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Government agencies backing the Willamette Falls Legacy Project are pressuring property owner George Heidgerken to allow the Riverwalk portion to go forward.

Heidgerken has refused to sign permit applications needed for the project to proceed. He has also declined to make a $200,000 payment that was due in January, according to both sides.

Heidgerken said Metro, which has taken a leadership role in the project, has come forward with park-like designs. Heidgerken has different ideas, proposing a hotel, restaurants, apartments and condos.

鈥淲e’re at odds only from the standpoint of they don’t listen to us,鈥� Heidgerken said in an interview Tuesday.

The government agencies publicly released a Sept. 22 letter to Heidgerken detailing the impasse.
The disagreement is already delaying the high-stakes Willamette Falls Legacy Project, and risking its $5 million in state funding.

The $60 million project aims to turn the waterfall 鈥� the second-largest by volume in the U.S. 鈥� into a destination for locals and visitors and a landmark attraction for Oregon City. For decades, the falls have been blocked by industrial development. Heidgerken, a Tacoma, Washington-based developer, purchased the former Blue Heron paper mill property at a bankruptcy auction.

Metro has joined with Oregon City, Clackamas County and the state to build the project. The partner agencies brought in Snohetta, a major international architecture firm based in Oslo, Norway, to design the Riverwalk.

Heidgerken donated an easement to pave the way for the Riverwalk. He said Metro and the other government agencies have not incorporated his plans for private development into their designs.

鈥淲e’re not going to let them cut us out and where we’re going with all of our plans,鈥� Heidgerken said. 鈥淭hey totally ignored us. Being ignored, I took offense to it, because I spent $2.5 million buying it.鈥�

A Metro official said he was perplexed at the impasse. Brian Moore, Metro’s project manager for the Willamette Falls Legacy Project, said the agencies have tried to accommodate Heidgerken’s plans and have repeatedly presented him with updated designs.

鈥淗e has identified some concerns with the alignment of the Riverwalk, which we changed in order to accommodate his concerns,鈥� Moore said.

The easement requires Heidgerken to sign off on the designs before work can proceed. Metro is preparing to apply for permits needed from the U.S. Army Corps of Engineers and other regulators.

Metro’s designs don’t include Heidgerken’s planned developments, Moore said, because it’s not Metro’s job to design his projects. The agency also provided Heidgerken with a $500,000 grant to commission his own design work.

鈥淚t’s not our role as public agencies to design his private development,鈥� Moore said. 鈥淲e did the best we could to design the Riverwalk and provide him flexibility in the future.鈥�

The design advanced by Metro and its partners does not preclude a future hotel or other development, Moore said.

鈥淲e offered an agreement to George that would have allowed him to build a hotel or apartment buildings or anything else on or near the Riverwalk whenever he’s ready to build that,鈥� Moore said. 鈥淗e rejected that.鈥�

If the two sides can’t come to an agreement, the matter may end up in court. The agencies’ letter to Heidgerken says 鈥渨e are considering all of our options for responsibly moving the project forward,鈥� and asks Heidgerken to 鈥渇ulfill your obligation鈥� to sign permit applications.

The partner agencies share a commitment to move forward, said Tony Konkol, city manager of Oregon City.

鈥淭he partners have been in this together the whole time,鈥� he said. 鈥淲e speak with one voice.鈥�

Heidgerken made an initial payment to Metro and its partner agencies, but has not made a second $200,000 installment that was due in January.

Heidgerken said he still has hopes for a resolution to the impasse.

鈥淚t’s hard to be the player in the pack that says no,鈥� he said. 鈥淲e’re not saying no to nothing 鈥� not at all. All we’re doing is addressing our concerns on that project, because it’s a major project. What we do will affect what goes on there for a long time.鈥�