BACKGROUND:
Bend has a historic opportunity to protect a portion of the Deschutes South Canyon, the largest remaining open space on the Deschutes River in southwest Bend, by establishing protected parkland much like Shevlin Park or Riley Ranch.
This property is currently used as a natural recreation area by thousands of Bend residents and visitors. The Central Oregon Irrigation District (COID) owns approximately 150 acres of land where they operate a piped canal and power station.
In 2016, the COID’s Deschutes South Canyon property was designated an Opportunity Area for residential development as part of Bend’s Urban Growth Boundary expansion.
The property was up-zoned from Public Facility to RS paving the way to potential development. The same year, COID and a developer entered into a sales agreement for the purchase of approximately 80 acres. Unless COID and the developer agree to cancel this agreement, COID cannot sell the land to any other party such as Bend Park & Recreation District or a land trust.
HOWEVER, THE CLOSING OF THE SALE HAS BEEN DELAYED FOR ALMOST EIGHT YEARS FOR MULTIPLE REASONS INCLUDING:
- Confirmation that a major portion of the land cannot be developed until 2034 under a scenic view easement established with Mt Bachelor Village.
- Property Line Adjustments – approved by City of Bend in 2022 with a covenant that requires that the property be developed through a single Master Plan application, and that none of the lots may be developed individually.
- Amendment to COID’s license agreement* with the Federal Energy Regulatory Commission (FERC) – the sale cannot go through without this amendment and FERC’s approval of the sale; FERC’s decision is pending.
* FINAL HURDLE TO SALE
COID is required to maintain a recreational project trail as part of its operating license with FERC. The trail that was established for this purpose is known to many as the “Canopy Trail,” the much-used and beloved tree-lined path that starts at the trailhead on Brookswood Blvd and connects to the Deschutes River Trail. COID intends to sell the parcel of land that includes the Canopy Trail. SBGS alerted FERC of COID’s plans and the community’s desire to preserve the Canopy Trail.
Subsequently, FERC required COID to apply for an amendment to its original license. COID’s application proposed substituting a 20’ access easement for the present trail. The problem with this proposal is that the easement does not fulfill FERC’s requirement that the “scenic, recreational and environmental value” of the Canopy Trail be preserved. The easement offers no protection to the large Ponderosa Pines and the open water along the trail. The proposed easement can be relocated and even be eliminated when the property is platted by the future developer.
After consultation with one of the country’s leading law firms working with regulatory agencies, SGBS submitted a Motion to Intervene (MTI) with FERC in August 2023. We are optimistic that FERC will accept our MTI, which will make us an interested party able to participate in hearings on the matter. We have been advised that in cases like this, FERC does not like to play “parent” and requires the licensee to go back to the drawing board and work with interested parties to negotiate an acceptable solution. It is our hope that through negotiation an easement that protects the heavily wooded and habitat-rich portion of the Canopy Trail in perpetuity can be established. We are expecting FERC to make a decision on the application in early 2024.
FERC must approve the amendment to COID’s license before the property can be sold. COID has stated that it intends to close on the sale two weeks after it receives FERC approval.
