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A coalition of government agencies led by Metro on Monday applied for a construction permit from the U.S. Army Corps of Engineers for the first stage of the Willamette Falls Legacy Project in a major milestone for the long-gestating public-private development.

The move came after the property’s owner, George Heidgerken, signed permit documents and settled payments he owed to Clackamas County and Oregon City, government officials said, lifting a monthslong impasse between the two sides.

The project had stalled amid Heidgerken’s concerns the agencies were trying to sideline his options for private development at the waterfall site. Then a promising sign came in March, when Heidgerken signed permit applications to allow the project to move forward and signaled he would pay about $280,000 in tax and utility bills.

Those payments have been made.

鈥淗e’s completely caught up,鈥� said Tony Konkol, city manager of Oregon City.

The city has received a check from Heidgerken for more than $63,000 to settle a previously unpaid utilities balance, Konkol said.

The Willamette Falls Legacy Project promises to showcase the falls 鈥� the second-largest waterfall by volume in the United States 鈥� and build a noteworthy attraction that local officials believe could inject economic vitality into downtown Oregon City and remake a defunct industrial site.

鈥淲e have this opportunity to really engage with the river again and re-establish multiple blocks of our downtown,鈥� Konkol said. 鈥淪o we really couldn’t be more excited to get this project going over the next couple of years.鈥�

Heidgerken said the permit application was a positive sign.

鈥淚 think everything’s great,鈥� he said Tuesday. 鈥淭hat’s all I’ve got to say 鈥� I’m glad they’re moving forward.鈥�

Control of the project has long been an issue dividing Heidgerken and the partner agencies. Heidgerken, a Tacoma, Washington-based developer, swooped in to purchase the property in 2014. The site’s previous tenant, the Blue Heron Paper Co., had ceased operations three years earlier.

Metro partnered with Clackamas County, Oregon City and the state of Oregon for the Willamette Falls Legacy Project. The governments commissioned an ambitious design from international firm Snohetta, along with聽Mayer/Reed听补苍诲听Dialog, for a public river walk. Heidgerken negotiated a public easement for the river walk. But he held out the possibility of developing multifamily buildings and amenities such as restaurants and brewpubs 鈥� either by himself or with a partner.

鈥淭here’s a whole lot of neat things that fit on that site, and they’ll happen when the right players step up to do them,鈥� Heidgerken said Tuesday.

Heidgerken earlier rejected a purchase offer from the government agencies. Now the two sides are proceeding with an uneasy partnership that would allow the river walk to proceed while he controls the rest of the 22-acre site.

鈥淭his project is a big and complex project,鈥� said Brian Moore, project manager for Metro. 鈥淲hen the partners elected not to purchase the property and when their (subsequent offer to Heidgerken) was rejected, it put us in a position where we had a partner we didn’t select, but we’re figuring out how to work with him and how to move this forward.鈥�

In a reflection of the increasing optimism for development, the Legacy Project group will host public tours of the site on June 1-2. The tours quickly filled up.

The Section 106 permit, if granted by the Army Corps of Engineers, would allow in-water and above-water work to begin. Moore cautioned it will be about two years before any construction occurs.

鈥淚t takes quite some time,鈥� he said. 鈥淲e’ve got to be patient while we work through this process and we’ll get to construction as soon as we feasibly can.鈥�