The city council on Wednesday approved a plan to buy the lot with the goal of building 100 to 300 units of affordable housing.
“The property has a relatively close-in location, it has good access to transit, and it neighbors Cleveland High School, making it ideal for families with students,” said Mayor Ted Wheeler.
The city will pay $3. 7 million for the lot on Powell Boulevard, which includes the Safari Club.
The purchase will be funded in part using $1.25 million in taxes the city has collected on short-term rentals like Airbnb.
Portland was one of the first cities to require Airbnb hosts to pay a lodging tax.
The Housing Bureau hasn’t settled on a design for the units it wants to build on the site. In the interim, the bureau’s director says he’s working with Multnomah County to re-purpose the strip club building as a homeless shelter for women or families.
The manager of the Safari Club said that 45 people will lose their jobs when the city buys the property and shuts down the strip club.
Editors note: An earlier version of this story incorrectly stated that Portland has struggled to collect lodging taxes from Airbnb hosts. OPB regrets the error.