Politics
Portland Mayor Seeks Public Review of $456,000 in Prosper Portland Contracts
Mayor Keith Wilson has asked Prosper Portland’s board to examine three contracts totaling $456,000, including a contract that bypassed competitive bidding. City officials say the arrangements raise questions about transparency and oversight; the agency and its executive director have defended the work.
Portland Mayor Keith Wilson on Wednesday called on the Prosper Portland board to publicly review three contracts worth a combined $456,000, after questions surfaced about Executive Director Cornell Wesley’s ties to consultants hired without competitive bidding.
The city has paid the contractors $264,000 so far, according to records cited in the dispute. All three contractors are based outside Oregon and appear to have no previous work history in Portland or the state.
“Any use of taxpayer funds—especially spending outside the procurement process—must meet the highest ethical standards,” Wilson said in a statement from his office. He added that Wesley appeared to have relied on existing contacts with whom he had personal relationships, despite the availability of regional contractors capable of doing the work.
Prosper Portland has said there was nothing improper about the contracts. Wesley said he disclosed to board members that he knew two of the consultants from previous roles. Board Chair Gustavo Cruz has said he did not know the details of the contracts or that the consultants were Wesley’s college friends; other board members also appeared unaware of those personal connections.
None of the contracts went to the board for approval. The executive director can approve contracts below $500,000 without board authorization. But one contract, with Chicago-based Synergy Credit Union Consulting, was expected to go through the agency’s competitive procurement process. Records show Wesley approved an exemption allowing Synergy to bypass that process.
Prosper has withheld details about two contracts with out-of-state law firms, citing attorney-client privilege. The agency has described the work as “programmatic” reviews, a type of work that is typically not exempt from public disclosure.
The dispute has renewed calls for closer city oversight of Prosper Portland, the city’s economic development agency, which has its own board responsible for its budget and helping shape policy. Three city councilors have raised concerns about the contracts.
Council President Jamie Dunphy called the facts concerning and said the agency should go beyond simply complying with the letter of its rules. He said he would look to the city administration to increase oversight. Council Vice President Olivia Clark said the situation “doesn’t look good,” while Councilor Mitch Green said Prosper’s contracting practices should remain under scrutiny.
Green also pointed to the agency’s refusal to disclose the scope of work for the contracts and cited a separate $7 million loan to a shoe-manufacturing startup that failed last year as a reason for continued scrutiny.