News and Opinion from Sisters, Oregon
News and Opinion from Sisters, Oregon
The Sisters City Council has proposed a six-month building moratorium in a last-ditch effort to save grant funding for the Sisters sewer project.
The federal Rural Utilities Services warned the city on Thursday, November 18, that the agency will not fund the sewer in order to facilitate growth in Sisters. Rural Utilities has already loaned the city $3 million and granted more than $2 million.
According to Sisters Mayor Steve Wilson, Rural Utilities representative Ken Durrell, "made it clear that it would be difficult to make the pitch for the whole $3 million that we need based on what they believe is happening in Sisters.
"We've been warned that we're treading in a direction they're not comfortable with," he said.
The grant funds the city depends on to fund the sewer project are designated for communities that are predominantly low- to moderate-income. An influx of relatively affluent residents to Sisters in the past two years is changing the city's status.
The city needs approximately $5.5 million more to fund the sewer. The city can borrow some of that total, but relies on grants for the bulk of the funding.
"If Rural Utilities doesn't materialize, if we don't get $800,000 from OEDD (Ore-gon Economic Development Department), we'd be in big trouble," Wilson said.
The council voted unanimously on Thursday, November 18, to notify the state Land Conservation and Development Commission of the intent to impose the moratorium. A public hearing will be held in 45 days, on January 13, where the council could make a final decision.
The sudden move toward a moratorim shocked developers.
"We feel like we were blind-sided by this," said Mark Ford, one of the developers of Coyote Springs subdivision.
The developers are about a month-and-a-half away from being ready to sell home lots.
"We're still digesting this to see what we'll do," Ford said.
Pine Meadow Ranch developer Steve McGhehey said he and his partners "are studying (their) options."
"I have closed on about $2 million in sales and I've got to inform those people that they can't get a building permit," he said.
According to McGhehey, PMR may ask its clients to voluntarily hold off on pulling permits -- except for a 50-room assisted living facility, which is ready to go out for bids.
The developers could pursue an appeal to the state Land Use Board of Appeals.
"I don't want to hurt the city on this," McGhehey said. "I don't mind cooperating with the city, but I don't like being painted as the guy who brought the whole thing down."
McGhehey said he plans to meet with city officials this week to work out a solution.
"We have nothing to gain by torpedoing the sewer," he said.
McGhehey acknowledged that PMR could install and operate their own sewer system if Sisters' project fails.
PMR attorney Liz Fancher asked Wilson to provide the names of people to contact at the granting agencies. Wilson said he could give a list of names, but that calls to the agencies from developers would be counter-productive.
"They would flat out say 'we're not in the business of facilitating growth in Sisters,'" Wilson said.
Wilson defended the moratorium as necessary to preserve the sewer system for the residents who voted overwhelmingly two years ago to fund it.
"It's not fair to them to have the stampede of growth or potential growth jeopardize their position," Wilson said.
A moratorium would run through mid-June, but could be lifted sooner if grant funding was secured.
Developers can still file for building permits in the 45 days before the January 13 public hearing, which could tip Sisters demographic balance out of the range of grants.
"I would not be surprised to see an avalanche of plans, which effectively makes (a moratorium) a moot point," said councilor Lon Kellstrom.
Wilson acknowledged that possibility, noting that a rush to file could put the sewer project beyond reach.
"The mad stampede may be the gust of wind that brings the house down," he said.
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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