Land deal with Klamath Tribes spurs controversy

The deal is being proposed by Chris and Tom Maletis, owners of 385 acres south of the Willamette River near Wilsonville. The land, which includes the Langdon Farms Golf Course along Interstate 5, is currently zoned for exclusive farm use with a conditional use permit for the golf course that would be revoked if the course closed.

The land also is designated as a rural reserve by Metro and Clackamas County, meaning it can’t be considered for urban development over the next 40 years. The brothers are proposing construction of a green industrial development on the property, although city leaders from the surrounding towns are concerned that the 2005 proposition of a mega-casino could be rehashed.

Under the deal the developers would apply with the Bureau of Indian Affairs to place the land into a trust for the Klamath Tribes of Chiloquin. The tribes would then lease the land back to the brothers, freeing them of state, county and municipal land-use regulations under the Klamath Restoration Act of 1986. Loose wording in the Klamath Restoration Act makes it difficult to determine if the tribe can be trusted land only in the general vicinity of their reservation, or anywhere. Langdon Farms is about 250 miles away from the tribe’s original reservation.

In a letter to the regional municipalities, Merkley said, “I share many of your concerns about land at such a distance from the tribe’s ancestral land moving into trust. … Although I have great interest in aiding the Klamath Tribe’s economic development efforts and understand their desire to meet the challenges facing tribal members who are living in the Portland metro area, I believe that using the conversion-to-trust process to achieve a zone change for development in Clackamas County would be a serious mistake.”

Merkley sent the letter in mid-April and indicated that he wasn’t sure if the deal would move forward or not. At about the same time the Maletis brothers canceled planned town hall meetings to discuss the issue in Wilsonville, Hubbard, St. Paul and Aurora, noting that an application hadn’t yet been filed with the BIA.

(Photo by Dan Carter/DJC)

Mark Ottenad, public affairs director for the city of Wilsonville, thought the proposed land trust might be a lobbying technique to get the land put in an urban reserve instead of a rural reserve during Metro’s recent land planning initiative. But Mark Cushing, the attorney representing the brothers, said, “We took a slight hiatus during the Klamath tribe’s recent election process but will still be moving forward with the deal.”

Ottenad said the big issue with developing the land is that the transportation infrastructure around Interstate 5 couldn’t support urbanization south of the Willamette River. It would cost ODOT $500 million in capital costs to make the improvements to support urbanization that far south, he said.

“We have a great deal of concern with how things move along Interstate 5 because so many of our businesses depend on smoothly moving up and down the freeway,” he said.

The other major concern is that once the land is put in a trust, it would be fairly easy to change its use from green industrial.

“We have two million square feet of vacant industrial space in the area. Why would we need more?” asked Ottenad. “Even if they are designating the land as non-casino with the BIA, our attorneys have advised us that it would be fairly easy to change that designation if the proposed idea didn’t pencil out.”

While the debate continues in Oregon, Merkley said in his letter that he will be keeping a watchful eye on the issue and is prepared to enter into a discussion with the Department of Interior in the deal is made.

“It is the senator’s hope that the parties involved will allow Oregon’s land-use system to continue to function as it was envisioned by the Oregon Legislature and Oregonians who believe a big part of our state’s legacy is our smart stewardship of rural reserves,” said Julie Edward, communications director for Merkley.