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HomeMy WebLinkAboutProperty Exchange - State LandsDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of January 28, 2009 Please see directions for completing this document on the next page. DATE: January 7, 2009 FROM: Teresa Rozic Property & Facilities 385 -1414 TITLE OF AGENDA ITEM: Public Hearing regarding the intention of Deschutes County to exchange real property with the Stat of Oregon acting by and through the Oregon State Land Board on behalf of the Oregon Department of State Lands. PUBLIC HEARING ON THIS DATE? YES BACKGROUND AND POLICY IMPLICATIONS: In 2007, the Department of State Lands (DSL) acquired a 945 -acre tract of land from the U.S. Bureau of Land Management. The property, known as the South Redmond Tract, is southeast of the City c f Redmond and is located adjacent to and south of the Deschutes County Fair and Expo Center. DSl , developed a Land Use and Management Plan for the tract through a collaborative planning effort v ith federal, state and local entities. DSL will apply for inclusion into the Redmond Urban Growth Boundary and develop the property to meet the region's short-term needs for large -lot industrial usk;s. The tract's proximity to the Fair and Expo Center offers a variety of development opportunites to Deschutes County. In various work sessions, the Board of County Commissioners (the "Board ") expressed interest in acquiring a portion of the South Redmond Tract. In mid -2007 the Board dire + ;ted county staff to meet with DSL staff to review a list of county lands available for exchange. DSL indicated an interest in two county properties known as Long Butte (120 acres) and Warrin Road (l 59 acres). The County expressed its desire to exchange those lands for approximately 238 acres of thi; South Redmond Tract. On December 9, 2008, the State Land Board approved the land exchange agreement. The Board s gned the agreement December 31, 2008. Deschutes County Code Chapter 11.08 provides that the Board of County Commissioners declare its intention to exchange real property by resolution, provide public notice of the proposed land exchange and conduct a public hearing. The Board passed Resolution 2008 -143 on November 24, 2008, anc. set January 28, 2009, as the date for the public hearing. Page 1 FISCAL IMPLICATIONS: The land exchange will be value based (i.e. the amount of land traded between the parties may be different but the values will be more or less equal). The exchange agreement identifies the lands to !)e exchanged, method of valuation, due diligence requirements, cost sharing and other responsibilities 3f each party. With approval of the agreement, the parties will now proceed with surveys and appraisa is to determine final values and costs. RECOMMENDATION & ACTION REQUESTED: Hold the public hearing as advertised. ATTENDANCE: Teresa Rozic, Property Specialist DISTRIBUTION OF DOCUMENTS: N/A Page 2 Affidavit of Publication STATE OF OREGON, COUNTY OF DESCHUTES I, Katelynd Perkins, a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not party to or interested in the above - entitled matter. I am the principal clerk of the printer of The Bulletin a daily newspaper of general circulation, published in the aforesaid county and state as defined by ORS 193.010 and ORS 193.020, that Acct Name: DESCHUTES COUNTY PROPERTY MGT Legal Description: LEGAL NOTICE PUBLIC NOTICE On Wednesday, January 28, 2009, at 10:00 a.m. in the Board Hearing a printed copy of which is hereto affixed was published in each regular and entire issue of the said newspaper and not in any supplement thereof on the following dates, to wit: 12/02/2008 12/02/2008 12/09/2008 12/09/2008 12/16/2008 12/16/2008 12/23/2008 12/23/2008 Affidavit of Publication STATE OF OREGON, COUNTY OF DESCHUTES I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Bend, Oregon, this 24 day of December, 2008. ignature OFFICIAL SEAL LORI LAMONT NOTARY PUBLIC - OREGON COMMISSION NO. 39462x.. MY COMMISSION EXPIRES JULY 06. 20: REVIE D LEGAL C • UNSEL DESCHUTES COUNTY CLERKS u 21)01.969 Q�'96a NANCY COMMISSIONERS' JOURNAL 12/01/2008 08:23:30 AM III1I IIII IIIIII.IIIIIIIIII III BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Declaring the Intention of Deschutes County to Exchange Real Property with the State of Oregon acting by and through the Oregon State Land Board on behalf of the Oregon Department of State Lands, Setting Hearing Date for the Purpose of Hearing Objections and Providing Notice. RESOLUTION NO. 2008-143 WHEREAS, Deschutes County Code Chapter 11.08 provides that the Board of County Commissioners (the "Board ") shall declare its intention to exchange real property by proper resolution; and WHEREAS, the Board expressed its interest in exchanging real property by letter dated October 14, 2008 (DC 2008 -565) to the State Land Board; and WHEREAS, on October 14, 2008, the State Land Board approved the South Redmond Tract Land Use and Management Plan, including conceptual approval of the land exchange with Deschutes County; and WHEREAS, on October 14, 2008, in a separate agenda item that describes the real property to be exchanged and the general terms of a pre- exchange agreement, attached hereto as Exhibit "A" and by this reference incorporated herein, the State Land Board authorized staff to negotiate the terms of the pre - exchange agreement with Deschutes County; and WHEREAS, Deschutes County intends to exchange real property with the State of Oregon acting by and through the Oregon State Land Board on behalf of the Oregon Department of State Lands as described in Exhibit "A "; and WHEREAS, a hearing shall be held for the purpose of receiving objections to the proposed exchange of real property described in Exhibit "A "; now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. The Board of County Commissioners of Deschutes County hereby declares its intention to exchange real property with the State of Oregon acting by and through the Oregon State Land Board on behalf of the Oregon Department of State Lands, provided that the parties reach agreement on the terms of the pre - exchange agreement and the State Land Board authorizes the exchange. PAGE 1 OF 2 - RESOLUTION NO. 2008-143 (11/24/2008) Section 2. The real property to be exchanged by Deschutes County is described in Exhibit "A ", attached hereto and by this reference incorporated herein. Section 3. A hearing for the purpose of receiving objections to the above described land exchange will be held at 10:00 a.m. on Wednesday, January 28, 2009, in the Board of County Commissioners Hearing Room of the Deschutes County Services Building, 1300 NW Wall Street, Bend, Oregon. Section 4. The Deschutes County Property Specialist shall give notice of the time and place for the hearing set in Section 3 of this Resolution by publication of the notice marked Exhibit "B ", attached hereto and by this reference incorporated herein, in "The Bulletin" once each week for four consecutive weeks, with the last publication being at least seven days prior to the date of such hearing. DATED this Uy of , 2008. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON DENNIS R. LUKE, Chair 64kt, Recording Secretary PAGE 2 OF 2 - RESOLUTION NO. 2008-143 (11/24/2008) EL M. DAL ommissioner regon Theodore R. Kulongoski, Governor State Land Board Regular Meeting October 14, 2008 Agenda Item 8 SUBJECT Department of State Lands 775 Summer Street NE, Suite 110 Salem, OR 97301 -1279 (503) 986-5210 FAX (503) 378 -48 E4 www.oregonstatelands.i s. State Land Boa -d Theodore R. KulongoE. ki Govern )r Bill Bradbury Secretary of Stz to Randall Edwar Is State Treasurer Request for approval to negotiate a land exchange between Deschutes County and the State Land Board. ISSUE Whether the Land Board should give approval for the Director to complete negotiations of a pre- exchange agreement for a land exchange between Deschutes County and the State Land Board for the following properties: • Lands to be Acquired by the Land Board from Deschutes County: - Warrin Road Parcel (146.76 acres) - Long Butte Parcel (120 acres) • Lands to be Acquired by Deschutes County from the Land Board: - South Redmond Tract North Parcel (up to 238 acres) 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 270.010; pertaining to the sale of state surplus property. 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 273.316 and .321; relating to the exchange of state lands OAR 141 -067; relating to the sale, exchange and purchase of state land. Asset Management Plan (AMP) adopted by the Land Board, October 2006. SUMMARY This action is being requested in order to carry out one of the implementation actions identified in the Department's Proposed South Redmond Land Use and Management Plan. During the development of the plan, Deschutes County showed a strong desire to enter into a land exchange arrangement with the Department to acquire land within DSL's South Redmond Tract lying south and adjacent to the 132 -acre Deschutes County Fairgrounds and Exposition Center. In fact, the county had hoped to acquire as much as 320 acres of the property from the U.S. Bureau of Land Management (BLM), but put their plans on hold while DSL acquired the tract in 2007. In mid -2007, the Deschutes County Board of Commissioners authorized county staff to commence work on a land exchange proposal with DSL. County and DSL staff met to review a list of county lands available for exchange and, in April 2007 DSL indicated an interest in two county properties known as Long Butte (120 acres) and Warrin Road (146.76 acres) (see Appendix A). Staff has investigated the two county properties.. Preliminary feasibility studies have also been conducted in order to determine if the acquisitions meet the requirements of the Board's Asset Management Plan. County Exchange Parcels Warrin Road Parcel This 146.76 -acre parcel (T15S R11 E Section 17 Tax Lot 700) is located on Fryrear Road about 6 miles east of Sisters (See Appendix B). There is good all - weather access to the land via county roads. The property gently slopes to the east from a rise at the west end; views of the Three Sisters are available. The parcel is rocky and covered with juniper and sagebrush. The surrounding land use is large -lot rural homesites and farms. The property is zoned Exclusive Farm Use, but it is not irrigated and, due to the poor soils, is not considered high value farmland. A Surface Mining Impact Area Combining Zone overlay exists on the property due to its proximity to the former county landfill and present transfer station. A forty -acre parcel (Fryrear Road Parcel) of Common School Fund land is adjoining and contiguous to the Warrin Road Parcel to the east. The general area is recognized as deer winter range and is adjacent to the 30,000 -plus acre Bureau of Land Management Dry Canyon area. This primitive BLM area is popular for its motorized and non - motorized trail opportunities. Agenda Item 8 October 14, 2008 Page 2 of 6 This parcel has rural, non -farm dwelling homesite potential. When combined with the Department's existing 40 -acre Fryrear Road Parcel, the total acres available equal 186.76, enough for five homesites. The addition of the county's parcel would benefit the homesite potential on DSL's Fryrear Road Parcel. Preliminary analysis by staff reveal that, conservatively- speaking, a return on investment of about 6% to 8% per year is possible, if the project takes five years to plan, develop, market and sell. Other non - development management alternatives include outright sale or exchange. Potential buyers /exchange partners include adjacent property owners, developers or land conservancies. Long Butte Parcel This parcel is made up of 2 tax lots (T16S R12E Section 22 Tax lot 100 is 40 acres; T16S R12E Section 22 Tax lot 2800 is 80 acres) totaling 120 acres (see Appendix C). The entire property is zoned Rural Residential with a 10 acre minimum lot size (RR -10). The land sits atop Long Butte, a high "table" formation midway between Bend and Redmond, just west (less than one mile) of Highway 97. Views from the property, which has gently sloping side slopes with a nearly level area at the top, range 360 degrees to Redmond, Smith Rock, Powell Butte, Three Sisters, Mt. Jefferson and Bend. The surrounding neighborhood is composed of fair to good quality homes on one to three -acre parcels. An existing constraint on development of the property is access, as it is limited to a 30 -foot wide right -of -way to Tax lot 2800 off a cul -de -sac (Imperial Avenue). As a result of the favorable zoning (RR -10) the 120 acres offers the opportunity to develop 12 ten -acre homesites. Reaching this "highest and best use" hinges on acquiring the additional access needed to meet land use development standards. A number of opportunities exist to obtain access such as purchasing access easements or additional parcels. Preliminary analysis by staff indicate that even after accounting for the cost of acquiring access, the 12 ten -acre homesites would provide a return on asset value of 9% to 10% per year, if the project takes five years to plan, develop, market and sell. Department of State Lands Exchange Parcel South Redmond Tract North Parcel The proposed South Redmond Land Use and Management Plan identifies up to 238 acres in the north half of Section 33 T15S R13E for potential transfer to Deschutes County via a land exchange (see Appendix D). The land lies adjacent and contiguous to the Deschutes County Fairgrounds and Exposition Center. The North Parcel is currently zoned Exclusive Farm Use, though it is not irrigated and of marginal agricultural value due to its rockiness and poor soil. The county's plans for the land, once acquired, have not been determined. In order to make any urban -level use of the parcel, the county will need to have it Agenda Item 8 October 14, 2008 Page 3 of 6 "A' 3�1 a.. included in the Redmond Urban Growth Boundary and annexed to the city. The county has indicated an interest in participating with the Department in a cooperative effort to prepare the UGB amendment application to the city. If the parcel were not the subject of an exchange, it is likely the plan would have allocated the area to large -lot industrial uses. Exchange Process The land exchange is expected to be value based (i.e. the amount of land traded between parties may be different, but the values will be more or less equal). The Department is interested in maximizing the value of the Land Board's North Parcel. DSL and the county have begun preliminary negotiations on a pre- exchange agreement that identifies the lands to be exchanged, method of valuation, due diligence requirements, cost sharing and other responsibilities of each party. Once completed and approved by the county, the Department will request the Land Board's approval of the final agreement. The Land Board will also be asked to approve the final transaction. The Department and the county have not established a firm schedule for the completion of this transaction. The county has been interested in the land for some time. It is likely that the land exchange could be completed by fall, 2009. Valuation The minimum acceptable land exchange value for the South Redmond Tract North Parcel will be established by the Director based on the Department's estimate of value as derived from the fair market value appraisal of each parcel. The county will be responsible for obtaining current market value appraisals for the two county properties (i.e. Long Butte and Warrin Road). Appraisals for each parcel (including timber valuations, as applicable) will be conducted by State of Oregon licensed, professional land appraisers. Conditions of Exchange The Department will retain all subsurface mineral rights on the South Redmond exchange parcel. The Department will reserve the mineral rights and the right to ingress, egress and use the surface to produce the minerals. The Department will seek to obtain all mineral rights and interests for the county exchange parcels. Agency and Public Review The effects of the exchange proposal as to the South Redmond Tract has been extensively discussed and reviewed by the agencies and the public as an element of the Proposed South Redmond Tract Land Use and Management Plan process. The county land exchange process will include opportunities for the public to review and provide testimony on the exchange of the county lands. Agenda Item 8 October 14, 2008 Page 4 of 6 a A" ,Oa- CONFORMANCE WITH THE ASSET MANAGEMENT PLAN (AMP) and RULES GOVERNING THE SALE, EXCHANGE AND PURCHASE OF LAND (OAR 141- 067) This proposal conforms to the requirements of both the AMP and the Board's rules (Appendix E). Specifically, the county parcels: • Are located within the highly desirable central Oregon area; • Could be classified and managed as Industrial /Commercial /Residential lands under the AMP (with emphasis on large -lot rural residential); • Offer rural residential development opportunities with development costs and return within acceptable risk; • Offer high probability for value appreciation or the ability to generate revenue through development and sale; • Represent an opportunity to acquire through exchange at relatively low transaction costs; • Offer near term potential net revenue /land appreciation returns in excess of the target 5% to 7 %; • Require acceptable levels of capital investment to achieve or exceed the target return; and • Bring additional land management (and cost) burden to DSL that is within acceptable range of costs /expertise. The disposal of the South Redmond Tract North Parcel conforms to AMP disposal criteria because it offers the opportunity to obtain land that is zoned for uses with higher values and to realize return more quickly than can be achieved on the existing DSL land. Finally, the disposal is consistent with the proposed South Redmond Tract Land Use and Management Plan. RECOMMENDATION The Department recommends that the Land Board give approval for the Director to complete negotiations of a pre- exchange agreement for a land exchange between Deschutes County and the State Land Board for the following properties: • Lands to be Acquired by the Land Board from Deschutes County: - Warrin Road Parcel (146.76 acres) - Long Butte Parcel (120 acres) • Lands to be Acquired by Deschutes County from the Land Board: - South Redmond Tract North Parcel (up to 238 acres) Agenda Item 8 October 14, 2008 Page 5 of 6 "iv 5(I? APPENDICES A. Map of Potential Land Exchange Areas B. Map of Warrin Road Parcel C. Map of Long Butte Parcel D. Map of South Redmond Tract North Parcel E. Asset Management Plan: land disposal and acquisition criteria Agenda Item 8 October 14, 2008 Page 6 of 6 rwt i2- Potential Land Exchange Deschutes Co. & Dept. of State Lands Warrn•..earceL,_: Deschutes Cotinty 1.1 — 1 1f; 1. Fryrear Rd. Parcel _(Dept. of State Lands) t. •'i -JRape* Fie6. 13edihorid'Manicipa Airpo North Pa col/ ( i r / —.'1 ,, �3..... rm l I •__4 j -`� r. ' ,, :,. 1 4); , ',.. South Redmond Tract i l I. •Tor: +=�;c :/c y •, .�, -- - -.- --) 7 • - Fr' 1 • / _ e. This product Is for Informational p,rposas and my not have been prepared for, or be suitable for legal, engineering, or surveying c rpoeas. Users d thls Infommtim should review or consult the primary data anti informedion sources to ascertain Me usability of the Information. r" '5. Potential Exchange Property DSL Owned Lands September 24, 2008 1 inch o 12,712 feet Oregon Lambert Conformal Conic Pr jection Detum NAD83 tntemational Feet N W a en 01,30 Appedndi�c� !r Potential Land Exchange Deschutes County lefaSZOSSa. •••■•.-- 34mentSout Redmond TrmptlGtBlMapelLunp Butte Rymer Eaobenne Map Ball .mad ! This product Ls for infomuttional purposes and may not have teen prepared for, cr be suitable be' legal, engineering, cr surveying purposes. Users of this information should review 3 cr consult the primary data and Information sources to 6- ascertain the usability of the informagon. Canted: Den Amonson, GIS Analyst, Oregon Dept. Stale Lands Warrin Parcel (Deschutes County) ear Rd. Parcel /DSL alPotential Exchange Property Tax Lot Lines DSL Owned Lands September 24, 2008 1 inch = 1,000 feet . Oregon Lambert Conformal Conic Pro scion Datum N.A083 International Feat 11 A ppkn iN3 Potential Land Exchange Deschutes County -0 rn Hereford Ave Gift-Rd Long Butte Parcel (Deschutes County) lk 44' 41 JourneyAe- iht41 Pony Ave f L Imperial -Ave Limestone Ave 85th St 1/ ! This product Is kr Informs onel purposes end my not haw been prepared for, or be suitable fce legal, englrredng, or surveying purposes. Users a t is Information should review or consult the prinrry data end Infomwlon sources In e ascertain the usability of the information. Canted: Dan Mtonaon, GIs Analyst. Oregon Dept. Elam Lands Oriole h Potential Exchange Property Tax Lot Lines OSL Owned Lands September 24, 2008 1 inch = 1,000 feet Oregon Lambert Canfonnai Conic Pro,, lotion Datum NADe3 International Feet Appendix C A " q i a.: ettq Potential Land Exchange Deschutes County ZI :.e 3llm a1r :® Roberts Field_ Redmond Mlicipel Airport G u 3 This product le for international pupcess and may not have been prepared for, or be suteble kr legal, engineering, or surveying purposes. Users d this Irdomutim should review or consult the primary data and informed= souses to i+ ascertain the usabllty d t e information. Contact: Den Monson, GISAnayst Oregon Deplete* Lands Potential Exchange Props rty Tax Lot Lines OSL Owned Lands September 24, 2008 1 Inch = 2,075 feet Oregon Lambert Conformal Conic Prof' coon Datum NAD&i Intemetitrtel Feet N we s Appendix D ri roia. 2006-2016 ASSET, MANAGEMENT PLAN TABLE 3: PRINCIPLES FOR RETENTION, ACQUISITION & DISPOSAL ..:.;:'.Actioni.. :::,',..C':::':Strategy -.;:::- ',11.2iiiatiiiiiii Direction :.:::...:.:::;':::::::;;;::.2:::Aiiiiiiiiiiiiii-Direction Retention Maintain a core of permanent land ownership during the planning period Lands to be retained during the planning period kblude: • Elliott State Forest and the majority of Northwest and Southwest Forest lands. • Nearly al Agricultural lands. • Blocked Rangelands. • Departments office building and certain ICR lands In urban or urnanizable areas. • South Slough National Estuarine Research Reserve. • Waterways, except new lands,' historically filled lands, and contaminated lands on a case-by-case basis. • Mineral interest ownerships except those determined to have little, if any, potential for development • Known energy resources. Acquisition Evaluate and pursue Priorities for acquisition Alt acquisitions must be approved by the Land Board and (through opportunities to during the planning period carried out in accordance with the Boar's rules for purchase or acquire parcels include: exchanges and purchases (OAR 141-087). Properties exchange) available for sale or • Purchase of developed considered for acquisition MI be evaluated in accordance with through other means or undeveloped ICR both the following factors and acquisition criteria for the (e.g., In-lieu selection lands In urban or applicable land class: or exchange) that urbanizable areas, • Net Revenue Potential/Capital Appreciation Potential: have a high probability particularly central Near-term opportunities for an ROAV of 5 to 7% (real for appreciation In Oregon properties. rate adjusted for inflation); or annual appreciation within value or the ability to • Purchase of Forest end the same range. consistently generate Agricultural lands • Capital Investment Requirements: Acceptable levels of revenue over the long throughout Oregon, with ' capital investment (costs beyond purchase price) to term for the CSF preference to lands west of Cascades. • Exchanges with BLM or other parties for other lands in the Central Oregon area that would complement the Department's achieve the targeted ROAV. • Management Costs: Anticipated annual management costs fall within an acceptable range of costs comparable to similar investments. • Operating Budget Anticipated annual management costs can be borne by the Department's current budget or funds are anticipated within a reasonable the following acquisition. °warships. • Local Government Coordination end Support: • Exchanges or purchases Involving Coorcknation with local governments has occurred In concurrence with the Department's State Agency ' surplus lands managed by other state agencies, e.g., ODOT and OPRD. Coordination Agreement. The level of local govemment (e.g., city, county, school district) support for the acquisition. • • Support of Other Public Poficies/Prograrns: The acquisition assists in achieving or furthering another state public policy or program objective (eg„ State Economic Development Strateavi. APPENDIX E r• 12- 2006-2016 ASSET MANAGEMENT PLAN TABLE 3, CONT'D. .:-Action - Strategy • • . . - • •• • ............, -,..: . . .. • Additipnal Direction .. - , • - ‘.. ). Disposal Pursuant to ORS Priorities fa lands to be Disposal may be considered on a case-by-case basis as part (sale or exchange) 273.245 and 273.316, evaluate and pursue disposed of or evakiated for disposal through sale or of SAMP's or master plans to madmize investments; to respond to market-driven opportunities, espedally for lands opportunities to exchange during the acquired for purposes of future disposai; for lands not meeting dispose (sale or planning period Include: management expectations; for lands better managed by exchange) of any • Unleased, Isolated another entity; or to meet other public purposes (e.g., highway parcels within the CSF Rangelands rights-of-way). portfolio except those specifically Identified . (approximately 12,000 acres). Waterways (submerged and submersible lands) are not eligible "new ention for ret. • Forest • Scattered lands (approximately 12,000 aaes). for disposal except as allowed for lands* (lied lands as waned In ORS 274.095), historically filled lands, or contaminated aftea. Proposed land sales .or exchanges must be approved by the • Land Board and carried out In accordance with the Board's administrative rules. The following criteria are among the factors to be considered when evaluating a land disposal proposal: • Parcel has low income-generating potential and limited multiple land use(s); Is not leased or leasable, has poor physical attributes and/or has external constraints to managing for highest and best use. • Parcel has low appreciation otential. • Parcel has no or limited access to utilities; • Parcel management costs are high in comparison to actual or potential returns anctior appreciation potential. • Significant environmental risks are present such as hazardous waste or environmentally sensitive attributes. • Changes in zoning or other droumstances preclude development of the. parcel for its highest and best use. • Parcel Is an in-holding within another major landowner's ownership, a is a small, Isolated tract • Market condillons dictate that disposal Is prudent in order to realize appreciation in value. • A high level of market demand exists for the type of property being considered. • The highest and best use of the parcel has changed to a use not compatible with the uses preferred by the Department or is Inainsistent with the Plan. • Parcel has high holding costs, particularly those associated with lability or other risk (i.e., disposal becomes an 'emergency). Prior to disposing of land, an evaluation vifil be conducted of the potential presence of mineral resources of value. If present, mineral rights may be retained by the Department following disposal of the surface lands. APPENDIX E 5, 25 PUBLIC NOTICE On Wednesday, January 28, 2009, at 10:00 a.m. in the Board Hearing Room of the Deschutes County Services Building, 1300 NW Wall Street, Bend, Oregon, the Board of County Commissioners of Deschutes County will hold a hearing on an exchange of real property the State of Oregon acting by and through the Oregon State Land Board on behalf of the Oregon Department of State Lands. The real property to be transferred by the above referenced parties is generally described as follows: State of Oregon to Deschutes County: "South Redmond Tract North Parcel." Up to 238 acres in the North Half (N1/4) of Section 33, Township 15 South, Range 13 East, W.M., Deschutes County, Oregon, adjacent and contiguous to the Deschutes County Fair and Expo Center. Deschutes County to State of Oregon: "Warrin Road Parcel." Approximately 159.17 acres described as the Southeast Quarter (SE1/4) of Section 17, Township 15 South, Range 11 East, W.M., Deschutes County, Oregon. "Long Butte Parcel." Approximately 120 acres described as the West Half of the Northeast Quarter (W% NE%) and the Northeast Quarter Northwest Quarter (NE1 /4 NWl) of Section 22, Township 16 South, Range 12 East, W.M., Deschutes County, Oregon. Any person may appear and make objections to the proposed exchange. Deschutes County meeting locations are wheelchair accessible. Deschutes County provides reasonable accommodations for persons with disabilities. For deaf, hearing impaired or speech disabled, dial 7-1-1 to access the state transfer relay service for TTY. Please call (541) 388 -6571 regarding alternative formats or for further information. BOARD OF COUNTY COMMISSIONERS FOR DESCHUTES COUNTY, OREGON DENNIS R. LUKE, Chair To be published in The Bulletin: December 2, 9, 16 and 23, 2008 To be posted: December 2, 2008 Page 1 of 1