S t a t e L a n d B o a r d - Oregon



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

Regular Meeting

October 17, 2017

Agenda Item 1c

SUBJECT

Request for approval to initiate the review and determination for a potential sale of the Millican Road parcel, a 159-acre parcel located at Township 15S Range 15E, Section 14, Tax Lot 2300 in Crook County.

ISSUE

Whether the Land Board should authorize the Department to initiate the review and determination for the potential sale of the Millican Road parcel in Crook 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 273.055; 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

Central Oregon Area Management Plan (COAMP), adopted by the Land Board; October 2011

Real Estate Asset Management Plan (REAMP), adopted by the Land Board; February 2012

SUMMARY

The Millican Road parcel is located on the west side of the City of Prineville, south of the Prineville airport (Appendix A). The site was slated for conversion to industrial use in the Central Oregon Area Management Plan (COAMP) adopted by the Land Board in October 2011. On June 12, 2012, the Land Board authorized an equal exchange of land with Premier Bank, the adjacent property owner (Appendix B). The due diligence conducted for that exchange also included altering the boundaries of both properties from long narrow parcels to square parcels, and gave DSL road access to the reconfigured Millican Road parcel. This was done to improve the marketability of both parcels for future commercial and industrial development and use.

As part of the exchange agreement, the City of Prineville agreed to annex the DSL parcel as an industrial parcel. Upon the completion of the exchange the parcel was annexed to the city and became certified as a “Shovel Ready” site under Business Oregon’s Certified Industrial Site identification process. The property reconfiguration enabled by the land exchange, annexation by the City, and certification as “Shovel Ready” all support the recommendation from the COAMP to increase the value of the site by preparing it for industrial use. The property was actively marketed in 2012 and 2013 under a joint marketing agreement but received no offers. Recently DSL received an application to purchase the property by one of the neighbors, Legacy Ranches.

RECOMMENDATION

The Department recommends that the State Land Board authorize the Department to initiate the review and determination for a potential sale of the Millican Road parcel, a 159-acre parcel located at Township 15S Range 15E, Section 14, Tax Lot 2300 in Crook County.

APPENDIX

A. Map of Property

B. June 2012 State Land Board Agenda Item 3

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Oregon

Kate Brown, Governor

Department of State Lands

775 Summer Street NE, Suite 100

Salem, OR 97301-1279

(503) 986-5200

FAX (503) 378-4844

dsl

State Land Board

Kate Brown

Governor

Dennis Richardson

Secretary of State

Tobias Read

State Treasurer

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