Department of State Lands 775 Summer Street NE, Suite 100 , Governor Salem, OR 97301-1279 (503) 986-5200 FAX (503) 378-4844 www.oregon.gov/dsl

State Land Board

Kate Brown STATE LAND BOARD Governor

June 8, 2021 10:00 am – 12:00 pm Secretary of State Zoom Video/Audio Meeting The meeting video will be livestreamed on the Tobias Read Department of State Lands YouTube Channel State Treasurer

AGENDA

Consent Items

1. Request for approval of the minutes of the February 8, 2021, State Land Board Meeting

Action Items

2. Request for final approval to sell the surface property rights of the North Tongue Point property in Astoria

3. Request for approval for a permanent easement to build, operate, and maintain a replacement bridge crossing the Willamette River in Corvallis

4. Request for final approval to complete the exchange of 140 acres of the South Redmond Tract in Deschutes County

5. Request for final approval to exchange surface rights on approximately 164 acres of DSL-owned rangelands in Harney County

Informational Items

6. Update regarding Territorial Sea Plan Rocky Shores designations

Continued on next page

7. Other

Meeting video will be livestreamed at: https://www.youtube.com/channel/UCQA7FHTWwl-gjJkQeYPJ1IA If you need assistance to participate in this meeting due to a disability, please notify Arin Smith at (503) 986-5224 or [email protected] at least two working days prior to the meeting.

Public Testimony - The State Land Board places great value on information received from the public. The Board typically accepts comments on consent and action agenda items only.

Providing Public Testimony During Video Meetings – When the Board meets by video, the public may provide written or spoken testimony, time permitting and at the discretion of the Chair.

• Providing Written Testimony: Written testimony may be submitted at [email protected] . Testimony received by 10 a.m. the day before the meeting is provided to Land Board members in advance and posted on the meeting website. Testimony received after this deadline may not be provided to the Land Board prior to a vote. Please indicate the agenda item your testimony relates to.

• Providing Spoken Testimony: The signup deadline to provide spoken testimony at virtual meetings is 10 a.m. the day before the meeting. Signup information is posted on the Land Board Meetings website. After signing up, you will receive a confirmation email containing additional information.

When signing up to provide testimony for a video meeting, please: • Include your name, organizational affiliation (if any). • Indicate which consent or action agenda item your testimony relates to. Please note: Testimony on action items is taken during the item’s presentation, before the Land Board votes. Please review the meeting agenda and be present and prepared to provide testimony at the appropriate time. • Be aware that there may not be time for everyone who signs up to provide testimony.

Please note: The standard time limit is three minutes for each individual; the actual time available for testimony during Land Board meetings is at the discretion of the Chair. The Board cannot accept testimony on topic for which a formal public hearing has been held or a formal comment period has closed, such as rulemaking or permitting public review and comment periods.

State Land Board Meeting Agenda June 8, 2021 Page 2 of 3 Department of State Lands Oregon 775 Summer Street NE, Suite 100 Kate Brown, Governor Salem, OR 97301-1279 (503) 986-5200 FAX (503) 378-4844 www.oregon.gov/dsl

The State Land Board (Land Board or Board) met in regular session State Land Board by teleconference on February 9, 2021. The meeting audio and video was livestreamed on the DSL YouTube channel. Kate Brown Governor Present were: Kate Brown Governor Shemia Fagan Shemia Fagan Secretary of State Tobias Read State Treasurer Secretary of State

Land Board Assistants Tobias Read Jason Miner Governor’s Office State Treasurer Molly Woon Secretary of State’s Office Ryan Mann State Treasurer’s Office

Department Staff Vicki Walker Bill Ryan Lani Ahmadian Ali Ryan Hansen Arin Smith Jean Straight Bree Yednock Ted Bright

Department of Justice Matt DeVore

Governor Brown called the meeting to order at 10:00 a.m. The topics discussed and the results of those discussions are listed below. To view the Land Board (Board) meeting in its entirety, please visit our YouTube page: https://www.youtube.com/watch?v=Tj7MikcpRFw&t=9s

Consent Items

1. Minutes

Treasurer Read made a motion to approve the minutes for the December 8, 2020, Land Board meeting. Secretary Fagan seconded the motion.

The consent item was approved at 10:06 a.m.

2. Request for the approval to initiate due diligence regarding the potential acquisition through donation of 2,690 acres of irrigated meadow lands and dry rangelands, together known as the Disaster Peak Ranch, located in southern Malheur County, through donation from Western Rivers Conservancy.

It is the Department’s recommendation that the Land Board approve initiating due diligence for the potential acquisition of 2,960 acres of irrigated meadow and dry rangeland in southern Malheur County for the purposes of cattle grazing and the conservation of the Lahontan cutthroat trout.

Secretary Fagan made a motion to approve consent. Treasurer Read seconded the motion.

The consent item was approved at 10:17 a.m.

3. Request for approval to initiate permanent rulemaking to amend the rules which authorize special uses on state-owned land (OAR 141-125). Through this rulemaking effort, communication site rules will be renumbered from OAR 141-125 to a new division (OAR 141-126) and amended.

The Department recommends the State Land Board authorize the Department to initiate permanent rulemaking to amend OAR 141-125 and OAR 141-126.

Treasurer Read made a motion to approve consent item 3. Secretary Fagan seconded the motion.

The item was approved at 10:21 a.m.

Action Items

4. Request for approval of a direct release of 44.6 acres of subsurface minerals and geothermal rights located in Marion County.

The Department recommends the State Land Board approve the direct sale of the subsurface minerals and geothermal rights to Watch Hill Capital LLC located in Marion County at Township 8 South, Range 3 West, Section 12B, Tax Lot 1499, at the former Hillcrest Youth Authority facility.

Secretary Fagan made a motion to approve action item 4. Treasurer Read seconded that motion.

The item was approved at 10:25 a.m.

5. Request for approval of the creation of 8.14 acres of New Lands by filling a portion of the State’s ownership within Upper Klamath Lake for the expansion of Highway 140 by the Oregon Department of Transportation (ODOT).

The Department of State Lands recommends the State Land Board approve the Department’s issuance of a Short-Term Access Agreement to ODOT for the creation of approximately 8.14 acres of new lands within the State’s ownership of Upper Klamath Lake in Townships 37 and 38 South, Ranges 07 and 08 East.

Treasurer Read made a motion to approve action item 5. Secretary Fagan seconded that motion.

State Land Board Minutes – February 9, 2021 - Page 2 of 4

The item was approved at 10:32 a.m.

6. Request for final approval to sell a 20-acre parcel of the South Redmond Tract, southeast of the intersection of SW 19th Street and SW Elkhorn Avenue, in Redmond, Deschutes County, in a direct sale to Oregon Military Department.

The Department recommends the State Land Board authorize the direct sale of the 20-acre parcel located southeast of the intersection of SW 19th Street and SW Elkhorn Avenue at Parcel 2 of Partition Plat 2020-22, located in the northwest quarter of Section 33, Township 15 South Range 13 East, City of Redmond, in Deschutes County to the Oregon Military Department for $1,662,700. 10:35 - Comment was taken from Stan Hutchison with the Oregon Military Department (OMD) in support of action item 6.

Governor Brown expressed her gratitude toward OMD for their service during the pandemic.

Secretary Fagan made a motion to approve action item 6. Treasurer Read seconded that motion.

The item was approved at 10:41 a.m.

7. Request for approval of a direct release of 381.8 acres of subsurface minerals and geothermal rights located in Linn County.

The Department recommends the State Land Board approve the direct sale of the subsurface minerals and geothermal rights to the Oak Basin LLC located in Linn County at Township 14 South, Range 2 West, Section 19, Tax Lots 402 & 403 and in Section 30, Tax Lots 3302 & 3203.

Treasurer Read made a motion to approve action item 7. Secretary Fagan seconded that motion.

The item was approved at 10:47 a.m.

8. Request for authorization to purchase 1.14 acres at the primary public entrance to the South Slough National Estuarine Research Reserve currently owned by Coos County Forest Department located on Seven Devils Road in Coos County.

The Department recommends the Land Board approve the purchase of tax lot 100, containing 1.14 acres of land adjacent to the entrance of the SSNERR Visitor’s Center.

Secretary Fagan made a motion to approve action item 8. Treasurer Read seconded that motion.

The item was approved at 10:52 a.m.

State Land Board Minutes – February 9, 2021 - Page 3 of 4

Informational

9. Annual Common School Fund Audit

Director Walker invited Tanya Moffitt with Merina and Company to give an overview of the Common School Fund Audit for FY 2020.

10. Annual Report on Common School Fund Real Property

Bill Ryan, Deputy Director of Department of State Lands presented the Real Property Annual Report.

The primary purpose of this report was to provide the State Land Board a year-end summary of the financial performance of the Common School Fund (CSF) trust lands under the Department of State Lands’ oversight. Included in the summary were the overall revenues and expenditures associated with these lands, which were the result of a broad range of real property management activities including leases, easements, licenses, special uses, and land sales and exchanges. This annual report presented outcomes from the 2020 fiscal year (July 1, 2019 to June 30, 2020), and included discussion of future real property management direction and priorities.

11:00 a.m. Questions and comments from Treasurer Read.

11. Annual Report on Common School Fund Forest Land

Director Walker invited ODF Director Peter Dougherty and Division Chief Liz Dent to give an overview of their report for FY 2020.

11:22 a.m. Question from Governor Brown and Treasurer Read.

12. Other

The meeting was adjourned at 11:25 a.m.

______Kate Brown, Governor

______Vicki L. Walker, Director

State Land Board Minutes – February 9, 2021 - Page 4 of 4

Department of State Lands 775 Summer Street NE, Suite 100 Oregon Salem, OR 97301-1279 Kate Brown, Governor (503) 986-5200 FAX (503) 378-4844 www.oregon.gov/dsl

State Land Board

Kate Brown S t a t e L a n d B o a r d Governor

Regular Meeting Shemia Fagan June 8, 2021 Secretary of State Agenda Item 2 Tobias Read State Treasurer

SUBJECT

Request for final approval to sell the surface property rights of the North Tongue Point property, approximately 15.23 acres located off Railroad Way at the eastern edge of Astoria at Township 8 North, Range 9 West, Section 11, Tax Lot 5800 in a direct sale to Bergerson Construction, Inc., LAS Application #61596.

ISSUE

Whether the State Land Board should authorize the direct sale of the North Tongue Point property in Astoria to Bergerson Construction, Inc.

AUTHORITY

• Oregon Constitution, Article VIII, Sections 2 and 5; pertaining to the Common School Fund and land management responsibilities of the State Land Board. • ORS 273.055; relating to the power to acquire and dispose of real property. • ORS 273.171; relating to the duties and authority of the Director. • ORS 273.780; relating to the retention of mineral rights. • OAR 141-067; relating to the sale, exchange, and purchase of state land. • Real Estate Asset Management Plan (REAMP), adopted by the Land Board; February 2012.

SUMMARY

Property Background The North Tongue Point property is approximately 15.23 acres just off the deep-water channel of the Columbia River at the northeastern end of Astoria. The property had been part of U. S. Naval Station Tongue Point during World War II. The southernmost portion of this property was used as a landfill for paint and petroleum products during the war. In 2013, this area was covered with an earthen cap that will be maintained and monitored by the U.S. Army Corps of Engineers in perpetuity.

The Department of State Lands acquired the naval base property from the Department of Defense along with the South Tongue Point property in 1980, a total of approximately 133.43 acres of uplands for $2 million. An additional 20.24-acre tract at North Tongue Point was later acquired from the federal government in exchange for Miller Sands Island which is used for dredge spoils.

The sale of this tract at North Tongue Point will conclude DSL’s ownership of the Tongue Point upland properties. The remaining naval base acres at North Tongue Point, which included warehouses and shipping piers on 33.9 acres, were sold in 2000 for $4 million to Crestmont, Inc. A sale to Clatsop Community College of 21.73 acres at South Tongue Point for $826,500 was completed last fall and the remaining acreage at South Tongue Point is being sold for $1,304,000 to the college through Columbia Land Trust as soon as a partition of the tide lands has been completed.

Overview of Property and Proposed Sale The property is accessed from Railroad Way from Old U.S. Hwy 30 and consists of approximately 15.23 acres. The property’s mineral rights were retained by a previous owner in an earlier transaction. The property appraised in late May 2021 for $188,000.

The property is zoned Marine Industrial and General Development Shorelands with a Dredge Spoil overlay over the non-contaminated portion of the property which supports dredge spoil use. The only other allowed use of this zone is for industrial materials storage.

This property has 1.45 total acres of submerged and submersible property as well as eight acres of upland that is covered by a Declaration of Equitable Servitude, which is a deed restriction that protects the earthen cap on the landfill, severely limiting any use or development of this area. The lack of legal access from the street, small size of the parcel and deed restrictions are very limiting. For this reason, the Department recommends not retaining the submerged and submersible land.

Bergerson Construction, Inc. has been leasing land adjacent to this tract and intends to use the property for materials storage. Bergerson Construction, Inc. has undergone a lengthy Prospective Purchaser Agreement with DEQ to limit its future liability for the

Agenda Item 2 June 8, 2021 Page 2 of 3 contamination on the property. Due to the extreme limitations on the use of the property and its lack of potential appeal in the real estate market, the Department is recommending a direct sale to Bergerson Construction, Inc.

TRIBAL AND PUBLIC INVOLVEMENT

Because the property is located near the Columbia River, which was traditionally a gathering area for local tribes, DSL engaged with the Confederated Tribes of Siletz Indians and the Confederated Tribes of Grand Ronde before the application was accepted. Notice of the potential sale of the property was sent out July 1, 2019, and public comment was accepted through July 31, 2019. Public agencies in the area, adjacent property owners and county commissioners were also sent notice of the potential sale and notice was posted on DSL’s website. No comments were received during the public comment period.

RECOMMENDATION

The Department recommends the State Land Board authorize the direct sale of the surface rights of the North Tongue Point property, a 15.23-acre parcel located at Railroad Way at Township 8 North, Range 9 West, Section 11, Tax Lot 5800 in Clatsop County, to Bergerson Construction, Inc. for the appraised value of $188,000.

APPENDICES

A. Map of Property B. Land Evaluation Form C. Agenda Item 4 from April 9, 2019, Land Board Meeting

Agenda Item 2 June 8, 2021 Page 3 of 3 State of Oregon Appendix A Department of State Lands 2 1

12 11

14 13

Esri, HERE, Garmin, © OpenStreetMap contributors, National Agriculture Imagery Program (NAIP) under contract for the United States Department of Agriculture (USDA) for the Farm Service Agency's (FSA). Oregon Imagery Framework Implementation Team., Esri, HERE, Garmin, © OpenStreetMap contributors, and the GIS user community Appendix A 0 500 1,000 Location Map Feet 61596-LS South Tongue Point Ü North Tongue Point T08N, R09W Secs. 12 &13 T08N, R09W, Sec 11 Clatsop County - Warrenton North Tongue Point Approval for Due Diligence Map Projection: Oregon Statewide Lambert Astoria North Tongue Point (Sold 1980) Datum NAD83 International Feet South Tongue Point State of Oregon Department of State Lands Sections 775 Summer St NE, Suite 100 Salem, OR 97301 City Limits 503-986-5200 Highways This product is for informational purposes only and has not have been prepared for, nor is www.oregon.gov/DSL suitable for legal, engineering, or surveying purposes. Users of this information should review Main Map Extent or consult the primary data andinformation sources to ascertain the usability of the information. Date: 2/22/2019 This web site will give the exact year for the aerial photography Document Path: O:\Bend\1 Real Property\Land Transactions\ICR Lands\61596 N Tongue Point\61596_LS_AppendixA_20190221.mxd Map Producer: aross you see when using Esri World Imagery service. http://www.arcgis.com/home/webmap/viewer.html?webmap=c1c2090ed8594e0193194b750d0d5f83 APPENDIX B LAND EVALUATION FORM

1. Evaluation completed in: Office Field

2. Parcel Name: N. Tongue Point 3. County: Clatsop 4. Map & Tax Lot: 8N 9W Sec. 11, TL 5800 5. Site #: S0058553 6. LAS Parcel#: 87 (App. #61596) 7. GIS Acres: 15.23 8. DSL Land Class: ICR 9. REAMP Category: 4 10. Certified Forest: Yes No 11. Leased: No Yes Lease #: N/A Type of Use: Bare Land 12. Ownership Type: Surface Only 13. Mineral Rights: No Yes 14. Adjacent Property Owners & Use: Marine Industrial 15. Zoning: Marine Industrial w/ Dredge Spoil Overlay 16. Developable Parcel: No Yes 17.Minimum acres required for home site N/A 18. Lot of Record: No Yes 19. Potential for Zone Change/Partition: N/A 20. Wildlife Overlay: N/A 21. Cultural-Historic: Parcel Reviewed: No Yes 22. Previously Field Surveyed: No Yes Partially Date Surveyed: N/A 23. Cultural Resources Identified in field? (if yes, consult with staff archaeo): No Yes 24. Probability of Cultural Resources: None Low Medium High 25. Threatened/Endangered Species: Field Survey Completed: No/Not Needed Yes Species: N/A 26. Water Rights: No Yes Water Right Info: N/A 27. Irrigation District: N/A 28. Depth of Nearby Wells:15’-200’ with average depth of 20’ 29. On-site/Distance to Existing Electrical Service and what type: On-site power 30. Electrical service provider/PUD Name: Pacific Power 31. Potential for Alternative Energy: The wind speed averages 7-7.5 miles per hour which is fair for wind energy. Astoria averages only 127 sunny days per year which is low for solar energy. 32. Access: Has legal access from easement over property to north from county road 33. Legal Access: No Yes Gov’t Maintained Road: No Yes Road Name/# Railroad Way 34. Easements (to/from whom and what type): From adjacent property to north. USACE also has access and maintenance easement over our property to maintain cap over landfill. 35. Interior Roads/Trails/Condition: There is an interior road along the western edge of property that turns to the east before reaching the fenced landfill area. It is a gravel road in average condition. 36. Known Property Boundaries/Corner Survey Markers: The northern boundary is fenced as is the western boundary. 37. Nearest DSL Parcel (direct): 1.5 miles to northwest (islands) 38. Topography/Shape of Parcel: Irregular “L”-shaped parcel. The topography is slightly sloping except the northernmost five acres of the property has a five foot tall engineered earth berm to hold dredge spoils. 39. Vegetation Cover (dominant species, condition, % coverage): Himalayan blackberry, some native vegetation. 40. Site Structures/Improvements: The US Army Corps of Engineers has placed a metal fence around the earthern capped landfill on the southern eight acres of the property. There are some monitoring wells still located on the remaining property. 41. View Site/Water Features/Other amenities: On the Columbia River on the eastern edge of Astoria 42. Evidence of Prior Impacts/Activities (wildfire, crops, historic home site): The site at one time was used to deposit dredge spoils and has a five foot tall engineered berm on the northernmost five acres. There are monitoring wells that were used to detect petroleum products in the water. There is an earthern cap over the landfill at the southern end of the property. 43. Lease History: Has not been leased. 44. Current Use: Bare land with engineered berms for holding dredge spoils 45. Agriculture/Timber Potential: N/A 46. Soil Type: 95% Tropopsamments; 5% Coquille-Clatsop Complex-None of which is prime farmland soil. 47. NRCS Soil Class: 7 48. MB & G Forest Rating: N/A 49. Age of Timber: N/A 50. Timber Volume: N/A 51. Estimated Timber Value: $ 0 52. Site Index: N/A 53. Type of Timber: N/A 54. % Annual timber volume increase: N/A 55. Fire District/Protection Area: Astoria 56. Property Expenses (fire protection costs): $0 57. Other Holding Costs: $0 58. Assessor’s RMV: $1,281,716 59. Tax Year: 2020-2021 60. Estimated Market Value: S188,000 61. Source: 2021 Appraisal by Matthew Larrabee, MAI 62. Known/Proj. AUMs: N/A 63. Annual Lease Amt.: $ N/A 64. 20 year Investment Return based on timber/lease income: N/A 65. Rate of Return on Asset Value (%): N/A 66. Present Value based on Current/Projected Income: N/A 67. Potential developments necessary to increase marketability/land value (ie access, utilities): N/A 68. Est. Annual Income after Development (Improvements/Land-Use Action): N/A 69. Highest and Best Use Conclusion: Marine Industrial Use, limited to yard storage due to limitations from dredge spoil overlay. 70. Comments: The property has severe permanent limitations on its use through a Declaration of Equitable Servitude due to a former landfill on the site, a dredge spoil zoning overlay, earthern cap over landfill and development/use restrictions due to cap. There are also 3.99 acres of identified wetlands on the property. The 1.45 acres of submerged/submersible area being sold is entirely under the Declaration of Servitude and is severely limited in use. To partition it, there would need to be access from a public street. For these reasons, the property would best benefit the CSF if sold.

71. Originators: Clara Taylor Date: 04/15/2021 72. Reviewer: Date:

Land Evaluation Form Instructions

General Instructions: Do not leave a portion of this form blank. If information is unavailable or not applicable please indicate why. This will ensure that everyone who reviews the information knows that the question was not skipped or overlooked, but there is a reason why the question was not addressed.

1. Evaluation done in: __Office __Field: By the time the form is completely filled out, both office and field should be checked and initialed by the staff person(s) who worked on the form. Some of the information on the form comes from DSL records, appraisals, GIS data etc. Some information needs to be completed on site in the field. (Real Property staff) 2. Parcel Name: DSL name given to parcel, based on names of nearby topographic features, or named county roads. Parcel names may not be derived from names of previous lessees or any person. Do some research before naming the parcel as it may already have been named.(Property Manager) 3. County: what county or counties the parcel is located within (Property Manager) 4. Map & Tax Lot Township Range Section and tax lot number of parcel being evaluated (Property Manager) 5. Site #: In LAS, search and navigate to the Land Parcel page for the parcel being evaluated. The site # is on the first tab called “Land Parcel Site” (Property Manager) 6. LAS # In LAS, search and navigate to the Land Parcel page for the parcel being evaluated. The LAS # is the “parcel Number” at the top of the page. (Property Manager) 7. GIS Acres Acreage of parcel. Derived from the DSL Land GIS Layer acreage information (Property Manager) 8. DSL Land Class Land class code found in LAS, this is set up as a drop down menu in the form- (Property Manager) a. AGR – Agriculture b. FORS - Forest c. ICR – Industrial/Commercial/Residential d. MER- Mineral Energy e. RNGL – Rangeland Leased f. RNGU - Rangeland Unleased g. SPEC – Special Stewardship h. SS - Waterway (Submerged/Submersible) 9. AMP Category Drop-down Menu in form. Indicate what parcel is/should be listed as under the DSL Real Estate Asset Management Plan (REAMP) Categories. Category 1 indicates parcel has “Long-Term Potential” meaning that the parcel currently or has the potential to generate revenue over the long term. Category 2 indicates that the parcel has the potential to generate revenue over the short-term (5 years or less). Category 3 indicates that the parcel is currently generating revenue (i.e. currently under lease). Category 4 indicates that parcel is not currently generating revenue, and/or there is minimal potential to generate revenue in the future, either short or long term. 10. Certified Forest Oregon Department of Forestry Certified forest. This information is found in LAS. (Property Manager) 11. Leased Is the parcel under evaluation currently under a DSL lease? If yes please provide the Lease number and type of use. (Property Manager) 12. Ownership Type DSL ownership of parcel, either Surface only, Subsurface only, or Surface and Subsurface ownership. This information is found in LAS and is set up as a drop down menu on the form. (Property Manager) 13. Mineral Rights Does DSL Own the mineral rights to the parcel? Check Clear Lists (Yes or No) (Property Manager, Ownership Specialist) 14. Adjacent Property Owners & Use List by cardinal direction the name of the property owner/BLM District/National Forest Name and the predominant use on the adjacent lands (e.g. North Boundary of parcel is Malheur National Forest, East Boundary is BLM-Burns District, South Boundary is privately owned by John Doe at 12345 Road St Bend, OR 97701 (Irrigated agriculture-alfalfa), West boundary is privately owned by Joe Smith at PO Box 000 Pennsylvania, CA 12345 (rock quarry)) (Asset Analyst, Real Property Staff-field work) 15. Zoning What is the county zoning for the parcel in question? Must go to the county website/assessor tax lot records to get this information. (Asset Analyst) 16. Developable Parcel: Use county zoning information, appraisal information to determine if parcel is buildable. Include minimum acreage required for home site (Asset Analyst) 17. Minimum Acres required for home site: Note minimum acreage required for a home site based on county zoning (Asset Analyst) 18. Lot of Record: Need to work with county to determine this, must be completed prior to sale (Asset Analyst) 19. Potential for Zone Change/Partition: Determine this based on zoning and development information from the county. (Asset Analyst) 20. Wildlife Overlay This is information that is checked as part of county zoning information. DSL also has some wildlife layers in the GIS files (from ODFW). Need to list all wildlife zones by species here. (Asset Analyst) 21. Cultural-Historic: Parcel Review is where the Staff Archaeologist has completed a SHPO information request for the parcel in question. (Yes or No) (Archaeologist) 22. Previously Field Surveyed: Has any Archaeological field survey been completed at any time for any part or the entire parcel? If yes or partially, list the date(s) of the survey(s). (Archaeologist) 23. Cultural Resources Identified in the Field: During any site visits by DSL staff, was there any cultural or historic resources found on site? If no, check the no box. If yes, check the yes box and consult with DSL staff Archaeologist to determine next steps. Parcel may require full pedestrian survey for cultural resources. (Real Property Staff, Archaeologist) 24. Probability of Cultural resources: Completed by staff archaeologist, answer None, Low, Medium or High. (Archaeologist) 25. Threatened/Endangered Species: Complete an ORBIC data request, perform field survey if necessary, list species (plant and animal) found on site. If no T & E Species indicate “none” (Property Manager) 26. Water Rights: Look up water rights information on OWRD Website www.oregon.gov/OWRD go to Maps, click on Interactive Water Right Maps, click on Oregon Water Resources Web Mapping Program. This will get to the interactive web map. Once there, use the map tools to navigate to the parcel location. If there are water right on the parcel, list type and number (i.e. permit, certificate, etc.), name of water right holder, preference date, type of use, Point of Diversion (POD) or Place of Use (POU) and any other relevant information. (Property Manager) 27. Irrigation District: Name of irrigation district parcel lies within. If parcel is not within an irrigation district indicate “No District” (Property Manager) 28. Depth of Nearby Wells: Information from the OWRD Website from recorded well logs. Go to OWRD website at www.oregon.gov/OWRD, go to Maps, click on Interactive Water Right Maps, click on Oregon Water Resources Web Mapping Program. This will get to the interactive web map. Once there, use the map tools to navigate to the parcel location and look for wells (POD’s) in the surrounding area (within 2 miles). Click on the Identify tool and scroll down to the well logs. Click on the well logs to determine depth of the well. List well depths on the form. (Property Manager) 29. On site/Distance to existing electrical service and what type: Note where, and in what direction the nearest powerline/transmission line is located from the parcel. Note if the line is a single-phase, three-phase etc. or transmission line. (Real Property Staff-Field work) 30. Electrical Service Provider/PUD name: Note who the electrical service provider is for the area. PUD is the Public Utilities District, include this name as well. (Property Manager) 31. Potential for Alternative energy: Check available websites for solar, wind and geothermal energy potential for the parcel being evaluated. List the ratings (if any) for each type here. If no potential for all or any type of alternative energy indicate “no wind potential”, “no geothermal potential”, or “no solar potential” (Property Manager) 32. Access: Detail any roads (legal or not) that can be used to gain access to the parcel. Include condition of road, type of road, any road names or numbers, or indicate no roads at all. If access is through adjacent private ownership please indicate that as well. (Real Property Staff-whomever does the field work) 33. Legal Access: Indicate yes or no if there is legal access to parcel. If it is a government maintained road (county, BLM, USFS) list yes or no and include the road name or number. (Real Property Staff-Field Work) 34. Easements (to/from whom and what type): List any easements on the property. Include deed book and page description and indicate if deed book is DSL or County. (Property Manager, Asset Analyst) 35. Interior Roads/trails/condition: if there are any roads within the boundaries of the parcel being evaluated describe them here (Real Property Staff-Field Work) 36. Known Property Boundaries/Corner Survey Markers: Indicate and describe the location of any survey markers, brass caps, section corners, witness placards etc. here. (Real Property Staff-Field Work) 37. Nearest DSL Parcel: Describe how far away from the parcel being evaluated the next nearest DSL owned parcel is located. Include what direction and indicate the TRS of the nearest parcel. (Property Manager) 38. Topography/Shape of Parcel: Describe the shape and topography of the parcel. Indicate any distinguishing features such as natural water, slopes etc. (Real Property Staff-Field work, and office work) 39. Vegetation Cover: List the dominant species present in common names, indicate vegetative condition, and percent cover of trees, shrubs and grasses) 40. Site Structures/Improvements: Describe any fences, irrigation structures, water developments, agriculture etc. Include location of structures and indicate size, or length and condition of any structures found on site. (Real Property Staff-Field Work) 41. View Site/Water Features/Other Amenities: Describe any aesthetically pleasing attributes found within and around the parcel. Anything that would be potentially pleasing to a buyer (Real Property Staff-Field Work) 42. Evidence of Prior Impacts/Activities: Describe the location and condition of any evidence of wildfires, crops, timber/logging, recreation or any other historic use. (Real Property Staff-Field Work) 43. Lease History: Was the parcel ever, or is currently leased? Include lease number, Lessee Name, and use. This information can be found in LAS and in old files in Bend and Salem offices (All Real Property Staff) 44. Current Use: Describe any current uses on the property. If known, include the name of who is using the parcel. (All Real Property-Field Work) 45. Agriculture/Timber Potential: Describe the potential for agriculture and timber harvest based on conditions on site i.e. topography vegetation. (Real Property Staff- field work) 46. Soil Type: Describe the soils on site from the NRCS Soils Web Mapping tool. If parcel is in a county where the soil survey is unavailable, describe the soils from what was observed during the site visit. (Property Manager-Real Property Staff) 47. NRCS Soil Class: List the soils class from the NRCS Soils Web Mapping tool. (Property Manager, Asset Analyst) 48. MB & G Forest Rating: 49. Age of Timber: Average age of timber stand, this information comes from the appraisal and timber cruise. (Asset Analyst) 50. Timber Volume: Information comes from the timber cruise (Asset Analyst) 51. Estimated Timber Value: This figure from the timber cruise and appraisal (Asset Analyst) 52. Site Index: Indicate what site index was used for the timber cruise (i.e. either 50 or 100 year indexes) (Asset Analyst) 53. Type of Timber: What timber species are found on parcel, and what species were accounted for in the timber cruise? (Asset analyst) 54. % Annual timber volume increase: What is the percent annual timber volume increase used in the timber cruise? (Asset Analyst) 55. Fire District/Protection Area: Indicate if parcel is under ODF Fire Protection, within the boundaries of a Rangeland Fire Protection Area (RFPA), and/or under the BLM Fire Suppression agreement. List the name of the RFPA if appropriate. (Property Manager) 56. Property Expenses: List any property expenses such as fire protection costs (ie funds paid to an RFPA or to ODF). Determine this amount by acre. (Property Manager) a. For RFPA’s: take full amount paid to RFPA and determine how many DSL acres are within that RFPA boundary. Then determine the per acre rate for fire protection and multiply that amount by the number of acres within the parcel in question. b. For ODF fire protection: Determine the rate for protection from the previous full calendar year, multiply this number by the number of acres within the parcel in question. 57. Other Holding Costs: This is intended to capture the holding costs to DSL. For example: If the parcel in question is classified as Rangeland Unleased (RNGU), the holding costs to DSL would come out of the Rangeland Program costs. To determine this amount on a per acre basis, take the program expenditure amount from the previous calendar year and divide that amount by the total number of acres classified as Rangeland. That will give you the per acre costs for all lands classified as Rangeland. Then take that amount and multiply it by the number of acres within the parcel being evaluated. 58. Assessor’s RMV: This is the county assessor’s Real Market Value. This information must come from the county as it is updated annually. (Asset Analyst) 59. Tax Year: Indicate what tax year the Assessor’s RMV value is from. (Asset Analyst) 60. Estimated Market Value: This value comes from the appraisal. If marketable timber on parcel, indicate what the total market value would be with the timber and without the timber. (Asset Analyst) 61. Source: Indicate the source of the appraisal. I.e. who completed the appraisal? (Asset Analyst) 62. Known/Projected AUM’s: List the AUM amount the parcel can support. This information either from appraisal, NRCS Soils web mapping tool, or on site determination. (Rangeland Manager) 63. Annual Lease amount: Indicate what the Grazing lease rate would be given the AUM amount, or what the current lease fee is if parcel is under lease. (Rangeland Manager) 64. 20 year Investment Return based on Timber/lease income: 65. Rate of Return on asset value (%): 66. Present Value based on Current/Projected Income: 67. Potential developments necessary to increase marketability/land value (i.e. access, utilities): List what developments DSL could complete prior to sale to increase property value prior to sale, also have an option to say none. (Asset Analyst) 68. Estimate Annual Income after Development (Improvements/Land use action): Answer based on question 31 above. Determine value of property after any developments and improvements. Also, determine what income could be if improvements were completed and DSL leased out the property (i.e. for agriculture use) (Asset Analyst/Property Manager) 69. Highest and Best Use Conclusion: What is the overall highest and best use of the property? What action, either lease for a specific purpose, or sale would bring the highest value to the Common School Fund? (All Real Property staff) 70. Comments: Note any extra comments or information about the parcel here. 71. Originator: Names or initials of any and ALL DSL Staff that contributed information to this evaluation and the date the information was added. 72. Reviewer: Filled out once Eastern Region Manager has reviewed the form and is satisfied by the information contained. Include date the form was reviewed and accepted.

APPENDIX C Department of State Lands Oregon 775 Summer Street NE, Suite 100 Salem, OR 97301-1279 Kate Brown, Governor (503) 986-5200 FAX (503) 378-4844 www.oregon.gov/dsl

State Land Board

S t a t e L a n d B o a r d Kate Brown Governor Regular Meeting April 9, 2019 Agenda Item 4 Secretary of State Tobias Read State Treasurer SUBJECT

Request for approval to initiate due diligence for the sale and possible partition of a 15.23 acres tract at the south end of North Tongue Point in Clatsop County, located at Township 8 North, Range 9 West, Section 11, Tax Lot 5800.

ISSUE

Whether the Land Board should authorize the initial due diligence for the sale and possible partition of DSL land on North Tongue Point. (Appendix A).

AUTHORITY

Oregon Constitution, Article VIII, Sections 2 and 5; pertaining to the Common School Fund and land management responsibilities of the State Land Board.

ORS 273.055; relating to the power to acquire and dispose of real property. ORS 273.171; relating to the duties and authority of the Director. OAR 141-067; relating to the sale, exchange and purchase of state land. Real Estate Asset Management Plan (REAMP), adopted by the Land Board; February 2012. APPENDIX B

SUMMARY

The North Tongue Point property is on the deep-water channel of the Columbia River at the eastern end of Astoria. This tract is adjacent to a former U.S. Naval base at North Tongue Point which includes long shipping piers.

In the mid-1980’s, DSL purchased this 15.23-acre tract, plus the former 33.9-acre Naval base that operated during World War II, and 130 acres at South Tongue Point for $2 million.

On September 20, 2000, DSL sold the former 33.9-acre Naval base for $4 million to Cresmont, Inc.

In February 2019, the State Land Board approved selling the north 21.78 acres of South Tongue Point to Clatsop Community College in a direct sale for $826,500.

For the past ten years, DEQ and the U.S. Corps of Engineers (Corps) have worked cooperatively to clean up and monitor the southern 8 acres of the 15.23 acres tract proposed for sale. The tract had a landfill that has been capped and monitored for the past ten years. The earthen cap requires periodic inspection and maintenance by the Corps in perpetuity. A fence has been installed around the impacted area and is only accessible to the Corps.

DSL received an application from Bergerson Construction, Inc. to purchase the northern portion of the property. Bergerson Construction, Inc. currently leases space from Hyak Maritime, the current owner of the former Naval base, and has found it needs additional space for material storage.

DSL asks to perform due diligence studies on the sale of this 15.23-acre tract, and to possibly partition the northern portion of the property for the sale if it appears to be more lucrative than selling the entire parcel. An open, competitive sale process will be pursued for this property.

RECOMMENDATION

The Department recommends that the State Land Board authorize the Department to initiate due diligence studies for a sale and to potentially partition the property located at Township 8N, Range 9W, Section 11, Tax Lot 5800.

APPENDIX

A. Map of Property

Agenda Item 4 April 9, 2019 Page 2 of 2

Department of State Lands Oregon 775 Summer Street NE, Suite 100

Kate Brown, Governor Salem, OR 97301-1279 (503) 986-5200 FAX (503) 378-4844 www.oregon.gov/dsl

State Land Board S t a t e L a n d B o a r d Kate Brown Regular Meeting Governor June 8, 2021 Agenda Item 3 Shemia Fagan Secretary of State

Tobias Read SUBJECT State Treasurer

Request for approval of a permanent easement for a bridge in the SE 1/4 of Section 35, Township 11 South, Range 05 West, W.M., Benton and Linn Counties (LAS file 63103- EA).

ISSUE

Whether the State Land Board should approve a request from the State of Oregon, by and through its Department of Transportation, for a permanent easement to build, operate, and maintain a replacement bridge crossing the Willamette River in Corvallis.

AUTHORITY

Article VIII, Section 5 of the Oregon Constitution; requiring the Land Board to “manage lands under its jurisdiction with the object of obtaining the greatest benefit for the people of this state, consistent with the conservation of this resource under sound techniques of land management.”

ORS 273.171; relating to the duties and authority of the Director.

OAR 141-123-0010 to 141-123-0120; establishing procedures for granting easements and rights-of-way on non-trust lands and requiring Land Board approval of easements granted in perpetuity.

BACKGROUND

The Oregon Department of Transportation (ODOT) applied for a permanent easement for construction, operation, and maintenance of a replacement bridge at the crossing of Oregon Route 34 over the Willamette River in Corvallis.

The current bridge, commonly called the Van Buren Bridge, is seismically vulnerable and does not meet current height and weight standards for highway traffic as well as Americans with Disabilities Act requirements.

ODOT is proposing to build a new two-lane eastbound bridge with multi-use path to replace the existing one-lane Van Buren Bridge. The bridge is adjacent to downtown Corvallis and spans the Benton/Linn county line. The bridge carries traffic headed east out of Corvallis, across the Willamette River, and onto Oregon Route 34, the main highway connecting Corvallis to Interstate 5.

The new bridge will be built slightly north of the existing bridge, occupying nearly the same footprint. Project construction is estimated to be completed in November 2024.

The proposed easement will allow ODOT to maintain and operate the replacement bridge.

Pursuant to OAR 141-123-0060 (11)(c), a compensatory payment of $100.00 was paid for the easement area.

PUBLIC INVOLVEMENT

DSL circulated this application for a 30-day public comment period. DSL received one comment:

• Gary Curtis, DSL Statewide Archaeologist, approved of this easement but noted that if during the construction phase of the new bridge, any historic or prehistoric artifacts are located or exposed, all work should stop immediately until a qualified archaeologist is contacted and can assess the significance of the discovery, as areas in and around the Willamette River are considered High Probability areas for encountering archaeological sites and/or buried remains.

RECOMMENDATION

The Department of State Lands recommends the State Land Board approve the permanent easement 63103-EA to the State of Oregon by and through its Department of Transportation to maintain and operate a bridge over, upon, and across the Willamette River.

Agenda Item 3 June 8, 2021 Page 2 of 3

APPENDICES

A. Map B. Draft Easement - 63103-EA

Agenda Item 3 June 8, 2021 Page 3 of 3 11535DB 11535DB 10100 State of Oregon APPENDIX A 15400 11535DB Department of State Lands 10000 11535DB 14800

11535DB 11535DC 14700 01400 11S05W36 604 11535DC 01100

11S05W36 603 11535DC 01000 11535DC 01200 11535DC 00200

11535DC 00100 11535DC Corvallis 02600

11535DC 35 03800 11S 5W 11535DC 03400

63103-EA

11535DC 11535DC 03500 03200 11535DC 03900 Willamette River

11S05W35DD 500

11535DC 10800 11S05W35DD 200

11535DC 11535DC 04000 04200

12S05W01 1200 11535DC 10100

Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE, Garmin, (c) OpenStreetMap 12S 5W 2 contributors, and the GIS user community Appendix A-1 0 100 200 Location Map 63103-EA Bridge Easement Feet Ü T11S, R05W Section 35 71,874 Square Feet Corvallis Benton County 0# Points of Beginning Map Projection: Oregon Statewide Lambert Description lines Datum NAD83 International Feet Use Area State of Oregon Department of State Lands This map depicts the approximate location and extent of a Department of State Lands 775 Summer St NE, Suite 100 Proprietary authorization for use. This product is for informational purposes only and Salem, OR 97301 may not have been prepared for, or be suitable for legal, engineering, or surveying 503-986-5200 purposes. Users of this information should review or consult the primary data and www.oregon.gov/DSL information sources to ascertain the usability of the information. Date: 4/21/2021 Main Map Extent Document Path: O:\ARM\Proprietary\Benton\63103-EA\OLD\63103EA ExhibitA v2.mxd Map Producer: dfrisone APPENDIX B

STATE OF OREGON Department of State Lands

EASEMENT NO. 63103-EA S&S Bridge

The STATE OF OREGON, by and through its Department of State Lands, GRANTOR, for and in consideration of $100.00, hereby grants to GRANTEE,

NAME of GRANTEE: ADDRESS: State of Oregon, by and through its 455 Airport Rd Bldg A Department of Transportation Salem, OR 97301 an easement and right to construct, maintain, operate and replace a bridge over, upon, and across the following particularly described property situated in Benton County, Oregon, more particularly described as follows:

Permanent Easement for Highway Right of Way Purposes

A parcel of land lying in the SE¼ of Section 35, Township 11 South, Range 05 West, Willamette Meridian, Benton and Linn Counties, Oregon and more particularly described in Exhibit A and as shown on Exhibit A-1.

This Parcel of land contains 1.65 acres, more or less.

TO HAVE AND TO HOLD the same unto GRANTEE in perpetuity, subject to the following conditions:

1. GRANTOR has the right to grant additional easements within the area authorized by this easement subject to the provisions of the administrative rules governing the granting of easements.

2. GRANTEE shall obtain prior written approval from GRANTOR prior to: a) Changing the type of use authorized by this easement; b) Expanding the number of authorized developments or uses; c) Changing the authorized area; and/or d) Permitting other persons to utilize the easement for uses and developments requiring separate written authorization by GRANTOR pursuant to the administrative rules governing the granting of easements or other GRANTOR requirements.

3. The easement area shall remain open to the public for recreational and other non- proprietary uses unless restricted or closed to public entry by the State Land Board or GRANTOR. APPENDIX B

4. GRANTOR and/or its authorized representative(s) shall have the right to enter into and upon the easement area at any time for the purposes of inspection or management.

5. Except as expressly authorized in writing by the Department, GRANTEE shall not: a) Cut, destroy or remove, or permit to be cut, destroyed or removed any vegetation, or b) Remove any sand and gravel, or other mineral resources for commercial use or sale, that occur in the easement area except as expressly authorized in writing by GRANTOR.

Routine right-of-way maintenance including vegetation trimming shall be allowed.

6. GRANTEE shall compensate GRANTOR for the fair market value of any commercially valuable timber or sand and gravel resources in the easement area that must be removed during or after placement of the authorized use, or which cannot be developed because of the authorized use.

7. GRANTEE shall conduct all operations within the easement area in a manner that conserves fish and wildlife habitat; protects water quality; and does not contribute to soil erosion, or the introduction or spread of noxious weeds or pests. Upon completion of construction, GRANTEE shall reclaim disturbed lands to a condition satisfactory to GRANTOR.

8. GRANTEE shall obtain a surety bond in the amount of $N/A to ensure compliance with the terms and conditions of this easement.

9. The right to use this easement shall automatically terminate if it, or the development authorized by GRANTOR, is not used within five (5) consecutive years of the date this easement was granted, pursuant to the provisions of the administrative rules governing the granting of easements.

10. Unless otherwise approved in writing by GRANTOR, GRANTEE shall remove all cables, pipes, conduits, roads, and other developments placed by GRANTEE on the easement, and shall restore the surface of the easement area to a condition satisfactory to GRANTOR within one (1) year following termination of use or expiration of this easement.

11. GRANTEE shall inspect the condition of the area authorized by this easement and the developments authorized by this easement on a frequency of: every five years.

12. GRANTOR shall have the right to stop operation of the use authorized by this easement for noncompliance with the conditions of this easement, the provisions

STATE TO OREGON DEPARTMENT OF TRANSPORTATION WILLAMETTE RIVER 63103-EA Page 2 of 5 APPENDIX B

of the administrative rules governing the granting of easements, and/or any lawful requirement by a regulatory agency of this STATE.

13. If this easement authorizes the use of state-owned submerged and/or submersible land: a) Construction in navigable waters shall conform to the standards and specifications set by the U.S. Army Corps of Engineers and the U.S. Coast Guard for the use authorized by this easement. b) Any blasting which may be necessary, or in-water placement, maintenance, or repair of the authorized use shall be performed according to the laws of this STATE, including strict adherence to Oregon Department of Fish & Wildlife in-water work windows.

14. GRANTEE shall pay to GRANTOR the current market value, as determined by GRANTOR, for any unnecessary and non-approved damages to state-owned lands caused by construction or maintenance of the easement.

15. GRANTEE shall pay all assessments that may be legally charged on public lands which are levied against the property subject to this easement, whether or not such assessments have been levied against the easement area or STATE by the assessing agency.

16. GRANTEE shall use the authorized easement area only in a manner or for such purposes that assure fair and non-discriminatory treatment of all persons without respect to race, creed, color, religion, handicap, disability, age, gender or national origin.

17. GRANTEE shall ensure that all state, federal and local permits are consistent and compatible with this authorization prior to work commencing.

18. If a crossing listed in this easement is later found to have a valid easement from the GRANTOR, then the easement with the latest expiration date will be the “prevailing easement.”

19. This easement is freely transferable. However, no transfer may increase the burden on the easement area or detract from the value of the underlying state- owned land.

This easement does not convey an estate in fee simple of the lands used for a right-of- way. This grant is for an easement only, and title remains in the State of Oregon.

STATE TO OREGON DEPARTMENT OF TRANSPORTATION WILLAMETTE RIVER 63103-EA Page 3 of 5 APPENDIX B

STATE OF OREGON, acting by and through its Department of State Lands

______DSL Authorized Signature/Printed Name

______Date

STATE OF OREGON ) )ss County of Marion )

This foregoing instrument was acknowledged before me this day of ____, 20__, by ______, the ______of the Department of State Lands.

______Signature My commission Expires ______, 20__.

STATE TO OREGON DEPARTMENT OF TRANSPORTATION WILLAMETTE RIVER 63103-EA Page 4 of 5 APPENDIX B APPENDIX B APPENDIX B 11535DB 11535DB 10100 State of Oregon APPENDIX B 15400 11535DB Department of State Lands 10000 11535DB 14800

11535DB 11535DC 14700 01400 11S05W36 604 11535DC 01100

11S05W36 603 11535DC 01000 11535DC 01200 11535DC 00200

11535DC 00100 11535DC Corvallis 02600

11535DC 35 03800 11S 5W 11535DC 03400

11535DC 11535DC 03500 03200 11535DC 03900 Willamette River

11S05W35DD 500

11535DC 10800 11S05W35DD 200

11535DC 11535DC 04000 04200

12S05W01 1200 11535DC 10100

Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE, Garmin, (c) OpenStreetMap 12S 5W 2 contributors, and the GIS user community EXHIBIT A-1 0 100 200 Location Map 63103-EA Bridge Easement Feet Ü T11S, R05W Section 35 71,874 Square Feet Corvallis Benton County 0# Points of Beginning Map Projection: Oregon Statewide Lambert Description lines Datum NAD83 International Feet Use Area State of Oregon Department of State Lands This map depicts the approximate location and extent of a Department of State Lands 775 Summer St NE, Suite 100 Proprietary authorization for use. This product is for informational purposes only and Salem, OR 97301 may not have been prepared for, or be suitable for legal, engineering, or surveying 503-986-5200 purposes. Users of this information should review or consult the primary data and www.oregon.gov/DSL information sources to ascertain the usability of the information. Date: 4/15/2021 Main Map Extent Document Path: O:\ARM\Proprietary\Benton\63103-EA\63103EA ExhibitA.mxd Map Producer: dfrisone

Department of State Lands Oregon 775 Summer Street NE, Suite 100

Kate Brown, Governor Salem, OR 97301-1279 (503) 986-5200 FAX (503) 378-4844 www.oregon.gov/dsl

State Land Board

S t a t e L a n d B o a r d Kate Brown

Governor Regular Meeting June 8, 2021 Agenda Item 4 Shemia Fagan Secretary of State

SUBJECT Tobias Read State Treasurer Request for final approval to complete the exchange of 140 acres of the South Redmond Tract (Township 15S, R13E, Section 33, Tax Lot 100 W.M. Deschutes County) for 137.27 acres of industrial land of equal appraised value located in the City of Redmond, LAS #41855-LE.

ISSUE

Whether the State Land Board should authorize the Department to complete the transfer of 140 acres of the South Redmond Tract to Deschutes County for the purposes of expanding the Deschutes County Fairgrounds, and to receive 137.27 acres of industrial land of equal appraised value from Deschutes County in exchange.

AUTHORITY

• Oregon Constitution, Article VIII, Sections 2 and 5; pertaining to the Common School Fund and land management responsibilities of the State Land Board. • ORS 273.055; relating to the power to acquire and dispose of real property. • ORS 273.171; relating to the duties and authority of the Director. • ORS 273.780; relating to the retention of mineral rights. • OAR 141-067; relating to the sale, exchange and purchase of state land. • Real Estate Asset Management Plan (REAMP), adopted by the Land Board; February 2012. • 2008 South Redmond Tract Land Use and Management Plan • 2019 South Redmond Tract adopted by the City of the Redmond City Council and the Deschutes County Commission for Urban Growth Boundary Expansion, Annexation, and Rezoning.

SUMMARY

The South Redmond Tract is a 940-acre parcel located southeast of the City of Redmond in Deschutes County. See map in Appendix A. The Department, on behalf of the State Land Board, acquired the property as a Common School Fund land asset from the U.S. Bureau of Land Management (BLM) in 2007. The acquisition of these acres partially satisfied the federal government’s obligation to provide Oregon with approximately 5,200 acres of federal land owed in-lieu of school lands not granted at statehood. There are still approximately 1,400 acres owed to the State, for which the Department has submitted an application to the BLM to fully satisfy the remaining debt.

Upon DSL receiving title to the South Redmond Tract, a collaborative planning effort was initiated with federal, state, and local agencies. The planning effort ultimately led to development of the South Redmond Tract Land Use and Management Plan. The plan recommends a land use and land management concept to generate the greatest possible revenues for the Common School Fund that are compatible with community interests and local land inventory needs, as well as being consistent with Oregon land use law.

Plan outcomes include:

• Incorporating the property into the Redmond city limits and urban growth boundary. This was completed in August 2019.

• Adding significant Large Lot Industrial land to central Oregon. 780 acres, a majority of the property, has been designated a Large Lot Industrial (LLI) zoning district for significant and unique employment and economic development opportunities. The South Redmond Tract LLI property is now the single designated 200-plus acre site in the Central Oregon Large Lot Industrial Land Program.

• Selling land to the Oregon Military Department for a readiness center. The plan called for sale of 20 acres to the Oregon Military Department (OMD) for the development of a National Guard Readiness Center. On February 9, 2021, the State Land Board approved the land sale to OMD, and DSL and OMD finalized the sale on April 21, 2021.

• Completing a land exchange with Deschutes County to accommodate a 140-acre expansion of the adjacent Deschutes County Fairgrounds.

Summary of the Deschutes County Land Exchange Deschutes County and DSL entered into an Exchange Agreement on June 15, 2015. The agreement specified the terms, tasks and obligations of each party

Agenda Item 4 June 08, 2021 Page 2 of 4 precedent to the actual land exchange. The elements and terms of the agreement included: o The provision of a Title Report to each party by the other. o The exchange of known environmental information for each property. o DSL to perform land use entitlements to include UGB Expansion, Comprehensive Plan Amendment and Zone Change, and Annexation to City of Redmond. o Appraisals on the properties to be exchanged. The appraisals were completed for both properties in November 2020. Both parties have agreed to the value of the properties based on the appraisals. o DSL and Deschutes County to reach final decision on the configuration of the land area to be exchanged to DSL from the County based on the terms of agreement. o County to complete necessary land use processes to convey a legal lot of record to DSL. Maps attached as Appendices A and B.

Since 2015, DSL and Deschutes County have continued to work together to complete the tasks and obligations of the agreement and move toward a land exchange, even as unanticipated issues arose. Both parties recognized that the specific timelines within the original agreement would not be met as described in the agreement. Both parties mutually agreed to continue forward in good faith toward fulfillment of the intent of the original Exchange Agreement without amending said agreement.

DSL and Deschutes County worked collaboratively to update the agreement with the details below:

• Both parties agreed to allow further time for Deschutes County to execute a reconfiguration of County property to be incorporated into the City of Redmond Urban Growth Boundary and City limits in an Industrial Zoning District, which is now complete.

• The original proposed Deschutes County property was the site of a gun range. Both parties agreed to consider another property without potential for hazardous material cleanup and mitigation. The property now identified as the County exchange land has been mutually agreed upon by both parties and approved by Deschutes County and the City of Redmond.

• Both parties agreed the exchange will be based on equal value instead of an acre for acre exchange to account for variations in size and appraised values. The appraised values affected the size of the newly proposed exchange property compared to the original proposed county exchange.

Agenda Item 4 June 08, 2021 Page 3 of 4 RECOMMENDATION

The Department recommends the State Land Board approve the completion of the exchange of 140 acres of the South Redmond Tract for industrial property of equal appraised value located in the City of Redmond with Deschutes County for the purposes of expanding the adjacent Deschutes County Fairgrounds.

APPENDICES

A. Map of DSL Property B. Map of Deschutes County Property

Agenda Item 4 June 08, 2021 Page 4 of 4 State of Oregon APPENDIX A Department of State Lands

28 29 27 Redmond

15S 13E

OMD Property

33 32 34

Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, Esri, HERE, Garmin, (c) OpenStreetMap contributors, Esri, HERE, Garmin, (c) OpenStreetMap contributors, and the GIS user community

EXHIBIT D 0 400 800 Location Map 41855-LE Land Exchange Feet Ü T15S, R13E Section 33 140 acres Redmond Prineville Deschutes County - DSL Properties Map Projection: Oregon Statewide Lambert DSL Property to County Datum NAD83 International Feet State of Oregon Department of State Lands This map depicts the approximate location and extent of a Department of State Lands 775 Summer St NE, Suite 100 Proprietary authorization for use. This product is for informational purposes only and Salem, OR 97301 may not have been prepared for, or be suitable for legal, engineering, or surveying 503-986-5200 Bend purposes. Users of this information should review or consult the primary data and www.oregon.gov/DSL information sources to ascertain the usability of the information. Date: 5/27/2021 Main Map Extent Document Path: C:\Users\szumwalt\OneDrive - Oregon\Desktop\DSL to COUNTY Exchange.mxd Map Producer: szumwalt This web site will give the exact year for the aerial photography you see when using Esri World Imagery service. http://www.arcgis.com/home/webmap/viewer.html?webmap=c1c2090ed8594e0193194b750d0d5f83 APPENDIX B County-owned Property Pending Land Exchange with DSL

Source: Esri, Maxar, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, Deschutes ±County GIS 0 1,250 2,500 5,000 ft Date: 12/11/2020 1 inc h = 3,009 feet Department of State Lands Oregon 951 SW Simpson Ave., Suite #104 Kate Brown, Governor Bend, OR 97702 (541) 388-6112 FAX (541) 388-6480 www.oregon.gov/dsl State Land Board

Kate Brown S t a t e L a n d B o a r d Governor

Regular Meeting Shemia Fagan June 8, 2021 Secretary of State Agenda Item 5

Tobias Read State Treasurer SUBJECT

Request for final approval to exchange surface rights on approximately 164 acres of DSL-owned rangelands located in the SE1/4 of Section 5, Township 24 South, Range 32.5 East, for approximately 160 acres of privately owned rangelands in the SE1/4 of Section 4, Township 24 South, Range 32.5 East, Willamette Meridian, Harney County, Oregon, LAS #62352-LE

ISSUE

Whether the Land Board should approve the exchange of surface rights on approximately 164 acres of rangeland in Harney County.

AUTHORITY

• Oregon Constitution, Article VIII, Sections 2 and 5; pertaining to the Common School Fund and land management responsibilities of the State Land Board. • ORS 273.171; relating to the duties and authority of the Director. • ORS 273.316; relating to the power to exchange lands to accumulate larger tracts. • ORS 273.413; relating to the power to exchange property held as a trust fund asset. • ORS 273.820; relating to the power to exchange Common School Grazing Lands. • OAR 141-067; relating to the sale, exchange, and purchase of state land. SUMMARY

On June 9, 2020, the State Land Board approved the review and determination of the exchange of 160 acres of privately owned rangelands located in Tax Lot 1500, SE1/4 of Section 5, Township 24 South, Range 32.5 East, for approximately 164 acres of DSL- owned rangelands in a portion of Tax Lot 1800, SE1/4 of Section 4, Township 24 South, Range 32.5 East, Harney County, Oregon.

The exchange of these properties will configure the ownership so that DSL’s new parcel would be adjacent to 734 acres of ownership that is currently under grazing lease, allowing for more cohesive management of the property. The DSL land being conveyed to private ownership will also be blocking up ownership with the agricultural lands to the west. On May 6, 2021, DSL received a signed Exchange Agreement from the owner of Tax Lot 1500 stating that all costs relating to the exchange shall be split, and any difference in value for the properties will be compensated for monetarily. One comment was received during the public review process: the Confederated Tribes of Warm Springs stated they would defer to whatever comment the Burns Paiute Tribe provided. The Burns Paiute Tribe did not comment.

DSL to private - Portion of Tax Lot 1800 (SE ¼ Section 5): Tax Lot 1800 is currently 900 acres comprised of approximately 320 acres to the north of Lane 14 (Dead End Lane) in Sections 4 and 5 of Township 24 South, Range 32.5 East, and approximately 580 acres lying south of Lane 14 (Dead End Lane) in Sections 9 and 10 of the aforementioned Township. Completing the exchange will require a lot line adjustment to be approved by Harney County Planning Department. DSL has proposed to allow Tax Lot 1500 to be relocated to the SE1/4 of Section 5, which will become a private Tax Lot, and the boundary of Tax Lot 1800 (DSL) will be moved east to incorporate the SE1/4 of Section 4 being transferred to the Department.

The portion of Tax Lot 1800 proposed to be exchanged is currently under grazing lease. The lessee has been contacted and is fully supportive of the exchange. The transfer of properties will create easier grazing management for the lessee.

There is currently a stock well on DSL’s property that DSL will retain an easement for to allow for continued use with DSL’s grazing lease.

Water Right Permit Number G-17363 belongs to Tax Lot 1800, DSL’s property to be exchanged, but is unusable as the agency has self-imposed a moratorium on agriculture conversions in the Harney Basin due to over-allocation of water in the basin. This Water Right Permit will effectively be canceled.

Agenda Item 5 June 8, 2021 Page 2 of 3 Private to DSL - Tax Lot 1500 (SE ¼ Section 4): This parcel consists of 160 acres of fully fenced rangeland. There are no significant differences between the private parcel and DSL parcel other than vegetation composition.

Water Right Permit Number G-16852 belongs to Tax Lot 1500. The private property owner intends on transferring this permit to the land being acquired in the exchange so that the water right permit may be proven beneficial in the future.

The Oregon Biodiversity Information Center report for these parcels did not show any threatened or endangered species in the area. DSL’s Archaeologist reviewed the properties and determined that there is a moderately low probability of encountering cultural resources. The Department expects to receive the results of the appraisal by June 30, 2021.

Both parcels being considered for exchange are zoned “EFRU-2, Exclusive Farm and Grazing Use 2.” The Natural Resource Conservation Service has the soil type listed as “Farmland of Statewide Importance.” The highest and best use of these parcels is for agriculture and grazing. The completion of this land exchange will contribute to the local economy of Harney County by improving the management efficiency of DSL grazing lands and private agricultural lands.

RECOMMENDATION

The Department recommends the State Land Board approve the exchange of surface rights of approximately 164 acres of DSL-owned rangelands located in the SE1/4 of Section 5, Township 24 South, Range 32.5 East, Willamette Meridian, for approximately 160 acres of privately owned rangelands in the SE1/4 of Section 4, Township 24 South, Range 32.5 East, Willamette Meridian, Harney County, Oregon.

APPENDICES

Appendix A – Map

Agenda Item 5 June 8, 2021 Page 3 of 3 State of Oregon APPENDIX A 31 32 33 34 Department23S of 32.5EState Lands

4 3 6 5 Taxlot 1800 DSL Taxlot 1500 Thomas «¬

Lane 14

HarneyHarney CountyCounty

24S 32.5E 10

8 9 7

16 15 18 17

State of Oregon GEO, Esri, HERE, iPC, USDA FSA, GeoEye, Maxar, CNES/Airbus DS

0 0.25 0.5 Location Map EXHIBIT A: 62352-LE Miles ¤£ Harney County Land Exchange Ü «¬20 Between DSL and Kevin Thomas Burns «¬ ¦¨§ T24S, R32.5E, Sections 4 and 5 ¤£ Harney County - Taxlot 1500 Thomas Property Map Projection: «¬205 «¬ Taxlot 1800 DSL Property Oregon Statewide Lambert DSL Ownership Datum NAD83 International Feet Access Roads Townships State of Oregon «¬78 Department of State Lands Sections 1645 NE Forbes Rd. Suite 112 County Boundaries Bend, OR 97701 City Limits 541-388-6112 Highways This map depicts the approximate location and extent of a Department of State Lands Proprietary authorization www.oregon.gov/DSL for use. This product is for informational purposes only and may not have been prepared for, or be suitable for legal, Main Map Extent engineering, or surveying purposes. Users of this information should review or consult the primary data and Date: 7/1/2020 information sources to ascertain the usability of the information. This web site will give the exact year for the aerial photography Map Producer: smiltenberger you see when using Esri World Imagery service. http://www.arcgis.com/home/webmap/viewer.html?webmap=c1c2090ed8594e0193194b750d0d5f83

Department of State Lands Oregon 775 Summer Street NE, Suite 100

Kate Brown, Governor Salem, OR 97301-1279 (503) 986-5200 FAX (503) 378-4844

www.oregon.gov/dsl

State Land Board M E M O R A N D U M Kate Brown Governor

Shemia Fagan Date June 8, 2021 Secretary of State

Tobias Read To: Governor Kate Brown State Treasurer Secretary of State Shemia Fagan State Treasurer Tobias Read

From: Vicki L. Walker Director

Subject: Update on the Territorial Sea Plan’s Rocky Habitat Management Strategy

Managing Oregon's ocean resources is a shared responsibility. The Territorial Sea Plan sets a coordinated vision for marine resources in Oregon and guides the actions of state and federal agencies responsible for managing coastal and ocean resources in the public trust. The Department of State Lands is guided by the plan, as we oversee submerged and submersible lands within the territorial sea on behalf of the State Land Board.

The plan’s Rocky Habitat Management Strategy supports coordinated protection and management of Oregon’s unique rocky habitats. Biologically rich and visually dramatic, coastal rocky habitat areas are recognized for their ecological and societal values. The strategy reflects a site-based management approach. Specific sites may be designated as marine research areas, marine education areas, or marine conservation areas, with site priorities, recommended goals, and management outlined for each type of site.

The strategy was adopted in 1994 and has changed little since its creation. But our state’s understanding of rocky habitats has greatly changed. Much has been learned about rocky habitats, changing ocean processes, and the need to be forward thinking in considering the impacts of climate change on ocean resources.

In Fall 2018, the Department began working with the Oregon Department of Land Conservation and Development (DLCD), other state and federal agencies, community

members, and ocean users to update the strategy with the goals of improved coordination, increased public awareness, and protecting the public trust values of rocky habitat.

The update is occurring in three phases:

Phase I: Determine public interests and priorities in rocky habitats. This phase was completed in November 2018. Public interest focused on adding clarity to the site designations and aligning resource protection with the best available science.

Phase II: Update the coastwide strategy. Phase II, completed in May 2020, established a process for initial proposals to be submitted by the public. Highlights of this phase included:

• Incorporating public interest and feedback into the management strategy. This was done through refining the original 1994 management designations and rethinking how management strategies and regulations could be used to achieve site goals. This also included the development of a framework for adaptive management such that sites can be managed appropriately as conditions change and new information becomes available.

• Incorporating additional policies for submerged aquatic vegetation within the rocky shores. The creation of the policies below reinforces the Department’s current high level of resource protection for aquatic vegetation, including kelp and eel grass:

o Harvest of aquatic vegetation is prohibited except as regulated by state agencies for appropriate recreational, scientific, restoration, and educational use (Policy Q).

o Development activities occurring within or near an area with aquatic vegetation must have no significant adverse effects to the aquatic vegetation or its habitat (Policy R).

The Department currently lists kelp and eel grass as aquatic resources of special concern. This listing sets a higher bar for resource protection during permitting and authorizing uses in the territorial sea. Department rules (OAR 141-125) also prohibit commercial harvest of kelp and other seaweeds.

The public has expressed interest in adding additional protections to submerged aquatic vegetation due to the negative impacts of ocean acidification and hypoxia and the future impacts of climate change on

June 8, 2021 Agenda Item 6 Page 2 of 8 sensitive marine life. Nearly every proposal submitted in Phase III suggested increased protections for kelp and other seaweeds to prohibit recreational harvest in addition to the current restrictions on commercial harvest.

Phase III: Review site proposals. Phase III, which is underway and will be completed by Spring 2022, will incorporate accepted site proposals into the Rocky Habitat Management Strategy. This phase also includes establishing a framework by which the Ocean Policy Advisory Council (OPAC) can allow for future modifications, as site-specific resource needs change.

Current Status – Adopting New Sites The Rocky Shores Working Group, which DSL has been participating in over the past three years, has completed review of twelve newly proposed Rocky Habitat Management sites.

The Working Group developed a recommendation at its April meeting which included supporting the adoption of two new sites for designation: Coquille Point Marine Garden and Cape Blanco Marine Research Area. See Appendix A for additional details.

The recommendation also identified six proposals as having merit but needing additional development. Four proposals were not recommended for adoption or continued work. The proposals that were not recommended do not speak to the merit of the site, but rather the specific details of the submitted proposal.

The Working Group recommendation was presented to OPAC on May 17, 2021. OPAC reached consensus on the adoption of the two new site designations recommended by the Working Group. OPAC’s recommendation will now move to the Land Conservation and Development Commission to be considered for adoption into the Territorial Sea Plan’s Rocky Habitat Management Strategy.

Future Work – Rulemaking to Implement New Sites, Ongoing Collaboration Multi-agency rulemaking will be needed to implement new site designations. Other agency partners in this rulemaking effort include DLCD, the Oregon Department of Fish and Wildlife, and the Oregon Parks and Recreation Department. DSL rulemaking will be needed to implement restrictions on recreational kelp and seaweed harvest, and to define site boundaries in line with how the Department codified the boundaries of the Marine Reserves.

The Department is committed to protection of waters of the state and ensuring that special places along Oregon’s coast are protected for enduring public enjoyment. DSL will continue to work with OPAC and other partners to complete the Rocky Habitat Management Strategy update and as new site designations are proposed in the future.

June 8, 2021 Agenda Item 6 Page 3 of 8 The Department will also continue to provide updates to the Land Board as this important work progresses.

Additional Information More information about the Territorial Sea Plan – Part III, Rocky Habitat Management Strategy, including details about all submitted proposals, can be found at: https://www.oregonocean.info/index.php/tsp-rocky-shores-amendment

June 8, 2021 Agenda Item 6 Page 4 of 8 APPENDIX A Overview of New Sites Recommended for Designation

Coquille Point Marine Garden in Bandon

The goal of a Marine Garden is to protect rocky habitat resources to support public enjoyment, learning opportunities, and maintain ecological integrity. These sites should be prioritized for providing enhanced education, enjoyment, public access, and resource awareness.

This proposal was brought forward by Shoreline Education Awareness, which is a group of local coastal residents who provide education and awareness regarding the shoreline habitats and the wildlife along the Southern Oregon Coast. This proposed site is intended to afford more protection of the flora and fauna at the site while encouraging enjoyment of the designated area.

June 8, 2021 Agenda Item 6 Page 5 of 8 Proposed future DSL action would include rulemaking to adopt the site’s designated boundaries and the restriction of recreational kelp and seaweed harvest within the designated area.

Blanco Marine Research Area in Port Orford

The goal of a Marine Research Area is to maintain the natural system to support scientific research and monitoring while maintaining ecological integrity.

This proposal was submitted by the Partnership for Interdisciplinary Studies of Coastal Oceans (PISCO) at Oregon State University. PISCO is an academic consortium that conducts research to advance understanding of the coastal ocean within the California Current Large Marine Ecosystem. PISCO has been conducting research at the Cape Blanco site for more than 30 years.

June 8, 2021 Agenda Item 6 Page 6 of 8 Proposed future DSL action would include rulemaking to adopt the site’s designated boundaries and the restriction of recreational kelp and seaweed harvest within the designated area.

June 8, 2021 Agenda Item 6 Page 7 of 8 APPENDIX B Overview of the standard practices within each designation category.

June 8, 2021 Agenda Item 6 Page 8 of 8