Restoration

On February 10, 1996, it was finally removed from Oaks Pioneer Park (now called Oaks Bottom Wildlife Refuge). It was then moved to the Southern Pacific (now Union Pacific) Brooklyn Roundhouse, where it once again joined SP 4449 and SP&S 700 to begin restoration.

That day just happened to coincide with the height of severe flooding in the Portland area after a series of winter storms. The Willamette River was lapping at the embankment where the engine sat. The East Portland Traction Co. (now Oregon Pacific Railroad), owner of the nearby railroad right-of-way, had to clear several mudslides the preceding day, but the engine was moved without incident.

Until 2012, OR&N 197 and Portland's other two steam locomotives were stored in the last remaining roundhouse in Portland, which was located in an active Union Pacific freight yard, the Brooklyn yard. Some of the larger restoration activities accomplished at the roundhouse were installation of the new cab, donated by Holte Manufacturing, and fuel tank enclosure work.

Within a few years UP announced plans to close the Brooklyn Roundhouse as they expanded the freight yard to facilitate increasing intermodal traffic. The nonprofit Oregon Rail Heritage Foundation was formed to develop, raise funds for, and build a permanent home and restoration facility for Portland's three steam locomotives. On June 26, 2012, Brooklyn Roundhouse ceased operations, and the three steam locomotives moved to the new site. In early September the roundhouse building was torn down and the turntable was moved to the new building’s yard. The Oregon Rail Heritage Center opened to the public on September 22, 2012.