News and Opinion from Sisters, Oregon

House Bill could boost Aspen Lakes

The Cyrus family of Sisters is taking another crack at expanding the scope of their Aspen Lakes development east of Sisters.

Rep. John Huffman (R - The Dalles) introduced HB 3536 in the Oregon House of Representatives on Wednesday, May 29. The legislation would allow for the creation of a "Heritage Guest Ranch" on Cyrus-owned land, with up to 480 residential units, overnight lodging facilities such as cabins, condominiums and townhouses, recreation facilities and a motorcoach resort facility with up to 100 spaces.

It would also allow development of an additional golf course.

The bill, which was referred to the House Rules Committee and will get a hearing June 5, would require purchasers of residential property to pay a $1,000 impact fee to the City of Sisters and $2,500 to the Sisters Schools Foundation within 30 days after a building permit is obtained.

The existing Aspen Lakes development features a golf course, a restaurant and home sites, but no overnight accommodations.

The proposed legislation resembles HB 3372, introduced by Rep. Gene Whisnant in 2011. That bill failed to move out of committee.

The current bill, however, calls for development "in conjunction with a transfer of development opportunity" from the proposed Metolian resort in the Metolius Basin. Transfer Development Opportunity (TDOs) were established in 2009 when the legislature effectively disallowed the Camp Sherman-area development under a provision declaring the Metolius Basin an Area of Critical State Concern. The TDOs allow the developers to use their rights elsewhere under specific restrictions.

"The unique thing about this bill, it's primary purpose is to amend the Metolius bill," Matt Cyrus told The Nugget. "It allows our property to be an alternate receiving site (for the TDO credits)."

Paul Dewey of Central Oregon Landwatch calls such application of the TDOs "totally inappropriate."

He notes that the 2009 legislation restricted their use to developments smaller than 320 acres and fewer than 240 units, disallowed golf courses and required $1.5 million in off-site environmental improvements.

"With this bill, none of that happens," Dewey told The Nugget.

How the use of the TDOs would work in practice is not clear. They do not carry a cash value.

"They (Metolian investors) would be paid for their credits," Cyrus said. "(The value) is whatever we agree to."

Shane Lundgren of Camp Sherman, a partner with the development group Dutch Pacific in the Metolian proposal, told The Nugget that he is merely an observer as the bill hits the legislature.

"It's really the legislature and Matt's deal," he said. "I'm not involved. I don't know if that's where the TDOs would end up, but it's an option."

Lundgren said there have been no discussions of any financial transaction.

"I've had no financial discussions with anybody," he said. "I'm just watching the Aspen Lakes thing. It'll be a miracle if it goes through, but if it does, we can talk."

Further development in the area of Aspen Lakes has been a focus of controversy for years.

The introduction of HB 3536 brought an immediate response. Central Oregon Landwatch issued an "urgent action alert," which circulated via email among neighbors of Aspen Lakes.

The alert argued that the proposed legislation "would harm the hundreds of people who live and who have invested in the area and who would be negatively affected by all the new development."

Landwatch also protested the use of special-interest legislation: "Granting special privileges to individuals like this undermines our land-use system, local county control and the legislative process."

Dewey cried foul at the late-session introduction of the bill.

"This is no accident," he said. "They're doing this last-minute end run to avoid a meaningful public process," he said.

Cyrus counters that any development would still have to go through the master planning process at the county level, allowing opportunities for public input.

And, he says, the legislature has already established precedence for intervening and overruling local control.

"The TDOs were created through the Metolius legislation," he said. "In itself, it's been a carve-out or a set-out for state intervention in the land-use process."

Cyrus and his sister, Pam Mitchell, say that there is substantial, albeit quiet, support for the family's plans, which they believe will be an important stimulus for the Sisters Country economy, not only from the development itself, but from increased tourism to the area.

"I think there's a lot of people who recognize that what we've done so far is quality and good for the community," Mitchell said.

Kathy Deggendorfer, a neighbor of Aspen Lakes, doesn't dispute that.

"They've done a beautiful job managing all that land," she said. And, she noted, "They've been very philanthropic with how they've managed their (golf) course."

However, she is strongly opposed to the proposed legislation, which opens up agricultural lands for development.

"I just think it's gross overdevelopment of the area," she said. "And I really don't like legislation written for a single user."

Matt Cyrus argues that the area will be developed one way or another, and this proposal is at a much lower density than what would be allowed if it develops as a destination resort.

Dewey disagrees with that assessment and, in any case, believes the argument should be tested through the land-use process, not through "one-off" legislation.

"Everybody else is going through the normal land-use process for destination resorts, why shouldn't they?" he said. "If they think they should get more, they should try."

Maximizing the development is not the issue for Matt Cyrus. He told The Nugget that the bill was crafted with "something for everybody," including mitigation for any impacts the development might have. That, he argues, is more than another developer might do.

"That property can be developed as a resort," he said. "If we don't develop it, I'm confident that somebody with a lot more money will."

A public hearing on the bill is scheduled for 3 p.m. on June 5 at Hearing Room HR F in the state capitol.

The full text of the bill can be viewed through a link with The Nugget's online version of this story at www.nuggetnews.com.

Author Bio

Jim Cornelius, Editor in Chief

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Jim Cornelius is editor in chief of The Nugget and author of “Warriors of the Wildlands: True Tales of the Frontier Partisans.” A history buff, he explores frontier history across three centuries and several continents on his podcast, The Frontier Partisans. For more information visit www.frontierpartisans.com.

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