West Linn to pursue purchase of two county-held parcels, including stormwater tract

West Linn — The City Council voted unanimously on Oct. 14 to authorize staff to pursue acquisition of two small tax lots offered by Clackamas County, including a stormwater tract the city has maintained for more than 20 years.

Public works director Eric Lays told the council the parcels include a quarter-acre lot off Reed Street that could support a future street connection and a track listed in the Cascade Summit plat that contains a stormwater facility the city has long maintained. “It’s currently an existing stormwater facility. It’s been an existing stormwater facility for 20 plus years,” Lays said.

Why it matters: staff said securing ownership would protect an existing drainage facility that serves nearby townhomes and a commercial development and would remove uncertainty created by the parcel’s history of foreclosure and county custody. The stormwater tract appears to be entangled in a broader class-action lawsuit against counties over surplus proceeds from tax-foreclosure auctions, which complicates a straight conveyance.

City attorney staff advised that the cleanest way to obtain the stormwater tract is to purchase it at the county auction so the city receives title “free and clear” of prior entanglements; the attorney added that staff will confirm in writing that the city will not be required to indemnify the county against that litigation. As staff described it, the other Reed Street parcel is available for a negotiated purchase offer rather than auction.

Kristen, a staff associate who researched the litigation, described the class action: “The class action is a very broad class action for counties that were selling properties ... for more than the back taxes and then keeping those back taxes,” she said, summarizing the complaints behind ongoing litigation that affects some county-held auction properties.

Councilors asked whether the city’s recorded stormwater easements protect its operations and whether condemnation would be an option if a private buyer purchased the tract. Legal staff confirmed the city holds recorded 15-foot stormwater easements that provide legal rights to the stormwater system and said condemnation is a potential tool if necessary.

Council President Baumgartner moved to adopt Resolution 2025-14 approving the acquisition of the listed tax lots; the motion passed unanimously on roll call. Staff said they will monitor county auction timing, prepare bid limits, and confirm contract language to ensure the city does not assume liability from the class-action matter if it acquires title.

What’s next: staff will pursue the negotiated purchase for the Reed Street parcel and prepare to bid at auction for the stormwater tract once the county posts sale terms and a revised opening price. Legal counsel will ensure purchase documents reflect the advice provided to council.

Sources: Presentation by Eric Lays, public works director; city attorney comments and staff research presented during the Oct. 14 West Linn City Council meeting.