The Debate Over Destination Resorts in the Metolius Basin Intensifies

I'm guessing that when the folks who proposed building two destination resorts in Jefferson County's Metolius River Basin initially developed their master plans, they had no idea of the intensity with which the plans would be debated. But, in fact, the discussion about destination resorts and their place (or lack thereof) in Jefferson County just seems to be getting more complicated.

It all started in January 2007, when the Jefferson County Commission signed off a new comprehensive plan that included two proposed destination resorts (a first for Jefferson County): The Metolian, a 627-acre project northeast of Suttle Lake by Dutch Pacific Resources LLC that would include 180 lodging units and 450 residences; and The Ponderosa, a 3,000-acre, 2,500-unit project along Green Ridge, owned by Ponderosa Land and Cattle Co. (a subsidiary of the Salem-based Colson & Colson/Holiday Retirement Corp.).

It wasn't long before strong opposition to the resorts surfaced. By February, four different groups had filed a notice to appeal the new comprehensive plan. Shortly thereafter, state Sen. Ben Westlund filed a bill to prohibit resorts from being built within three miles of the Metolius Basin. Ultimately, both the appeals and the legislation failed (the bill was squashed when Gov. Ted Kulongoski refused to insert development restrictions into statewide land-use laws).

A Change of Heart
Fast-forward to December 2008, and a serious change of course -- at least for Gov. Kulongoski. At his request, the state's Department of Land Conservation and Development (DLCD) devised a plan that would designate the Metolius Basin "an area of critical statewide concern," which would prohibit large-scale development there and restrict development in zones nearby. That would mean the end of the road for The Metolian and The Ponderosa.

Two weeks ago, several hundred people attended a public hearing held at the Sisters High School to discuss Kulongoski's plan. Most were in favor of the idea.

Last Tuesday, I attended a meeting held by Dutch Pacific at Sisters' Five Pine Conference Center to present in-depth plans for the Metolian (see photo, above). Unlike the previous Sisters meeting, it drew only a couple dozen attendees. I went because I was curious about the specifics of the project, which I had heard touted as an "eco-resort."

I was surprised to learn several things. The parcel, which Dutch Pacific bought in 2005, had been logged extensively and is hardly the pristine river's-edge location that many people envision (in fact, Black Butte Ranch is closer to the headwaters of the Metolius than is the Metolian).

Many of the plan's eco-friendly components involve innovative, cutting-edge ideas that, had this project been proposed just about anywhere else, probably would have been held up as the new standard by which destination resorts should be measured. For example, along with a commitment to reduce water consumption and energy demand --and no plans for even a miniature golf course -- the project calls for on-site environmental education opportunities, on-site employee housing, upkeep of public Forest Service land nearby and the creation of a stewardship fund that would be dedicated to environmental conservation and restoration work throughout the Metolius Basin. (The fund would be drawn from lodging fees, homeowner's fees and a small percentage of each sale in perpetuity.)

More Meetings, More Bills
On Thursday, a new bill was introduced that would re-categorize the Metolian as a "sustainable eco-community," which might enable the project to sidestep a potential ban on destination resorts in the Basin. Two other bills also introduced on Thursday would impose destination resort bans within three miles of the Basin, but would leave the door open for the Metolian if it meets certain criteria. Ponderosa, on the other hand, would be out of luck.

Also on Thursday (a busy day for the Basin!), the DLCD held a public hearing in Madras to discuss the latest draft of Kulongoski's plan, which has been revised to allow for up to 50 recreational dwellings on the property owned by Ponderosa Land and Cattle Co. According to that plan, no other private land could have more than 10 dwellings; golf courses wouldn't be allowed; and the size of each development would be tied to anticipated water usage. Perhaps most importantly, if Dutch Pacific and Ponderosa agreed to forgo some development rights in the basin, their projects could be relocated to a nearby site rather than be scrapped (they would be the first developers given a chance to develop a parcel of land northeast of Lake Billy Chinook). However, the land being offered is currently designated farmland, which makes it an unpopular option for many folks -- both those opposed to and supportive of the resorts.

Meanwhile, the Jefferson County Commission is working on developing its own plan to limit development in the Metolius Basin and provide other land for resort development.

On Saturday, the Land Use Committee of the Oregon House of Representatives held a public hearing in Redmond. The topic: the Kulongoski plan, plus legislation that would direct the DLCD to study destination resorts, including the impact they have on natural resources and nearby cities, and to potentially revise resort requirements (including legislation that would put a moratorium on new resorts). About 100 people attended.

Who knows what tomorrow will bring...

About the Author:
Lisa Broadwater is a Central Oregon-based real estate professional who specializes in listing and selling homes, especially in Sisters, Tumalo, Redmond and Bend. If you'd like to learn more about Central Oregon, please visit www.CentralOregonHome4You.com.