County may swap acreage for park land

Deschutes County has entered into a land exchange agreement with Sisters-area resident Eric Dolson that could add six acres and a residential dwelling to Smith Rock State Park, while Dolson will acquire approximately 120 acres near Cloverdale where he intends to build a home.

In addition to the land exchange, there will be a cash component of the trade to equalize values.

This is the second recent exchange proposal for the county land. On September 27, 1996, Keith Cyrus, co-owner of Aspen Lakes Development, L.L.C., made the county an offer on the property, according to County Commissioner Linda Swearingen.

The 120-acre parcel abuts the Cyrus Ranch south of East Highway 126.

According to Cyrus, "Some opposition came up from homeowners (who live) on the rim (of Squaw Creek Canyon) when the county said they were going to turn the property into park reserve."

Apparently, Cyrus explained, the homeowners took this to mean a public park, spreading concern about public access and the area becoming "another Cline Falls (State Park)."

On February 12, 1997, the county declared its intention to move forward with the Cyrus exchange. The exchange resolution also announced a public hearing on March 12 to hear "objections to the transfer."

The definitive objection came on March 3 from Edward Fitch, attorney for the Aspen Lakes homeowners group, The Rim at Aspen Lakes Association, Inc.

In a seven-page letter to Brad Chalfant, then property and real estate manager for Deschutes County, Fitch contested that the appraisal of the Cyrus land was 'flawed' and that its sale violated a land-use restriction on the property passed by the county on June 24, 1992.

After receiving numerous letters of complaint and threats of legal action from the homeowners association, Deschutes County backed out of the exchange with Cyrus.

According to a follow-up letter dated April 15, 1997, from Chalfant to Cyrus, Cyrus called the county "to put the proposed exchange on the back burner for the time being."

In his letter, Chalfant added, "it is conceivable that the Board of County Commissioners may at some date entertain other proposals for a land exchange." Chalfant, who is now the executive director of the Deschutes Basin Land Trust, declined further comment.

In May, during the filming of Kevin Costner's "The Postman" near Squaw Creek Canyon, Swearingen visited with the homeowners. "We attempted to talk with the homeowners " she said. "They had some very valid concerns."

Dolson originally learned of the Cyrus exchange after viewing signs for the proposed land use action on Highway 126. In a conversation with Matt Cyrus in June, 1997, Dolson learned that they had withdrawn the exchange proposal with the county.

"Eric (Dolson) contacted the county in July with interest in the 120 acres and asked if there would be any problem (acquiring it)," said Swearingen. "I told him the Cyrus deal fell through, and then (Dolson and the county) signed an agreement."

The county had been contacted prior to Dolson's inquiry by John Rex, owner of a six-acre parcel and house adjacent to Smith Rock State Park.

"Rex doesn't live in the area anymore and uses (the property) as a second home," Swearingen explained. "He heard that the county and state had (previously) purchased five acres to add to Smith Rock (State Park), and he offered his property (for sale)."

On July 23, 1997, Deschutes County entered into an exchange agreement with Dolson.

"The county will make the transaction with (Dolson) and then he will purchase the Smith Rock property and trade it to the county (for the 120 acres)," Swearingen said.

As the exchange shifted gears, the county notified Cyrus that they were moving ahead with Dolson.

Cyrus believes he was treated unfairly.

"The county backed out of the deal after I paid for half the appraisal fee (on the exchange)," he said. "I also modified the management plan (for the Aspen Lakes property) which was completed in late May."

Swearingen maintains that, "(Cyrus) couldn't bring the homeowners to the table and he didn't have anything (else) of value to give us.

"We don't have any moral obligation to wait until (Cyrus) wants the property (and) we wouldn't mind refunding his appraisal fee," Swearingen said.

Cyrus accused Dolson of using his position on the Deschutes County Planning Commission to demand Cyrus' support.

"Eric said it would be to my advantage to work with him," Cyrus said. Dolson denies the accusation.

"I was no longer on the planning commission when Keith and I had that conversation," Dolson said. "I notified the county in January that I would need to resign from the planning commission because of other volunteer commitments, and did so in June."

Dolson says he did contact Keith Cyrus "when I learned of Cyrus concerns about my exchange agreement with the county. I was seeking a compromise with him as a potential neighbor."

Dolson said he would still be willing to discuss possible compromises with the Cyrus family, "such as an exchange or lot line adjustments, but, unfortunately they don't return my phone calls."

Two separate public hearings will be held on the upcoming exchange between Deschutes County and Dolson.

Wednesday, January 28, a hearing will be held on the exchange of the Rex property for the county's 120 acres near Cloverdale. Wednesday, February 11, will be a hearing to allow a lot of record permitting Dolson to build his home on the 120 acres.

Both hearings will be held at 10 a.m. at the Deschutes County Administration Building at 1130 NW Harriman Street in downtown Bend.