Sean C. Morgan
The Sweet Home City Council agreed by consensus Oct. 25 to partner with the Sweet Home Economic Development Group in the acquisition of 220 acres along the south bank of the South Santiam River.
The property, located west from the northern end of Clark Mill Road, was formerly a rock quarry operated by Knife River (formerly Morse Bros.). It is owned by Linn County as a result of foreclosure on more than 400 acres against Western States Land Reliance Trust, the previous owner, for nonpayment of property taxes.
About two years ago, Linn County and SHEDG began discussing the transfer of the property to SHEDG, which had hoped to use the property as a permanent concert venue for its annual Oregon Jamboree, a camping and country music festival used to raise funds for economic development projects.
Since then, the county and Knife River have completed environmental assessments and cleanup on the property and received a notice of no further action from the Oregon Department of Environmental Quality. SHEDG has been completing its due diligence on the property at the same time, spending money and time trying to make sure it’s a property SHEDG would like to take.
“We’ve been (having) conversations about conveying that property to SHEDG for some time,” said Roger Nyquist, chairman of the Linn County Board of Commissioners, during the board’s regular meeting on Oct. 25. “Some representatives of the city have now expressed an interest in being a partner with SHEDG and being on the deed as well. For our purposes and our goal of having that property utilized as an asset for the community, I don’t think it makes a difference to us. In some ways having the city involved in ownership transfer makes it a cleaner deal and gives the parties more flexibility in future utilization of the property.”
His only concern is that it might delay the transfer of the property, he said. “Our property management has spent more time on that property than I’d hoped. We just need to get it off the books.”
But the county can be flexible, he told the city councilors during the council’s regular meeting Oct. 25.
Rachel Kittson-Maqatish, SHEDG president, told the council that SHEDG could have a property tax liability of up to $26,000 on the property.
At the same time, the county would like SHEDG to take possession of the property prior to the end of the year. She formally asked the council to consider a park exemption to the property taxes or taking possession of the property in partnership with SHEDG.
“SHEDG has always viewed ourselves as being the conduit to moving that property to public benefit,” Kittson-Maqatish said. “And we understand that doesn’t necessarily mean that in the end we are the party on the deed. For use of the property, I believe, we do want to make sure that SHEDG has the ability to have concerts and festivals on the property. Our philosophy has always been we don’t know if we’re the best (ones) to own that property.”
If the county deeded it to SHEDG, by law, use would be restricted to open space and parks, she said. SHEDG would still be liable for taxes unless the city agreed to an exemption.
“That is an area where people trespass all the time,” Kittson-Maqatish said. “They want access to that property. The community wants access to that property.”
Kittson-Maqatish read a letter signed in 2011 by then-Mayor Craig Fentiman and City Manager Craig Martin. In the letter, the city expressed interest in acquiring the property to redevelop in consistence with the public will, to return the property to productive use.
“I know the county’s getting tired of waiting on us,” Kittson-Maqatish said. “Is there a partnership that we need to explore?”
“We were clearly a reluctant receiver of this property,” Nyquist told the council. Without an assurance the next property owner would clean up the property, the county committed to taking on that burden.
If the city owned the property, it would have more flexibility over the use of the property than SHEDG, he said. The deadline is arbitrary.
“I like this concept plan,” said Councilor Jeff Goodwin. “I would like to see it move forward. This land is naturally a beautiful park. I don’t see this should be developed as houses.”
He thinks that would potentially be unwise and not the best use of the land, he said. He would be more interested in seeing the old Sweet Home Mill property developed with residential, commercial or industrial uses. “I look at this as something that really should be a park.”
Mayor Jim Gourley expressed concerns about making a decision for all of the taxing districts that would forego property tax revenue if the city simply granted a property tax exemption. He preferred taking possession of the property, rather than granting the exemption. He believes that higher neighboring property values from the development of the Knife River property would offset lost tax revenue.
Councilor Dave Trask said he was “a little bit on the fence about the tax thing.”
Councilor Greg Mahler said he likes the idea of a public-private partnership but, also said he was on the fence about the property tax issue.
“I want to see the financials of my partner,” Mahler said, if he’s going to partner.
The council agreed to work with SHEDG on a partnership agreement. Nyquist said the county would like to have the structure of a partnership in place by the end of December.
Councilor Diane Gerson abstained from giving consensus because she is also a member of the SHEDG Board of Directors.
Present at the meeting were councilors James Goble, Mahler, Gourley, Dave Trask, Goodwin and Gerson.