NEWBERG, Ore. — During its regularly scheduled meeting on Dec. 1, the Newberg City Council voted to approve the sale of the city-owned property at 411 E. First St., informally known as the Butler Property, for $341,250 to Heated Candle LLC.
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“It has long been our intent to utilize the revenue from this sale toward a debt reduction plan,” City Manager Will Worthey said. “This will be over 340,000 toward that intent, and get us there just in time.”
The council declared the vacant property surplus in May 2024 and sought a buyer willing to build a mixed-use facility with ground-floor retail and short- or long-term residential units above.
A local buyer had expressed interest in purchasing the lot for its appraised value of $257,500, but realtors from Willcuts Company Realtors appeared before the council in August 2024 to question why the lot had not been listed on commercial real estate platforms, which they said could result in a higher sale price.
The council then hired Sean Heaton, managing principal at Cresa, a commercial real estate firm, to assist with marketing and expanding the listing’s reach.
In March 2025, the council accepted a letter of intent from Keystone LLC, owned by Andrey “Andre” Koshuba of Lake Oswego, who offered $350,000 in cash. It remains unclear when or why the offer fell through, as real estate negotiations occur in executive session.
On Nov. 24, the city published a public notice announcing a hearing to discuss the potential sale of the Butler Property to Heated Candle LLC. According to state business records, the company is co-owned by Polly and Brent Peterson of Newberg and Angela and Edward Meyer of Eugene.
The council has consistently expressed a desire for a mixed-use development on the site. The Purchase and Sale Agreement states that the buyer will construct a building that includes ground-level commercial retail units and long-term or short-term residential rental units. It also states that the buyer will, in good faith, consider design options that could accommodate a restaurant in the commercial portion of the development.
According to City Attorney James Walker, approval of the resolution triggers a 30-day due diligence period during which the buyer may inspect the property and review titles. After that period, a 10-day window precedes closing, placing the expected transfer in the first week of January.
The lot was formerly an auto dealership called Butler Chevrolet. The last owners, the Loren Berg family, sold the property to the city for $1 in 2001, as the land was likely contaminated with petroleum products. The site was later cleared of contaminants and has sat vacant since.
The Butler Property also houses the first Newberg Public Art Council public sculpture, a whimsical mouse installed in 2023. In March 2025, NPAC board president Terry Emery told Newsberg that the organization has been seeking an alternative downtown location for the sculpture and is prioritizing sites where children can continue to interact with it.
“The mouse—if I get my way—will relocate to the library forecourt,” Worthey said in an email. “I have always thought that it somewhat resembled Stewart Little.”
The full Purchase and Sale Agreement is available on the city’s website.
Update Dec. 2 at 11:50 a.m.: Added quote from Will Worthey about the Butler Mouse Sculpture.
