from future tenants to unlock remaining state funds, a structure some leaders said blurred the line between public support and private risk, Portland Mercury reported. Councilor Mitch Green said he had reservations about the loan from the outset, and other officials have since pushed for tighter oversight of how urban renewal dollars and Prosper Portland financing are evaluated…