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Metroscape Institute of Metropolitan Studies

Winter 2015 Rock, Water, and Gravity: Alchemy Along the Willamette

Andrée Tremoulet Portland State University, [email protected]

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Recommended Citation Tremoulet, Andrée (2015). "Rock, Water, and Gravity: Alchemy Along the Willamette," Winter 2015 Metroscape, p. 6-12.

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Rock, Water & Gravity: Alchemy Along the Willamette by AndréeTremoulet

ven those who know it well are Proponents claim that the Willamette challenged to find a single word Falls Legacy Project will transform this Ethat conveys the enduring power part of the metropolitan region by com- and magnetism of . Cen- bining access to an unparalleled natural turies before European or American set- resource and an historic site with new tlers had set foot in the region, it was an economic activity. Ultimately, the project important site for fishing, trading, and will include public access to the falls, a community gatherings for Native Ameri- restored urban fabric that extends his- can tribes and bands. Later, the falls were toric downtown City, and a new a magnet to early industrialists and city mixed-use development for dwellers, do- builders of the 1800s, who harnessed ers, diners, drinkers, artists, makers, stroll- its energy to power mills that processed ers, cyclists, nature-lovers, and, potential- lumber, wool, grain, and paper. ly, boaters. With the possibility of up-close public This vision is rooted in four core values, access now surfacing for the first time derived from and vetted through a robust in more than a century, Willamette Falls public planning process: public access, If we do it is the inspiration for a new partnership economic development, healthy habitat, right, it might involving state, regional, and local public and historic and cultural interpretation. agencies and a private developer to rede- “It will attract people not just from attract people velop the former 22-acre Blue Heron Pa- around the region, but it will attract peo- from around per Company mill site just southwest of ple from around the country,” says Metro the world. downtown Oregon City—a project called Councilor Carlotta Collette (Metro Coun- — Carlotta Collette the Willamette Falls Legacy Project. cil District 2). “If we do it right, it might attract people from around the world.”

Page 6 Metroscape The Magnetism of the Falls To understand the excitement about the project, you have to experience Willamette Falls. The river roars and sends up plumes of mist as it plunges down a The river 40-foot drop. The sheer quantity of water roars and cascading over the basalt ledges makes sends up Willamette Falls second only in volume Joseph Drayton, U.S. Exploring Expedition, 1841 plumes of mist to Niagara Falls among North American things: a source of energy for powering as it plunges waterfalls. Its Chinuk Wawa name, t Nwata, refers to “the thundering heartbeat of industry and an obstacle to river traffic. In down a 40- the falls,” according to Michael Karnosh, 1827, John McLoughlin, a fur trader with foot drop. Ceded Lands Program Manager of the Hudson’s Bay Company and the putative Confederated Tribes of Grand Ronde. “Father of Oregon,” decided to move his Karnosh says that the falls and the area headquarters from Astoria to Fort Van- around it is one of the region’s most cul- couver. He blasted a mill race through the turally significant places to the 27 tribes basalt near the falls for a saw mill to serve and bands that are members of the Grand the fort. Later, he built a gristmill. By 1829, Ronde. According to a Santiam Kala- the settlement that would become incor- puya legend, in ancient times, Coyote and porated as Oregon City in 1844 (earning Meadowlark created the falls by dropping it the epithet of “first incorporated city a rope across the river. The rope formed west of the Rockies”) began to take shape the falls as a place where the people could around the falls. catch salmon and other fish that would The falls were also a site for early exper- otherwise be beyond reach, deep in the imentation in harnessing hydropower for river. electricity. In 1889, the nation’s first long- In 1889, the “Because of the abundance of re- distance transmission of electricity oc- nation's first sources, it became a gathering and trading curred there. Power generated at the falls long-distance was sent from Oregon City to Portland‘s place,” explains Karnosh. The band built transmission scaffolding for fishing and either traded Goose Hollow, a distance of approxi- salmon for other goods with their neigh- mately 12 miles. Today, Portland General of electricity bors or allowed them to fish from their Electric operates one of the nation’s old- occurred platforms in exchange for a quarter of est currently running hydroelectric facili- there. their catch. ties at the site. Today, the falls still play an important Although the falls were a boon to in- role in community life. Karnosh says that dustry, they were an obstacle to river traf- “Tribal people are closely connected to fic. To solve this problem, People’s Trans- the falls. The Grand Ronde still go up to portation Company built Willamette Falls the falls in boats, still swim behind the Locks in 1873, amid ill omens and corpo- waterfalls, and catch lamprey. The Grande rate intrigue. Tribal members refused to Ronde does the first spring ceremony for work on its construction for fear of awak- the Chinook at Willamette Falls.” ening the monster whose tongue, legend To white settlers, the falls meant two held, was buried on the west side of the

Metroscape Page 7 Who’s Who

The Public Partners falls. A rail company attempted to sabotage the Oregon City opening of the locks by monopolizing all the • Led land-use master plan and rezoning of the site riverboats that might use it. After several chang- • Approved $100,000 investment annually for 10 years • Identified one-time capital investment for Riverwalk im- es in private ownership, the federal government provements purchased the locks in 1915. Until it was put in Clackamas County “Caretaker Status” by the U.S. Army Corps of • Contributed $100,000 to land-use master plan and federal Engineers in 2006, it had been the oldest con- lobbying efforts tinuously operating multiple-lift lock system in Metro the country. • Led site due-diligence efforts In the latter half of the 20th century, paper • Contributed more than $450,000 to fund environmental production became the pre-eminent industrial assessments, survey, appraisal, title research, structural use on the Oregon City side of the falls. Mills investigations, and historical analyses operated under a succession of corporate own- • Contributed $400,000 to land-use master plan ers, including Hawley Pulp and Paper, Publish- State of Oregon ers Paper Company, and Smurfit Stone Contain- • Contributed $5 million in state lottery funds for Riverwalk er Corporation, the nation’s largest producer of development, contingent upon the availability of funds from other sources to complete its design and construction cardboard box materials. In 2000, Smurfit sold • Provided a $65,000 brownfield grant for an environmental the mill to the employees and a New York pri- assessment vate equity fund through the formation of an • Provided photo documentation and consultation on historic Employee Stock Ownership Plan. The result- elements ing Blue Heron Paper Company recycled used • Designated project as a “Regional Priority” to receive sup- paper and produced newsprint, bag papers, and port from state agencies specialty paper products.

Property Owners Alchemy: From Liability to Asset Falls Legacy, LLC: George Heidgerken, principal Faced with a declining market and increased • Purchased 22-acre site from bankruptcy trustee in May costs, Blue Heron Paper Mill announced its clo- 2014 sure on February 24, 2011. The initial impact on • Dedicated a 120-foot-wide waterfront easement for the Oregon City was dark and dramatic. The loss Riverwalk in December 2014 • Committed to pay 20 percent of the design and prelimi- of 175 jobs and the closure of the city’s largest nary engineering expenses for Riverwalk—approximately for-profit business was a significant blow, says $900,000 Mayor Doug Neeley. The closure came on top • Committed to pay at least 20 percent of the future main- of the temporary construction-related closure tenance and operation expenses of the Riverwalk in per- of the nearby Arch Bridge, a vital path to down- petuity town Oregon City. In December 2011, the U.S. Portland General Electric Army Corps of Engineers closed the Willamette • Owns one of the nation’s oldest currently operating hydro- Falls Locks permanently due to safety concerns. electric facilities at the site In the short term, state and local agencies • In December 2014, dedicated an easement that provides a partnered to create a one-stop location for in- public right-of-way across the dam, offering an electrifying formation and up to two years of job training view of the falls assistance available under the Federal Trade Act U.S. Army Corps of Engineers for the displaced workers. The Oregon City • Owns , constructed in 1872 by a pri- vate company Main Street Program responded with a robust • Closed locks in 2011 due to safety concerns calendar of special events to draw more cus- • Consulting with community on the future of the locks, per tomers downtown and also worked with the city the requirements of the National Historic Preservation Act

Page 8 Metroscape to secure $2.5 million for street enhance- economic development, healthy habitat, ments from the Oregon Department of and historic and cultural interpretation. Transportation. These values were translated into a mas- ...a 22-acre But what about the long term? Accord- ter plan and land-use zoning changes, site along the ing to multiple sources, several commu- which were adopted by Oregon City in Willamette nity leaders had the same thought around November 2014. the same time: a 22-acre site along the Meanwhile, the court-appointed bank- River near near one of the region’s ruptcy trustee, Peter McKittrick, focused one of the hidden natural gems could be a huge on liquidating the mill's assets to pay region's turn-around opportunity for the whole creditors, including employees who had natural region. Phones began ringing, e-mail deferred wages to try to keep the mill gems could messages were exchanged, and people open. He attempted to sell the industrial be a huge began meeting. Oregon City, Clackamas machinery; when buyers could not be County, Metro, and the State of Oregon found, it was sold for scrap. With carry- turn-around rallied, and an informal public partner- ing costs for the property mounting with opportunity... ship was created. each passing month, time was money, and The partners set about getting a handle McKittrick sought an expeditious sale. on the unknown factors that needed to After 18 months of little interest while be understood before a plan could be cre- the nation recovered from the recession, ated: hazardous waste, the soundness of a succession of offers ensued. the buildings, preservation of historic re- The first offer, $4.1 million, came in sources, river flooding concerns, and the August 2013 from Eclipse Development impact on natural resources, to name a Group from Irvine, California. They pro- few. In response, Metro funded environ- posed a mixed-use development featuring mental assessments, a survey and apprais- big box stores. That deal was predicated al, title research, structural investigations, upon the sale of another property. When and, with the State of Oregon, historical that fell through, Portland’s Langley In- analyses and documentation. vestment Property stepped forward with The partners needed to consider the a bid of $4.9 million in December 2013. community’s needs, concerns, and ideas That bid also deteriorated in February and foster community spirit. Oregon 2014; the firm said it needed more time City, with financial participation from to evaluate the property. other public partners, led a robust pub- The third offer, for $2.8 million, came lic visioning process that spanned a year, later that month from Shopoff Group in involved thousands of participants, and Irvine, California, a real estate investment captured more than a thousand distinct and development firm with a history of ideas and comments about site redevel- buying distressed or underperforming opment. properties, especially in Texas and Cali- “We heard all kinds of ideas, from bull- fornia. After that deal flopped, the fourth dozing everything and putting in a park and final offer came from a little-known to preserving everything,” says Neeley. developer from Tacoma, Washington— Together, these two sources of infor- George Heidgerken and Jon Potter of mation—technical analyses and public vi- Megarock, LLC, who offered $2.2 million sion—led to the creation of the four core and a quick sale. values of the site’s rebirth: public access,

Metroscape Page 9 Oregon City tried to contact Heidg- among the elements to preserve were the erken about his vision for the site, but 1865 woolen mill foundation and indus- were unable to reach him. With uncer- trial buildings that date back to the early tainty looming large, the public partners 20th century, some with impressive old- briefly considered making a counter-offer, growth wooden beams. Five additional but ultimately did not proceed. Falls Leg- buildings were identified for full or partial acy, LLC, the legal entity that Heidgerken retention. formed to purchase the site, closed the n In amending the zoning code, plan- deal, and thus began the mutual courtship ners proposed creating a special Willa- between developer and public partners. mette Falls Downtown District that pro- vided both flexibility in permitted uses The Plan and the Developer and explicit policies and design guidelines When Heidgerken took over the property to ensure that the resulting development in May 2014, the public planning process honored the four core values identified was nearly complete; all that remained was during the visioning process. Design the final review and adoption of a Frame- guidelines required the developer to hon- work Master Plan and the implementation or the area’s natural setting and history, of zoning ordinance changes. Instead of integrate the experience of the falls, take rushing forward with public hearings and advantage of views, and utilize building adoption, the city pushed the pause but- materials that are durable, high-quality, ton to give the new owner’s team a chance and reflect the industrial character of the to get to know the site and become famil- site. iar with the analyses and proposed plan. n The Conditions of Approval re- Here’s what Oregon City proposed: quired that a city-assigned design evalua- n The Framework Master Plan distin- tion board with urban design expertise re- guished between areas for development view the developer’s detailed development and areas to be reserved for open space plan for consistency with the Framework because they fell within the 1996 flood in- Master Plan, district policies, and design undation area. It called for re-establishing guidelines. the historic Main Street grid plan, thus n Planners chose to give the developer creating continuity with adjacent down- a lot of latitude and flexibility in terms of town Oregon City. A key element of the uses on the site. Permitted uses included plan was a riverwalk that would enable retail trade, light industrial manufacture the public to view and experience the falls (including artisanal food and beverage through a walkway and series of viewing production), offices, parks, museums, platforms. The riverwalk would include multifamily residences (including live- interpretive information to help visitors work spaces), outdoor markets, and a host experience the historic, cultural, and eco- of commercial uses, including restaurants logical importance of the site and the falls. (excluding drive-through restaurants), ho- n The plan identified five industrial tels, conference facilities, studios, and gal- buildings that had both historic signifi- leries. cance and economic potential and re- This was the public’s vision and the com- quired their preservation through adap- munity’s plan; what would the new owner tive reuse or rehabilitation. Included think?

Page 10 Metroscape Photograph: Rod Merrick

According to Collette, Heidgerken was about community stewardship, but also a pleased with the work that the community smart business move. Getting people to had undertaken and that a vision for the the site will spur interest and begin to re- site had emerged. He concurred that the veal its economic potential to future in- site was spectacular and needed to be vestors and businesses. honored. That priority took a giant leap forward Ultimately, Heidgerken asked for one in December 2014, when Metro secured change to the Framework Master Plan. agreements with Heidgerken and PGE He requested that a parcel of land that for public access to create the riverwalk. was previously designated as unsuitable Falls Legacy, LLC, Heidgerken’s company, for development (because it was in the provided a 120-foot-wide waterfront ease- floodplain) be considered for inclusion in ment for the riverwalk. PGE provided an the plan; it was the parcel closest to the easement that will enable the riverwalk to falls and offered the greatest viewing po- continue across a portion of the dam to tential. The city agreed to designate the a platform that provides optimal close-up parcel for special development review/ viewing of the falls. The consensus open space, essentially setting the stage Heidgerken’s commitment also included among to have further conversations down the paying 20 percent of the design and pre- the public road, when the developer was prepared to liminary engineering expenses—approxi- partners discuss potential structures and uses. mately $900,000—and at least 20 percent is that The consensus among the public part- of the future maintenance and operation ners is that Heidgerken is an engaged and expenses of the riverwalk. Heidgerken committed private partner who shares the Neeley says, “George made a big com- is an community’s vision for the property. mitment—an in-perpetuity commit- engaged and “He sees the specialness of this site,” ment—toward maintaining that area. I’m committed says Collette. “We were hoping we would guessing that there will be a lot of devel- private get a partner like George who sees in opers looking at that area now.” partner who this industrial site at the base of a water- “The riverwalk is key for the general fall what we see—a magical place that’s a public to get a real feel for what goes on shares the game-changer for our region.” down there,” Heidgerken explains. “This community's With unanimous approval by the Or- is going to be the first chance for the gen- vision... egon City Planning Commission and City eral public to be on site, and it’ll be a great Council, the plan was approved in No- introduction to what Willamette Falls is vember 2014. all about. It’s a win-win for both of us, Next steps and it’s a good deal.” The public and private partners made “More important than all of that…it’s public access to the falls their first priority. the right thing to do.” They agree that it is not only a statement The public partners are working on se-

Metroscape Page 11 curing funds for design and phased con- Coalition, the National Trust for His- struction and have $10 million in hand toric Preservation, and other parties, the thus far. The state, Metro, county, and U.S. Army Corps of Engineers deter- city recently signed a Willamette Falls mined that its decision to close the locks Riverwalk Memorandum of Understand- for safety reasons in 2011 had an ad- ing that lays out their roles and respon- verse effect on an historically significant sibilities in the project. Neeley says, “I structure and tribal use of the river. In wouldn’t be surprised to see public access conformance with the National Historic within three years.” Preservation Act, the Corps is now con- When it comes to his company’s plans, sulting with the community on methods Heidgerken is reluctant to discuss specif- to “avoid, minimize, or mitigate” the ad- ics about the project until his team has verse effects, including potentially repair- done their work and created a detailed ing the locks and transferring or leasing development plan. Instead, he talks about them to a third party that would maintain a range of potential uses, from hotels, and operate them full- or part-time. restaurants, and housing for the disabled All of the parties continue their work and elderly to places for kayakers to en- to find support and funding for the entire joy. project through federal agencies. They “It would be great if the elderly could have succeeded in igniting the imagina- enjoy the sounds, site, and fish. At this tion of staff within the Environmental point, I don’t want to downplay any of Planning Agency, where a copy of the in- the ideas,” he declares. “It will be a cool spiring and beautifully illustrated 76-page master plan that makes mixed-use work. Vision for the Willamette Falls Legacy It will involve people, history, and cash- Project is said to have an honored place flow.” on the coffee table of a key EPA official “We aren’t going to just grab any ten- in Washington, D.C. Collette ant.” Collette asserts that this is one plan that asserts that He says he plans to hire historians to is not going to sit on a shelf. She ticks off help the history of the site—tribal, pio- the reasons: an improving economy, a de- this is one neer, and industrial—come to life again. veloper who sees this as a legacy project, plan that “It’s a hell of a nice site,” he concludes. the public access and involvement, and, is not going The city has its work cut out for it, as most importantly, the magic of the falls to sit on the well. Neeley discloses that he expects themselves. shelf. city council to look at sources of funds Karnosh agrees, saying, “I think that for needed public improvements, such the public will have a good experience as utilities and transportation, as well as of the falls and even hear that heartbeat. financial incentives for private develop- When you can get close to a place like ment. Currently, most of the site is out- that and really experience it, then you are side the city’s existing urban renewal dis- going to care about it and protect it.” M trict. In addition to urban renewal, other possibilities include a local improvement Andrée Tremoulet, PhD, is an adjunct assistant district and vertical tax credits. professor and research associate with the Center And then there are the locks, the key to for Urban Studies at Portland State. Through restored use of the river for recreational her firm, Commonworks Consulting, she works boating and other activities. Through the with public agencies and nonprofits to address advocacy of the One Willamette River fair and affordable housing challenges.

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