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McMinnville council directs staff to pursue sale of air easements near Ty Park, agrees on opt‑in fee policy
Summary
After hearing an appraisal that removing rear‑lot air easements could raise lot values roughly $40,000–$85,000 each, the council voted 6–0 to direct staff to pursue sale of city‑owned air easements affecting properties adjacent to Ty Park. Council agreed to an opt‑in release process with a fee model tied to a percentage of appraised gain and a five‑year appraisal validity window.
The City Attorney presented an appraisal and legal analysis showing recorded air easements over the rear 100‑foot strips behind lots adjacent to Ty Park limit buildability. David Lightenberg told council that, under city code, “once the air easement is removed, they would be considered buildable” and that the appraisal estimated increased market value per lot between roughly $40,000 and $85,000.
The long discussion that followed balanced homeowner equity, historic understandings at the time parcels were sold, and the city’s interest in funding and protecting Ty Park. Councilors raised several concerns: some homeowners had existing structures within the easement footprint (one house appears to have been built that way long ago), while others would see a large speculative increase in land value if easements were removed. Staff explained the easement records and the original sale terms (options sold as part of the Ty Park transaction) and noted a small original purchase price for those back parcels.
On the policy path, councilors reached consensus on several points and gave staff direction: release air easements only upon property owner request (opt‑in), set a fee tied to appraisal gain rather than a flat token fee, and accept an appraisal priced to the current report for a limited window to avoid repeated appraisal costs. After discussion, the prevailing approach set a fee benchmark of about 10% of the appraised increase in value (as indicated by council members during the debate) and a five‑year appraisal validity period; staff will formalize the structure as part of the sale process.
Council then formally adopted Resolution 2026‑24 directing staff to pursue sale of city‑owned air easements affecting the properties between Northwest 25th Street and Ty Park. The resolution passed unanimously (6–0). The council also asked staff to (a) ensure proceeds or a portion be available for Ty Park development/maintenance as discussed, (b) craft a public‑hearing schedule and sale process that provides notice to all affected property owners, and (c) return with clear fee and accounting language for approval.
Why it matters: removing recorded easements converts otherwise constrained back parcels into buildable lots, increasing the taxable base and potentially producing revenue for park improvements; but it also changes property values and taxes for adjacent homeowners and requires transparent, equitable processes.
What happens next: staff will prepare public‑hearing materials, draft sale procedure language, and a final fee and accounting approach (including the proposed 10% of appraised gain formula and five‑year appraisal window) for a subsequent council decision and public hearing.
