Rec Area Purchase Hits Snag
By Bill Rautenstrauch, The Observer, La Grande, Ore.
Jul. 5–Union County’s plan to purchase land for the proposed Mount Emily Recreation Area hit a snag recently when the Oregon Parks and Recreation Department turned down the county’s $1 million Local Government Grant application.
According to County Planning Director Hanley Jenkins, the application was rejected because the state grant program had already spent two-thirds of its biennial allocation.
There were a total of 49 applications. On a ranking list, the Mount Emily project came in 16th.
“Our $1 million request was 25 percent of what they had to spend,” Jenkins said. “They decided to fund smaller projects.”
Now, the county has to look elsewhere for money to make up the purchase price.
The county tentatively plans to buy 3,700 acres of land on Mount Emily and manage it for recreation and natural resource use. A purchase agreement with current owner Forest Capital Partners has been worked out, though no commitment has been made.
Under the preferred purchase option, the county would buy all the property, including the land and the timber. The county would be required to secure the full dollar amount, $7.9 million, from multiple funding sources.
The county has about $4.4 million in hand from a state Parks and Recreation all-terrain vehicle program grant. Gap funding sources could include other grants, low-interest loans secured by the timber, or sale of a block of the land to a conservation buyer.
Under a second option, the county could reduce its capital commitment by purchasing all the land but acquiring only one-third of the standing timber volume.
Forest Capital would retain the other two-thirds and harvest it over four years. The asking price under that option is $4.6 million.
Originally, the county faced a July 1 deadline to notify Forest Capital which option it planned to pursue, and a Sept. 1 deadline to close the deal.
Jenkins said negotiations to extend the deadlines are under way.
“Forest Capital is working with us. They do appear willing to extend the deadlines,” he said.
Jenkins said the county will now have to raise $3.3 million to buy the land under the preferred option.
The Meyer Trust is one possible funding source. On June 10, the Trust notified the county it may be interested in making a $1 million program-related investment in Mount Emily.
The investment would be in the form of a low-interest loan secured by timber assets. After completing a review of an initial inquiry from the county, the Trust on June 10 invited submission of a full proposal.
The county continues to explore funding sources for the remaining $2.3 million, Jenkins said.
“We’re pursuing other options including grants, trusts or even loans,” he said.
The proposal to buy the land from Forest Capital Partners depended on the outcome of an advisory referendum that was held as part of the May 20 elections. Voters were asked if they wanted the board of commissioners to pursue funding to buy the property.
The vote was not binding, but the board pledged it would honor the wish of the voters. Overwhelmingly, those casting ballots advised the county to pursue the purchase.
County Commissioner Steve McClure said Thursday the board intends to honor the commitments it made to voters.
“We said we’d actively manage the land for timber and keep it open, and we agreed that we won’t expose the general fund to recourse. If we can’t honor those things, we’re not going to do it,” he said.
Despite the recent setback, McClure said he is optimistic about funding.
“You have a plan and sometimes there’s a hiccup and you have to go back and look at it again,” he said.
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