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Council gives consensus to pursue Southern Oregon ESD proposal for historic city building

Klamath Falls City Council · June 1, 2026
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Summary

Staff reported a proposal from the Southern Oregon Education Service District to buy (for $450,000 with 20% down) or lease (15 years at $3,500/month) the historic 500 Clamoth Avenue building to use as a regional education hub; council gave staff consensus to proceed with negotiations while one member stepped away from the vote to avoid perceived favoritism.

City staff reported June 1 that the Southern Oregon Education Service District submitted a proposal to acquire or lease the historic municipal building at 500 Clamoth Avenue. The district proposed either a purchase for $450,000 with a 20% down payment or a lease for $3,500 per month over a 15‑year term with a 1% annual escalation.

Staff said the district intends to use the facility as a regional hub for educational services, professional development, community meetings and family engagement events and estimated about 19 personnel would work at the site. The proposal included commitments to preserve the building’s historic character and to maintain public accessibility, including continued council use of the chambers.

Staff recommended that the council accept the proposal and authorize the city manager to negotiate terms and return with a finalized agreement. One councilor stepped away from the decision to avoid any perception of favoritism because a relative works for the district; the remainder of council gave consensus to direct staff to proceed.

Staff will bring back negotiated terms for formal council consideration if parties reach agreement.