Oregon makes first of several important 'in lieu' land selections

In October, the Oregon State Land Board announced the completion of an "in lieu" selection of a 640-acre tract near Bend in Central Oregon.

The unimproved land, located on the east side of Bend at SE 27th Street and Stevens Road, will be an asset of the state's Common School Fund. All revenues from leasing or future development will go to support Oregon's K-12 public schools.

This transfer is the first of several that the Division of State Lands, the administrative arm of the Land Board, will undertake to complete the selection of land owed to the state as a condition of Oregon's admission to the union in 1859.

It was thought for many years that the Common School Fund had already been given all the land to which it was entitled at statehood. However, a 1991 lawsuit determined that the state had yet to receive around 4,000 acres.

The Bend property, known as Section 11 (and also called the Stevens Road Tract), is adjacent to the urban growth boundary. While the bulk of the property is outside the city limits and zoned Exclusive Farm Use, 11 acres are within Bend and zoned for low density housing. The Central Oregon Irrigation District canal runs across the northwest corner.

In announcing the transfer of this property to the Land Board, Division Director Paul R. Cleary said, "The state is fortunate to have been able to select a property with substantial future earning potential for the Common School Fund. We are also pleased with the support the project has received from the Bend community and the Bureau of Land Management's extensive cooperation and assistance in processing the selection."

During the past two years, the Division of State Lands has worked with the City of Bend, Deschutes County, and the local parks and school districts on a master planning effort to identify potential short and long-term uses for the Stevens Road Tract.

The short-term plan provides for uses that are compatible with the existing zoning (land use includes a commercial plant nursery a neighborhood retail center, and park, agriculture and grazing uses). The Bend Metro Parks and Recreation Agency is interested in leasing about 120 acres for a soccer complex.

Over the coming months, the Division of State Lands will be soliciting proposals for leasing all or part of the property for uses consistent with the short-term plan.

In the long-term, as growth in Bend allows for expansion of the urban growth boundary, the site could provide for a local government complex, park, school, and a retail and commercial center, as well as for residential uses.