Deal still possible for Skyline Forest

Bend Bulletin article comments on progress of the Land Trust's Skyline Forest project.

SALEM — A scaled-down deal to protect thousands of acres of forestland northwest of Bend could still become the topic of legislation at the Capitol this year.

In November, talks fell through on how to preserve what’s known as Bull Springs or Skyline Forest. One proposal would have involved the owner of the property donating 28,000 acres to the Deschutes Land Trust in exchange for the right to build about 1,000 houses within a 5,000-acre parcel now zoned for forest use.

Another version of the deal would have given the state a reduced price on roughly 100,000 acres one hour’s drive south of Bend in Klamath County, for a new Gilchrist State Forest.

Talks have continued on the fate of Skyline Forest, but due to political concerns, those plans have been “downsized,” said Greg Lane, chief operating officer of Fidelity National Timber Resources, which owns the property in both Deschutes and Klamath counties.

Possible options

Though details are scarce on what a deal might look like, one possibility was recently unveiled to Rep. Gene Whisnant, R-Sunriver. He says a Fidelity lobbyist told him the company was almost ready to push forward with a small-scale development in Skyline Forest. “I was really excited,” he said.

The plan would have been for just 25 homes “clustered” together more closely than allowed by current zoning, to save money on utilities and infrastructure, Whisnant said.

However, participants in the talks cautioned that the idea floated with Whisnant is just a possibility.

Lane said that while there have been “good conversations,” the company hasn’t settled on a plan, other than that it would like to sell the land it doesn’t develop to the Deschutes Land Trust.

“It would be premature to say we’ve found a formula that makes any sense right now,” Lane said. “I think we’ll get there, but the numbers right now just aren’t compelling.”

Lane said the challenge is finding a plan that makes sense financially but that also has a shot at political and legal success.

Fidelity could build more than 130 homes — although each would have to be on a 240-acre lot — without political help from the Legislature. However, any attempt to do so would almost certainly face legal challenge, said Paul Dewey, attorney for the group Central Oregon LandWatch.

Facing challenges

Legally and financially, a better option might be to build homes on smaller lots closer together. However, that plan would require legislation that would transfer development rights from most of the forestland to one portion of it. And this year’s legislative session is scheduled to be completed by July, meaning the politics could be difficult.

“I think the challenge is going to be proving up the (development’s financial) model fast enough to get into this year’s legislative session without being reckless,” Lane said. “We’re certainly going to take a shot at it, but it might make more sense to slow it down and do this a little more carefully.”

Brad Chalfant, executive director of the Deschutes Land Trust, said that whatever the timeline, “I’m convinced that it is ultimately going to come together.”

What’s next?

Action could come quickly. Whisnant said he has reserved one of his two “priority” bills, those that can bypass normal legislative deadlines to be introduced, for Skyline. And Linda Swearingen, a lobbyist for Fidelity, said an announcement of some kind could come within weeks.

Meanwhile, the Oregon Department of Forestry has been engaged in separate talks with Fidelity over purchasing three tracts of land near Gilchrist to become a new state forest on the east side of U.S. Highway 97. On the west side of the highway, Fidelity has applied to the county to build a destination resort.

Doug Decker, the Forestry Department’s project leader, said the state should receive an appraisal of the forestland within weeks, allowing negotiations to begin in earnest. “I’d say we’re still on track,” he said.

Nick Budnick can be reached at 503-566-2839 or at nbudnick@bendbulletin.com.