Bend officials say Terry Blackwell, the city’s former real estate agent, poorly managed property accounts, costing the city about $42,000, and they want Blackwell to pay it back.

But Blackwell said he has done nothing wrong and believes the new city administration wants to discredit him because he criticized how it handles real estate transactions.

Blackwell, the broker for The Stratford Group, managed property for the city from September 1996 until the city fired him this summer.

Blackwell failed to professionally manage city property, kept inadequate records and was unacceptably slow in forwarding rental proceeds to the city, according to City Manager David Hales. He said officials have not yet figured out the ultimate cost to taxpayers.

In November, the city asked the Oregon Real Estate Agency to look into whether Blackwell managed its property accounts legally and ethically.

The agency revoked Blackwell’s brokers license in June, saying he violated a number of laws, according to an order agreed to by Blackwell and Oregon Real Estate Agency Commissioner Scott Taylor.

A May 31 letter from Peter Schannauer, attorney for the city, asked Blackwell to repay the $42,000 incurred through late payment charges on invoices, overpayments to vendors, careless administration of leases and interest on those items.

Blackwell said the request was vague, so he didn’t take it very seriously. He said he thinks it is, in part, an effort to get him off the city’s back for money the city owes him – hours worked that he hasn’t been paid for – and in part a retaliation for his criticism.

”If I’m going to be a troublemaker, they’re going to discredit me,” said Blackwell, a former Bend city councilor and mayor.

Blackwell has criticized the city administration – back in November and again this summer – for being delinquent in closing some land acquisitions for rights-of-way on new roads like the Reed Market Road and Olney Avenue extensions.

For example, the city council approved the sale of two properties near the Olney Avenue extension project in December 2000, according to a recent letter from Blackwell to Hales. But those properties weren’t properly platted and didn’t have sewer and water, delaying the close of the sale. He said city staff had not finalized subdividing the lands, so the city had mistakenly agreed to sell lots that didn’t exist. The city fixed the problems eventually, but still hasn’t closed escrow.

The buyer, Emmert International of Portland, spent $10,000 to move a home across a lot, out of the path of road construction. Emmert is hoping to make a profit from the deal, Blackwell said, and the former broker has no idea why the city has still not closed the sale.

Hales said city officials are still evaluating all aspects of the history of the sale. He would not comment on the specifics of the transaction, but said city officials are trying to find out ”what transpired when and why.”

Blackwell said he and former city administrators had a more trusting relationship. He could negotiate with landowners before the city council declared an intent to condemn property, he said. Blackwell said it’s hard to persuade unwilling property owners to sell property for rights-of-way.

”When I was working with the previous administration, we were like a team. We got a lot of property stuff handled,” he said. ”Those transactions went smoothly, (and) no one complained to the city.

”We used to just go visit with people and see what we could work out. The overall cost of acquiring those properties was less,” he said.

But public records show that city officials had been concerned about the quality of the Stratford Group’s management of city-owned property for years. Several letters written by city finance officials, including previous City Manager Larry Patterson and former Chief Financial Officer Andy Parks, requested the Stratford group reconcile delinquent financial records and pay overdue bills.

Blackwell said that under Hales and Finance Director Jim Krueger, who came on board last fall, real estate transactions can’t move forward without purchase orders, invoices and numerous authorizations.

”This administration would like to send a message that says, Boy are you lucky that we’re here,’ ” Blackwell said. But in reality, he said, today’s bureaucracy is costing the city more and is less efficient.

Hales said his way of doing things is to avoid repeating problems that have cost the city thousands of dollars.

”We haven’t finalized the ultimate costs to taxpayers as a result of inadequate services we received (from Blackwell),” Hales said. ”We’re trying to implement more modern practices so they all are above reproach and we can maintain taxpayers’ trust in how we spent money in property transactions.”

Anne Aurand can be reached at 541-383-0323 or aaurand@bendbulletin.com.