Lake Oswego seeks to acquire future treatment plant property by eminent domain

The city of Lake Oswego and a property owner have yet to reach an agreement for the sale of land the local government plans to use for a new wastewater treatment plant in the Foothills area.

In turn, the city filed an eminent domain motion in Clackamas County Circuit Court earlier this week to force the sale of the property.

The court filing noted that the city offered about $1.1 million for the property occupied by Lannie’s Marines and formerly used by Erickson Automotive (which closed in 2023), but the offer was rejected. The site, located at 101 Foothills Road, was previously owned by LanJet LLC and Hunsinger Springs LLC.“Plaintiff, through its agents, has attempted to acquire the Property by negotiation but has been unable to reach an agreement,” the court filing reads.

The city is purchasing a number of properties in the Foothills area to accommodate a new wastewater treatment plant, which it needs to do to meet environmental regulations. It considered revamping the current plant owned by the city of Portland but determined that building a new plant would be more cost effective.

Oregon law allows local governments to take property at an appraised sales price for public use. Lannie’s Marine and Erickson Automotive owners lamented in 2022 the city’s push to take the property and having to relocate somewhere else. The city is required to help businesses impacted by eminent domain relocate.

The business owners and their representatives also worried that they wouldn’t receive fair market value for the property and noted that land values in the area may increase if the Lake Oswego government continues to pursue redevelopment there.

The property owners can now issue their own appraisal and the sales price may be determined in court.