Backup resort ban put forward in Salem

SALEM — Backers of the proposed Metolius River Basin destination resort ban are finding it may be more difficult to pass than they once thought.

The heightened concern stems from a two-pronged lobbying effort by Jefferson County officials and the developers of the Metolian project, both of whom have become increasingly aggressive in recent weeks.

Even as concern about the resort ban’s chances in the state House has increased, legislation that amounts to a backup plan has been scheduled for a hearing in the Senate. At the same time, the Metolian developers have stepped up their push to kill the ban while abruptly pulling out of negotiations that some lawmakers had hoped would make the necessity of a tough decision go away.

“There is concern because the Metolian developers are working hard to kill this thing,” said Eric Stachon, spokesman for the conservation group 1000 Friends of Oregon. “They seem to have a presence inside the (Capitol) building that is disproportionate to what we think the level of public support is for protecting the Metolius.”

In December, Gov. Ted Kulongoski asked the state Land Conservation and Development Commission to craft a ban on destination resorts in the basin, designating the Metolius an Area of Critical State Concern.

Last month, LCDC did so, issuing a recommendation to the Legislature that capped months of closed-door negotiations and public hearings.

While blocking two landowners’ plans to build resorts comprising 3,100 units, the plan allowed them to proceed with limited development. Essentially, the Metolian could build 35 dwellings and the Ponderosa Land and Cattle Co. could build 120.

But if another site elsewhere in the state is found for the Metolian, that project’s landowners will only have rights to build two houses in the basin, according to the plan.

That provision alarmed the Metolian group, which wants to make a profit off its Metolius investment before starting any new projects.

Since early April, the legislation carrying the plan, House Bill 3100, has been sitting in the House Land Use Committee, pending what environmentalists and lawmakers say have been negotiations with the Metolian developers.

The negotiations have revolved around legislation under which the Metolian developers could build their “eco-resort” in a forested location outside the Metolius basin by transferring development rights from one part of the forest to the other, and preserving the rest.

In the last week, Jefferson County officials have become more aggressive in lobbying the Legislature, saying that if the Metolian is allowed into the basin, they will drop a legal action filed in the Oregon Court of Appeals to block the state’s Metolius plan.

And on Friday, Jim Kean, a member of the Metolian development group, said he has told the bill’s lead co-sponsor, Rep. Brian Clem, D-Salem, that the group is pulling out of the negotiations. Kean’s group on Friday distributed a letter stressing that the developers are “committed to finishing our proposed project on our existing property.”

Clem, for his part, said he hopes the Metolian group changes its mind but characterized the group’s lobbying as an effort to improve its bargaining position. “Their lobbyist is a good negotiator,” he said.

However, he conceded that he is not sure how the House Democratic leadership feels about his bill, and doesn’t know whether the bill will be allowed to go the floor for a vote in the form he supports.

Currently, if passed out of the Land Use Committee, Clem’s bill still must pass the House Rules Committee. The latter committee’s chairman, Rep. Arnie Roblan, D-Coos Bay, is considered likely to be more receptive to the Metolian than the Land Use Committee’s chairwoman, Rep. Mary Nolan, D-Portland.

Rep. Judy Stiegler, D-Bend, said her impression is that the fate of the bill is unclear.

“I guess I have a sneaking suspicion it will at least get out of Land Use, and what happens at that point I don’t know,” she said.

Meanwhile, Sen. Jackie Dingfelder, D-Portland, has introduced her own Metolius resort ban, Senate Bill 741, and scheduled it for a hearing Thursday. It is very similar to Clem’s bill. Dingfelder could not be reached for an interview, but Clem said his understanding is the Senate version is a “backup plan” introduced for tactical reasons.

Campaign contribution reports provide insight into the Metolian developers’ contacts with lawmakers. Their group, called Dutch Pacific Resources LLC, has contributed more than $22,000 since August 2007, according to the Secretary of State’s office.

The group’s lobbyist, Hasina Squires, said the contributions were given to lawmakers who were receptive but have “not necessarily” said they would support the Metolian project. Top recipients on the Democratic side include Rep. Larry Galizio of Tigard ($3,000), House Speaker Dave Hunt of Gladstone ($2,500), Rep. Tobias Read of Beaverton ($1,250) and several with $1,000, including Roblan.

Top recipients on the Republican side were Rep. Gene Whisnant of Sunriver ($2,500), and several with $1,000, including Sen. Chris Telfer of Bend and Rep. John Huffman of The Dalles.

The Metolian’s Kean said he thinks his project has significant support, including from some Democrats, but he repeatedly declined to say whether his group has enough votes to stop the bill.

Nick Budnick can be reached at 503-566-2839 or at nbudnick@bendbulletin.com.