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<br />e <br /> <br />Mr. Haws asked what other property in the area was selling for. Mr. Hanek, Parks <br />Acquisition Specialist, said the appraisers looked for comparable land values, which <br />ranged from $6,500 to $8,000; an adjustment had been made on this particular piece <br />of property with regards to access to the property and the time limit involved, but <br />that the price is within the range of comparable property in the area. <br /> <br />Mr. Lieuallen asked if the City would incur a tax. liability if the property were <br />converted to another use than farm use, as it now stands. Mr. Long replied that <br />there are statutes allowing withholding proceeds of the sale to pay taxes, and <br />indicated that the negotiation sets procedures and processes. <br /> <br />Mr. Obie asked how soon the property would be developed, to which Mr. Smith replied <br />approximately five years, as the Peterson Park in that area had priority development. <br /> <br />Managed indicated action should be taken at Committee of the Whole February 16. <br />asking Council to authorize Manager and staff to exercise right of eminant domain <br />in acquisition of the property. <br /> <br />II. Shade Oaks Water Litigation <br /> <br />e <br /> <br />Mr. Long gave a background presentation for the benefit of new Council members. He <br />explained that in 1975 people in the Shade Oaks Homeowners Association and the <br />Willamette Water Company applied to the Boundary Commission to extend water services <br />to the area for domestic water. The area is located outside the projected urban service <br />boundary of the City, and EWEB sells surplus water to the Willamette Water Company. <br />The Boundary Commission's approval of this contract amounted to directing city water <br />through EWEB to an area outside the city urban service area. The agreement between <br />Willamette Water Company and EWEB did not represent an agreement by the City to <br />supply water for that area. The Boundary Commission's order was conditional upon <br />EWEB agreeing to modify the contract so it could physically serve the area. Mr. Long <br />indicated that Willamette Water Company can sell water wherever it wants to, and could <br />sell from another supplier if it wanted to, or was able to. <br /> <br />The case before the Boundary Commission dealt with a presentation by the Shade Oaks <br />people, stating they did not have adequate water for household use, fire protection, <br />etc. The Boundary Commission acted on the basis they simply had no water. The City <br />testified this was contrary to City policy. When the request was granted by the <br />Boundary Commission, three issues were at stake: (I) the integrity of the urban <br />services area concept; (2) the county has no regulations or general or refinement <br />plan in that area; (3) there was no proof of adequate water supply prior to the <br />development. <br /> <br />Mr. Long said the concerns included the effect this might have on "sprawl .a.spects" <br />implicated in the decision, and that the Boundary Commission had not looked at or <br />adhered to city laws or metropolitan planning policies. Therefore a Writ of Review <br />challenging the validity of the decision was filed by the City. <br /> <br />The Circuit Court reversed the decision for a technical reason in which Mr. Long <br />argued that adequate legal reasons for the Boundary Commission's decision did not <br />exist. The Boundary Commission argued that it did not have to have legal reasons. <br />The Judge said there was no way he could determine how the Boundary Commission con- <br />sidered or'~ached its decision. <br /> <br />e. <br /> <br />Executive Session 2/16/77 -2 <br /> <br />132 <br />