October 9, 2007

FORE!
City votes to sign deal for world-class golf course just across the river

By RODGER NICHOLS
of The Chronicle

The long-awaited world-class golf course just across The Dalles Bridge took a giant step toward reality Monday.

The Dalles City Council voted to allow City Manager Nolan Young to sign all lease agreements and options for the golf course development with Roseland Property Group, LLC.

The plan, if completely developed, calls for not only a golf course, but also several housing and lodging developments, and an executive airport complex.

The council voted 4-0 in favor of the motion. Councilman Jim Broehl, who chaired the meeting in the absence of Mayor Robb Van Cleave, recused himself from the vote due to a potential conflict of interest. He is a member of the firm that is the fixed base operator for the airport.

Roseland principals Roy and Linda Rose of West Linn were on hand for the meeting along with Steve Tessmer, who has long been involved with plans for the property and is associated with the Roses for this project.

Monday night’s city council vote makes general terms of the agreement public for the first time. The agreement still requires approval from Klickitat County, which will consider the proposal at its Oct. 16 meeting. The Federal Aviation Administration must also approve the plan.

The agreement covers three areas: lease and construction of the golf course, an option to purchase two additional parcels and an option to lease a third parcel on which an “executive terminal” would be constructed.

Under the first agreement, Roseland will lease a total of 235.7 acres of City of The Dalles and Klickitat County property between the Columbia Gorge Regional Airport and Highway 197. Approximately 96.4 acres of city/county property and an additional 7.5 acres of adjoining property would be used to construct a links-style golf course designed by John Fought.

Other significant lease elements include:
• The lease period would be 30 years with two 10-year options.
• The lease would be priced at an annual rate equal to five percent of the June 11, 2006 appraised value of $15,000 per acre. That translates to $750 per acre per year for the golf course proper, or $77,700 per year total.
• The airport can develop the unencumbered area (that not used for the golf course) for some noncompeting agricultural use. Currently, wine grapes are the current goal.
• Roseland must start construction of the golf course by Dec. 1, 2008 if all the permits have been obtained. There is a provision for extension if needed.
• Rent is not required until the golf course opens.
• Years one through five, the rent is to be paid in a lump sum at the end of the year.
• After year five, the rent is due monthly.
• Rent is adjusted by the cost of living index after five years, and annually thereafter.

Under the option to purchase agreement, Roseland has an option to purchase two parcels of land adjacent to the golf course property. Those parcels, are identified as “bluff,” 24.9 acres along Dallesport Road, and “meadow,” 19.5 acres along Highway 197 just north of the interchange with Dallesport Road.

Roseland can choose either parcel as its primary option and will have up to five years to exercise the option. The price would be 100 percent of the appraised value as of June 11, 2007, which would be good for one year. After that, the purchase price would rise annually by an amount tied to the consumer price index, which measures inflation. The option could not be exercised until Roseland has obtained an irrevocable line of credit for construction of the golf course.

The second parcel’s option would be for two years after the exercise of the first option.

The parcels were zoned June 11 for lodge and resort use.

A preliminary utility connection plan filed with Klickitat County shows a development of 144 single family homes, identified as “The Vineyard” just north of the golf course. Immediately adjacent to The Vineyard would be “Sundoon Village,” an 80-unit mix of townhouses and lodging units. Access would be directly off Highway 197. The two option parcels, “Sundoon Meadows” and
“Sundoon Bluff,” would each contain 70 units.

A third portion of the agreement concerns an option to lease approximately 31.9 acres between the golf course and the restricted area of the airport’s runway 30.
That option would run in five-year increments up to 20 years. Once exercised, the lease would be for 50 years with two 10-year extensions. Rent would be set at 21 cents per square foot of “encumbered area,” meaning the area used for buildings and associated parking. That figure would be adjusted in relation to the consumer price index after five years, and annually thereafter. Roseland would receive a 50 percent rebate annually on the cost of construction of any public infrastructure that Roseland installs, until the cumulative value of the rebate equals the cost of construction.

Once the option is exercised on this property, Roseland will have two years to build an executive terminal on the property, which would contain a moderate sized restaurant, a conference room, a pro shop, and public infrastructure of tarmac, taxiways, roadway, utilities and security. Access to the new executive terminal would be directly off Dallesport Road at the west end of the Sundoon Bluff development,

The airport would pursue grant funding to assist with public infrastructure costs, and would receive free use of some areas of the terminal building, including offices, lobby, counter area and shared restrooms.

The terminal would cover approximately three tenths of an acre,

After the vote, Roy Rose said, “We really appreciate the community support and we hope to make this our residence as well, We are very excited about this.”