Tumwater committee endorses putting Deschutes Valley property purchase before council for consideration

The City of Tumwater Public Works Committee voted June 5 to place a real estate contract with LOTT Clean Water Alliance for the purchase of three Deschutes Valley parcels on the Aug. 19, 2025 City Council agenda for consideration, with a recommendation to authorize the mayor to sign if council approves.

"These properties really can serve a number of different goals," a staff presenter said during a detailed briefing on the proposal. City staff described the three parcels as roughly 45 acres in total that were formerly acquired by LOTT (LOTT Clean Water Alliance) for reclaimed water production but were declared surplus after LOTT revised its capital plan. A refreshed Phase I environmental assessment completed in 2024 and LOTT’s mitigation work were described as reducing—but not eliminating—environmental liabilities.

Staff told the committee the parcels were appraised at about $3.9 million and that the parties negotiated a lower purchase price. Under the negotiated installment purchase agreement discussed at the meeting, the city would pay over a multi-year schedule; staff presented an example annual payment of $572,193.11 over six years at a stated 3% interest rate. Staff also said LOTT is providing a $300,000 environmental mitigation fund for potential subsurface issues and a $225,000 building mitigation fund to address demolition and removal of specific structures.

City staff described potential public uses including economic development consistent with the comprehensive plan and Brewery District planning, transportation connectivity (notably an E Street connection across the valley floor), habitat restoration along the Deschutes River, trails and event parking. Staff cautioned the site is constrained by floodplain conditions, a railroad alignment that limits through-access, and structures that will require demolition or mitigation. Staff recommended timing the purchase to allow the city to continue operating under existing agreements for events (for example, July 4 and Brewfest) this summer and to begin city control and negotiation with the railroad by September.

Committee members asked about contamination risk, cost of remediation, interim site security and whether the city intended to sell or lease the property. Staff said the refreshed Phase I and LOTT’s prior mitigation work provided no strong indication of significant subsurface contamination; the $300,000 mitigation fund is intended to reduce risk if further subsurface work is required. Staff did not commit to future sale or lease and described the acquisition as intended to give the city control over a key piece of property to support the planned-action EIS and future public infrastructure planning.

A motion to place the real estate contract with LOTT Clean Water Alliance on the Aug. 19 council agenda for consideration passed with committee members voting "aye." The committee’s action forwards the negotiated purchase and installment agreement for council consideration; final authorization and closing will depend on subsequent council action and any required approvals.