The Confederated Tribes of Grand Ronde will take on redevelopment around Willamette Falls alone after growing frustrated with inaction by local governments.

In a letter to city, county, tribal and regional government leaders on Thursday, the Grand Ronde said it would pull out of the intergovernmental Willamette Falls Legacy Project.

“This decision was not made lightly,” stated the letter signed by Tribal Council Chairwoman Cheryle A. Kennedy. “It reflects our deep frustration with ineffective project management and poor communications, along with the lack of transparency and accountability of the Willamette Falls Trust. Collectively, all these actions have come to heavily burden the project and led us to this critical point.”

Kennedy wrote that the intergovernmental process had not yielded results. Willamette Falls Legacy Trust includes Clackamas County, Oregon City, Metro and Oregon State Parks. Other tribes have also become involved in discussions.

“For nearly 10 years, we have watched as little progress at Willamette Falls occurred while significant public resources have been spent,” Kennedy wrote. “Months of talks about adding even more governments to the table are prolonging project gridlock and not yielding any benefits to the public.”

The Grand Ronde purchased the 23-acre property, formerly the Blue Heron paper mill, from Tacoma, Washington, developer George Heidgerken in August 2019. The tribal group has since carried out demolition and preliminary design work with Walker Macy and GBD Architects. A fire gutted the paper mill in December 2020; a suspect was convicted last week of arson and other charges, KOIN reported.

Grand Ronde leaders have communicated to county officials that they remain committed to providing public access at Willamette Falls, and engaging in discussions with local governments, Clackamas County Commissioner Martha Schrader said.

“The Confederated Tribes of Grand Ronde are the owners of the site, and they have committed – from our perspective as a county – to seek input from all who have interest in the Willamette Falls project,” Schrader said Monday. “We’re respecting their decision to focus on their vision for the Blue Heron site, and hopefully the other swirling issues, they will work them out.”

As Grand Ronde leaders weigh Willamette Falls’ future, they are dealing with competing interests from tribes that also claim historic ties to the falls. The Siletz, Umatilla, Yakama and Warm Springs tribes also visited the falls to harvest fish and trade, and their tribal governments joined discussions for the Willamette Falls Legacy Project.

The other tribes have voiced their displeasure about what they called the Grand Ronde’s “strategy of exclusion” in an August 2020 commentary published by Pamplin Media Group. The tribal representatives stated the Grand Ronde opposed their inclusion on the Willamette Falls Trust board.

Schrader said the turbulence is not unexpected as a result of new ownership.

“I think the tribes are going to have to work out what that narrative is,” she said.

Clackamas County is focused on economic development at Willamette Falls, Schrader said.

“I look forward to seeing this project go forward,” she said.

Land use approval for the site rests with the city of Oregon City. The Grand Ronde will need to apply for a master plan amendment to carry out their plans at Willamette Falls, city spokeswoman Kristin Brown said.

“We’ve been working with them,” she said. “It’s our job to make sure that whatever comes to fruition is within the zoning that gets set forth.”

The intergovernmental partners are working on a response letter to the Grand Ronde, and a meeting to discuss the way forward is anticipated, Brown said.

“We respect the tribe’s decision to move forward with the focus of developing their property,” Oregon City Mayor Rachel Lyles Smith stated. “We know that Oregon City residents are eager to see the Grand Ronde’s development move forward, and we all want this site to be a point of pride for our city. … We look forward to the continued collaboration with the tribe to help their property development progress.”

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The future of Willamette Falls is moving ahead slowly, with construction of an overlook delayed into a second phase.

Local governments involved in the Willamette Falls Legacy Project agreed at a Feb. 4 meeting to embark on a first phase that would include habitat restoration and public-access improvements at the Oregon City landmark.

An overlook designed in 2020 would be built in a future phase at an estimated cost of $12.5 million, the Legacy Project announced.

The Confederated Tribes of Grand Ronde has owned the property since purchasing it from Washington developer George Heidgerken in 2019. A tribal spokeswoman initially said she was not aware of a news release issued by the Legacy Project – a group of government agencies including Oregon City, Clackamas County, Metro and the state of Oregon.

“I think we’re seeing the culmination of a true collaboration,” Oregon City Commissioner Rachel Lyles Smith said at the Feb. 4 meeting.

The Legacy Project stated that project staff will work on phase one design and “continue engaging with tribal governments to inform the design, resulting in permit-level drawings.” The local governments also stated they would support “Grand Ronde’s priorities for private development.”

The tribe has not detailed any plans for private development. In response to inquiries from the 91ĘÓƵ, the tribal government issued a written statement.

“As the host tribe we are a tribal people who are the descendants of the keepers of the falls,” Communications Director Sara Thompson stated Friday. “We’re blessed with a connection to Willamette Falls that has been passed down through generations and are committed to bringing healing and restoration to this place. Our hope is that the Riverwalk project will introduce visitors to this amazing landmark on the Willamette River and the rich history tied to it. Through the different phases of this project, we hope to give people a love and appreciation of this place that will be handed down through future generations.”

Money from Metro’s 2019 parks and nature bond measure, the Willamette Falls Trust and additional contributions from Oregon City and other project partners will provide the funding for a second phase, according to the Legacy Project.

“We’re making really great strides forward for something that’s going to benefit everyone at the table,” Smith said. “And it’s going to benefit Oregon. This is a destination site and it makes me excited.”

A large fire caused damage at the vacant property in December. A man was arrested and charged with arson and other crimes, The Oregonian reported.

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The start of a long-planned project to create public access to Willamette Falls has been delayed as stakeholders go back to the drawing board to explore routing visitors along the river instead of through the former Blue Heron paper mill site.

The Willamette Falls Legacy Project – a collaboration of stakeholders including Metro, the city of Oregon City, Clackamas County and the state of Oregon – announced Thursday it is working with the Confederated Tribes of the Grand Ronde, which purchased the mill site last year, to consider design alternatives for the riverwalk.

A yearslong design process led by acclaimed Norwegian firm Snohetta, and including Mayer/Reed and Canadian firm DIALOG, resulted in concept plans for a riverwalk passing through the shuttered mill site, with some of the former industrial buildings being transformed and incorporated into the design.

Now, according to the Willamette Falls Legacy Project, a ground-breaking event anticipated for this year has been put on hold pending exploration of design alternatives. Project partners began working this past summer to refine plans after cost estimates revealed that available funding would be insufficient to cover the scope of work.

Legacy Project staff began working last year with design and engineering firm Otak Inc. and contractor Lease Crutcher Lewis to rein in the project cost. Snohetta projected that its designs would cost $12.6 million to build, but estimates last year by Otak and Lease Crutcher Lewis pegged the price tag at between $17 million and $33 million. The project’s budget is $12.5 million.

The Grande Ronde purchased the site while potential costs were being researched and subsequently requested that the possibility of a riverside path be explored. The cost of such an amenity is still being evaluated, and the project partners will consider additional funding options if that cost is higher than proposed originally.

The riverwalk is the first phase of a larger project estimated to cost $150 million over 20 years.

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The Confederated Tribes of Grand Ronde has completed its purchase of the Blue Heron Paper Co. mill site in Oregon City from Washington developer George Heidgerken.

The transaction places the retired Oregon City mill site in the hands of the tribal government, whose members have deep ties to Willamette Falls. The falls were a fishing and gathering site for American Indians for centuries until they were forcibly removed following the Willamette Valley Treaty of 1855.

“This is a historic day for the Grand Ronde Tribe and our people,” Cheryle A. Kennedy, chairwoman for Grand Ronde tribe, stated in a news release. “Since 1855 the government has worked to disconnect our people from our homelands. Today, we’re reclaiming a piece of those lands and resurrecting our role as caretakers to Willamette Falls – a responsibility left to us by our ancestors.”

The Confederated Tribes declined to release terms of the deal, which closed Thursday.

When the Confederated Tribes’ preliminary agreement to purchase the property was revealed in June, Chairwoman Cheryle Kennedy said some type of mixed-use development was likely at the Blue Heron site. She also said the tribal government has no intention of building a casino there.

Environmental clean-up and demolition must occur at the site before any development can happen, said Sara Thompson, deputy press secretary for the tribal government. “It’s going to take some time,” she said.

The tribal government recently completed a fishing platform at Willamette Falls.

Heidgerken, who is based in Tacoma, Washington, purchased the 23-acre mill property in 2014. He had battled public agencies regarding the site’s future before eventually agreeing to let planning proceed.

Metro, Clackamas County, the city of Oregon City and Oregon State Parks have been engaged in the Willamette Falls Legacy Project, a planning effort to guide future development and ensure public access to the waterfall.

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The Confederated Tribes of Grand Ronde has reached a preliminary agreement to purchase the former Blue Heron Paper Co. mill site in Oregon City, a tribal leader said Thursday.

The tribe has signed a purchase and sale agreement with George Heidgerken, the Tacoma, Washington-based investor who owns the property, Grand Ronde Chairwoman Cheryle Kennedy said.

Council members on Wednesday discussed a supplemental budget item to fund the purchase, but did not take a vote.

“We are currently in a due diligence process, which is expected to take some time given the complexities of the site,” Grand Ronde spokeswoman Sara Thompson said. “The Tribal Council is expected to make a final decision when that has been completed.”

The tribe does not intend to build a casino at the Blue Heron site, Kennedy said. There is “no plan like that whatsoever,” she said. The tribe will continue to invest in its Spirit Mountain Casino, she said.

Commercial development is a leading possibility for the ex-paper mill site, Kennedy said.

“It’ll eventually probably be mixed-use,” Kennedy said. “We want to continue to communicate with all of our partners and come up with the best use for the property.”

Heidgerken purchased the 23-acre property in 2014. He would not confirm the purchase and sale agreement with the Grand Ronde tribe, but said he’s pleased to work with a buyer who will make something happen on the site.

“I want (purchasers) who want to be there the best,” he said. “If that’s the tribe, great – I’m all for it. It’s really up to them to be the guiding light if they want to do it.”

Heidgerken praised the tribe’s business acumen.

“I do like the way they work and the folks they have running the show,” he said. “They’re good.”

The Confederated Tribes of Grand Ronde, particularly the Clackamas, has deep historical ties to Willamette Falls. Tribal members have fished at the site for generations, up to today. The Grand Ronde recently constructed a fishing platform at the site.

“We’re just thrilled that we’re able to consider the purchase of the property because of our cultural connection,” Kennedy said.

The tribe is also weighing the potential purchase of another riverfront parcel, Kennedy said. The parcel has 1.5 miles of river frontage a few miles upstream from the ex-mill site.

Metro is leading a multiagency effort to develop the Willamette Falls Legacy Project, first with a public Riverwalk. The Confederated Tribes of Grand Ronde has been involved in stakeholder discussions, along with the Umatilla, Warm Springs and Yakima tribes.

“It is our hope and expectation that we would continue to have a good working relationship with Grand Ronde should they purchase the property,” said Brian Moore, Metro’s project manager for the Legacy Project.

Metro has sought a construction manager-general contractor for the Willamette Falls Legacy Project. The agency recently issued a notice of intent to award the contract to Lease Crutcher Lewis.

A Metro parks bond headed for the November ballot will include $20 million for the project.

The Grand Ronde tribe’s interest in purchasing the site was first reported by Willamette Week.

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Metro is considering whether to refer to voters a parks bond renewal that may include $20 million to kick-start the first phase of construction at Willamette Falls.

The total bond package is estimated to total $400 million to $450 million, including a slew of other parks-related spending. The measure would renew existing bonds and leave current tax rates unchanged.

The entire Willamette Falls Legacy Project is expected to cost approximately $150 million over 20 years, said Jon Blasher, Metro’s parks and nature director. Metro is planning to tackle restoration of the waterfall area in several phases; the first will be the Riverwalk to create public access. A master plan for the Willamette Falls Legacy Project was completed last year.

“This could help to be the catalyst,” Blasher said.

Plans for the Willamette Falls Legacy Project have forged ahead since the Metro-led government coalition and property owner George Heidgerken reached an agreement in March 2018 to apply for permit applications. Metro has issued a request for proposals for a construction manager-general contractor for the first phase of Riverwalk construction. The RFP will close at 2 p.m. on Tuesday.

The $20 million infusion would follow $5 million from a 2006 bond that was used for planning. Snohetta, an international design firm based in Norway and New York City, crafted a master plan for Metro and its partner agencies in Willamette Falls: Clackamas County, the city of Oregon City and Oregon State Parks.

The initial phase of construction would include a public viewing platform, access to the falls and restoration of natural areas. Construction could begin in 2020.

The massive waterfall has been closed to public view from the ex-Blue Heron paper mill property for decades. The site is culturally important to several Native American tribes, who have continued to be consulted on the project.

Separately, Heidgerken is investigating a number of possible private-sector development scenarios for the land he owns at Willamette Falls.

Otak Inc. is now tasked with bringing designs from concept to the first phase of construction, including design and engineering work for federal permit applications. Otak is working with Mayer/Reed, Snohetta, KPFF, Pacific Habitat Services and others on the project.

The project is also receiving support from a nonprofit organization, Willamette Falls Trust, which was set up to help work advance. The trust received a $5 million donation from Connie Ballmer, who grew up in Oregon City and is the wife of NBA owner and former Microsoft CEO Steve Ballmer; and $2 million from the Ann and Bill Swindells Charitable Trust, a legacy of a prominent Oregon timber family.

Willamette Falls Trust Executive Director Andrew Mason said the public-sector agencies recognized a need to have a more nimble, private nonprofit partner.

“We’re here to help support fundraising and community engagement for the Riverwalk,” Mason said.

The decision to refer the parks bond package lies with the Metro Council, which is expected to vote on the matter later this month. If approved, it would appear on November ballots. The bond would focus on water quality, fish and wildlife habitat and racial equity.

“One program area that we’re looking at is how to leverage large-scale community visions, and one of those has been the Willamette Falls Legacy Project,” Blasher said.

According to Metro, the bond would include $130 million to $140 million to protect and restore land, particularly river and stream banks, and culturally significant sites; $100 million to $105 million to maintain and improve facilities at existing Metro parks such as Oxbow and Blue Lake; $25 million to $30 million for community grants; $65 million to $70 million to support local parks projects overseen by city and county governments; $40 million to $55 million to create walking and biking trails; and $40 million to $55 million to advance large-scale initiatives relating to job opportunities, affordable housing and transportation.

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Metro is preparing to seek a construction manager-general contractor for the first phase of the Willamette Falls Legacy Project, according to project manager Brian Moore.

A request for proposals is being prepared, he said.

Metro is also in negotiations for a designer for the first phase following a request for proposals, Moore said. Construction of the first phase could begin in spring 2020.

Snohetta provided an initial concept plan for Willamette Falls, and the project is now moving into a more practical design phase, Moore said.

The first phase will provide interim public access to the former Blue Heron paper mill site and a prominent view of the waterfall. Habitat restoration and building demolition are also part of the initial work at the Oregon City site.

Another RFP will seek an owner’s representative to support the project management team through the first phase of construction, and to plan for future phases.

Metro is also seeking a historic and cultural services consultant for Willamette Falls. The consultant will conduct resource surveys, reporting and documentation, inadvertent discovery plans, preservation planning and training. That RFP will close March 20.

Metro has been making progress on the project since a standoff with property owner George Heidgerken ended in March 2018. Heidgerken agreed to sign permit applications and pay fees to allow the project to proceed.

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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.

“He’s completely caught up,” 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 – the second-largest waterfall by volume in the United States – and build a noteworthy attraction that local officials believe could inject economic vitality into downtown Oregon City and remake a defunct industrial site.

“We have this opportunity to really engage with the river again and re-establish multiple blocks of our downtown,” Konkol said. “So we really couldn’t be more excited to get this project going over the next couple of years.”

Heidgerken said the permit application was a positive sign.

“I think everything’s great,” he said Tuesday. “That’s all I’ve got to say – I’m glad they’re moving forward.”

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 Mayer/ReedĚý˛ą˛Ô»ĺĚýDialog, 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 – either by himself or with a partner.

“There’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,” 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.

“This project is a big and complex project,” said Brian Moore, project manager for Metro. “When 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.”

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.

“It takes quite some time,” he said. “We’ve got to be patient while we work through this process and we’ll get to construction as soon as we feasibly can.”

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Developer George Heidgerken and a coalition of government partners may have broken an impasse that has stalled the Willamette Falls Legacy Project for months.

Heidgerken has signed multiple permit applications that may allow the project’s initial phase to proceed into permitting, the government partners announced, saying they are “cautiously optimistic.”

“Falls Legacy has signed permits, and we’re very appreciative,” said Laura Terway, Oregon City’s community development director.

The project has been stuck since September, when the government partners said Heidgerken, who purchased the property in 2014, would neither sign permit applications nor submit various payments of more than $200,000 to allow the project to go forward.

Heidgerken said Wednesday he’s signed permit applications for phase one, which would allow public viewing of the massive Oregon City waterfall.

“We’ve agreed with Metro that there’s certain things we’ll let them do, and it’s called phase one,” he said. “My understanding of phase one is it gets the public access to the falls.”

The government partners are ready to apply for permits and will do so as soon as Heidgerken comes through with various payments, including tax and utility bills, that total about $280,000, Terway said.

“A strong public-private partnership requires trust, and because being a good steward of public money is a top priority, the project partners group asked the staff to wait on permit applications until after Falls Legacy follows through on their commitment to make payments to the project this spring,” she said.

Heidgerken, a Tacoma, Washington-based developer, acquired the site, the former Blue Heron paper mill, in 2014 after it had sat unused for years. He soon agreed to an easement with the government partners to construct a walkway.

Metro, along with Oregon City, Clackamas County and the state of Oregon, last year unveiled an ambitious site design by Snohetta, a major international design firm based in Oslo, Norway. Heidgerken objected, saying Metro and the other government partners were trying to elbow him out of the project. Instead of a mixed-use area with a hotel, multifamily housing and restaurants, the Metro-led design process had essentially resulted in a park, he said.

“Metro is really good at one thing – building parks,” Heidgerken said. “I don’t think the city, the people that live there, are so interested in a 25-acre park. We want jobs. We want a park. We want to support tourism, and anyone who wants to put a business there. … That project is no good unless we have apartments, condos, people – and that means breweries, a pizza parlor.”

The government partners offered this past fall to buy the site from Heidgerken, but he declined to sell. He also refused to sign the permit applications, saying they were overly broad and would essentially allow Metro to do whatever it wanted without his input.

Metro officials have said they designed the public portions of the project, and left Heidgerken to design the remaining areas. One of the core principles of the project’s master plan is economic redevelopment. Zoning at the site was changed in 2014 from industrial to mixed-use, allowing for a range of development options.

But first comes the public walkway, known as the Riverwalk.

“This plan is for the Riverwalk portion,” Terway said. “We do see it as being very catalytic for the economic redevelopment of the private side.”

Heidgerken said he’s willing to play ball as long as Metro and its partners don’t interfere with his plans for the site.

“I’m prepared to sign whatever fits that project with Metro as long as it fits the realm of whatever’s best for the project, best for Metro and best for me,” he said.

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Metro is moving toward approving a master plan for the Willamette Falls Riverwalk, even as the agency and its partners remain at an impasse with the landowner who controls the site.

The Riverwalk is intended to spur further development at the site overlooking the nation’s second-largest waterfall by volume.

The Metro Council heard an update on the master plan Nov. 21. The council agreed to release the plan for public comment.

Metro, along with Clackamas County, Oregon City and the state of Oregon, has identified $19 million to pay for the first phase of development at Willamette Falls. That includes $12.5 million in state lottery bonds allotted by the Legislature, $5 million in Metro bonds, $1.5 million in city, county and landowner contributions and approximately $8 million in private money expected to be raised by 2022.

In the master plan released by Metro, the partner agencies make it a priority to establish a public viewing area for the falls as soon as possible. Snohetta, a design firm based in Oslo, Norway, led the design process.

Access to the site from U.S. Route 99E remains in question. Alex Gilbertson, Metro’s senior parks planner, said the project agencies want to get a design-build firm under contract before determining the best way to provide access to the falls from the highway.

The government agencies and property owner George Heidgerken have offered different visions for the Willamette Falls Legacy Project. Heidgerken complained Metro and partner agencies want to build “a park” at the site. Heidgerken, a Tacoma-based developer who purchased the ex-Blue Heron paper mill site in 2014, said he’s interested in building a hotel, condos, restaurants and other amenities.

Heidgerken agreed to an easement with the government representatives in December 2014. A dispute arose earlier this year, and the government agencies went public with a letter on Sept. 22, 2017, saying Heidgerken would not sign an application for permits from the state and U.S. Army Corps of Engineers needed to move the project forward. Heidgerken also has not submitted a $200,000 payment that was due in January.

Heidgerken said he was in active discussions with Metro to resolve the impasse.

“Metro has gone way overboard,” he said. “They don’t have the authority they think they do in designing what they want.”

Heidgerken said he was optimistic the two sides would reach an agreement. “We’re at a crossroads with Metro right now, but I think we’ll get that straightened out,” he said.

Brian Moore, Metro’s project manager for Willamette Falls, said he could not discuss the ongoing real-estate negotiation with Heidgerken.

“The partners are very committed to moving the project forward and excited about the future,” Moore said.

Metro Council President Tom Hughes said the council had had no recent updates on the negotiations.

“We hope they have that worked out soon,” he said.

Heidgerken owns the entire 22-acre site, except for Portland General Electric’s dam. PGE has provided the agencies an easement for the Riverwalk across the top of the dam.

Heidgerken said Willamette Falls could be a special project.

“These projects, if you do them right, they can be real winners,” he said. “And if you don’t, you wish you’d never seen them.”

The master plan is expected to be adopted at a Jan. 4, 2018 Metro Council meeting, and by the City Council of Oregon City shortly thereafter.

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