Tillamook Bay Settles Land Lawsuit

A decade-long saga is expected to come to an end soon when the Port of Tillamook Bay’s insurance company pays ISI Oregon Facilities Corp. to settle a lawsuit over a development deal gone sour.

The Coast River Business Journal reported Sept. 5 that the insurance company will pay the developer $180,000.

“I’m ultimately very satisfied with the outcome,” port manager Michele Bradley told the newspaper. “There’s nothing out of the port’s dime. It won’t be coming out of our checkbook.”

The lawsuit revolved around a proposal to develop an 18-hole golf course and 250-room resort hotel on port-owned property.

The proposed project, dubbed “The Bunkers” and expected to cost $65 million to $110 million to build, was conceived to involve 772 acres industrial land at the port. In 2001, Tillamook County granted a conditional permit for the project, which would have included a 250-room hotel, convention center, 18-hole golf course, British pub, 3,500-square foot restaurant with seating for 100 people, 3,000-square foot nightclub, and an equestrian center – as well as a 200-acre tourism site.

But in November 2009, the port terminated its development agreement after years of dissension over how the project would be financed, permitting and other issues.

In January 2012, the two parties agreed to mediation and subsequently a $180,000 resolution was arrived at. But it wasn’t until earlier this month that the port completed negotiations to have its insurance company pay ISI Oregon Facilities Corp. and thereby kill off the development deal for good.

Garibaldi, Tillamook Bay Ports Receive Construction Grants

The ports of Garibaldi and Tillamook Bay have been chosen to receive grant funding from the state ConnectOregon program, which provides grants and loans to non-highway transportation projects promoting economic development throughout the state.

The Port of Garibaldi is slated to receive $1.6 million and the Port of Tillamook Bay will get $163,000.

The Port of Garibaldi’s funding goes toward reconstruction of its 72-year-old Commercial Street wharf, so that it can handle about 300 pounds per square foot, as opposed to the current 100 pounds PSF.

The full cost to reinforce the structure is estimated at $4.1 million.

The Port of Tillamook Bay’s grant funds will go toward the renovation of two runways at the port’s industrial park. The runways will be re-paved and narrowed by several feet on each side.

The industrial park was used as an air base during World War II.

The ConnectOregon funds match FAA grant money already in place, according to the Port of Tillamook Bay.

Since it was launched by the state department of transportation in 2005, ConnectOregon has funded more than 100 projects around the state. Previous recipients include the ports of Portland, Arlington, Morrow, Umatilla, Coos Bay, St. Helens and BNSF Railway, among others.